(Mark One) | ||||||||
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
For the quarterly period ended: | September 30, 2020 | |||||||
OR | ||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period to For the transition period to |
Maryland | 62-1507028 | ||||
(State or other jurisdiction of Incorporation or organization) | (I.R.S. Employer Identification No.) |
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 |
PART I - FINANCIAL INFORMATION | ||||||||
PART II - OTHER INFORMATION | ||||||||
SIGNATURE |
ASSETS | ASSETS | |||||||||||||
Unaudited JUNE 30, 2020 | DECEMBER 31, 2019 | Unaudited SEPTEMBER 30, 2020 | DECEMBER 31, 2019 | |||||||||||
Real estate properties | Real estate properties | |||||||||||||
Land | $ | 312,139 | $ | 289,751 | Land | $ | 330,840 | $ | 289,751 | |||||
Buildings, improvements and lease intangibles | 3,937,657 | 3,986,326 | Buildings, improvements and lease intangibles | 4,014,740 | 3,986,326 | |||||||||
Personal property | 10,849 | 10,538 | Personal property | 10,962 | 10,538 | |||||||||
Construction in progress | — | 48,731 | Construction in progress | 0 | 48,731 | |||||||||
Land held for development | 24,647 | 24,647 | Land held for development | 24,647 | 24,647 | |||||||||
Total real estate properties | 4,285,292 | 4,359,993 | Total real estate properties | 4,381,189 | 4,359,993 | |||||||||
Less accumulated depreciation and amortization | (1,169,298 | ) | (1,121,102 | ) | Less accumulated depreciation and amortization | (1,198,444) | (1,121,102) | |||||||
Total real estate properties, net | 3,115,994 | 3,238,891 | Total real estate properties, net | 3,182,745 | 3,238,891 | |||||||||
Cash and cash equivalents | 43,680 | 657 | Cash and cash equivalents | 121,992 | 657 | |||||||||
Restricted cash | Restricted cash | 60,644 | 0 | |||||||||||
Assets held for sale, net | — | 37 | Assets held for sale, net | 20,051 | 37 | |||||||||
Operating lease right-of-use assets | 124,398 | 126,177 | Operating lease right-of-use assets | 123,807 | 126,177 | |||||||||
Financing lease right-of-use assets | 19,884 | 12,667 | Financing lease right-of-use assets | 19,776 | 12,667 | |||||||||
Net investment in sales-type leases | 244,381 | — | ||||||||||||
Other assets, net | 183,616 | 185,426 | Other assets, net | 182,436 | 185,426 | |||||||||
Total assets | $ | 3,731,953 | $ | 3,563,855 | Total assets | $ | 3,711,451 | $ | 3,563,855 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Liabilities | Liabilities | |||||||||||||
Notes and bonds payable | $ | 1,554,936 | $ | 1,414,069 | Notes and bonds payable | $ | 1,554,395 | $ | 1,414,069 | |||||
Accounts payable and accrued liabilities | 65,485 | 78,517 | Accounts payable and accrued liabilities | 79,528 | 78,517 | |||||||||
Liabilities of properties held for sale | — | 145 | ||||||||||||
Liabilities of assets held for sale | Liabilities of assets held for sale | 548 | 145 | |||||||||||
Operating lease liabilities | 91,259 | 91,574 | Operating lease liabilities | 91,466 | 91,574 | |||||||||
Financing lease liabilities | 18,595 | 18,037 | Financing lease liabilities | 18,697 | 18,037 | |||||||||
Other liabilities | 72,317 | 61,504 | Other liabilities | 66,442 | 61,504 | |||||||||
Total liabilities | 1,802,592 | 1,663,846 | Total liabilities | 1,811,076 | 1,663,846 | |||||||||
Commitments and contingencies | Commitments and contingencies | |||||||||||||
Stockholders' equity | 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; 136,048 and 134,706 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 1,360 | 1,347 | ||||||||||||
Preferred stock, $.01 par value per share; 50,000 shares authorized; NaN issued and outstanding | Preferred stock, $.01 par value per share; 50,000 shares authorized; NaN issued and outstanding | 0 | 0 | |||||||||||
Common stock, $.01 par value per share; 300,000 shares authorized; 136,054 and 134,706 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | Common stock, $.01 par value per share; 300,000 shares authorized; 136,054 and 134,706 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 1,361 | 1,347 | |||||||||||
Additional paid-in capital | 3,529,559 | 3,485,003 | Additional paid-in capital | 3,532,130 | 3,485,003 | |||||||||
Accumulated other comprehensive loss | (20,294 | ) | (6,175 | ) | Accumulated other comprehensive loss | (19,267) | (6,175) | |||||||
Cumulative net income attributable to common stockholders | 1,207,132 | 1,127,304 | Cumulative net income attributable to common stockholders | 1,215,362 | 1,127,304 | |||||||||
Cumulative dividends | (2,788,396 | ) | (2,707,470 | ) | Cumulative dividends | (2,829,211) | (2,707,470) | |||||||
Total stockholders' equity | 1,929,361 | 1,900,009 | Total stockholders' equity | 1,900,375 | 1,900,009 | |||||||||
Total liabilities and stockholders' equity | $ | 3,731,953 | $ | 3,563,855 | Total liabilities and stockholders' equity | $ | 3,711,451 | $ | 3,563,855 |
THREE MONTHS ENDED June 30, | SIX MONTHS ENDED June 30, | THREE MONTHS ENDED September 30, | NINE MONTHS ENDED September 30, | |||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Revenues | Revenues | |||||||||||||||||||||||||
Rental income | $ | 122,358 | $ | 114,351 | $ | 245,001 | $ | 225,046 | Rental income | $ | 123,384 | $ | 117,740 | $ | 368,385 | $ | 342,787 | |||||||||
Other operating | 1,332 | 1,966 | 3,496 | 3,928 | Other operating | 1,868 | 2,059 | 5,364 | 5,987 | |||||||||||||||||
123,690 | 116,317 | 248,497 | 228,974 | 125,252 | 119,799 | 373,749 | 348,774 | |||||||||||||||||||
Expenses | Expenses | |||||||||||||||||||||||||
Property operating | 46,580 | 44,286 | 96,134 | 87,012 | Property operating | 50,171 | 46,777 | 146,305 | 133,790 | |||||||||||||||||
General and administrative | 7,434 | 7,845 | 16,199 | 16,355 | General and administrative | 7,299 | 10,802 | 23,498 | 27,157 | |||||||||||||||||
Acquisition and pursuit costs | 431 | 422 | 1,181 | 726 | Acquisition and pursuit costs | 440 | 501 | 1,621 | 1,227 | |||||||||||||||||
Depreciation and amortization | 47,691 | 43,926 | 95,188 | 86,588 | Depreciation and amortization | 47,143 | 45,137 | 142,331 | 131,725 | |||||||||||||||||
102,136 | 96,479 | 208,702 | 190,681 | |||||||||||||||||||||||
105,053 | 103,217 | 313,755 | 293,899 | |||||||||||||||||||||||
Other Income (Expense) | Other Income (Expense) | |||||||||||||||||||||||||
Gain on sales of real estate assets | 68,267 | 4,849 | 68,218 | 4,865 | Gain on sales of real estate assets | 2,177 | 200 | 70,395 | 5,065 | |||||||||||||||||
Interest expense | (14,442 | ) | (13,850 | ) | (28,402 | ) | (27,438 | ) | Interest expense | (14,154) | (14,181) | (42,556) | (41,619) | |||||||||||||
Impairment of real estate assets | — | (5,610 | ) | — | (5,610 | ) | Impairment of real estate assets | — | — | — | (5,610) | |||||||||||||||
Interest and other income (expense), net | 134 | (743 | ) | 217 | (735 | ) | Interest and other income (expense), net | 8 | — | 225 | (736) | |||||||||||||||
(11,969) | (13,981) | 28,064 | (42,900) | |||||||||||||||||||||||
53,959 | (15,354 | ) | 40,033 | (28,918 | ) | |||||||||||||||||||||
Net Income | $ | 75,513 | $ | 4,484 | $ | 79,828 | $ | 9,375 | Net Income | $ | 8,230 | $ | 2,601 | $ | 88,058 | $ | 11,975 | |||||||||
Basic earnings per common share | $ | 0.56 | $ | 0.03 | $ | 0.59 | $ | 0.07 | Basic earnings per common share | $ | 0.06 | $ | 0.02 | $ | 0.65 | $ | 0.08 | |||||||||
Diluted earnings per common share | $ | 0.56 | $ | 0.03 | $ | 0.59 | $ | 0.07 | Diluted earnings per common share | $ | 0.06 | $ | 0.02 | $ | 0.65 | $ | 0.08 | |||||||||
