(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, 2023 | |||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to |
Maryland | 20-4738467 | |||||||
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
www.healthcarerealty.com | ||
(Internet address) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Class A Common Stock, $0.01 par value per share | HR | New York Stock Exchange |
☒ | Yes | ☐ | No | |||||||||||
☒ | Yes | ☐ | No | |||||||||||
☒ | Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | |||||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ||||||||||||||
☐ | |||||||
Item 5 | Other Information | ||||||||
SIGNATURE |
September 30, 2017 | December 31, 2016 | |||||||
ASSETS | ||||||||
Real estate investments: | ||||||||
Land | $ | 480,850 | $ | 386,526 | ||||
Building and improvements | 5,788,837 | 3,466,516 | ||||||
Lease intangibles | 648,591 | 467,571 | ||||||
Construction in progress | 59,573 | — | ||||||
6,977,851 | 4,320,613 | |||||||
Accumulated depreciation and amortization | (973,566 | ) | (817,593 | ) | ||||
Real estate investments, net | 6,004,285 | 3,503,020 | ||||||
Investment in unconsolidated joint venture | 68,303 | — | ||||||
Cash and cash equivalents | 9,410 | 11,231 | ||||||
Restricted cash and escrow deposits | 17,469 | 13,814 | ||||||
Receivables and other assets, net | 206,030 | 173,461 | ||||||
Other intangibles, net | 108,025 | 46,318 | ||||||
Total assets | $ | 6,413,522 | $ | 3,747,844 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Debt | $ | 2,856,758 | $ | 1,768,905 | ||||
Accounts payable and accrued liabilities | 159,070 | 105,034 | ||||||
Derivative financial instruments - interest rate swaps | 1,441 | 1,920 | ||||||
Security deposits, prepaid rent and other liabilities | 61,402 | 49,859 | ||||||
Intangible liabilities, net | 69,852 | 37,056 | ||||||
Total liabilities | 3,148,523 | 1,962,774 | ||||||
Commitments and contingencies | ||||||||
Redeemable noncontrolling interests | 4,692 | 4,653 | ||||||
Equity: | ||||||||
Preferred stock, $0.01 par value; 200,000,000 shares authorized; none issued and outstanding | — | — | ||||||
Class A common stock, $0.01 par value; 1,000,000,000 shares authorized; 200,686,673 and 141,719,134 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 2,007 | 1,417 | ||||||
Additional paid-in capital | 4,386,224 | 2,754,818 | ||||||
Accumulated other comprehensive loss | (615 | ) | — | |||||
Cumulative dividends in excess of earnings | (1,212,051 | ) | (1,068,961 | ) | ||||
Total stockholders’ equity | 3,175,565 | 1,687,274 | ||||||
Noncontrolling interests | 84,742 | 93,143 | ||||||
Total equity | 3,260,307 | 1,780,417 | ||||||
Total liabilities and equity | $ | 6,413,522 | $ | 3,747,844 | ||||
ASSETS | ||||||||
Unaudited JUNE 30, 2023 | DECEMBER 31, 2022 | |||||||
Real estate properties | ||||||||
Land | $ | 1,424,453 | $ | 1,439,798 | ||||
Buildings and improvements | 11,188,821 | 11,332,037 | ||||||
Lease intangibles | 922,029 | 959,998 | ||||||
Personal property | 12,615 | 11,907 | ||||||
Investment in financing receivable, net | 121,315 | 120,236 | ||||||
Financing lease right-of-use assets | 83,016 | 83,824 | ||||||
Construction in progress | 53,311 | 35,560 | ||||||
Land held for development | 78,411 | 74,265 | ||||||
Total real estate properties | 13,883,971 | 14,057,625 | ||||||
Less accumulated depreciation and amortization | (1,983,944) | (1,645,271) | ||||||
Total real estate properties, net | 11,900,027 | 12,412,354 | ||||||
Cash and cash equivalents | 35,904 | 60,961 | ||||||
Assets held for sale, net | 151 | 18,893 | ||||||
Operating lease right-of-use assets | 333,224 | 336,983 | ||||||
Investments in unconsolidated joint ventures | 327,245 | 327,248 | ||||||
Goodwill | 250,530 | 223,202 | ||||||
Other assets, net | 547,266 | 469,990 | ||||||
Total assets | $ | 13,394,347 | $ | 13,849,631 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Liabilities | ||||||||
Notes and bonds payable | $ | 5,340,272 | $ | 5,351,827 | ||||
Accounts payable and accrued liabilities | 196,147 | 244,033 | ||||||
Liabilities of assets held for sale | 222 | 437 | ||||||
Operating lease liabilities | 278,479 | 279,895 | ||||||
Financing lease liabilities | 73,629 | 72,939 | ||||||
Other liabilities | 219,694 | 218,668 | ||||||
Total liabilities | 6,108,443 | 6,167,799 | ||||||
Commitments and contingencies | ||||||||
Redeemable non-controlling interests | 2,487 | 2,014 | ||||||
Stockholders' equity | ||||||||
Preferred stock, $.01 par value per share; 200,000 shares authorized; none issued and outstanding | — | — | ||||||
Class A Common stock, $.01 par value per share; 1,000,000 shares authorized; 380,858 and 380,590 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 3,808 | 3,806 | ||||||
Additional paid-in capital | 9,595,033 | 9,587,637 | ||||||
Accumulated other comprehensive (loss) income | 9,328 | 2,140 | ||||||
Cumulative net income attributable to common stockholders | 1,137,171 | 1,307,055 | ||||||
Cumulative dividends | (3,565,941) | (3,329,562) | ||||||
Total stockholders' equity | 7,179,399 | 7,571,076 | ||||||
Non-controlling interest | 104,018 | 108,742 | ||||||
Total equity | 7,283,417 | 7,679,818 | ||||||
Total liabilities and equity | $ | 13,394,347 | $ | 13,849,631 |
THREE MONTHS ENDED June 30, | SIX MONTHS ENDED June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Revenues | ||||||||||||||
Rental income | $ | 329,680 | $ | 140,632 | $ | 653,773 | $ | 279,121 | ||||||
Interest income | 4,233 | 1,957 | 8,448 | 3,887 | ||||||||||
Other operating | 4,230 | 2,738 | 8,847 | 5,213 | ||||||||||
338,143 | 145,327 | 671,068 | 288,221 | |||||||||||
Expenses | ||||||||||||||
Property operating | 125,395 | 57,010 | 247,436 | 114,474 | ||||||||||
General and administrative | 15,464 | 10,540 | 30,399 | 21,576 | ||||||||||
Acquisition and pursuit costs | 669 | 1,352 | 956 | 2,655 | ||||||||||
Merger-related costs | (15,670) | 7,085 | (10,815) | 13,201 | ||||||||||
Depreciation and amortization | 183,193 | 55,731 | 367,671 | 109,772 | ||||||||||
309,051 | 131,718 | 635,647 | 261,678 | |||||||||||
Other income (expense) | ||||||||||||||
Gain on sales of real estate properties | 7,156 | 8,496 | 8,162 | 53,280 | ||||||||||
Interest expense | (65,334) | (15,543) | (129,092) | (29,204) | ||||||||||
Loss on extinguishment of debt | — | — | — | (1,429) | ||||||||||
Impairment of real estate properties and credit loss reserves | (55,215) | — | (86,637) | 25 | ||||||||||
Equity loss from unconsolidated joint ventures | (17) | (307) | (797) | (652) | ||||||||||
Interest and other income (expense), net | 592 | (125) | 1,139 | (206) | ||||||||||
(112,818) | (7,479) | (207,225) | 21,814 | |||||||||||
Net (loss) income | $ | (83,726) | $ | 6,130 | $ | (171,804) | $ | 48,357 | ||||||
Net loss attributable to non-controlling interests | 967 | — | 1,920 | — | ||||||||||
Net (loss) income attributable to common stockholders | $ | (82,759) | $ | 6,130 | $ | (169,884) | $ | 48,357 | ||||||
Basic earnings per common share | $ | (0.22) | $ | 0.04 | $ | (0.45) | $ | 0.32 | ||||||
Diluted earnings per common share | $ | (0.22) | $ | 0.04 | $ | (0.45) | $ | 0.32 | ||||||
Weighted average common shares outstanding - basic | 378,897 | 149,676 | 378,861 | 149,321 | ||||||||||
Weighted average common shares outstanding - diluted | 378,897 | 149,739 | 378,861 | 149,397 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Rental income | $ | 175,431 | $ | 118,252 | $ | 438,949 | $ | 338,646 | |||||||
Interest and other operating income | 563 | 88 | 1,271 | 243 | |||||||||||
Total revenues | 175,994 | 118,340 | 440,220 | 338,889 | |||||||||||
Expenses: | |||||||||||||||
Rental | 56,331 | 36,885 | 138,874 | 105,299 | |||||||||||
General and administrative | 8,283 | 7,293 | 25,178 | 20,879 | |||||||||||
Transaction | 261 | 1,122 | 5,618 | 4,997 | |||||||||||
Depreciation and amortization | 70,491 | 47,864 | 172,900 | 130,430 | |||||||||||
Impairment | — | — | 5,093 | — | |||||||||||
Total expenses | 135,366 | 93,164 | 347,663 | 261,605 | |||||||||||
Income before other income (expense) | 40,628 | 25,176 | 92,557 | 77,284 | |||||||||||
Interest expense: | |||||||||||||||
Interest related to derivative financial instruments | (264 | ) | (552 | ) | (827 | ) | (1,856 | ) | |||||||
Gain (loss) on change in fair value of derivative financial instruments, net | — | 1,306 | 884 | (2,144 | ) | ||||||||||
Total interest related to derivative financial instruments, including net change in fair value of derivative financial instruments | (264 | ) | 754 | 57 | (4,000 | ) | |||||||||
Interest related to debt | (25,924 | ) | (16,386 | ) | (59,688 | ) | (44,503 | ) | |||||||
Gain on sale of real estate, net | — | — | 3 | 4,212 | |||||||||||
Loss on extinguishment of debt, net | (774 | ) | (3,000 | ) | (11,192 | ) | (3,022 | ) | |||||||
Income from unconsolidated joint venture | 318 | — | 381 | — | |||||||||||
Other (expense) income | (27 | ) | 95 | (13 | ) | 220 | |||||||||
Net income | $ | 13,957 | $ | 6,639 | $ | 22,105 | $ | 30,191 | |||||||
Net income attributable to noncontrolling interests (1) | (194 | ) | (212 | ) | (715 | ) | (830 | ) | |||||||
Net income attributable to common stockholders | $ | 13,763 | $ | 6,427 | $ | 21,390 | $ | 29,361 | |||||||
Earnings per common share - basic: | |||||||||||||||
Net income attributable to common stockholders | $ | 0.07 | $ | 0.05 | $ | 0.12 | $ | 0.22 | |||||||
Earnings per common share - diluted: | |||||||||||||||
Net income attributable to common stockholders | $ | 0.07 | $ | 0.04 | $ | 0.12 | $ | 0.21 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 200,674 | 138,807 | 173,189 | 134,905 | |||||||||||
Diluted | 204,795 | 143,138 | 177,410 | 138,314 | |||||||||||
