Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

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

The Company continued the redevelopment of a 217,114 square foot medical office building in Dallas, Texas. As of March 31, 2022, the Company had funded approximately $9.4 million in project costs. The building continues to

operate with in-place leases during construction. The first new tenant lease of the redevelopment commenced in the first quarter of 2022.

The Company continued the redevelopment of a medical office building in Tacoma, Washington. As of March 31, 2022, the Company had funded approximately $7.5 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 23,000 square foot tenant lease for the expansion space to commence in the second quarter of 2022.

The Company continued the development 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 third quarter of 2023. As of March 31, 2022, the Company had funded approximately $2.7 million in project costs. The redevelopment includes the demolition of an existing 81,000 square foot medical office building. The Company recognized an impairment charge of $5.0 million related to the existing building in 2021.

During the first quarter of 2022, the Company approved redevelopment projects related to the following:

•Two medical office buildings totaling 158,338 square feet in Washington, DC. The Company has approved a a leasing plan with a capital outlay that is expected to be completed in the first quarter of 2024.

•A medical office building totaling 145,365 square feet in Dallas, Texas. The Company has approved a capital and leasing plan that is expected to be completed in the first quarter of 2024. As of March 31, 2022, the Company has funded $0.3 million in project costs.

•A medical office building totaling 93,992 square feet in Denver, Colorado that is expected to be a part of a larger redevelopment plan to be initiated in 2022.