Weighted average common shares outstanding - basic | 133,634 | 127,449 | 133,335 | 125,799 | Weighted average common shares outstanding - basic | 134,309 | 128,090 | 133,662 | 126,571 | |||||||||||||||||
Weighted average common shares outstanding - diluted | 133,696 | 127,525 | 133,420 | 125,889 | Weighted average common shares outstanding - diluted | 134,357 | 128,169 | 133,736 | 126,657 | |||||||||||||||||
Dividends declared, per common share, during the period | $ | 0.30 | $ | 0.30 | $ | 0.60 | $ | 0.60 | Dividends declared, per common share, during the period | $ | 0.30 | $ | 0.30 | $ | 0.90 | $ | 0.90 |
THREE MONTHS ENDED September 30, | NINE MONTHS ENDED September 30, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||
Net income | $ | 8,230 | $ | 2,601 | $ | 88,058 | $ | 11,975 | ||||||
Other comprehensive income (loss) | ||||||||||||||
Interest rate swaps | ||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | 1,101 | 60 | 2,367 | 74 | ||||||||||
Losses arising during the period on interest rate swaps | (74) | (2,341) | (11,192) | (7,642) | ||||||||||
Losses on settlement of treasury rate locks arising during the period | 0 | 0 | (4,267) | 0 | ||||||||||
1,027 | (2,281) | (13,092) | (7,568) | |||||||||||
Comprehensive income | $ | 9,257 | $ | 320 | $ | 74,966 | $ | 4,407 |
THREE MONTHS ENDED June 30, | SIX MONTHS ENDED June 30, | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Net income | $ | 75,513 | $ | 4,484 | $ | 79,828 | $ | 9,375 | ||||
Other comprehensive income (loss) | ||||||||||||
Interest rate swaps | ||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | 938 | (1 | ) | 1,267 | 15 | |||||||
Losses arising during the period on interest rate swaps | (1,455 | ) | (4,577 | ) | (11,119 | ) | (5,301 | ) | ||||
Losses on settlement of treasury rate locks arising during the period | — | — | (4,267 | ) | — | |||||||
(517 | ) | (4,578 | ) | (14,119 | ) | (5,286 | ) | |||||
Comprehensive income (loss) | $ | 74,996 | $ | (94 | ) | $ | 65,709 | $ | 4,089 |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | Balance at June 30, 2020 | $ | 1,360 | $ | 3,529,559 | $ | (20,294) | $ | 1,207,132 | $ | (2,788,396) | $ | 1,929,361 | |||||||||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | Issuance of common stock, net of issuance costs | 1 | 126 | — | — | — | 127 | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | — | 2,445 | — | — | — | 2,445 | |||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 8,230 | — | 8,230 | |||||||||||||||||||||||||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | Reclassification adjustments for losses included in net income (interest expense) | — | — | 1,101 | — | — | 1,101 | |||||||||||||||||||||||||||||||||||||
Losses arising during the period on interest rate swaps and treasury rate locks | Losses arising during the period on interest rate swaps and treasury rate locks | — | — | (74) | — | — | (74) | |||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.30 per share) | Dividends to common stockholders ($0.30 per share) | — | — | — | — | (40,815) | (40,815) | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | Balance at September 30, 2020 | $ | 1,361 | $ | 3,532,130 | $ | (19,267) | $ | 1,215,362 | $ | (2,829,211) | $ | 1,900,375 | |||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | Balance at June 30, 2019 | $ | 1,292 | $ | 3,305,344 | $ | (6,189) | $ | 1,097,493 | $ | (2,628,497) | $ | 1,769,443 | |||||||||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | 11 | 33,031 | — | — | — | 33,042 | Issuance of common stock, net of issuance costs | 22 | 71,792 | — | — | — | 71,814 | |||||||||||||||||||||||||||||||
Common stock redemptions | Common stock redemptions | — | (2,695) | — | — | — | (2,695) | |||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 2,405 | — | — | — | 2,405 | Share-based compensation | — | 5,131 | — | — | — | 5,131 | |||||||||||||||||||||||||||||||
Net income | — | — | — | 75,513 | — | 75,513 | Net income | — | — | — | 2,601 | — | 2,601 | |||||||||||||||||||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | — | — | 938 | — | — | 938 | Reclassification adjustments for losses included in net income (interest expense) | — | — | 60 | — | — | 60 | |||||||||||||||||||||||||||||||
Losses arising during the period on interest rate swaps | — | — | (1,455 | ) | — | — | (1,455 | ) | Losses arising during the period on interest rate swaps | — | — | (2,341) | — | — | (2,341) | |||||||||||||||||||||||||||||
Dividends to common stockholders ($0.30 per share) | — | — | — | — | (40,510 | ) | (40,510 | ) | Dividends to common stockholders ($0.30 per share) | — | — | — | — | (38,852) | (38,852) | |||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 1,360 | $ | 3,529,559 | $ | (20,294 | ) | $ | 1,207,132 | $ | (2,788,396 | ) | $ | 1,929,361 | ||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | 1,292 | $ | 3,302,814 | $ | (1,611 | ) | $ | 1,093,010 | $ | (2,589,726 | ) | $ | 1,805,779 | ||||||||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | — | 159 | — | — | — | 159 | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 2,371 | — | — | — | 2,371 | ||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 4,484 | — | 4,484 | ||||||||||||||||||||||||||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||||||||||||||||
Losses arising during the period on interest rate swaps | — | — | (4,577 | ) | — | — | (4,577 | ) | ||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.30 per share) | — | — | — | — | (38,771 | ) | (38,771 | ) | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 1,292 | $ | 3,305,344 | $ | (6,189 | ) | $ | 1,097,494 | $ | (2,628,497 | ) | $ | 1,769,444 | ||||||||||||||||||||||||||||||
Balance at September 30, 2019 | Balance at September 30, 2019 | $ | 1,314 | $ | 3,379,572 | $ | (8,470) | $ | 1,100,094 | $ | (2,667,349) | $ | 1,805,161 |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | 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 | 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 | Issuance of common stock, net of issuance costs | 13 | 40,477 | — | — | — | 40,490 | |||||||||||||||||||||||||||||||
Common stock redemptions | — | (798 | ) | — | — | — | (798 | ) | Common stock redemptions | — | (798) | — | — | — | (798) | |||||||||||||||||||||||||||||
Share-based compensation | 1 | 5,003 | — | — | — | 5,004 | Share-based compensation | 1 | 7,448 | — | — | — | 7,449 | |||||||||||||||||||||||||||||||
Net income | — | — | — | 79,828 | — | 79,828 | Net income | — | — | — | 88,058 | — | 88,058 | |||||||||||||||||||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | — | — | 1,267 | — | — | 1,267 | Reclassification adjustments for losses included in net income (interest expense) | — | — | 2,367 | — | — | 2,367 | |||||||||||||||||||||||||||||||
Losses arising during the period on interest rate swaps | — | — | (15,386 | ) | — | — | (15,386 | ) | Losses arising during the period on interest rate swaps | — | — | (15,459) | — | — | (15,459) | |||||||||||||||||||||||||||||
Dividends to common stockholders ($0.60 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 | ||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.90 per share) | Dividends to common stockholders ($0.90 per share) | — | — | — | — | (121,741) | (121,741) | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | Balance at September 30, 2020 | $ | 1,361 | $ | 3,532,130 | $ | (19,267) | $ | 1,215,362 | $ | (2,829,211) | $ | 1,900,375 | |||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 1,253 | $ | 3,180,284 | $ | (902 | ) | $ | 1,088,119 | $ | (2,552,112 | ) | $ | 1,716,642 | Balance at December 31, 2018 | $ | 1,253 | $ | 3,180,284 | $ | (902) | $ | 1,088,119 | $ | (2,552,112) | $ | 1,716,642 | |||||||||||||||||