Dividends declared per common share | $ | 0.305 | $ | 0.300 | $ | 0.905 | $ | 0.890 | |||||||
(1) Includes amounts attributable to redeemable noncontrolling interests. |
THREE MONTHS ENDED June 30, | SIX MONTHS ENDED June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Net (loss) income | $ | (83,726) | $ | 6,130 | $ | (171,804) | $ | 48,357 | ||||||
Other comprehensive income | ||||||||||||||
Interest rate swaps | ||||||||||||||
Reclassification adjustments for (gains) losses included in net income (interest expense) | (3,419) | 823 | (5,703) | 1,909 | ||||||||||
Gains arising during the period on interest rate swaps | 21,523 | 1,663 | 12,981 | 6,822 | ||||||||||
18,104 | 2,486 | 7,278 | 8,731 | |||||||||||
Comprehensive (loss) income | (65,622) | 8,616 | (164,526) | 57,088 | ||||||||||
Less: comprehensive loss attributable to non-controlling interests | 745 | — | 1,830 | — | ||||||||||
Comprehensive (loss) income attributable to common stockholders | $ | (64,877) | $ | 8,616 | $ | (162,696) | $ | 57,088 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 13,957 | $ | 6,639 | $ | 22,105 | $ | 30,191 | |||||||
Other comprehensive gain (loss) | |||||||||||||||
Change in unrealized gains (losses) on cash flow hedges | 205 | — | (631 | ) | — | ||||||||||
Total other comprehensive gain (loss) | 205 | — | (631 | ) | — | ||||||||||
Total comprehensive income | 14,162 | 6,639 | 21,474 | 30,191 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (170 | ) | (211 | ) | (619 | ) | (802 | ) | |||||||
Total comprehensive income attributable to common stockholders | $ | 13,992 | $ | 6,428 | $ | 20,855 | $ | 29,389 |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | Non-controlling Interests | Total Equity | Redeemable Non-controlling Interests | |||||||||||||||||||||
Balance at March 31, 2023 | $ | 3,808 | $ | 9,591,194 | $ | (8,554) | $ | 1,219,930 | $ | (3,447,750) | $ | 7,358,628 | $ | 106,211 | $ | 7,464,839 | $ | 2,000 | |||||||||||
Issuance of common stock, net of issuance costs | — | 27 | — | — | — | 27 | — | 27 | — | ||||||||||||||||||||
Common stock redemptions | — | (112) | — | — | — | (112) | — | (112) | — | ||||||||||||||||||||
Share-based compensation | — | 3,924 | — | — | — | 3,924 | — | 3,924 | — | ||||||||||||||||||||
Net loss | — | — | — | (82,759) | — | (82,759) | (967) | (83,726) | — | ||||||||||||||||||||
Reclassification adjustments for gains included in net income (interest expense) | — | — | (3,377) | — | — | (3,377) | (42) | (3,419) | — | ||||||||||||||||||||
Gains arising during the period on interest rate swaps | — | — | 21,259 | — | — | 21,259 | 264 | 21,523 | — | ||||||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | — | — | — | — | 487 | ||||||||||||||||||||
Dividends to common stockholders and distributions to non-controlling interest holders ($0.31 per share) | — | — | — | — | (118,191) | (118,191) | (1,448) | (119,639) | — | ||||||||||||||||||||
Balance at June 30, 2023 | $ | 3,808 | $ | 9,595,033 | $ | 9,328 | $ | 1,137,171 | $ | (3,565,941) | $ | 7,179,399 | $ | 104,018 | $ | 7,283,417 | $ | 2,487 | |||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | Non-controlling Interests | Total Equity | Redeemable Non-controlling Interests | |||||||||||||||||||||
Balance at March 31, 2022 | $ | 1,516 | $ | 3,999,060 | $ | (3,736) | $ | 1,308,385 | $ | (3,092,343) | $ | 2,212,882 | $ | — | $ | 2,212,882 | $ | — | |||||||||||
Issuance of common stock, net of issuance costs | — | 110 | — | — | — | 110 | — | 110 | — | ||||||||||||||||||||
Share-based compensation | — | 3,356 | — | — | — | 3,356 | — | 3,356 | — | ||||||||||||||||||||
Net income | — | — | — | 6,130 | — | 6,130 | — | 6,130 | — | ||||||||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | — | — | 823 | — | — | 823 | — | 823 | — | ||||||||||||||||||||
Gains arising during the period on interest rate swaps | — | — | 1,663 | — | — | 1,663 | — | 1,663 | — | ||||||||||||||||||||
Dividends to common stockholders ($0.31 per share) | — | — | — | — | (47,097) | (47,097) | — | (47,097) | — | ||||||||||||||||||||
Balance at June 30, 2022 | $ | 1,516 | $ | 4,002,526 | $ | (1,250) | $ | 1,314,515 | $ | (3,139,440) | $ | 2,177,867 | $ | — | $ | 2,177,867 | $ | — |
Class A Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Cumulative Dividends in Excess of Earnings | Total Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||
Balance as of December 31, 2015 | 127,027 | $ | 1,270 | $ | 2,328,806 | $ | — | $ | (950,652 | ) | $ | 1,379,424 | $ | 27,534 | $ | 1,406,958 | ||||||||||||||
Issuance of common stock, net | 14,138 | 141 | 417,022 | — | — | 417,163 | — | 417,163 | ||||||||||||||||||||||
Issuance of operating partnership units in connection with an acquisition | — | — | — | — | — | — | 71,754 | 71,754 | ||||||||||||||||||||||
Share-based award transactions, net | 393 | 4 | 5,132 | — | — | 5,136 | — | 5,136 | ||||||||||||||||||||||
Repurchase and cancellation of common stock | (87 | ) | (1 | ) | (2,424 | ) | — | — | (2,425 | ) | — | (2,425 | ) | |||||||||||||||||
Redemption of noncontrolling interest and other | 257 | 3 | 5,030 | — | — | 5,033 | (5,709 | ) | (676 | ) | ||||||||||||||||||||
Dividends declared | — | — | — | — | (121,686 | ) | (121,686 | ) | (3,134 | ) | (124,820 | ) | ||||||||||||||||||
Net income | — | — | — | — | 29,361 | 29,361 | 802 | 30,163 | ||||||||||||||||||||||
Balance as of September 30, 2016 | 141,728 | $ | 1,417 | $ | 2,753,566 | $ | — | $ | (1,042,977 | ) | $ | 1,712,006 | $ | 91,247 | $ | 1,803,253 | ||||||||||||||
Balance as of December 31, 2016 | 141,719 | $ | 1,417 | $ | 2,754,818 | $ | — | $ | (1,068,961 | ) | $ | 1,687,274 | $ | 93,143 | $ | 1,780,417 | ||||||||||||||
Issuance of common stock, net | 58,623 | 586 | 1,623,636 | — | — | 1,624,222 | — | 1,624,222 | ||||||||||||||||||||||
Issuance of operating partnership units in connection with an acquisition | — | — | — | — | — | — | 610 | 610 | ||||||||||||||||||||||
Share-based award transactions, net | 234 | 3 | 5,490 | — | — | 5,493 | — | 5,493 | ||||||||||||||||||||||
Repurchase and cancellation of common stock | (116 | ) | (1 | ) | (3,412 | ) | — | — | (3,413 | ) | — | (3,413 | ) | |||||||||||||||||
Redemption of noncontrolling interest and other | 227 | 2 | 5,692 | — | — | 5,694 | (5,694 | ) | — | |||||||||||||||||||||
Dividends declared | — | — | — | — | (164,480 | ) | (164,480 | ) | (3,936 | ) | (168,416 | ) | ||||||||||||||||||
Net income | — | — | — | — | 21,390 | 21,390 | 635 | 22,025 | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | (615 | ) | — | (615 | ) | (16 | ) | (631 | ) | ||||||||||||||||||
Balance as of September 30, 2017 | 200,687 | $ | 2,007 | $ | 4,386,224 | $ | (615 | ) | $ | (1,212,051 | ) | $ | 3,175,565 | $ | 84,742 | $ | 3,260,307 |
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 22,105 | $ | 30,191 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, amortization and other | 169,057 | 128,728 | ||||||
Share-based compensation expense | 5,493 | 5,136 | ||||||
Bad debt expense | 635 | 508 | ||||||
Impairment | 5,093 | — | ||||||
Income from unconsolidated joint venture | (381 | ) | — | |||||
Gain on sale of real estate, net | (3 | ) | (4,212 | ) | ||||
Loss on extinguishment of debt, net | 11,192 | 3,022 | ||||||
Change in fair value of derivative financial instruments | (884 | ) | 2,144 | |||||
Changes in operating assets and liabilities: | ||||||||
Receivables and other assets, net | (20,489 | ) | (14,051 | ) | ||||
Accounts payable and accrued liabilities | 29,566 | 3,598 | ||||||
Prepaid rent and other liabilities | 7,158 | (6,807 | ) | |||||
Net cash provided by operating activities | 228,542 | 148,257 | ||||||
Cash flows from investing activities: | ||||||||
Investments in real estate | (2,357,570 | ) | (532,527 | ) | ||||
Investment in unconsolidated joint venture | (68,839 | ) | — | |||||
Development of real estate | (19,163 | ) | — | |||||
Proceeds from the sale of real estate | 4,746 | 23,368 | ||||||
Capital expenditures | (42,990 | ) | (34,064 | ) | ||||
Restricted cash, escrow deposits and other assets | (3,655 | ) | 2,143 | |||||
Net cash used in investing activities | (2,487,471 | ) | (541,080 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings on unsecured revolving credit facility | 515,000 | 513,000 | ||||||
Payments on unsecured revolving credit facility | (528,000 | ) | (704,000 | ) | ||||
Proceeds from unsecured senior notes | 900,000 | 347,725 | ||||||
Borrowings on unsecured term loans | — | 200,000 | ||||||
Payments on unsecured term loans | — | (155,000 | ) | |||||
Payments on secured mortgage loans | (75,444 | ) | (98,453 | ) | ||||
Deferred financing costs | (16,902 | ) | (3,039 | ) | ||||
Debt extinguishment costs | (10,391 | ) | — | |||||
Security deposits | 1,932 | 862 | ||||||
Proceeds from issuance of common stock | 1,624,222 | 418,891 | ||||||
Repurchase and cancellation of common stock | (3,413 | ) | (2,425 | ) | ||||
Dividends paid | (145,877 | ) | (116,655 | ) | ||||
Distributions paid to noncontrolling interest of limited partners | (4,019 | ) | (2,724 | ) | ||||
Redemption of redeemable noncontrolling interest | — | (491 | ) | |||||
Net cash provided by financing activities | 2,257,108 | 397,691 | ||||||
Net change in cash and cash equivalents | (1,821 | ) | 4,868 | |||||
Cash and cash equivalents - beginning of period | 11,231 | 13,070 | ||||||
Cash and cash equivalents - end of period | $ | 9,410 | $ | 17,938 |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | Non-controlling Interests | Total Equity | Redeemable Non-controlling Interests | |||||||||||||||||||||
Balance at December 31, 2022 | $ | 3,806 | $ | 9,587,637 | $ | 2,140 | $ | 1,307,055 | $ | (3,329,562) | $ | 7,571,076 | $ | 108,742 | $ | 7,679,818 | $ | 2,014 | |||||||||||
Issuance of common stock, net of issuance costs | — | 78 | — | — | — | 78 | — | 78 | — | ||||||||||||||||||||
Common stock redemptions | (1) | (1,595) | — | — | — | (1,596) | — | (1,596) | — | ||||||||||||||||||||
Share-based compensation | 3 | 8,913 | — | — | — | 8,916 | — | 8,916 | — | ||||||||||||||||||||
Net loss | — | — | — | (169,884) | — | (169,884) | (1,920) | (171,804) | — | ||||||||||||||||||||
Reclassification adjustments for gains included in net income (interest expense) | — | — | (5,635) | — | — | (5,635) | (68) | (5,703) | — | ||||||||||||||||||||
Gains arising during the period on interest rate swaps | — | — | 12,823 | — | — | 12,823 | 158 | 12,981 | — | ||||||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | — | — | — | — | 473 | ||||||||||||||||||||
Dividends to common stockholders and distributions to non-controlling interest holders ($0.62 per share) | — | — | — | — | (236,379) | (236,379) | (2,894) | (239,273) | — | ||||||||||||||||||||
Balance at June 30, 2023 | $ | 3,808 | $ | 9,595,033 | $ | 9,328 | $ | 1,137,171 | $ | (3,565,941) | $ | 7,179,399 | $ | 104,018 | $ | 7,283,417 | $ | 2,487 | |||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | Non-controlling Interests | Total Equity | Redeemable Non-controlling Interests | |||||||||||||||||||||
Balance at December 31, 2021 | $ | 1,505 | $ | 3,972,917 | $ | (9,981) | $ | 1,266,158 | $ | (3,045,483) | $ | 2,185,116 | $ | — | $ | 2,185,116 | $ | — | |||||||||||
Issuance of common stock, net of issuance costs | 7 | 22,764 | — | — | — | 22,771 | — | 22,771 | — | ||||||||||||||||||||
Common stock redemptions | — | (206) | — | — | — | (206) | — | (206) | — | ||||||||||||||||||||
Share-based compensation | 4 | 7,051 | — | — | — | 7,055 | — | 7,055 | — | ||||||||||||||||||||
Net income | — | — | — | 48,357 | — | 48,357 | — | 48,357 | — | ||||||||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | — | — | 1,909 | — | — | 1,909 | — | 1,909 | — | ||||||||||||||||||||
Gains arising during the period on interest rate swaps | — | — | 6,822 | — | — | 6,822 | — | 6,822 | — | ||||||||||||||||||||
Dividends to common stockholders ($0.62 per share) | — | — | — | — | (93,957) | (93,957) | — | (93,957) | — | ||||||||||||||||||||
Balance at June 30, 2022 | $ | 1,516 | $ | 4,002,526 | $ | (1,250) | $ | 1,314,515 | $ | (3,139,440) | $ | 2,177,867 | $ | — | $ | 2,177,867 | $ | — |
September 30, 2017 | December 31, 2016 | |||||||
ASSETS | ||||||||
Real estate investments: | ||||||||
Land | $ | 480,850 | $ | 386,526 | ||||
Building and improvements | 5,788,837 | 3,466,516 | ||||||
Lease intangibles | 648,591 | 467,571 | ||||||
Construction in progress | 59,573 | — | ||||||
6,977,851 | 4,320,613 | |||||||
Accumulated depreciation and amortization | (973,566 | ) | (817,593 | ) | ||||
Real estate investments, net | 6,004,285 | 3,503,020 | ||||||
Investment in unconsolidated joint venture | 68,303 | — | ||||||
Cash and cash equivalents | 9,410 | 11,231 | ||||||
Restricted cash and escrow deposits | 17,469 | 13,814 | ||||||
Receivables and other assets, net | 206,030 | 173,461 | ||||||
Other intangibles, net | 108,025 | 46,318 | ||||||
Total assets | $ | 6,413,522 | $ | 3,747,844 | ||||
LIABILITIES AND PARTNERS’ CAPITAL | ||||||||
Liabilities: | ||||||||
Debt | $ | 2,856,758 | $ | 1,768,905 | ||||
Accounts payable and accrued liabilities | 159,070 | 105,034 | ||||||
Derivative financial instruments - interest rate swaps | 1,441 | 1,920 | ||||||
Security deposits, prepaid rent and other liabilities | 61,402 | 49,859 | ||||||
Intangible liabilities, net | 69,852 | 37,056 | ||||||
Total liabilities | 3,148,523 | 1,962,774 | ||||||
Commitments and contingencies | ||||||||
Redeemable noncontrolling interests | 4,692 | 4,653 | ||||||
Partners’ Capital: | ||||||||
Limited partners’ capital, 4,116,546 and 4,323,095 units issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 84,472 | 92,873 | ||||||
General partners’ capital, 200,686,673 and 141,719,134 units issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 3,175,835 | 1,687,544 | ||||||
Total partners’ capital | 3,260,307 | 1,780,417 | ||||||
Total liabilities and partners’ capital | $ | 6,413,522 | $ | 3,747,844 |
OPERATING ACTIVITIES | ||||||||
SIX MONTHS ENDED June 30, | ||||||||
2023 | 2022 | |||||||
Net (loss) income | $ | (171,804) | $ | 48,357 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 367,671 | 109,772 | ||||||
Other amortization | 23,405 | 2,680 | ||||||
Share-based compensation | 8,916 | 7,055 | ||||||
Amortization of straight-line rent receivable (lessor) | (19,313) | (3,292) | ||||||
Amortization of straight-line rent on operating leases (lessee) | 3,062 | 756 | ||||||
Gain on sales of real estate properties | (8,162) | (53,280) | ||||||
Loss on extinguishment of debt | — | 1,429 | ||||||
Impairment of real estate properties and credit loss reserves | 86,637 | (25) | ||||||
Equity loss from unconsolidated joint ventures | 797 | 652 | ||||||
Distributions from unconsolidated joint ventures | 3,031 | 108 | ||||||
Non-cash interest from financing and notes receivable | (488) | (388) | ||||||
Changes in operating assets and liabilities: | ||||||||
Other assets, including right-of-use-assets | (17,502) | 540 | ||||||
Accounts payable and accrued liabilities | (38,601) | (3,166) | ||||||
Other liabilities | 16,673 | 2,923 | ||||||
Net cash provided by operating activities | 254,322 | 114,121 | ||||||
INVESTING ACTIVITIES | ||||||||
Acquisitions of real estate | (39,301) | (287,004) | ||||||
Development of real estate | (17,594) | (7,475) | ||||||
Additional long-lived assets | (94,013) | (45,631) | ||||||
Funding of mortgages and notes receivable | (11,503) | — | ||||||
Investments in unconsolidated joint ventures | (3,824) | (49,599) | ||||||
Investment in financing receivable | (780) | 498 | ||||||
Proceeds from sales of real estate properties and additional long-lived assets | 160,870 | 108,044 | ||||||
Net cash used in investing activities | (6,145) | (281,167) | ||||||
FINANCING ACTIVITIES | ||||||||
Net (repayments) borrowings on unsecured credit facility | (31,000) | 280,500 | ||||||
Repayments of notes and bonds payable | (1,340) | (18,224) | ||||||
Redemption of notes and bonds payable | — | (2,184) | ||||||
Dividends paid | (236,105) | (93,774) | ||||||
Net proceeds from issuance of common stock | 77 | 22,768 | ||||||
Common stock redemptions | (1,842) | (852) | ||||||
Distributions to non-controlling interest holders | (2,546) | — | ||||||
Debt issuance and assumption costs | (438) | — | ||||||
Payments made on finance leases | (40) | (51) | ||||||
Net cash (used in) provided by financing activities | (273,234) | 188,183 | ||||||
(Decrease) increase in cash and cash equivalents | (25,057) | 21,137 | ||||||
Cash and cash equivalents at beginning of period | 60,961 | 13,175 | ||||||
Cash and cash equivalents at end of period | $ | 35,904 | $ | 34,312 | ||||
Supplemental Cash Flow Information | ||||||||
Interest paid | $ | 106,985 | $ | 26,641 | ||||
Mortgage note receivable taken in connection with sale of real estate | $ | 45,000 | $ | — | ||||
Invoices accrued for construction, tenant improvements and other capitalized costs | $ | 30,956 | $ | 18,874 | ||||
Capitalized interest | $ | 1,282 | $ | 145 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Rental income | $ | 175,431 | $ | 118,252 | $ | 438,949 | $ | 338,646 | |||||||
Interest and other operating income | 563 | 88 | 1,271 | 243 | |||||||||||
Total revenues | 175,994 | 118,340 | 440,220 | 338,889 | |||||||||||
Expenses: | |||||||||||||||
Rental | 56,331 | 36,885 | 138,874 | 105,299 | |||||||||||
General and administrative | 8,283 | 7,293 | 25,178 | 20,879 | |||||||||||
Transaction | 261 | 1,122 | 5,618 | 4,997 | |||||||||||
Depreciation and amortization | 70,491 | 47,864 | 172,900 | 130,430 | |||||||||||
Impairment | — | — | 5,093 | — | |||||||||||
Total expenses | 135,366 | 93,164 | 347,663 | 261,605 | |||||||||||
Income before other income (expense) | 40,628 | 25,176 | 92,557 | 77,284 | |||||||||||
Interest expense: | |||||||||||||||
Interest related to derivative financial instruments | (264 | ) | (552 | ) | (827 | ) | (1,856 | ) | |||||||
Gain (loss) on change in fair value of derivative financial instruments, net | — | 1,306 | 884 | (2,144 | ) | ||||||||||
Total interest related to derivative financial instruments, including net change in fair value of derivative financial instruments | (264 | ) | 754 | 57 | (4,000 | ) | |||||||||
Interest related to debt | (25,924 | ) | (16,386 | ) | (59,688 | ) | (44,503 | ) | |||||||
Gain on sale of real estate, net | — | — | 3 | 4,212 | |||||||||||
Loss on extinguishment of debt, net | (774 | ) | (3,000 | ) | (11,192 | ) | (3,022 | ) | |||||||
Income from unconsolidated joint venture | 318 | — | 381 | — | |||||||||||
Other (expense) income | (27 | ) | 95 | (13 | ) | 220 | |||||||||
Net income | $ | 13,957 | $ | 6,639 | $ | 22,105 | $ | 30,191 | |||||||
Net income attributable to noncontrolling interests | (28 | ) | (1 | ) | (80 | ) | (28 | ) | |||||||
Net income attributable to common unitholders | $ | 13,929 | $ | 6,638 | $ | 22,025 | $ | 30,163 | |||||||
Earnings per common unit - basic: | |||||||||||||||
Net income attributable to common unitholders | $ | 0.07 | $ | 0.05 | $ | 0.12 | $ | 0.22 | |||||||
Earnings per common unit - diluted: | |||||||||||||||
Net income attributable to common unitholders | $ | 0.07 | $ | 0.05 | $ | 0.12 | $ | 0.22 | |||||||
Weighted average common units outstanding: | |||||||||||||||
Basic | 204,795 | 143,137 | 177,410 | 138,314 | |||||||||||
Diluted | 204,795 | 143,137 | 177,410 | 138,314 | |||||||||||