Issuance of common stock, net of issuance costs | 38 | 120,620 | — | — | — | 120,658 | Issuance of common stock, net of issuance costs | 61 | 192,414 | — | — | — | 192,475 | |||||||||||||||||||||||||||||||
Common stock redemptions | — | (570 | ) | — | — | — | (570 | ) | Common stock redemptions | (1) | (3,266) | — | — | — | (3,267) | |||||||||||||||||||||||||||||
Share-based compensation | 1 | 5,010 | — | — | — | 5,011 | Share-based compensation | 1 | 10,140 | — | — | — | 10,141 | |||||||||||||||||||||||||||||||
Net income | — | — | — | 9,375 | — | 9,375 | Net income | — | — | — | 11,975 | — | 11,975 | |||||||||||||||||||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | — | — | 14 | — | — | 14 | Reclassification adjustments for losses included in net income (interest expense) | — | — | 74 | — | — | 74 | |||||||||||||||||||||||||||||||
Losses arising during the period on interest rate swaps | — | — | (5,301 | ) | — | — | (5,301 | ) | Losses arising during the period on interest rate swaps | — | — | (7,642) | — | — | (7,642) | |||||||||||||||||||||||||||||
Dividends to common stockholders ($0.60 per share) | — | — | — | — | (76,385 | ) | (76,385 | ) | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 1,292 | $ | 3,305,344 | $ | (6,189 | ) | $ | 1,097,494 | $ | (2,628,497 | ) | $ | 1,769,444 | ||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.90 per share) | Dividends to common stockholders ($0.90 per share) | — | — | — | — | (115,237) | (115,237) | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | Balance at September 30, 2019 | $ | 1,314 | $ | 3,379,572 | $ | (8,470) | $ | 1,100,094 | $ | (2,667,349) | $ | 1,805,161 |
OPERATING ACTIVITIES | OPERATING ACTIVITIES | |||||||||||||
SIX MONTHS ENDED June 30, | NINE MONTHS ENDED September 30, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||
Net income | $ | 79,828 | $ | 9,375 | Net income | $ | 88,058 | $ | 11,975 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 95,188 | 86,588 | Depreciation and amortization | 142,331 | 131,725 | |||||||||
Other amortization | 2,510 | 1,547 | Other amortization | 3,409 | 2,279 | |||||||||
Share-based compensation | 5,004 | 5,011 | Share-based compensation | 7,449 | 10,141 | |||||||||
Amortization of straight-line rent receivable (lessor) | (1,807 | ) | (1,063 | ) | Amortization of straight-line rent receivable (lessor) | (2,722) | (1,833) | |||||||
Amortization of straight-line rent on operating leases (lessee) | 749 | 776 | Amortization of straight-line rent on operating leases (lessee) | 1,122 | 1,159 | |||||||||
Gain on sales of real estate assets | (68,218 | ) | (4,865 | ) | Gain on sales of real estate assets | (70,395) | (5,065) | |||||||
Impairment of real estate assets | — | 5,610 | Impairment of real estate assets | — | 5,610 | |||||||||
Loss from unconsolidated joint ventures | 127 | 3 | Loss from unconsolidated joint ventures | 194 | 16 | |||||||||
Distributions from unconsolidated joint ventures | 184 | 277 | Distributions from unconsolidated joint ventures | 193 | 277 | |||||||||
Proceeds from disposition of sales-type lease properties | Proceeds from disposition of sales-type lease properties | 244,454 | 0 | |||||||||||
Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | |||||||||||||
Other assets, including right-of-use-assets | (1,272 | ) | (2,015 | ) | Other assets, including right-of-use-assets | (965) | (6,740) | |||||||
Accounts payable and accrued liabilities | (5,902 | ) | (8,621 | ) | Accounts payable and accrued liabilities | 5,098 | 3,220 | |||||||
Other liabilities | (1,152 | ) | (1,943 | ) | Other liabilities | (6,662) | 5,709 | |||||||
Net cash provided by operating activities | 105,239 | 90,680 | Net cash provided by operating activities | 411,564 | 158,473 | |||||||||
INVESTING ACTIVITIES | INVESTING ACTIVITIES | |||||||||||||
Acquisitions of real estate | (87,417 | ) | (193,295 | ) | Acquisitions of real estate | (199,162) | (271,575) | |||||||
Development of real estate | (2,678 | ) | (13,006 | ) | Development of real estate | (2,941) | (19,152) | |||||||
Additional long-lived assets | (44,316 | ) | (30,892 | ) | Additional long-lived assets | (62,707) | (45,902) | |||||||
Proceeds from sales of real estate assets | — | 12,118 | Proceeds from sales of real estate assets | 4,905 | 14,151 | |||||||||
Net cash used in investing activities | (134,411 | ) | (225,075 | ) | Net cash used in investing activities | (259,905) | (322,478) | |||||||
FINANCING ACTIVITIES | FINANCING ACTIVITIES | |||||||||||||
Net (repayments) borrowings on unsecured credit facility | (293,000 | ) | 58,000 | Net (repayments) borrowings on unsecured credit facility | (293,000) | 60,000 | ||||||||
Borrowings on term loan | 150,000 | 50,000 | Borrowings on term loan | 150,000 | 50,000 | |||||||||
Borrowings of notes and bonds payable | 298,995 | — | Borrowings of notes and bonds payable | 298,995 | — | |||||||||
Repayments of notes and bonds payable | (31,698 | ) | (11,483 | ) | Repayments of notes and bonds payable | (32,704) | (12,663) | |||||||
Dividends paid | (80,926 | ) | (76,386 | ) | Dividends paid | (121,741) | (115,237) | |||||||
Net proceeds from issuance of common stock | 40,169 | 120,668 | Net proceeds from issuance of common stock | 40,296 | 192,514 | |||||||||
Common stock redemptions | (892 | ) | (2,442 | ) | Common stock redemptions | (892) | (2,343) | |||||||
Settlement of treasury rate locks | (4,267 | ) | — | Settlement of treasury rate locks | (4,267) | — | ||||||||
Debt issuance and assumption costs | (3,018 | ) | (4,584 | ) | Debt issuance and assumption costs | (3,057) | (4,589) | |||||||
Payments made on finance leases | (3,168 | ) | (142 | ) | Payments made on finance leases | (3,310) | (249) | |||||||
Net cash provided by financing activities | 72,195 | 133,631 | Net cash provided by financing activities | 30,320 | 167,433 | |||||||||
Increase (decrease) in cash and cash equivalents | 43,023 | (764 | ) | |||||||||||
Increase in cash, cash equivalents and restricted cash | Increase in cash, cash equivalents and restricted cash | 181,979 | 3,428 | |||||||||||
Cash and cash equivalents at beginning of period | 657 | 8,381 | Cash and cash equivalents at beginning of period | 657 | 8,381 | |||||||||
Cash and cash equivalents at end of period | 43,680 | $ | 7,617 | |||||||||||
Cash, cash equivalents and restricted cash at end of period | Cash, cash equivalents and restricted cash at end of period | $ | 182,636 | $ | 11,809 | |||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information | |||||||||||||
Interest paid | $ | 26,101 | $ | 26,512 | Interest paid | $ | 39,165 | $ | 37,946 | |||||
Invoices accrued for construction, tenant improvements and other capitalized costs | $ | 10,013 | $ | 10,853 | Invoices accrued for construction, tenant improvements and other capitalized costs | $ | 12,709 | $ | 10,702 | |||||
Mortgage notes payable assumed upon acquisition (adjusted to fair value) | $ | 19,269 | $ | — | Mortgage notes payable assumed upon acquisition (adjusted to fair value) | $ | 19,269 | $ | — | |||||
Capitalized interest | $ | 706 | $ | 651 | Capitalized interest | $ | 913 | $ | 999 |
THREE MONTHS ENDED June 30, | SIX MONTHS ENDED June 30, | |||||||||||
in thousands | 2020 | 2019 | 2020 | 2019 | ||||||||