Dividends declared per common unit | $ | 0.305 | $ | 0.300 | $ | 0.905 | $ | 0.890 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 13,957 | $ | 6,639 | $ | 22,105 | $ | 30,191 | |||||||
Other comprehensive gain (loss) | |||||||||||||||
Change in unrealized gains (losses) on cash flow hedges | 205 | — | (631 | ) | — | ||||||||||
Total other comprehensive gain (loss) | 205 | — | (631 | ) | — | ||||||||||
Total comprehensive income | 14,162 | 6,639 | 21,474 | 30,191 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (28 | ) | (1 | ) | (80 | ) | (28 | ) | |||||||
Total comprehensive income attributable to common unitholders | $ | 14,134 | $ | 6,638 | $ | 21,394 | $ | 30,163 |
General Partners’ Capital | Limited Partners’ Capital | Total Partners’ Capital | |||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||
Balance as of December 31, 2015 | 127,027 | $ | 1,379,694 | 1,930 | $ | 27,264 | $ | 1,406,958 | |||||||||
Issuance of general partner units, net | 14,138 | 417,163 | — | — | 417,163 | ||||||||||||
Issuance of limited partner units in connection with an acquisition | — | — | 2,650 | 71,754 | 71,754 | ||||||||||||
Share-based award transactions, net | 393 | 5,136 | — | — | 5,136 | ||||||||||||
Redemption and cancellation of general partner units | (87 | ) | (2,425 | ) | — | — | (2,425 | ) | |||||||||
Redemption of limited partner units and other | 257 | 5,033 | (257 | ) | (5,709 | ) | (676 | ) | |||||||||
Distributions declared | — | (121,686 | ) | — | (3,134 | ) | (124,820 | ) | |||||||||
Net income | — | 29,361 | — | 802 | 30,163 | ||||||||||||
Balance as of September 30, 2016 | 141,728 | $ | 1,712,276 | 4,323 | $ | 90,977 | $ | 1,803,253 | |||||||||
Balance as of December 31, 2016 | 141,719 | $ | 1,687,544 | 4,323 | $ | 92,873 | $ | 1,780,417 | |||||||||
Issuance of general partner units, net | 58,623 | 1,624,222 | — | — | 1,624,222 | ||||||||||||
Issuance of limited partner units in connection with an acquisition | — | — | 21 | 610 | 610 | ||||||||||||
Share-based award transactions, net | 234 | 5,493 | — | — | 5,493 | ||||||||||||
Redemption and cancellation of general partner units | (116 | ) | (3,413 | ) | — | — | (3,413 | ) | |||||||||
Redemption of limited partner units and other | 227 | 5,694 | (227 | ) | (5,694 | ) | — | ||||||||||
Distributions declared | — | (164,480 | ) | — | (3,936 | ) | (168,416 | ) | |||||||||
Net income | — | 21,390 | — | 635 | 22,025 | ||||||||||||
Other comprehensive loss | — | (615 | ) | — | (16 | ) | (631 | ) | |||||||||
Balance as of September 30, 2017 | 200,687 | $ | 3,175,835 | 4,117 | $ | 84,472 | $ | 3,260,307 |
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 22,105 | $ | 30,191 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, amortization and other | 169,057 | 128,728 | ||||||
Share-based compensation expense | 5,493 | 5,136 | ||||||
Bad debt expense | 635 | 508 | ||||||
Impairment | 5,093 | — | ||||||
Income from unconsolidated joint venture | (381 | ) | — | |||||
Gain on sale of real estate, net | (3 | ) | (4,212 | ) | ||||
Loss on extinguishment of debt, net | 11,192 | 3,022 | ||||||
Change in fair value of derivative financial instruments | (884 | ) | 2,144 | |||||
Changes in operating assets and liabilities: | ||||||||
Receivables and other assets, net | (20,489 | ) | (14,051 | ) | ||||
Accounts payable and accrued liabilities | 29,566 | 3,598 | ||||||
Prepaid rent and other liabilities | 7,158 | (6,807 | ) | |||||
Net cash provided by operating activities | 228,542 | 148,257 | ||||||
Cash flows from investing activities: | ||||||||
Investments in real estate | (2,357,570 | ) | (532,527 | ) | ||||
Investment in unconsolidated joint venture | (68,839 | ) | — | |||||
Development of real estate | (19,163 | ) | — | |||||
Proceeds from the sale of real estate | 4,746 | 23,368 | ||||||
Capital expenditures | (42,990 | ) | (34,064 | ) | ||||
Restricted cash, escrow deposits and other assets | (3,655 | ) | 2,143 | |||||
Net cash used in investing activities | (2,487,471 | ) | (541,080 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings on unsecured revolving credit facility | 515,000 | 513,000 | ||||||
Payments on unsecured revolving credit facility | (528,000 | ) | (704,000 | ) | ||||
Proceeds from unsecured senior notes | 900,000 | 347,725 | ||||||
Borrowings on unsecured term loans | — | 200,000 | ||||||
Payments on unsecured term loans | — | (155,000 | ) | |||||
Payments on secured mortgage loans | (75,444 | ) | (98,453 | ) | ||||
Deferred financing costs | (16,902 | ) | (3,039 | ) | ||||
Debt extinguishment costs | (10,391 | ) | — | |||||
Security deposits | 1,932 | 862 | ||||||
Proceeds from issuance of general partner units | 1,624,222 | 418,891 | ||||||
Repurchase and cancellation of general partner units | (3,413 | ) | (2,425 | ) | ||||
Distributions paid to general partner | (145,877 | ) | (116,655 | ) | ||||
Distributions paid to limited partners and redeemable noncontrolling interests | (4,019 | ) | (2,724 | ) | ||||
Redemption of redeemable noncontrolling interest | — | (491 | ) | |||||
Net cash provided by financing activities | 2,257,108 | 397,691 | ||||||
Net change in cash and cash equivalents | (1,821 | ) | 4,868 | |||||
Cash and cash equivalents - beginning of period | 11,231 | 13,070 | ||||||
Cash and cash equivalents - end of period | $ | 9,410 | $ | 17,938 |
(dollars in thousands) | JUNE 30, 2023 | ||||
Assets: | |||||
Net real estate investments | $ | 61,980 | |||
Cash and cash equivalents | 2,107 | ||||
Receivables and other assets | 2,015 | ||||
Total assets | $ | 66,102 | |||
Liabilities: | |||||
Accrued expenses and other liabilities | $ | 14,058 | |||
Total equity | 52,044 | ||||
Total liabilities and equity | $ | 66,102 |
(dollars in thousands) ORIGINATION DATE | LOCATION | SOURCE | CARRYING AMOUNT | MAXIMUM EXPOSURE TO LOSS | ||||||||||
2021 | Houston, TX 1 | Note receivable | $ | 30,445 | $ | 31,150 | ||||||||
2021 | Charlotte, NC 1 | Note receivable | 5,691 | 6,000 | ||||||||||
2022 | Texas 2 | Joint venture | 64,758 | 64,758 |
(dollars in thousands) ORIGINATION DATE | LOCATION | INTEREST RATE | CARRYING VALUE as of JUNE 30, 2023 | ||||||||
May 2021 | Poway, CA | 5.73% | $ | 113,967 | |||||||
November 2021 | Columbus, OH | 6.48% | 7,348 | ||||||||
$ | 121,315 |
(dollars in thousands) | ORIGINATION | MATURITY | STATED INTEREST RATE | MAXIMUM LOAN COMMITMENT | OUTSTANDING as of JUNE 30, 2023 | ALLOWANCE FOR CREDIT LOSSES | FAIR VALUE DISCOUNT AND FEES | CARRYING VALUE as of JUNE 30, 2023 | ||||||||||||||||||
Mezzanine loans | ||||||||||||||||||||||||||
Texas | 6/24/2021 | 6/24/2024 | 8.00 | % | $ | 54,119 | $ | 54,119 | $ | (5,196) | $ | (3,067) | $ | 45,856 | ||||||||||||
Mortgage loans | ||||||||||||||||||||||||||
Texas | 6/30/2021 | 12/31/2023 | 7.00 | % | 31,150 | 31,150 | — | (705) | 30,445 | |||||||||||||||||
North Carolina | 12/22/2021 | 12/22/2024 | 8.00 | % | 6,000 | 6,000 | — | (309) | 5,691 | |||||||||||||||||
Florida | 5/17/2022 | 2/27/2026 | 6.00 | % | 65,000 | 24,556 | — | (55) | 24,501 | |||||||||||||||||
California | 3/30/2023 | 3/29/2026 | 6.00 | % | 45,000 | 45,000 | — | — | 45,000 | |||||||||||||||||
147,150 | 106,706 | — | (1,069) | 105,637 | ||||||||||||||||||||||
$ | 201,269 | $ | 160,825 | $ | (5,196) | $ | (4,136) | $ | 151,493 |
June 30, 2023 | ||||||||||||||||
Allowance for credit losses, beginning of period | $ | — | $ | — | |||||||||||||
5,196 | — | ||||||||||||||||
$ | — | ||||||||||||||||
THREE MONTHS ENDED June 30, | SIX MONTHS ENDED June 30, | |||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||
Type of Revenue | ||||||||||||||
Parking income | $ | 2,370 | $ | 1,919 | $ | 4,761 | $ | 3,672 | ||||||
Management fee income 1 | 1,597 | 783 | 3,570 | 1,438 | ||||||||||
Miscellaneous | 263 | 36 | 516 | 103 | ||||||||||
$ | 4,230 | $ | 2,738 | $ | 8,847 | $ | 5,213 |
228,520,990 | ||||||||||
Exchange ratio | 1.00 | |||||||||
Implied shares of Legacy HR Common Stock issued | 228,520,990 | |||||||||
$ | 24.37 | |||||||||
Value of | $ | |||||||||
7,406 | ||||||||||
$ | ||||||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Land | $ | 93,064 | $ | 77,949 | |||
Building and improvements | 2,336,544 | 505,138 | |||||
In place leases | 187,890 | 50,997 | |||||
Below market leases | (27,817 | ) | (12,790 | ) | |||
Above market leases | 11,718 | 4,413 | |||||
Below market leasehold interests | 54,252 | 4,188 | |||||
Above market leasehold interests | (8,978 | ) | (50 | ) | |||
Below market debt | — | 360 | |||||
Interest rate swaps | — | (779 | ) | ||||
Net assets acquired | 2,646,673 | 629,426 | |||||
Other, net (1) | 60,781 | 3,540 | |||||
Aggregate purchase price | $ | 2,707,454 | $ | 632,966 | |||
(1) For the nine months ended September 30, 2017, other, net, consisted primarily of capital expenditures and tenant improvements received as credits at the time of acquisition. |
Nine Months Ended September 30, | |||
2017 | 2016 | ||
Acquired intangible assets | 20.6 | 9.1 | |
Acquired intangible liabilities | 19.9 | 8.3 |
September 30, 2017 | December 31, 2016 | ||||||||||
Balance | Weighted Average Remaining Amortization in Years | Balance | Weighted Average Remaining Amortization in Years | ||||||||
Assets: | |||||||||||
In place leases | $ | 478,052 | 9.7 | $ | 294,597 | 9.7 | |||||
Tenant relationships | 170,539 | 10.7 | 172,974 | 10.6 | |||||||
Above market leases | 39,724 | 6.3 | 28,401 | 6.3 | |||||||
Below market leasehold interests | 92,362 | 63.4 | 38,136 | 60.4 | |||||||
780,677 | 534,108 | ||||||||||
Accumulated amortization | (299,398 | ) | (256,305 | ) | |||||||
Total | $ | 481,279 | 19.2 | $ | 277,803 | 16.1 | |||||
Liabilities: | |||||||||||
Below market leases | $ | 61,788 | 14.7 | $ | 34,370 | 18.6 | |||||
Above market leasehold interests | 20,610 | 50.3 | 11,632 | 53.0 | |||||||
82,398 | 46,002 | ||||||||||
Accumulated amortization | (12,546 | ) | (8,946 | ) | |||||||
Total | $ | 69,852 | 24.9 | $ | 37,056 | 28.5 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Amortization recorded against rental income related to above and (below) market leases | $ | (108 | ) | $ | (115 | ) | $ | (371 | ) | $ | 202 | ||||
Rental expense related to above and (below) market leasehold interests | 322 | 118 | 617 | 321 | |||||||||||
Amortization expense related to in place leases and tenant relationships | 18,757 | 15,266 | 45,944 | 39,483 |
September 30, 2017 | December 31, 2016 | ||||||
Tenant receivables, net | $ | 14,417 | $ | 8,722 | |||
Other receivables, net | 10,161 | 9,233 | |||||
Deferred financing costs, net | 8,190 | 4,198 | |||||
Deferred leasing costs, net | 23,794 | 20,811 | |||||
Straight-line rent receivables, net | 83,133 | 74,052 | |||||
Prepaid expenses, deposits, equipment and other, net | 65,383 | 55,904 | |||||
Derivative financial instruments - interest rate swaps | 952 | 541 | |||||
Total | $ | 206,030 | $ | 173,461 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Amortization expense related to deferred leasing costs | $ | 1,445 | $ | 1,224 | $ | 4,179 | $ | 3,368 | |||||||
Interest expense related to deferred financing costs | 398 | 331 | 1,061 | 994 |
September 30, 2017 | December 31, 2016 | ||||||
Unsecured revolving credit facility | $ | 75,000 | $ | 88,000 | |||
Unsecured term loans | 500,000 | 500,000 | |||||
Unsecured senior notes | 1,850,000 | 950,000 | |||||
Fixed rate mortgages loans | 415,853 | 204,562 | |||||
Variable rate mortgages loans | 38,169 | 38,904 | |||||
2,879,022 | 1,781,466 | ||||||
Deferred financing costs, net | (16,552 | ) | (9,527 | ) | |||
Discount, net | (5,712 | ) | (3,034 | ) | |||
Total | $ | 2,856,758 | $ | 1,768,905 |
Dollars in thousands | PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE | CUMULATIVE MEASUREMENT PERIOD ADJUSTMENTS | PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE (as adjusted) | ||||||||
ASSETS | |||||||||||
Real estate investments | |||||||||||
Land | $ | 985,926 | $ | 18,359 | $ | 1,004,285 | |||||
Buildings and improvements | 6,960,418 | (119,135) | 6,841,283 | ||||||||
Lease intangible assets(a) | 831,920 | 1,839 | 833,759 | ||||||||
Financing lease right-of-use assets | 9,874 | 3,146 | 13,020 | ||||||||
Construction in progress | 10,071 | (6,744) | 3,327 | ||||||||
Land held for development | 46,538 | — | 46,538 | ||||||||
Total real estate investments | $ | 8,844,747 | $ | (102,535) | $ | 8,742,212 | |||||
Assets held for sale, net | 707,442 | (7,946) | 699,496 | ||||||||
Investments in unconsolidated joint ventures | 67,892 | — | 67,892 | ||||||||
Cash and cash equivalents | 26,034 | 11,403 | 37,437 | ||||||||
Restricted cash | 1,123,647 | (1,247) | 1,122,400 | ||||||||
Operating lease right-of-use assets | 198,261 | 16,370 | 214,631 | ||||||||
Other assets, net (b) (c) | 209,163 | (3,840) | 205,323 | ||||||||
Total assets acquired | $ | 11,177,186 | $ | (87,795) | $ | 11,089,391 | |||||
LIABILITIES | |||||||||||
Notes and bonds payable | $ | 3,991,300 | $ | — | $ | 3,991,300 | |||||
Accounts payable and accrued liabilities | 1,227,570 | 17,374 | 1,244,944 | ||||||||
Liabilities of assets held for sale | 28,677 | (3,939) | 24,738 | ||||||||
Operating lease liabilities | 173,948 | 10,173 | 184,121 | ||||||||
Financing lease liabilities | 10,720 | (855) | 9,865 | ||||||||
Other liabilities | 203,210 | (8,909) | 194,301 | ||||||||
Total liabilities assumed | $ | 5,635,425 | $ | 13,844 | $ | 5,649,269 | |||||
Net identifiable assets acquired | $ | 5,541,761 | $ | (101,639) | $ | 5,440,122 | |||||
Non-controlling interest | $ | 110,702 | $ | — | $ | 110,702 | |||||
Goodwill | $ | 145,404 | $ | 101,639 | $ | 247,043 | |||||
(a) The weighted average amortization period for the acquired lease intangible assets is approximately 6 years. | |||||||||||
(b) Includes $15.9 million of contractual accounts receivable, which approximates fair value. | |||||||||||
(c) Includes $78.7 million of gross contractual real estate notes receivable, the fair value of which was $74.8 million, and the Company preliminarily expects to collect substantially all of the real estate notes receivable proceeds as of the Closing Date. |
Dollars in thousands | DATE ACQUIRED | PURCHASE PRICE | CASH CONSIDERATION 1 | REAL ESTATE | OTHER 2 | SQUARE FOOTAGE | ||||||||||||||||||||
Tampa, FL | 3/10/23 | $ | 31,500 | $ | 30,499 | $ | 30,596 | $ | (97) | 115,867 | ||||||||||||||||
Dollars in thousands | DATE ACQUIRED | PURCHASE PRICE | SQUARE FOOTAGE | ||||||||
Colorado Springs, CO | 7/28/23 | $ | 11,450 | 42,770 | |||||||
THREE MONTHS ENDED June 30, | SIX MONTHS ENDED June 30, | |||||||||||||
Dollars in thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||
Investments in unconsolidated joint ventures, beginning of period | $ | 327,746 | $ | 211,195 | $ | 327,248 | $ | 161,942 | ||||||
New investment during the period 1 | — | — | 3,824 | 49,599 | ||||||||||
Equity loss recognized during the period | (17) | (307) | (797) | (652) | ||||||||||
Owner distributions | (484) | (107) | (3,030) | (108) | ||||||||||
Investments in unconsolidated joint ventures, end of period | $ | 327,245 | $ | 210,781 | $ | 327,245 | $ | 210,781 |
Dollars in thousands | DATE DISPOSED | SALE PRICE | CLOSING ADJUSTMENTS | COMPANY-FINANCED MORTGAGE NOTES | NET PROCEEDS | NET REAL ESTATE INVESTMENT | OTHER (INCLUDING RECEIVABLES) 1 | GAIN/(IMPAIRMENT) | SQUARE FOOTAGE | ||||||||||||||||||||
Tampa, FL & Miami, FL2 | 1/12/23 | $ | 93,250 | $ | (5,875) | $ | — | $ | 87,375 | $ | 87,302 | $ | (888) | $ | 961 | 224,037 | |||||||||||||
Dallas, TX 3 | 1/30/23 | 19,210 | (141) | — | 19,069 | 18,986 | 43 | 40 | 36,691 | ||||||||||||||||||||
St. Louis, MO | 2/10/23 | 350 | (18) | — | 332 | 398 | — | (66) | 6,500 | ||||||||||||||||||||
Los Angeles, CA | 3/23/23 | 21,000 | (526) | — | 20,474 | 20,610 | 52 | (188) | 37,165 | ||||||||||||||||||||
Los Angeles, CA 4 | 3/30/23 | 75,000 | (8,079) | (45,000) | 21,921 | 88,624 | (803) | (20,900) | 147,078 | ||||||||||||||||||||
Los Angeles, CA 5 | 5/12/23 | 3,300 | (334) | — | 2,966 | 3,268 | — | (302) | — | ||||||||||||||||||||
Albany, NY | 6/30/23 | 10,000 | (1,229) | — | 8,771 | 2,613 | (1,040) | 7,198 | 40,870 | ||||||||||||||||||||
Total dispositions | $ | 222,110 | $ | (16,202) | $ | (45,000) | $ | 160,908 | $ | 221,801 | $ | (2,636) | $ | (13,257) | 492,341 |
Dollars in thousands | DATE DISPOSED | SALES PRICE | SQUARE FOOTAGE | ||||||||
Houston, TX | 8/2/23 | $ | 8,320 | 57,170 | |||||||
Dollars in thousands | June 30, 2023 | December 31, 2022 | ||||||||||||
Balance Sheet data: | ||||||||||||||
Land | $ | 205 | $ | 1,700 | ||||||||||
Building and improvements | 1,736 | 15,164 | ||||||||||||
Lease intangibles | 2,242 | 1,986 | ||||||||||||
4,183 | 18,850 | |||||||||||||
Accumulated depreciation | (4,183) | — | ||||||||||||
Real estate assets held for sale, net | — | 18,850 | ||||||||||||
Other assets, net | 151 | 43 | ||||||||||||
Assets held for sale, net | $ | 151 | $ | 18,893 | ||||||||||
Accounts payable and accrued liabilities | $ | 222 | $ | 282 | ||||||||||
Other liabilities | — | 155 | ||||||||||||
Liabilities of assets held for sale | $ | 222 | $ | 437 |
Year | Amount | |||
Remainder of 2017 | $ | 1,166 | ||
2018 | 100,827 | |||
2019 | 105,940 | |||
2020 | 144,892 | |||
2021 | 303,933 | |||
Thereafter | 2,222,264 | |||
Total | $ | 2,879,022 |
Dollars in thousands | OPERATING | |||||||
2023 | $ | 467,393 | ||||||
2024 | 861,323 | |||||||
2025 | 751,369 | |||||||
2026 | 648,352 | |||||||
2027 | 536,874 | |||||||
2028 and thereafter | 1,950,019 | |||||||
$ | 5,215,330 |
Year | Amount | |||
Remainder of 2017 | $ | 618 | ||
2018 | 2,821 | |||
2019 | 2,826 | |||
2020 | 2,804 | |||
2021 | 2,610 | |||
Thereafter | 4,873 | |||
Total | $ | 16,552 |
Dollars in thousands | OPERATING | FINANCING | ||||||
2023 | $ | 7,315 | $ | 992 | ||||
2024 | 15,011 | 2,182 | ||||||
2025 | 14,597 | 2,218 | ||||||
2026 | 14,631 | 2,255 | ||||||
2027 | 14,701 | 2,294 | ||||||
2028 and thereafter | 929,853 | 396,398 | ||||||
Total undiscounted lease payments | 996,108 | 406,339 | ||||||
Discount | (717,629) | (332,710) | ||||||
Lease liabilities | $ | 278,479 | $ | 73,629 |
THREE MONTHS ENDED June 30, | SIX MONTHS ENDED June 30, | |||||||||||||
Dollars in thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||
Operating lease cost | ||||||||||||||
Operating lease expense | $ | 5,329 | $ | 1,194 | $ | 10,436 | $ | 2,409 | ||||||
Variable lease expense | 2,235 | 1,038 | 4,371 | 2,062 | ||||||||||
Finance lease cost | ||||||||||||||
Amortization of right-of-use assets | 387 | 331 | 774 | 503 | ||||||||||
Interest on lease liabilities | 923 | 765 | 1,841 | 1,052 | ||||||||||
Total lease expense | $ | 8,874 | $ | 3,328 | $ | 17,422 | $ | 6,026 | ||||||
Other information | ||||||||||||||
Operating cash flows outflows related to operating leases | $ | 5,230 | $ | 1,799 | $ | 11,190 | $ | 4,596 | ||||||
Operating cash flows outflows related to financing leases | $ | 541 | $ | 509 | $ | 1,094 | $ | 767 | ||||||
Financing cash flows outflows related to financing leases | $ | 6 | $ | — | $ | 17 | $ | 51 | ||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | — | $ | — | $ | — | $ | 40,589 | ||||||
Weighted-average years remaining lease term (excluding renewal options) - operating leases | 47.3 | 47.4 | ||||||||||||
Weighted-average years remaining lease term (excluding renewal options) - finance leases | 58.4 | 61.7 | ||||||||||||