Type of Revenue | ||||||||||||
Parking income | $ | 1,227 | $ | 1,870 | $ | 3,278 | $ | 3,603 | ||||
Rental lease guaranty | — | — | — | 128 | ||||||||
Management fee income | 69 | 64 | 147 | 133 | ||||||||
Miscellaneous | 36 | 32 | 71 | 64 | ||||||||
$ | 1,332 | $ | 1,966 | $ | 3,496 | $ | 3,928 |
THREE MONTHS ENDED September 30, | NINE MONTHS ENDED September 30, | |||||||||||||
in thousands | 2020 | 2019 | 2020 | 2019 | ||||||||||
Type of Revenue | ||||||||||||||
Parking income | $ | 1,764 | $ | 1,935 | $ | 5,042 | $ | 5,538 | ||||||
Rental lease guaranty | 0 | 0 | 0 | 128 | ||||||||||
Management fee income | 62 | 69 | 209 | 201 | ||||||||||
Miscellaneous | 42 | 55 | 113 | 120 | ||||||||||
$ | 1,868 | $ | 2,059 | $ | 5,364 | $ | 5,987 |
In thousands | September 30, 2020 | December 31, 2019 | ||||||
Cash and cash equivalents | $ | 121,992 | $ | 657 | ||||
Restricted cash | 60,644 | 0 | ||||||
Total cash, cash equivalents and restricted cash | $ | 182,636 | $ | 657 |
Dollars in millions | TYPE 1 | DATE ACQUIRED | PURCHASE PRICE | MORTGAGE NOTES PAYABLE | CASH CONSIDERATION 2 | REAL ESTATE | OTHER 3 | SQUARE FOOTAGE | |||||||||||||||||||||
Los Angeles, CA | MOB | 1/3/20 | $ | 42.0 | $ | (19.3) | $ | 22.8 | $ | 42.4 | $ | (0.3) | 86,986 | ||||||||||||||||
Atlanta, GA | MOB | 2/13/20 | 12.0 | 0 | 11.8 | 12.1 | (0.3) | 64,624 | |||||||||||||||||||||
Raleigh, NC | MOB | 2/25/20 | 6.3 | 0 | 6.5 | 6.5 | 0 | 15,964 | |||||||||||||||||||||
Colorado Springs, CO | MOB | 3/9/20 | 8.2 | 0 | 8.3 | 8.6 | (0.3) | 34,210 | |||||||||||||||||||||
Denver, CO 4 | MOB | 3/13/20 | 33.5 | 0 | 33.2 | 34.0 | (0.8) | 136,994 | |||||||||||||||||||||
San Diego, CA | MOB | 7/1/20 | 16.7 | 0 | 16.7 | 16.9 | (0.2) | 46,083 | |||||||||||||||||||||
Los Angeles, CA | MOB | 7/17/20 | 35.0 | 0 | 37.7 | 37.7 | 0 | 49,785 | |||||||||||||||||||||
Seattle, WA | MOB | 7/23/20 | 11.0 | 0 | 10.9 | 11.3 | (0.4) | 21,309 | |||||||||||||||||||||
Atlanta, GA | MOB | 7/31/20 | 20.5 | 0 | 21.6 | 21.3 | 0.3 | 48,145 | |||||||||||||||||||||
Houston, TX | MOB | 9/24/20 | 11.0 | 0 | 10.9 | 11.0 | (0.1) | 40,235 | |||||||||||||||||||||
Los Angeles, CA | MOB | 9/28/20 | 14.0 | 0 | 14.0 | 13.9 | 0.1 | 24,252 | |||||||||||||||||||||
Total real estate acquisitions | $ | 210.2 | $ | (19.3) | $ | 194.4 | $ | 215.7 | $ | (2.0) | 568,587 | ||||||||||||||||||
Land acquisition 5 | 1.6 | 0 | 1.7 | 1.7 | 0 | 0 | |||||||||||||||||||||||
Land acquisition 6 | 1.0 | 0 | 1.1 | 1.1 | 0 | 0 | |||||||||||||||||||||||
$ | 212.8 | $ | (19.3) | $ | 197.2 | $ | 218.5 | $ | (2.0) | 568,587 |
Dollars in millions | TYPE 1 | DATE ACQUIRED | PURCHASE PRICE | MORTGAGE NOTES PAYABLE | CASH CONSIDERATION 2 | REAL ESTATE | OTHER 3 | SQUARE FOOTAGE | |||||||||||
Los Angeles, CA | MOB | 1/3/20 | $ | 42.0 | $ | (19.3 | ) | $ | 22.8 | $ | 42.4 | $ | (0.3 | ) | 86,986 | ||||
Atlanta, GA | MOB | 2/13/20 | 12.0 | — | 11.8 | 12.1 | (0.3 | ) | 64,624 | ||||||||||
Raleigh, NC | MOB | 2/25/20 | 6.3 | — | 6.5 | 6.5 | — | 15,964 | |||||||||||
Colorado Springs, CO | MOB | 3/9/20 | 8.2 | — | 8.3 | 8.6 | (0.3 | ) | 34,210 | ||||||||||
Denver, CO 4 | MOB | 3/13/20 | 33.5 | — | 33.2 | 34.0 | (0.8 | ) | 136,994 | ||||||||||
Total real estate acquisitions | $ | 102.0 | $ | (19.3 | ) | $ | 82.6 | $ | 103.6 | $ | (1.7 | ) | 338,778 | ||||||
Land acquisition 5 | 1.6 | — | 1.7 | 1.7 | — | — | |||||||||||||
$ | 103.6 | $ | (19.3 | ) | $ | 84.3 | $ | 105.3 | $ | (1.7 | ) | 338,778 |
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 3 properties. 5The Company acquired land parcels under 4 existing buildings (previously ground leased). 6The Company acquired a land parcel under an existing building (previously ground leased). The building and land were sold on September 30, 2020. |
Dollars in millions | TYPE 1 | Date Disposed | Sale 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 | $ | 138.0 | $ | 0 | $ | 138.0 | $ | 92.4 | $ | 3.9 | $ | 41.7 | 186,000 | ||||||||||||||
Oklahoma City, OK 3 | MOB | 7/30/20 | 106.5 | 0 | 106.5 | 76.8 | 3.1 | 26.6 | 200,000 | ||||||||||||||||||||
Miami, FL | MOB | 9/30/20 | 5.0 | (0.2) | 4.8 | 2.6 | 0.1 | 2.1 | 26,000 | ||||||||||||||||||||
Total dispositions | $ | 249.5 | $ | (0.2) | $ | 249.3 | $ | 171.8 | $ | 7.1 | $ | 70.4 | 412,000 |
Dollars in millions | TYPE | DATE ACQUIRED | PURCHASE PRICE | SQUARE FOOTAGE | |||
San Diego, CA | MOB | 7/1/20 | $ | 16.7 | 46,083 | ||
Los Angeles, CA | MOB | 7/17/20 | 35.0 | 49,785 | |||
Seattle, WA | MOB | 7/23/20 | 11.0 | 21,309 | |||
Atlanta, GA | MOB | 7/31/20 | 20.5 | 48,145 | |||
Total real estate acquisitions | $ | 83.2 | 165,322 |
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Balance Sheet data: | ||||||||||||||
Land | $ | 1,664 | $ | 0 | ||||||||||
Building, improvements and lease intangibles | 26,871 | 0 | ||||||||||||
Personal property | 39 | 0 | ||||||||||||
28,574 | 0 | |||||||||||||
Accumulated depreciation | (10,443) | 0 | ||||||||||||
Real estate assets held for sale, net | 18,131 | 0 | ||||||||||||
Other assets, net | 1,920 | 37 | ||||||||||||
Assets held for sale, net | $ | 20,051 | $ | 37 | ||||||||||
Accounts payable and accrued liabilities | $ | 437 | $ | 37 | ||||||||||
Other liabilities | 111 | 108 | ||||||||||||
Liabilities of assets held for sale | $ | 548 | $ | 145 |
SALES-TYPE LEASES | |||||||||||
In thousands | three months ended September 30, 2020 | nine months ended September 30, 2020 | |||||||||
Profit recognized at commencement date | $ | 0 | $ | 68,267 | Gain on sales of real estate assets | ||||||
Interest income | 1,454 | 3,007 | Rental income |
SALES-TYPE LEASES | |||||||
In thousands | three months ended June 30, 2020 | six months ended June 30, 2020 | |||||
Profit recognized at commencement date | $ | 68,267 | $ | 68,267 | Gain on sales of real estate assets | ||
Interest income | 1,553 | 1,553 | Rental income |
In thousands | Operating | |||||||
2020 | $ | 93,722 | ||||||
2021 | 352,341 | |||||||
2022 | 307,166 | |||||||
2023 | 261,187 | |||||||
2024 | 200,578 | |||||||
2025 and thereafter | 555,264 | |||||||
$ | 1,770,258 |
In thousands | Operating | Sales-type 1 | ||||
2020 | $ | 181,180 | $ | 249,042 | ||
2021 | 332,072 | — | ||||
2022 | 290,524 | — | ||||
2023 | 242,546 | — | ||||
2024 | 185,184 | — | ||||
2025 and thereafter | 476,791 | — | ||||
$ | 1,708,297 | $ | 249,042 |
In thousands | OPERATING | FINANCING | ||||||
2020 | $ | 1,008 | $ | 143 | ||||
2021 | 4,844 | 930 | ||||||
2022 | 4,875 | 783 | ||||||
2023 | 4,913 | 793 | ||||||
2024 | 4,969 | 815 | ||||||
2025 and thereafter | 307,665 | 88,808 | ||||||
Total undiscounted lease payments | 328,274 | 92,272 | ||||||
Discount | (236,808) | (73,575) | ||||||
Lease liabilities | $ | 91,466 | $ | 18,697 |
In thousands | OPERATING | FINANCING | ||||
2020 | $ | 2,012 | $ | 286 | ||
2021 | 4,844 | 930 | ||||
2022 | 4,875 | 783 | ||||
2023 | 4,913 | 793 | ||||
2024 | 4,969 | 815 | ||||
2025 and thereafter | 307,665 | 88,808 | ||||
Total undiscounted lease payments | 329,278 | 92,415 | ||||
Discount | (238,019 | ) | (73,820 | ) | ||
Lease liabilities | $ | 91,259 | $ | 18,595 |
THREE MONTHS ENDED September 30, | NINE MONTHS ENDED September 30, | |||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | ||||||||||
Operating lease cost | ||||||||||||||
Operating lease expense | $ | 1,180 | $ | 1,169 | $ | 3,534 | $ | 3,448 | ||||||
Variable lease expense | 1,066 | 845 | 2,664 | 2,380 | ||||||||||
Finance lease cost | ||||||||||||||
Amortization of right-of-use assets | 88 | 51 | 236 | 101 | ||||||||||