Weighted-average discount rate - operating leases | 5.8 | % | 5.6 | % | ||||||||||
Weighted-average discount rate - finance leases | 5.0 | % | 5.0 | % |
MATURITY DATES | BALANCE 1 AS OF | EFFECTIVE INTEREST RATE as of 6/30/2023 | ||||||||||||
Dollars in thousands | 6/30/2023 | 12/31/2022 | ||||||||||||
$1.5 billion Unsecured Credit Facility | 10/25 | $ | 354,000 | $ | 385,000 | 6.05 | % | |||||||
$350 million Unsecured Term Loan 2 | 7/24 | 349,499 | 349,114 | 6.21 | % | |||||||||
$200 million Unsecured Term Loan | 5/24 | 199,786 | 199,670 | 6.21 | % | |||||||||
$300 million Unsecured Term Loan | 10/25 | 299,947 | 299,936 | 6.21 | % | |||||||||
$150 million Unsecured Term Loan | 6/26 | 149,569 | 149,495 | 6.21 | % | |||||||||
$200 million Unsecured Term Loan | 7/27 | 199,432 | 199,362 | 6.21 | % | |||||||||
$300 million Unsecured Term Loan | 1/28 | 298,079 | 297,869 | 6.21 | % | |||||||||
Senior Notes due 2025 | 5/25 | 249,298 | 249,115 | 4.12 | % | |||||||||
Senior Notes due 2026 | 8/26 | 575,256 | 571,587 | 4.94 | % | |||||||||
Senior Notes due 2027 | 7/27 | 481,615 | 479,553 | 4.76 | % | |||||||||
Senior Notes due 2028 | 1/28 | 297,138 | 296,852 | 3.85 | % | |||||||||
Senior Notes due 2030 | 2/30 | 570,356 | 565,402 | 5.30 | % | |||||||||
Senior Notes due 2030 | 3/30 | 296,579 | 296,385 | 2.72 | % | |||||||||
Senior Notes due 2031 | 3/31 | 295,795 | 295,547 | 2.25 | % | |||||||||
Senior Notes due 2031 | 3/31 | 640,999 | 632,693 | 5.13 | % | |||||||||
Mortgage notes payable | 8/23-12/26 | 82,924 | 84,247 | 3.57%-4.84% | ||||||||||
$ | 5,340,272 | $ | 5,351,827 |
EXPIRATION DATE | AMOUNT | WEIGHTED AVERAGE RATE | ||||||
January 15, 2024 | $ | 200,000 | 1.21 | % | ||||
May 1, 2026 | 100,000 | 2.15 | % | |||||
June 1, 2026 | 150,000 | 3.83 | % | |||||
December 1, 2026 | 150,000 | 3.84 | % | |||||
June 1, 2027 | 150,000 | 4.13 | % | |||||
December 1, 2027 | 250,000 | 3.79 | % | |||||
$ | 1,000,000 | 3.17 | % |
Interest Rate Swaps | September 30, 2017 | |||
Number of instruments | 5 | |||
Notional amount | $ | 189,751 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Fair Value at: | Fair Value at: | |||||||||||||||||||
Derivatives Designated as Hedging Instruments: | Balance Sheet Location | September 30, 2017 | December 31, 2016 | Balance Sheet Location | September 30, 2017 | December 31, 2016 | ||||||||||||||
Interest rate swaps | Receivables and other assets | $ | 952 | $ | — | Derivative financial instruments | $ | 1,441 | $ | — |
Gain (Loss) Recognized in OCI on Derivative (Effective Portion): | Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion): | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing): | ||||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||
Derivatives Cash Flow Hedging Relationships: | 2017 | 2016 | Statement of Operations Location | 2017 | 2016 | Statement of Operations Location | 2017 | 2016 | ||||||||||||||||||||
Interest rate swaps | $ | 9 | $ | — | Interest related to derivative financial instruments | $ | (196 | ) | $ | — | Interest related to derivative financial instruments | $ | (4 | ) | $ | — |
Gain (Loss) Recognized in OCI on Derivative (Effective Portion): | Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion): | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing): | |||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Derivatives Cash Flow Hedging Relationships: | 2017 | 2016 | Statement of Operations Location | 2017 | 2016 | Statement of Operations Location | 2017 | 2016 | |||||||||||||||||||
Interest rate swaps | $ | (1,196 | ) | $ | — | Interest related to derivative financial instruments | $ | (565 | ) | — | Interest related to derivative financial instruments | $ | (31 | ) | $ | — |
BALANCE AT JUNE 30, 2023 | ||||||||
In thousands | BALANCE SHEET LOCATION | FAIR VALUE | ||||||
Derivatives designated as hedging instruments | ||||||||
Interest rate swaps | Other liabilities | $ | (1,248) | |||||
Interest rate swaps | Other assets | $ | 16,046 | |||||
Total derivatives designated as hedging instruments | $ | 14,798 |
(GAIN)/LOSS RECOGNIZED IN AOCI ON DERIVATIVE three months ended June 30, | (GAIN)/LOSS RECLASSIFIED FROM AOCI INTO INCOME three months ended June 30, | ||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Interest rate swaps | $ | (21,523) | $ | (1,663) | Interest expense | $ | (3,568) | $ | 674 | ||||||||
Settled treasury hedges | — | — | Interest expense | 107 | 107 | ||||||||||||
Settled interest rate swaps | — | — | Interest expense | 42 | 42 | ||||||||||||
$ | (21,523) | $ | (1,663) | Total interest expense | $ | (3,419) | $ | 823 |
(GAIN)/LOSS RECOGNIZED IN AOCI ON DERIVATIVE six months ended June 30, | (GAIN)/LOSS RECLASSIFIED FROM AOCI INTO INCOME six months ended June 30, | ||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Interest rate swaps | $ | (12,981) | $ | (6,822) | Interest expense | $ | (6,000) | $ | 1,612 | ||||||||
Settled treasury hedges | — | — | Interest expense | 213 | 213 | ||||||||||||
Settled interest rate swaps | — | — | Interest expense | 84 | 84 | ||||||||||||
$ | (12,981) | $ | (6,822) | Total interest expense | $ | (5,703) | $ | 1,909 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Fair Value at: | Fair Value at: | |||||||||||||||||||
Derivatives NOT Designated as Hedging Instruments: | Balance Sheet Location | September 30, 2017 | December 31, 2016 | Balance Sheet Location | September 30, 2017 | December 31, 2016 | ||||||||||||||
Interest rate swaps | Receivables and other assets | $ | — | $ | 541 | Derivative financial instruments | $ | — | $ | 1,920 |
Offsetting of Derivative Assets | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
September 30, 2017 | $ | 952 | $ | — | $ | 952 | $ | — | $ | — | $ | 952 | ||||||||||||
December 31, 2016 | 541 | — | 541 | — | — | 541 |
Offsetting of Derivative Liabilities | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
September 30, 2017 | $ | 1,441 | $ | — | $ | 1,441 | $ | — | $ | — | $ | 1,441 | ||||||||||||
December 31, 2016 | 1,920 | — | 1,920 | — | — | 1,920 |
SIX MONTHS ENDED JUNE 30, 2023 | TWELVE MONTHS ENDED DECEMBER 31, 2022 | |||||||
Balance, beginning of period | 380,589,894 | 150,457,433 | ||||||
Issuance of common stock | 4,817 | 229,618,304 | ||||||
Non-vested share-based awards, net of withheld shares | 262,821 | 514,157 | ||||||
Balance, end of period | 380,857,532 | 380,589,894 |
THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||||||||
Dollars in thousands, except per share data | 2023 | 2022 | 2023 | 2022 | ||||||||||
Weighted average common shares outstanding | ||||||||||||||
Weighted average common shares outstanding | 380,829,011 | 151,620,897 | 380,812,981 | 151,230,064 | ||||||||||
Non-vested shares | (1,932,334) | (1,945,042) | (1,952,350) | (1,908,652) | ||||||||||
Weighted average common shares outstanding - basic | 378,896,677 | 149,675,855 | 378,860,631 | 149,321,412 | ||||||||||
Weighted average common shares outstanding - basic | 378,896,677 | 149,675,855 | 378,860,631 | 149,321,412 | ||||||||||
Dilutive effect of employee stock purchase plan | — | 62,694 | — | 75,394 | ||||||||||
Weighted average common shares outstanding - diluted | 378,896,677 | 149,738,549 | 378,860,631 | 149,396,806 | ||||||||||
Net (loss) income attributable to common stockholders | $ | (82,759) | $ | 6,130 | $ | (169,884) | $ | 48,357 | ||||||
Dividends paid on nonvested share-based awards | (588) | (601) | (1,193) | (1,207) | ||||||||||
Net (loss) income applicable to common stockholders - basic | $ | (83,347) | $ | 5,529 | $ | (171,077) | $ | 47,150 | ||||||
Basic earnings per common share - net income | $ | (0.22) | $ | 0.04 | $ | (0.45) | $ | 0.32 | ||||||
Diluted earnings per common share - net income | $ | (0.22) | $ | 0.04 | $ | (0.45) | $ | 0.32 |
THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Share-based awards, beginning of period | 1,955,445 | 1,951,551 | 1,795,128 | 1,562,028 | ||||||||||
Granted | 43,276 | 26,840 | 325,816 | 442,024 | ||||||||||
Vested | (62,640) | (36,682) | (164,360) | (61,047) | ||||||||||
Forfeited | (3,860) | — | (24,363) | (1,296) | ||||||||||
Share-based awards, end of period | 1,932,221 | 1,941,709 | 1,932,221 | 1,941,709 |
THREE MONTHS ENDED MARCH 31, | |||||||||||
Volatility | 34.0 | % | |||||||||
Dividend assumption | Accrued | ||||||||||
Expected term | 3 years | ||||||||||
Risk-free rate | 4.42 | % | |||||||||
Stock price (per share) | $20.21 |
THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||||||||
Restricted Stock Units | Weighted Average Grant Date Fair Value | Restricted Stock Units | Weighted Average Grant Date Fair Value | |||||||||||
Non-vested, beginning of period | 363,250 | $ | 28.57 | 294,932 | 33.04 | |||||||||
Granted | — | — | 165,174 | $ | 22.55 | |||||||||
Vested/Forfeited | — | — | (17,606) | 33.04 | ||||||||||
Probability adjustment of 2022 RSUs | — | — | (79,250) | 31.68 | ||||||||||
Non-vested, end of period | 363,250 | $ | 28.57 | 363,250 | 28.57 |
THREE MONTHS ENDED MARCH 31, | |||||||||||
Volatility | 34.0 | % | |||||||||
Dividend assumption | Accrued | ||||||||||
Expected term | 3 years | ||||||||||
Risk-free rate | 4.42 | % | |||||||||
Stock price (per share) | $20.21 |
THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Outstanding and exercisable, beginning of period | 183,426 | 427,802 | 340,976 | 348,514 | ||||||||||
Granted | — | — | — | 255,960 | ||||||||||
Exercised | (1,687) | (1,965) | (4,817) | (12,518) | ||||||||||
Forfeited | (2,370) | (20,303) | (23,791) | (45,789) | ||||||||||
Expired | — | — | (132,999) | (140,633) | ||||||||||
Outstanding and exercisable, end of period | 179,369 | 405,534 | 179,369 | 405,534 |
Dollars in millions | FUTURE AMORTIZATION of non-vested shares | ||||