Interest on lease liabilities | 245 | 196 | 722 | 392 | ||||||||||
Total lease expense | $ | 2,579 | $ | 2,261 | $ | 7,156 | $ | 6,321 | ||||||
Other information | ||||||||||||||
Operating cash flows outflows related to operating leases | $ | 1,440 | $ | 1,313 | $ | 5,412 | $ | 5,461 | ||||||
Financing cash flows outflows related to financing leases | $ | 143 | $ | 107 | $ | 3,310 | $ | 249 | ||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 0 | $ | 0 | $ | 7,212 | $ | 14,294 | ||||||
Weighted-average remaining lease term (excluding renewal options) - operating leases | 48.9 | 49.7 | ||||||||||||
Weighted-average remaining lease term (excluding renewal options) -finance leases | 64.7 | 70.1 | ||||||||||||
Weighted-average discount rate - operating leases | 5.7 | % | 5.7 | % | ||||||||||
Weighted-average discount rate - finance leases | 5.4 | % | 5.5 | % |
THREE MONTHS ENDED June 30, | SIX MONTHS ENDED June 30, | |||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | ||||||||
Operating lease cost | ||||||||||||
Operating lease expense | $ | 1,175 | $ | 1,163 | $ | 2,349 | $ | 2,279 | ||||
Variable lease expense | 804 | 795 | 1,604 | 1,535 | ||||||||
Finance lease cost | ||||||||||||
Amortization of right-of-use assets | 78 | 51 | 148 | 51 | ||||||||
Interest on lease liabilities | 240 | 196 | 477 | 196 | ||||||||
Total lease expense | $ | 2,297 | $ | 2,205 | $ | 4,578 | $ | 4,061 | ||||
Other information | ||||||||||||
Operating cash flows outflows related to operating leases | $ | 1,416 | $ | 1,402 | $ | 3,972 | $ | 4,173 | ||||
Financing cash flows outflows related to financing leases | $ | 2,847 | $ | 142 | $ | 3,168 | $ | 142 | ||||
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 7,212 | $ | — | $ | 7,212 | $ | 14,294 | ||||
Weighted-average remaining lease term (excluding renewal options) - operating leases | 49.1 | 49.9 | ||||||||||
Weighted-average remaining lease term (excluding renewal options) -finance leases | 65.0 | 70.3 | ||||||||||
Weighted-average discount rate - operating leases | 5.7 | % | 5.5 | % | ||||||||
Weighted-average discount rate - finance leases | 5.4 | % | 5.9 | % |
MATURITY DATES | BALANCE AS OF | EFFECTIVE INTEREST RATE as of 9/30/2020 | ||||||||||||
Dollars in thousands | 9/30/2020 | 12/31/2019 | ||||||||||||
$700 million Unsecured Credit Facility | 5/23 | $ | 0 | $ | 293,000 | N/A | ||||||||
$200 million Unsecured Term Loan Facility, net of issuance costs 1 | 5/24 | 199,180 | 199,013 | 1.99 | % | |||||||||
$150 million Unsecured Term Loan due 2026 2 | 6/26 | 149,455 | 0 | 3.14 | % | |||||||||
Senior Notes due 2023, net of discount and issuance costs | 4/23 | 248,863 | 248,540 | 3.95 | % | |||||||||
Senior Notes due 2025, net of discount and issuance costs 3 | 5/25 | 248,711 | 248,522 | 4.08 | % | |||||||||
Senior Notes due 2028, net of discount and issuance costs | 1/28 | 296,003 | 295,651 | 3.84 | % | |||||||||
Senior Notes due 2030, net of discount and issuance costs 4 | 3/30 | 296,384 | 0 | 2.71 | % | |||||||||
Mortgage notes payable, net of discounts and issuance costs and including premiums | 1/21-4/27 | 115,799 | 129,343 | 4.38 | % | |||||||||
$ | 1,554,395 | $ | 1,414,069 |
MATURITY DATES | BALANCE AS OF | EFFECTIVE INTEREST RATE as of 6/30/2020 | |||||||
Dollars in thousands | 6/30/2020 | 12/31/2019 | |||||||
$700 million Unsecured Credit Facility | 5/23 | $ | — | $ | 293,000 | N/A | |||
$200 million Unsecured Term Loan Facility, net of issuance costs 1 | 5/24 | 199,124 | 199,013 | 2.00 | % | ||||
$150 million Unsecured Term Loan due 2026 2 | 6/26 | 149,431 | — | 3.15 | % | ||||
Senior Notes due 2023, net of discount and issuance costs | 4/23 | 248,756 | 248,540 | 3.95 | % | ||||
Senior Notes due 2025, net of discount and issuance costs 3 | 5/25 | 248,647 | 248,522 | 4.08 | % | ||||
Senior Notes due 2028, net of discount and issuance costs | 1/28 | 295,885 | 295,651 | 3.84 | % | ||||
Senior Notes due 2030, net of discount and issuance costs 4 | 3/30 | 296,299 | — | 2.71 | % | ||||
Mortgage notes payable, net of discounts and issuance costs and including premiums | 1/21-4/27 | 116,794 | 129,343 | 4.38 | % | ||||
$ | 1,554,936 | $ | 1,414,069 |
DERIVATIVE INSTRUMENT | NUMBER OF INSTRUMENTS | NOTIONAL AMOUNT in millions | ||||||
Interest rate swaps | 8 | $175.0 |
BALANCE AT SEPTEMBER 30, 2020 | ||||||||
In thousands | BALANCE SHEET LOCATION | FAIR VALUE | ||||||
Derivatives designated as hedging instruments | ||||||||
Interest rate swaps | Other liabilities | $ | 14,460 | |||||
Total derivatives designated as hedging instruments | $ | 14,460 |
BALANCE AT JUNE 30, 2020 | ||||
In thousands | BALANCE SHEET LOCATION | FAIR VALUE | ||
Derivatives designated as hedging instruments | ||||
Interest rate swaps | Other liabilities | $ | 15,339 | |
Total derivatives designated as hedging instruments | $ | 15,339 |
LOSS RECOGNIZED IN AOCI ON DERIVATIVE three months ended June 30, | (GAIN) LOSS RECLASSIFIED FROM AOCI INTO INCOME three months ended June 30, | LOSS RECOGNIZED IN AOCI ON DERIVATIVE three months ended September 30, | (GAIN) LOSS RECLASSIFIED FROM AOCI INTO INCOME three months ended September 30, | |||||||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||
Interest rate swaps | $ | 1,455 | $ | 4,577 | Interest expense | $ | 789 | $ | (43 | ) | Interest rate swaps | $ | 74 | $ | 2,341 | Interest expense | $ | 952 | $ | 18 | ||||||||||
Settled treasury hedges | — | — | Interest expense | 107 | — | Settled treasury hedges | 0 | 0 | Interest expense | 107 | 0 | |||||||||||||||||||
Settled interest rate swaps | — | — | Interest expense | 42 | 42 | Settled interest rate swaps | 0 | 0 | Interest expense | 42 | 42 | |||||||||||||||||||
$ | 1,455 | $ | 4,577 | Total interest expense | $ | 938 | $ | (1 | ) | $ | 74 | $ | 2,341 | Total interest expense | $ | 1,101 | $ | 60 |
LOSS RECOGNIZED IN AOCI ON DERIVATIVE six months ended June 30, | (GAIN) LOSS RECLASSIFIED FROM AOCI INTO INCOME six months ended June 30, | LOSS RECOGNIZED IN AOCI ON DERIVATIVE nine months ended September 30, | (GAIN) LOSS RECLASSIFIED FROM AOCI INTO INCOME nine months ended September 30, | |||||||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||
Interest rate swaps | $ | 11,119 | $ | 5,301 | Interest expense | $ | 1,061 | $ | (69 | ) | Interest rate swaps | $ | 11,192 | $ | 7,642 | Interest expense | $ | 2,012 | $ | (52) | ||||||||||
Settled treasury hedges | 4,267 | — | Interest expense | 122 | — | Settled treasury hedges | 4,267 | 0 | Interest expense | 229 | 0 | |||||||||||||||||||
Settled interest rate swaps | — | — | Interest expense | 84 | 84 | Settled interest rate swaps | 0 | 0 | Interest expense | 126 | 126 | |||||||||||||||||||
$ | 15,386 | $ | 5,301 | Total interest expense | $ | 1,267 | $ | 15 | $ | 15,459 | $ | 7,642 | Total interest expense | $ | 2,367 | $ | 74 |
SEPTEMBER 30, 2020 | DECEMBER 31, 2019 | |||||||
Balance, beginning of period | 134,706,154 | 125,279,455 | ||||||
Issuance of common stock | 1,292,324 | 9,251,440 | ||||||
Nonvested share-based awards, net of withheld shares | 55,462 | 175,259 | ||||||
Balance, end of period | 136,053,940 | 134,706,154 |
JUNE 30, 2020 | DECEMBER 31, 2019 | |||
Balance, beginning of period | 134,706,154 | 125,279,455 | ||
Issuance of common stock | 1,286,743 | 9,251,440 | ||
Nonvested share-based awards, net of withheld shares | 55,274 | 175,259 | ||
Balance, end of period | 136,048,171 | 134,706,154 |