2023 | $ | 7.7 | |||
2024 | 13.3 | ||||
2025 | 10.8 | ||||
2026 | 8.0 | ||||
2027 | 2.4 | ||||
2028 and thereafter | 0.5 | ||||
Total | $ | 42.7 |
September 30, 2017 | September 30, 2016 | ||||||||||||
Restricted Common Stock | Weighted Average Grant Date Fair Value | Restricted Common Stock | Weighted Average Grant Date Fair Value | ||||||||||
Beginning balance | 640,870 | $ | 27.36 | 487,850 | $ | 23.13 | |||||||
Granted | 292,109 | 29.75 | 417,110 | 29.82 | |||||||||
Vested | (278,821 | ) | 25.31 | (236,749 | ) | 23.27 | |||||||
Forfeited | (58,384 | ) | 28.86 | (24,391 | ) | 25.93 | |||||||
Ending balance | 595,774 | $ | 29.39 | 643,820 | $ | 27.35 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments | $ | — | $ | 952 | $ | — | $ | 952 | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments | $ | — | $ | 1,441 | $ | — | $ | 1,441 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments | $ | — | $ | 541 | $ | — | $ | 541 | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments | $ | — | $ | 1,920 | $ | — | $ | 1,920 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
MOB (1) | $ | — | $ | 1,423 | $ | — | $ | 1,423 | ||||||||
(1) During the nine months ended September 30, 2017, we recognized a $5.1 million impairment charge to one MOB. The estimated fair value as of September 30, 2017 for this MOB was based upon real estate market comparables. |
June 30, 2023 | December 31, 2022 | ||||||||||||||||
Dollars in millions | CARRYING VALUE | FAIR VALUE | CARRYING VALUE | FAIR VALUE | |||||||||||||
Notes and bonds payable 1 | $ | 5,340.3 | $ | 5,107.5 | $ | 5,351.8 | $ | 5,149.6 | |||||||||
Real estate notes receivable 1 | $ | 151.5 | $ | 149.0 | $ | 99.6 | $ | 99.6 | |||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
MOB (1) | $ | — | $ | 8,191 | $ | — | $ | 8,191 | ||||||||
(1) During the year ended December 31, 2016, we recognized impairment charges of $1.3 million and $1.8 million to the carrying value of two MOBs. The estimated fair value as of December 31, 2016 for these two MOBs was based upon a pending sales agreement and real estate market comparables. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 13,957 | $ | 6,639 | $ | 22,105 | $ | 30,191 | |||||||
Net income attributable to noncontrolling interests | (194 | ) | (212 | ) | (715 | ) | (830 | ) | |||||||
Net income attributable to common stockholders | $ | 13,763 | $ | 6,427 | $ | 21,390 | $ | 29,361 | |||||||
Denominator: | |||||||||||||||
Weighted average shares outstanding - basic | 200,674 | 138,807 | 173,189 | 134,905 | |||||||||||
Dilutive shares | 4,121 | 4,331 | 4,221 | 3,409 | |||||||||||
Weighted average shares outstanding - diluted | 204,795 | 143,138 | 177,410 | 138,314 | |||||||||||
Earnings per common share - basic | |||||||||||||||
Net income attributable to common stockholders | $ | 0.07 | $ | 0.05 | $ | 0.12 | $ | 0.22 | |||||||
Earnings per common share - diluted | |||||||||||||||
Net income attributable to common stockholders | $ | 0.07 | $ | 0.04 | $ | 0.12 | $ | 0.21 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 13,957 | $ | 6,639 | $ | 22,105 | $ | 30,191 | |||||||
Net income attributable to noncontrolling interests | (28 | ) | (1 | ) | (80 | ) | (28 | ) | |||||||
Net income attributable to common unitholders | $ | 13,929 | $ | 6,638 | $ | 22,025 | $ | 30,163 | |||||||
Denominator: | |||||||||||||||
Weighted average units outstanding - basic | 204,795 | 143,137 | 177,410 | 138,314 | |||||||||||
Dilutive units | — | — | — | — | |||||||||||
Weighted average units outstanding - diluted | 204,795 | 143,137 | 177,410 | 138,314 | |||||||||||
Earnings per common unit - basic: | |||||||||||||||
Net income attributable to common unitholders | $ | 0.07 | $ | 0.05 | $ | 0.12 | $ | 0.22 | |||||||
Earnings per common unit - diluted: | |||||||||||||||
Net income attributable to common unitholders | $ | 0.07 | $ | 0.05 | $ | 0.12 | $ | 0.22 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Supplemental Disclosure of Cash Flow Information: | |||||||
Interest paid | $ | 51,066 | $ | 39,321 | |||
Income taxes paid | 997 | 934 | |||||
Supplemental Disclosure of Noncash Investing and Financing Activities: | |||||||
Accrued capital expenditures | $ | 4,185 | $ | 2,868 | |||
Debt and interest rate swaps assumed and entered into in connection with an acquisition | 286,000 | 21,156 | |||||
Dividend distributions declared, but not paid | 62,494 | 43,530 | |||||
Issuance of operating partnership units in connection with an acquisition | 610 | 71,754 | |||||
Note receivable included in the consideration of a disposition | — | 3,000 | |||||
Note receivable retired in connection with an acquisition | 2,494 | — | |||||
Redeemable noncontrolling interest assumed in connection with an acquisition | — | 5,449 | |||||
Redemption of noncontrolling interest | 5,694 | 5,709 |
Dollars in thousands | ASSOCIATED HEALTH SYSTEM/TENANCY 1 | DATE ACQUIRED | PURCHASE PRICE | SQUARE FOOTAGE | MILES TO CAMPUS | ||||||||||||
Tampa, FL | BayCare Health | 3/10/23 | $ | 31,500 | 115,867 | 0.06 | |||||||||||
Dollars in thousands | ASSOCIATED HEALTH SYSTEM/TENANCY 1 | DATE ACQUIRED | PURCHASE PRICE | SQUARE FOOTAGE | MILES TO CAMPUS | ||||||||||||
Colorado Springs, CO | UC Health | 7/28/23 | $ | 11,450 | 42,770 | 1.30 |
Dollars in thousands | Date Disposed | Sales Price | Square Footage | |||||||||||
Tampa, FL & Miami, FL 1 | 1/12/23 | $ | 93,250 | 224,037 | ||||||||||
Dallas, TX 2 | 1/30/23 | 19,210 | 36,691 | |||||||||||
St. Louis, MO | 2/10/23 | 350 | 6,500 | |||||||||||
Los Angeles, CA | 3/23/23 | 21,000 | 37,165 | |||||||||||
Los Angeles, CA3 | 3/30/23 | 75,000 | 147,078 | |||||||||||
Los Angeles, CA4 | 5/12/23 | 3,300 | — | |||||||||||
Albany, NY | 6/30/23 | 10,000 | 40,870 | |||||||||||
Total dispositions | $ | 222,110 | 492,341 |
Dollars in thousands | DATE DISPOSED | SALES PRICE | SQUARE FOOTAGE | ||||||||
Houston, TX | 8/2/23 | $ | 8,320 | 57,170 | |||||||
EXPIRATION DATE | AMOUNT | WEIGHTED AVERAGE RATE | ||||||
January 15, 2024 | $ | 200,000 | 1.21 | % | ||||
May 1, 2026 | 100,000 | 2.15 | % | |||||
June 1, 2026 | 150,000 | 3.83 | % | |||||
December 1, 2026 | 150,000 | 3.84 | % | |||||
June 1, 2027 | 150,000 | 4.13 | % | |||||
December 1, 2027 | 250,000 | 3.79 | % | |||||
$ | 1,000,000 | 3.17 | % |
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | % Change | |||||||||||
Revenues: | ||||||||||||||
Rental income | $ | 175,431 | $ | 118,252 | $ | 57,179 | 48.4 | % | ||||||
Interest and other operating income | 563 | 88 | 475 | NM | ||||||||||
Total revenues | 175,994 | 118,340 | 57,654 | 48.7 | ||||||||||
Expenses: | ||||||||||||||
Rental | 56,331 | 36,885 | 19,446 | 52.7 | ||||||||||
General and administrative | 8,283 | 7,293 | 990 | 13.6 | ||||||||||
Transaction | 261 | 1,122 | (861 | ) | (76.7 | ) | ||||||||
Depreciation and amortization | 70,491 | 47,864 | 22,627 | 47.3 | ||||||||||
Total expenses | 135,366 | 93,164 | 42,202 | 45.3 | ||||||||||
Income before other income (expense) | 40,628 | 25,176 | 15,452 | 61.4 | ||||||||||
Interest expense: | ||||||||||||||
Interest related to derivative financial instruments | (264 | ) | (552 | ) | 288 | 52.2 | ||||||||
Gain (loss) on change in fair value of derivative financial instruments, net | — | 1,306 | (1,306 | ) | (100.0 | ) | ||||||||
Total interest related to derivative financial instruments, including net change in fair value of derivative financial instruments | (264 | ) | 754 | (1,018 | ) | (135.0 | ) | |||||||
Interest related to debt | (25,924 | ) | (16,386 | ) | (9,538 | ) | (58.2 | ) | ||||||
Loss on extinguishment of debt, net | (774 | ) | (3,000 | ) | 2,226 | 74.2 | ||||||||
Income from unconsolidated joint venture | 318 | — | 318 | NM | ||||||||||
Other (expense) income | (27 | ) | 95 | (122 | ) | NM | ||||||||
Net income | $ | 13,957 | $ | 6,639 | $ | 7,318 | 110.2 | % | ||||||
NOI | $ | 119,663 | $ | 81,455 | $ | 38,208 | 46.9 | % | ||||||
Same-Property Cash NOI | $ | 80,285 | $ | 78,043 | $ | 2,242 | 2.9 | % |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | % Change | |||||||||||
Revenues: | ||||||||||||||
Rental income | $ | 438,949 | $ | 338,646 | $ | 100,303 | 29.6 | % | ||||||
Interest and other operating income | 1,271 | 243 | 1,028 | NM | ||||||||||
Total revenues | 440,220 | 338,889 | 101,331 | 29.9 | ||||||||||
Expenses: | ||||||||||||||
Rental | 138,874 | 105,299 | 33,575 | 31.9 | ||||||||||
General and administrative | 25,178 | 20,879 | 4,299 | 20.6 | ||||||||||
Transaction | 5,618 | 4,997 | 621 | 12.4 | ||||||||||
Depreciation and amortization | 172,900 | 130,430 | 42,470 | 32.6 | ||||||||||
Impairment | 5,093 | — | 5,093 | NM | ||||||||||
Total expenses | 347,663 | 261,605 | 86,058 | 32.9 | ||||||||||
Income before other income (expense) | 92,557 | 77,284 | 15,273 | 19.8 | ||||||||||
Interest expense: | ||||||||||||||
Interest related to derivative financial instruments | (827 | ) | (1,856 | ) | 1,029 | 55.4 | ||||||||
Gain (loss) on change in fair value of derivative financial instruments, net | 884 | (2,144 | ) | 3,028 | 141.2 | |||||||||
Total interest related to derivative financial instruments, including net change in fair value of derivative financial instruments | 57 | (4,000 | ) | 4,057 | 101.4 | |||||||||
Interest related to debt | (59,688 | ) | (44,503 | ) | (15,185 | ) | (34.1 | ) | ||||||
Gain on sale of real estate, net | 3 | 4,212 | (4,209 | ) | (99.9 | ) | ||||||||
Loss on extinguishment of debt, net | (11,192 | ) | (3,022 | ) | (8,170 | ) | NM | |||||||
Income from unconsolidated joint venture | 381 | — | 381 | NM | ||||||||||
Other (expense) income | (13 | ) | 220 | (233 | ) | (105.9 | ) | |||||||
Net income | $ | 22,105 | $ | 30,191 | $ | (8,086 | ) | (26.8 | )% | |||||