•During the first quarter of 2020, the Company sold 196,250 shares generating approximately $7.0 million in net proceeds at prices to the public ranging from $33.00 to $36.15 per share (weighted average of $36.09 per share). •During the second quarter of 2020, the Company sold 1,071,987 shares generating approximately $32.9 million in net proceeds at prices to the public ranging from $30.50 to $31.29 per share (weighted average of $31.08 per share). |
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||||
Dollars in thousands, except per share data | 2020 | 2019 | 2020 | 2019 | ||||||||||
Weighted average common shares outstanding | ||||||||||||||
Weighted average common shares outstanding | 136,048,781 | 129,865,985 | 135,393,798 | 128,348,638 | ||||||||||
Non-vested shares | (1,739,364) | (1,775,911) | (1,731,658) | (1,777,743) | ||||||||||
Weighted average common shares outstanding - basic | 134,309,417 | 128,090,074 | 133,662,140 | 126,570,895 | ||||||||||
Weighted average common shares outstanding - basic | 134,309,417 | 128,090,074 | 133,662,140 | 126,570,895 | ||||||||||
Dilutive effect of forward equity shares | 0 | 0 | 0 | 0 | ||||||||||
Dilutive effect of employee stock purchase plan | 47,810 | 78,610 | 74,029 | 85,690 | ||||||||||
Weighted average common shares outstanding - diluted | 134,357,227 | 128,168,684 | 133,736,169 | 126,656,585 | ||||||||||
Net Income | $ | 8,230 | $ | 2,601 | $ | 88,058 | $ | 11,975 | ||||||
Dividends paid on nonvested share-based awards | (522) | (534) | (1,561) | (1,603) | ||||||||||
Net income applicable to common stockholders | $ | 7,708 | $ | 2,067 | $ | 86,497 | $ | 10,372 | ||||||
Basic earnings per common share - net income | $ | 0.06 | $ | 0.02 | $ | 0.65 | $ | 0.08 | ||||||
Diluted earnings per common share - net income | $ | 0.06 | $ | 0.02 | $ | 0.65 | $ | 0.08 |
THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||||||
Dollars in thousands, except per share data | 2020 | 2019 | 2020 | 2019 | ||||||||
Weighted average common shares outstanding | ||||||||||||
Weighted average common shares outstanding | 135,367,081 | 129,228,102 | 135,062,708 | 127,577,389 | ||||||||
Non-vested shares | (1,733,435 | ) | (1,778,648 | ) | (1,727,762 | ) | (1,778,674 | ) | ||||
Weighted average common shares outstanding - basic | 133,633,646 | 127,449,454 | 133,334,946 | 125,798,715 | ||||||||
Weighted average common shares outstanding - basic | 133,633,646 | 127,449,454 | 133,334,946 | 125,798,715 | ||||||||
Dilutive effect of forward equity shares | — | — | 2,149 | — | ||||||||
Dilutive effect of employee stock purchase plan | 62,266 | 75,153 | 83,217 | 90,640 | ||||||||
Weighted average common shares outstanding - diluted | 133,695,912 | 127,524,607 | 133,420,312 | 125,889,355 | ||||||||
Net Income | $ | 75,513 | $ | 4,484 | $ | 79,828 | $ | 9,375 | ||||
Dividends paid on nonvested share-based awards | (521 | ) | (534 | ) | (1,039 | ) | (1,070 | ) | ||||
Net income applicable to common stockholders | $ | 74,992 | $ | 3,950 | $ | 78,789 | $ | 8,305 | ||||
Basic earnings per common share - net income | $ | 0.56 | $ | 0.03 | $ | 0.59 | $ | 0.07 | ||||
Diluted earnings per common share - net income | $ | 0.56 | $ | 0.03 | $ | 0.59 | $ | 0.07 |
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||
Share-based awards, beginning of period | 1,739,258 | 1,778,134 | 1,754,066 | 1,769,863 | ||||||||||
Granted | 188 | 0 | 79,025 | 89,767 | ||||||||||
Vested 1 | 0 | (204,548) | (93,645) | (286,044) | ||||||||||
Share-based awards, end of period | 1,739,446 | 1,573,586 | 1,739,446 | 1,573,586 |
THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Share-based awards, beginning of period | 1,724,761 | 1,784,127 | 1,754,066 | 1,769,863 | ||||
Granted | 39,493 | 24,996 | 78,837 | 89,767 | ||||
Vested | (24,996 | ) | (30,989 | ) | (93,645 | ) | (81,496 | ) |
Share-based awards, end of period | 1,739,258 | 1,778,134 | 1,739,258 | 1,778,134 |
THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Outstanding and exercisable, beginning of period | 370,696 | 390,776 | 332,659 | 328,533 | ||||
Granted | — | — | 212,716 | 235,572 | ||||
Exercised | (2,463 | ) | (4,386 | ) | (14,367 | ) | (19,016 | ) |
Forfeited | (6,514 | ) | (23,172 | ) | (29,495 | ) | (39,797 | ) |
Expired | — | — | (139,794 | ) | (142,074 | ) | ||
Outstanding and exercisable, end of period | 361,719 | 363,218 | 361,719 | 363,218 |
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||
Outstanding and exercisable, beginning of period | 361,719 | 363,218 | 332,659 | 328,533 | ||||||||||
Granted | 0 | 0 | 212,716 | 235,572 | ||||||||||
Exercised | (3,504) | (9,927) | (17,871) | (28,943) | ||||||||||
Forfeited | (6,659) | (11,762) | (36,154) | (51,559) | ||||||||||
Expired | 0 | 0 | (139,794) | (142,074) | ||||||||||
Outstanding and exercisable, end of period | 351,556 | 341,529 | 351,556 | 341,529 |
•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 Consolidated Balance Sheets at fair value. Fair value is estimated by utilizing pricing models that consider forward yield curves and discount rates. |
September 30, 2020 | December 31, 2019 | |||||||||||||
Dollars in millions | CARRYING VALUE | FAIR VALUE | CARRYING VALUE | FAIR VALUE | ||||||||||
Notes and bonds payable 1 | $ | 1,554.4 | $ | 1,621.7 | $ | 1,414.1 | $ | 1,425.8 | ||||||
JUNE 30, 2020 | DECEMBER 31, 2019 | |||||||||||
Dollars in millions | CARRYING VALUE | FAIR VALUE | CARRYING VALUE | FAIR VALUE | ||||||||
Notes and bonds payable 1 | $ | 1,554.9 | $ | 1,622.8 | $ | 1,414.1 | $ | 1,425.8 |
Dollars in millions | HEALTH SYSTEM AFFILIATION | DATE ACQUIRED | PURCHASE PRICE | SQUARE FOOTAGE | CAP RATE | MILES TO CAMPUS | ||||||||||||||
Los Angeles, CA | MemorialCare Health | 1/3/20 | $ | 42.0 | 86,986 | 5.3 | % | 0.14 | ||||||||||||
Atlanta, GA | Wellstar Health System | 2/13/20 | 12.0 | 64,624 | 5.6 | % | 0.10 | |||||||||||||
Raleigh, NC | WakeMed Health | 2/25/20 | 6.3 | 15,964 | 6.7 | % | 0.04 | |||||||||||||
Colorado Springs, CO | None | 3/9/20 | 8.2 | 34,210 | 6.5 | % | 1.60 | |||||||||||||
Denver, CO 1 | UCHealth | 3/13/20 | 33.5 | 136,994 | 6.1 | % | 0.24 | |||||||||||||
San Diego, CA | Palomar Health | 7/1/20 | 16.7 | 46,083 | 5.9 | % | 0.04 | |||||||||||||
Los Angeles, CA | Cedars-Sinai/Huntington | 7/17/20 | 35.0 | 49,785 | 5.4 | % | 0.11 | |||||||||||||
Seattle, WA | MultiCare Health System | 7/23/20 | 11.0 | 21,309 | 5.6 | % | 0.06 | |||||||||||||
Atlanta, GA | Wellstar Health System | 7/31/20 | 20.5 | 48,145 | 6.2 | % | 0.13 | |||||||||||||
Houston, TX | Memorial Hermann Health | 9/24/20 | 11.0 | 40,235 | 5.6 | % | 0.03 | |||||||||||||
Los Angeles, CA | Providence St. Joseph Health | 9/28/20 | 14.0 | 24,252 | 5.6 | % | 0.03 | |||||||||||||
Total real estate acquisitions | $ | 210.2 | 568,587 | 5.7 | % | |||||||||||||||
Land acquisition 2 | 1.6 | — | ||||||||||||||||||
Land acquisition 3 | 1.0 | — | ||||||||||||||||||
$ | 212.8 | 568,587 |
Dollars in millions | HEALTH SYSTEM AFFILIATION | DATE ACQUIRED | PURCHASE PRICE | SQUARE FOOTAGE | CAP RATE | MILES TO CAMPUS | |||||
Los Angeles, CA | MemorialCare Health | 1/3/20 | $ | 42.0 | 86,986 | 5.3 | % | 0.14 | |||
Atlanta, GA | Wellstar Health System | 2/13/20 | 12.0 | 64,624 | 5.6 | % | 0.10 | ||||
Raleigh, NC | WakeMed Health | 2/25/20 | 6.3 | 15,964 | 6.7 | % | 0.04 | ||||
Colorado Springs, CO | None | 3/9/20 | 8.2 | 34,210 | 6.5 | % | 1.60 | ||||
Denver, CO 1 | UCHealth | 3/13/20 | 33.5 | 136,994 | 6.1 | % | 0.24 | ||||
Total real estate acquisitions | $ | 102.0 | 338,778 | 5.8 | % | ||||||
Land acquisition 2 | 1.6 | — | |||||||||
$ | 103.6 | 338,778 |
Dollars in millions | TYPE | DATE ACQUIRED | PURCHASE PRICE | SQUARE FOOTAGE | |||
San Diego, CA | MOB | 7/1/20 | $ | 16.7 | 46,083 | ||
Los Angeles, CA | MOB | 7/17/20 | 35.0 | 49,785 | |||
Seattle, WA | MOB | 7/23/20 | 11.0 | 21,309 | |||
Atlanta, GA | MOB | 7/31/20 | 20.5 | 48,145 | |||
Total real estate acquisitions | $ | 83.2 | 165,322 |
Dollars in millions | Date Disposed | Sales Price | Square Footage | 3Q 2020 NOI | Disposition Cap Rate | Property Type | |||||||||||||||||
Springfield, MO | 7/30/20 | $ | 138.0 | 186,000 | $ | 0.8 | 7.5 | % | SF | ||||||||||||||
Oklahoma City, OK | 7/30/20 | 106.5 | 200,000 | 0.6 | 7.5 | % | MOB | ||||||||||||||||
Miami, FL | 9/30/20 | 5.0 | 26,000 | — | 3.9 | % | MOB | ||||||||||||||||
Total dispositions | $ | 249.5 | 412,000 | $ | 1.4 | 7.4 | % |
•During the first quarter of 2020, the Company sold 196,250 shares generating approximately $7.0 million in net proceeds at prices to the public ranging from $33.00 to $36.15 per share (weighted average of $36.09 per share). •During the second quarter of 2020, the Company sold 1,071,987 shares generating approximately $32.9 million in net proceeds at prices to the public ranging from $30.50 to $31.29 per share (weighted average of $31.08 per share). |
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 | % |
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 | % |
NUMBER OF PROPERTIES | GROSS REAL ESTATE INVESTMENT AS OF SEPTEMBER 30, 2020 | ||||||||||||||||
YEAR EXERCISABLE | MOB | INPATIENT | FAIR MARKET VALUE METHOD 1 | NON FAIR MARKET VALUE METHOD 2 | TOTAL | ||||||||||||
Current 3 | 3 | 1 | $ | 96,865 | $ | — | $ | 96,865 | |||||||||
2021 | 1 | — | — | 14,984 | 14,984 | ||||||||||||
2022 | — | — | — | — | — | ||||||||||||
2023 | — | — | — | — | — | ||||||||||||
2024 | — | — | — | — | — | ||||||||||||
2025 | 4 | — | 48,165 | 19,459 | 67,624 | ||||||||||||
2026 | — | — | — | — | — | ||||||||||||
2027 | — | — | — | — | — | ||||||||||||
2028 | 1 | — | 43,961 | — | 43,961 | ||||||||||||
2029 | 1 | — | 26,494 | — | 26,494 | ||||||||||||
2030 and thereafter | 4 | — | 101,118 | — | 101,118 | ||||||||||||
Total | 14 | 1 | $ | 316,603 | $ | 34,443 | $ | 351,046 |
NUMBER OF PROPERTIES | GROSS REAL ESTATE INVESTMENT AS OF JUNE 30, 2020 | ||||||||||||
YEAR EXERCISABLE | MOB | INPATIENT | FAIR MARKET VALUE METHOD 1 | NON FAIR MARKET VALUE METHOD 2 | TOTAL | ||||||||
Current 3 | 3 | 1 | $ | 96,613 | $ | — | $ | 96,613 | |||||
2021 | 1 | — | — | 14,984 | 14,984 | ||||||||
2022 | — | — | — | — | — | ||||||||
2023 | — | — | — | — | — | ||||||||
2024 | — | — | — | — | — | ||||||||
2025 | 4 | — | 48,165 | 19,459 | 67,624 | ||||||||
2026 | — | — | — | — | — | ||||||||
2027 | — | — | — | — | — | ||||||||
2028 | 1 | — | 43,957 | — | 43,957 | ||||||||
2029 | 1 | — | 26,494 | — | 26,494 | ||||||||
2030 and thereafter | 4 | — | 100,718 | — | 100,718 | ||||||||
Total | 14 | 1 | $ | 315,947 | $ | 34,443 | $ | 350,390 |
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||||
Amounts in thousands, except per share data | 2020 | 2019 | 2020 | 2019 | ||||||||||
Net income | $ | 8,230 | $ | 2,601 | $ | 88,058 | $ | 11,975 | ||||||
(Gain) on sales of real estate assets | (2,177) | (200) | (70,395) | (5,065) | ||||||||||
Impairment of real estate assets | — | — | — | 5,610 | ||||||||||
Real estate depreciation and amortization | 48,295 | 45,926 | 145,564 | 133,993 | ||||||||||
FFO attributable to common stockholders | $ | 54,348 | $ | 48,327 | $ | 163,227 | $ | 146,513 | ||||||
Acquisition and pursuit costs 1 | 440 | 501 | 1,621 | 1,227 | ||||||||||
Lease intangible amortization | (35) | 5 | 694 | 143 | ||||||||||
Accelerated Stock Awards | — | 2,854 | — | 2,854 | ||||||||||
Debt financing costs | — | — | — | 760 | ||||||||||
Normalized FFO attributable to common stockholders | $ | 54,753 | $ | 51,687 | $ | 165,542 | $ | 151,497 | ||||||
Non-real estate depreciation and amortization | 785 | 838 | 2,430 | 2,430 | ||||||||||
Non-cash interest expense amortization 2 | 934 | 727 | 2,715 | 2,136 | ||||||||||
Provision for bad debt, net | (144) | (32) | 718 | 43 | ||||||||||
Straight-line rent, net | (535) | (379) | (1,577) | (650) | ||||||||||
Stock-based compensation 3 | 2,445 | 2,375 | 7,449 | 7,386 | ||||||||||
Normalized FFO adjusted for non-cash items | $ | 58,238 | $ | 55,216 | $ | 177,277 | $ | 162,842 | ||||||
2nd generation TI | (5,323) | (6,114) | (17,368) | (16,564) | ||||||||||
Leasing commissions paid | (1,999) | (2,697) | (7,081) | (6,359) | ||||||||||
Capital additions | (4,580) | (3,543) | (12,827) | (11,998) | ||||||||||
FAD | $ | 46,336 | $ | 42,862 | $ | 140,001 | $ | 127,921 | ||||||
FFO per common share - diluted | $ | 0.40 | $ | 0.37 | $ | 1.21 | $ | 1.15 | ||||||
Normalized FFO per common share - diluted | $ | 0.41 | $ | 0.40 | $ | 1.23 | $ | 1.19 | ||||||
FFO weighted average common shares outstanding - diluted 4 | 135,159 | 129,015 | 134,537 | 127,424 |
THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||||||
Amounts in thousands, except per share data | 2020 | 2019 | 2020 | 2019 | ||||||||
Net income | $ | 75,513 | $ | 4,484 | $ | 79,828 | $ | 9,375 | ||||
(Gain) on sales of real estate assets | (68,267 | ) | (4,849 | ) | (68,218 | ) | (4,865 | ) | ||||
Impairment of real estate assets | — | 5,610 | — | 5,610 | ||||||||
Real estate depreciation and amortization | 48,657 | 44,682 | 97,269 | 88,066 | ||||||||
FFO attributable to common stockholders | $ | 55,903 | $ | 49,927 | $ | 108,879 | $ | 98,186 | ||||
Acquisition and pursuit costs 1 | 431 | 422 | 1,181 | 726 | ||||||||
Lease intangible amortization | (16 | ) | 54 | 729 | 138 | |||||||
Debt financing costs | — | 760 | — | 760 | ||||||||
Normalized FFO attributable to common stockholders | $ | 56,318 | $ | 51,163 | $ | 110,789 | $ | 99,810 | ||||
Non-real estate depreciation and amortization | 822 | 829 | 1,645 | 1,592 | ||||||||
Non-cash interest expense amortization 2 | 1,035 | 707 | 1,781 | 1,409 | ||||||||
Provision for bad debt, net | 945 | 150 | 862 | 75 | ||||||||
Straight-line rent, net | (382 | ) | (1 | ) | (1,042 | ) | (271 | ) | ||||
Stock-based compensation | 2,405 | 2,372 | 5,003 | 5,011 | ||||||||
Normalized FFO adjusted for non-cash items | $ | 61,143 | $ | 55,220 | $ | 119,038 | $ | 107,626 | ||||
2nd generation TI | (6,005 | ) | (6,124 | ) | (12,045 | ) | (10,450 | ) | ||||
Leasing commissions paid | (2,258 | ) | (2,315 | ) | (5,082 | ) | (3,662 | ) | ||||
Capital additions | (4,777 | ) | (4,993 | ) | (8,247 | ) | (8,455 | ) | ||||
FAD | $ | 48,103 | $ | 41,788 | $ | 93,664 | $ | 85,059 | ||||
FFO per common share - diluted | $ | 0.42 | $ | 0.39 | $ | 0.81 | $ | 0.78 | ||||
Normalized FFO per common share - diluted | $ | 0.42 | $ | 0.40 | $ | 0.83 | $ | 0.79 | ||||
FFO weighted average common shares outstanding - diluted 3 | 134,464 | 128,279 | 134,221 | 126,615 |
NUMBER OF PROPERTIES | GROSS INVESTMENT at June 30, 2020 | SAME STORE CASH NOI for the three months ended June 30, | NUMBER OF PROPERTIES | GROSS INVESTMENT at September 30, 2020 | SAME STORE CASH NOI for the three months ended September 30, | ||||||||||||||||||||
Dollars in thousands | 2020 | 2019 | Dollars in thousands | 2020 | 2019 | ||||||||||||||||||||
Multi-tenant properties | 161 | $ | 3,314,437 | $ | 58,998 | $ | 58,258 | Multi-tenant properties | 156 | $ | 3,237,143 | $ | 57,663 | $ | 56,317 | ||||||||||
Single-tenant net lease properties | 12 | 256,795 | 5,799 | 5,887 | Single-tenant net lease properties | 12 | 257,229 | 6,033 | 5,870 | ||||||||||||||||
Total | 173 | $ | 3,571,232 | $ | 64,797 | $ | 64,145 | Total | 168 | $ | 3,494,372 | $ | 63,696 | $ | 62,187 |
THREE MONTHS ENDED SEPTEMBER 30, | ||||||||
Dollars in thousands | 2020 | 2019 | ||||||
Net income | $ | 8,230 | $ | 2,601 | ||||
Other income (expense) | 11,969 | 13,981 | ||||||
General and administrative expense | 7,299 | 10,802 | ||||||
Depreciation and amortization expense | 47,143 | 45,137 | ||||||
Other expenses 1 | 2,737 | 2,462 | ||||||
Straight-line rent revenue | (915) | (770) | ||||||
Other revenue 2 | (3,062) | (1,726) | ||||||
Cash NOI | 73,401 | 72,487 | ||||||
Cash NOI not included in same store | (9,705) | (10,300) | ||||||
Same store cash NOI | 63,696 | 62,187 | ||||||
Reposition NOI | 1,358 | 1,660 | ||||||
Same store and reposition cash NOI | $ | 65,054 | $ | 63,847 |
THREE MONTHS ENDED JUNE 30, | ||||||
Dollars in thousands | 2020 | 2019 | ||||
Net income | $ | 75,513 | $ | 4,484 | ||
Other income (expense) | (53,959 | ) | 15,354 | |||
General and administrative expense | 7,434 | 7,845 | ||||
Depreciation and amortization expense | 47,691 | 43,926 | ||||
Other expenses 1 | 2,185 | 1,965 | ||||
Straight-line rent revenue | (390 | ) | (8 | ) | ||
Other revenue 2 | (3,213 | ) | (1,447 | ) | ||
Cash NOI | 75,261 | 72,119 | ||||
Cash NOI not included in same store | (10,464 | ) | (7,974 | ) | ||
Same store cash NOI | 64,797 | 64,145 | ||||
Reposition NOI | 374 | 550 | ||||
Same store and reposition cash NOI | $ | 65,171 | $ | 64,695 |
AS OF SEPTEMBER 30, 2020 | ||||||||||||||
PROPERTY COUNT | GROSS INVESTMENT | SQUARE FEET | OCCUPANCY | |||||||||||
Same store properties | 168 | $ | 3,494,372 | 12,795,403 | 88.4 | % | ||||||||
Acquisitions | 31 | 647,974 | 1,667,990 | 91.4 | % | |||||||||
Development completions | 1 | 51,889 | 151,031 | 60.5 | % | |||||||||
Reposition | 11 | 142,381 | 859,004 | 62.1 | % | |||||||||
Total owned real estate properties | 211 | $ | 4,336,616 | 15,473,428 | 87.0 | % |
AS OF JUNE 30, 2020 | |||||||||
PROPERTY COUNT | GROSS INVESTMENT | SQUARE FEET | OCCUPANCY | ||||||
Same store properties | 173 | $ | 3,571,232 | 13,330,771 | 88.4 | % | |||
Acquisitions | 26 | 535,170 | 1,455,265 | 89.2 | % | ||||
Development completions | 1 | 51,677 | 151,031 | 60.5 | % | ||||
Reposition | 10 | 85,991 | 523,159 | 46.9 | % | ||||
Total owned real estate properties | 210 | $ | 4,244,070 | 15,460,226 | 86.8 | % |
THREE MONTHS ENDED JUNE 30, | CHANGE | ||||||||||
Dollars in thousands | 2020 | 2019 | $ | % | |||||||
Property operating | $ | 111,076 | $ | 102,818 | $ | 8,258 | 8.0 | % | |||
Single-tenant net lease | 10,518 | 11,138 | (620 | ) | (5.6 | )% | |||||
Straight-line rent | 764 | 395 | 369 | 93.4 | % | ||||||
Rental income | 122,358 | 114,351 | 8,007 | 7.0 | % | ||||||
Other operating | 1,332 | 1,966 | (634 | ) | (32.2 | )% | |||||
Total revenues | $ | 123,690 | $ | 116,317 | $ | 7,373 | 6.3 | % |
THREE MONTHS ENDED JUNE 30, | CHANGE | ||||||||||
Dollars in thousands | 2020 | 2019 | $ | % | |||||||
Contractual interest | $ | 13,453 | $ | 13,292 | $ | 161 | 1.2 | % | |||
Net discount/premium accretion | 204 | 51 | 153 | 300.0 | % | ||||||
Deferred financing costs amortization | 682 | 613 | 69 | 11.3 | % | ||||||
Interest rate swap amortization | 42 | 42 | — | — | % | ||||||
Treasury hedge amortization | 107 | — | 107 | — | % | ||||||
Interest cost capitalization | (286 | ) | (344 | ) | 58 | (16.9 | )% | ||||
Right-of-use assets financing amortization | 240 | 196 | 44 | 22.4 | % | ||||||
Total interest expense | $ | 14,442 | $ | 13,850 | $ | 592 | 4.3 | % |
SIX MONTHS ENDED JUNE 30, | CHANGE | THREE MONTHS ENDED SEPTEMBER 30, | CHANGE | ||||||||||||||||||||||
Dollars in thousands | 2020 | 2019 | $ | % | Dollars in thousands | 2020 | 2019 | $ | % | ||||||||||||||||
Property operating | $ | 222,223 | $ | 201,799 | $ | 20,424 | 10.1 | % | Property operating | $ | 114,921 | $ | 105,805 | $ | 9,116 | 8.6 | % | ||||||||
Single-tenant net lease | 20,971 | 22,184 | (1,213 | ) | (5.5 | )% | Single-tenant net lease | 7,548 | 11,165 | (3,617) | (32.4) | % | |||||||||||||
Straight-line rent | 1,807 | 1,063 | 744 | 70.0 | % | Straight-line rent | 915 | 770 | 145 | 18.8 | % | ||||||||||||||
Rental income | 245,001 | 225,046 | 19,955 | 8.9 | % | Rental income | 123,384 | 117,740 | 5,644 | 4.8 | % | ||||||||||||||
Other operating | 3,496 | 3,928 | (432 | ) | (11.0 | )% | Other operating | 1,868 | 2,059 | (191) | (9.3) | % | |||||||||||||
Total revenues | $ | 248,497 | $ | 228,974 | $ | 19,523 | 8.5 | % | Total revenues | $ | 125,252 | $ | 119,799 | $ | 5,453 | 4.6 | % |
SIX MONTHS ENDED JUNE 30, | CHANGE | THREE MONTHS ENDED SEPTEMBER 30, | CHANGE | ||||||||||||||||||||||
Dollars in thousands | 2020 | 2019 | $ | % | Dollars in thousands | 2020 | 2019 | $ | % | ||||||||||||||||
Contractual interest | $ | 26,850 | $ | 26,485 | $ | 365 | 1.4 | % | Contractual interest | $ | 13,182 | $ | 13,605 | $ | (423) | (3.1) | % | ||||||||
Net discount/premium accretion | 256 | 102 | 154 | 151.0 | % | Net discount/premium accretion | 102 | 72 | 30 | 41.7 | % | ||||||||||||||
Deferred financing costs amortization | 1,319 | 1,222 | 97 | 7.9 | % | Deferred financing costs amortization | 683 | 613 | 70 | 11.4 | % | ||||||||||||||
Interest rate swap amortization | 84 | 84 | — | — | % | Interest rate swap amortization | 42 | 42 | — | — | % | ||||||||||||||
Treasury hedge amortization | 122 | — | 122 | — | % | Treasury hedge amortization | 107 | — | 107 | — | % | ||||||||||||||
Interest cost capitalization | (706 | ) | (651 | ) | (55 | ) | 8.4 | % | Interest cost capitalization | (207) | (347) | 140 | (40.3) | % | |||||||||||
Right-of-use assets financing amortization | 477 | 196 | 281 | 143.4 | % | Right-of-use assets financing amortization | 245 | 196 | 49 | 25.0 | % | ||||||||||||||
Total interest expense | $ | 28,402 | $ | 27,438 | $ | 964 | 3.5 | % | Total interest expense | $ | 14,154 | $ | 14,181 | $ | (27) | (0.2) | % |
NINE MONTHS ENDED SEPTEMBER 30, | CHANGE | |||||||||||||
Dollars in thousands | 2020 | 2019 | $ | % | ||||||||||
Property operating | $ | 337,144 | $ | 307,606 | $ | 29,538 | 9.6 | % | ||||||
Single-tenant net lease | 28,519 | 33,348 | (4,829) | (14.5) | % | |||||||||
Straight-line rent | 2,722 | 1,833 | 889 | 48.5 | % | |||||||||
Rental income | 368,385 | 342,787 | 25,598 | 7.5 | % | |||||||||
Other operating | 5,364 | 5,987 | (623) | (10.4) | % | |||||||||
Total revenues | $ | 373,749 | $ | 348,774 | $ | 24,975 | 7.2 | % |
NINE MONTHS ENDED SEPTEMBER 30, | CHANGE | |||||||||||||
Dollars in thousands | 2020 | 2019 | $ | % | ||||||||||
Contractual interest | $ | 40,031 | $ | 40,091 | $ | (60) | (0.1) | % | ||||||
Net discount/premium accretion | 358 | 174 | 184 | 105.7 | % | |||||||||
Deferred financing costs amortization | 2,003 | 1,835 | 168 | 9.2 | % | |||||||||
Interest rate swap amortization | 126 | 126 | — | — | % | |||||||||
Treasury hedge amortization | 229 | — | 229 | — | % | |||||||||
Interest cost capitalization | (913) | (999) | 86 | (8.6) | % | |||||||||
Right-of-use assets financing amortization | 722 | 392 | 330 | 84.2 | % | |||||||||
Total interest expense | $ | 42,556 | $ | 41,619 | $ | 937 | 2.3 | % |
EXHIBIT | DESCRIPTION | ||||
Exhibit 4.1 | Specimen Stock Certificate 2 | ||||
Exhibit 4.9 | |||||
Exhibit 4.10 | |||||
Exhibit 4.11 | |||||
Exhibit 4.12 | |||||
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) |
HEALTHCARE REALTY TRUST INCORPORATED | ||||||||
By: | ||||||||
/s/ J. CHRISTOPHER DOUGLAS | ||||||||
J. Christopher Douglas | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||