NOI | $ | 301,346 | $ | 233,590 | $ | 67,756 | 29.0 | % | ||||||
Same-Property Cash NOI | $ | 217,758 | $ | 211,128 | $ | 6,630 | 3.1 | % |
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | % Change | |||||||||||
Contractual rental income | $ | 169,099 | $ | 114,202 | $ | 54,897 | 48.1 | % | ||||||
Straight-line rent and amortization of above and (below) market leases | 4,269 | 2,299 | 1,970 | 85.7 | ||||||||||
Other operating revenue | 2,063 | 1,751 | 312 | 17.8 | ||||||||||
Total rental income | $ | 175,431 | $ | 118,252 | $ | 57,179 | 48.4 | % |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | % Change | |||||||||||
Contractual rental income | $ | 423,696 | $ | 327,779 | $ | 95,917 | 29.3 | % | ||||||
Straight-line rent and amortization of above and (below) market leases | 9,475 | 6,503 | 2,972 | 45.7 | ||||||||||
Other operating revenue | 5,778 | 4,364 | 1,414 | 32.4 | ||||||||||
Total rental income | $ | 438,949 | $ | 338,646 | $ | 100,303 | 29.6 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
New and renewal leases: | |||||||||||||||
Average starting annual base rents | $ | 22.34 | $ | 25.17 | $ | 22.46 | $ | 22.67 | |||||||
Average ending annual base rents | 21.94 | 24.60 | 22.47 | 22.54 | |||||||||||
Square feet of GLA | 745,000 | 339,000 | 2,040,000 | 1,125,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
New leases: | |||||||||||||||
Tenant improvements | $ | 17.18 | $ | 20.28 | $ | 18.18 | $ | 21.10 | |||||||
Leasing commissions | 1.92 | 4.91 | 2.01 | 4.29 | |||||||||||
Tenant concessions | 1.93 | 3.81 | 2.68 | 3.92 | |||||||||||
Renewal leases: | |||||||||||||||
Tenant improvements | $ | 8.58 | $ | 9.46 | $ | 7.50 | $ | 6.19 | |||||||
Leasing commissions | 1.02 | 2.32 | 1.09 | 1.57 | |||||||||||
Tenant concessions | 0.80 | 1.71 | 1.45 | 1.06 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2017 | 2016 | 2017 | 2016 | ||||
New leases | 6.2 | 5.4 | 5.8 | 5.4 | |||
Renewal leases | 5.5 | 4.5 | 5.0 | 4.8 |
YEAR EXERCISABLE | NUMBER OF PROPERTIES | GROSS REAL ESTATE INVESTMENT AS OF JUNE 30, 2023 1 | ||||||
Current 2 | 6 | $ | 112,669 | |||||
2024 | — | — | ||||||
2025 | 7 | 112,689 | ||||||
2026 | 6 | 181,414 | ||||||
2027 | 4 | 110,260 | ||||||
2028 | 5 | 133,877 | ||||||
2029 | 3 | 81,784 | ||||||
2030 | — | — | ||||||
2031 | 4 | 108,818 | ||||||
2032 | 2 | 24,619 | ||||||
2033 and thereafter 3 | 10 | 340,128 | ||||||
Total | 47 | $ | 1,206,258 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income attributable to common stockholders | $ | 13,763 | $ | 6,427 | $ | 21,390 | $ | 29,361 | |||||||
Depreciation and amortization expense related to investments in real estate | 70,021 | 47,545 | 171,678 | 129,477 | |||||||||||
Gain on sale of real estate, net | — | — | (3 | ) | (4,212 | ) | |||||||||
Impairment | — | — | 5,093 | — | |||||||||||
Proportionate share of joint venture depreciation, amortization and other adjustments | 464 | — | 506 | — | |||||||||||
FFO attributable to common stockholders | $ | 84,248 | $ | 53,972 | $ | 198,664 | $ | 154,626 | |||||||
Transaction expenses (1) | 261 | 1,122 | 975 | 4,997 | |||||||||||
(Gain) loss on change in fair value of derivative financial instruments, net | — | (1,306 | ) | (884 | ) | 2,144 | |||||||||
Loss on extinguishment of debt, net | 774 | 3,000 | 11,192 | 3,022 | |||||||||||
Noncontrolling income from partnership units included in diluted shares | 166 | 211 | 635 | 802 | |||||||||||
Other normalizing items, net (2) | — | 133 | 4,643 | 117 | |||||||||||
Normalized FFO attributable to common stockholders | $ | 85,449 | $ | 57,132 | $ | 215,225 | $ | 165,708 | |||||||
Net income attributable to common stockholders per diluted share | $ | 0.07 | $ | 0.04 | $ | 0.12 | $ | 0.21 | |||||||
FFO adjustments per diluted share, net | 0.34 | 0.34 | 1.00 | 0.91 | |||||||||||
FFO attributable to common stockholders per diluted share | $ | 0.41 | $ | 0.38 | $ | 1.12 | $ | 1.12 | |||||||
Normalized FFO adjustments per diluted share, net | 0.01 | 0.02 | 0.09 | 0.08 | |||||||||||
Normalized FFO attributable to common stockholders per diluted share | $ | 0.42 | $ | 0.40 | $ | 1.21 | $ | 1.20 | |||||||
Weighted average diluted common shares outstanding | 204,795 | 143,138 | 177,410 | 138,314 | |||||||||||
(1) For the three and nine months ended September 30, 2017, amounts have been adjusted to reflect the prospective presentation of the early adoption of ASU 2017-01 as of January 1, 2017. | |||||||||||||||
(2) For the nine months ended September 30, 2017, other normalizing items include $4.6 million of compensation and severance payments to Duke employees pursuant to the Duke purchase agreements in connection with the Duke Acquisition that were included in transaction expenses on HTA’s condensed consolidated statements of operations. In addition, other normalizing items excludes lease termination fees as they are deemed to be generated in the ordinary course of business. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income attributable to common unitholders | $ | 13,929 | $ | 6,638 | $ | 22,025 | $ | 30,163 | |||||||
Depreciation and amortization expense related to investments in real estate | 70,021 | 47,545 | 171,678 | 129,477 | |||||||||||
Gain on sale of real estate, net | — | — | (3 | ) | (4,212 | ) | |||||||||
Impairment | — | — | 5,093 | — | |||||||||||
Proportionate share of joint venture depreciation, amortization and other adjustments | 464 | — | 506 | — | |||||||||||
FFO attributable to common unitholders | $ | 84,414 | $ | 54,183 | $ | 199,299 | $ | 155,428 | |||||||
Transaction expenses (1) | 261 | 1,122 | 975 | 4,997 | |||||||||||
(Gain) loss on change in fair value of derivative financial instruments, net | — | (1,306 | ) | (884 | ) | 2,144 | |||||||||
Loss on extinguishment of debt, net | 774 | 3,000 | 11,192 | 3,022 | |||||||||||
Other normalizing items, net (2) | — | 133 | 4,643 | 117 | |||||||||||
Normalized FFO attributable to common unitholders | 85,449 | 57,132 | 215,225 | 165,708 | |||||||||||
Net income attributable to common unitholders per diluted unit | $ | 0.07 | $ | 0.05 | $ | 0.12 | $ | 0.22 | |||||||
FFO adjustments per diluted unit, net | 0.34 | 0.33 | 1.00 | 0.90 | |||||||||||
FFO attributable to common unitholders per diluted unit | 0.41 | 0.38 | 1.12 | 1.12 | |||||||||||
Normalized FFO adjustments per diluted unit, net | 0.01 | 0.02 | 0.09 | 0.08 | |||||||||||
Normalized FFO attributable to common unitholders per diluted unit | $ | 0.42 | $ | 0.40 | $ | 1.21 | $ | 1.20 | |||||||
Weighted average diluted common units outstanding | 204,795 | 143,137 | 177,410 | 138,314 | |||||||||||
(1) For the three and nine months ended September 30, 2017, amounts have been adjusted to reflect the prospective presentation of the early adoption of ASU 2017-01 as of January 1, 2017. | |||||||||||||||
(2) For the nine months ended September 30, 2017, other normalizing items include $4.6 million of compensation and severance payments to Duke employees pursuant to the Duke purchase agreements in connection with the Duke Acquisition that were included in transaction expenses on HTA’s condensed consolidated statements of operations. In addition, other normalizing items excludes lease termination fees as they are deemed to be generated in the ordinary course of business. |
THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||||||||
Amounts in thousands, except per share data | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net (loss) income attributable to common stockholders | $ | (82,759) | $ | 6,130 | $ | (169,884) | $ | 48,357 | ||||||
Net (loss) income attributable to common stockholders per share 1 | $ | (0.22) | $ | 0.04 | $ | (0.45) | $ | 0.32 | ||||||
Gain on sales of real estate properties | (7,156) | (8,496) | (8,162) | (53,280) | ||||||||||
Impairment of real estate properties | 55,215 | — | 81,442 | (25) | ||||||||||
Real estate depreciation and amortization | 185,003 | 57,334 | 371,112 | 112,991 | ||||||||||
Non-controlling income from operating partnership units | (1,027) | — | (2,094) | — | ||||||||||
Proportionate share of unconsolidated joint ventures | 4,412 | 2,807 | 9,253 | 5,176 | ||||||||||
FFO adjustments | $ | 236,447 | $ | 51,645 | $ | 451,551 | $ | 64,862 | ||||||
FFO adjustments per common share - diluted 7 | $ | 0.62 | $ | 0.34 | $ | 1.18 | $ | 0.43 | ||||||
FFO attributable to common stockholders | $ | 153,688 | $ | 57,775 | $ | 281,667 | $ | 113,219 | ||||||
FFO attributable to common stockholders per common share - diluted 7 | $ | 0.40 | $ | 0.38 | $ | 0.73 | $ | 0.75 | ||||||
Acquisition and pursuit costs 2 | 669 | 1,352 | 956 | 2,655 | ||||||||||
Merger-related costs 3 | (15,670) | 7,085 | (10,815) | 13,201 | ||||||||||
Merger-related fair value of debt instruments | 10,554 | — | 21,418 | — | ||||||||||
Lease intangible amortization | 240 | 584 | 386 | 893 | ||||||||||
Non-routine legal costs/forfeited earnest money received | 275 | 140 | 275 | 231 | ||||||||||
Allowance for credit losses 4 | — | — | 8,599 | — | ||||||||||
Debt financing costs | — | — | — | 1,429 | ||||||||||
Unconsolidated JV normalizing items 5 | 93 | 83 | 210 | 178 | ||||||||||
Normalized FFO adjustments | $ | (3,839) | $ | 9,244 | $ | 21,029 | $ | 18,587 | ||||||
Normalized FFO adjustments per common share - diluted 8 | $ | (0.01) | $ | 0.06 | $ | 0.05 | $ | 0.12 | ||||||
Normalized FFO attributable to common stockholders | $ | 149,849 | $ | 67,019 | $ | 302,696 | $ | 131,806 | ||||||
Normalized FFO attributable to common stockholders per common share - diluted 8 | $ | 0.39 | $ | 0.45 | $ | 0.79 | $ | 0.88 | ||||||
Non-real estate depreciation and amortization | 802 | 556 | 1,406 | 1,016 | ||||||||||
Non-cash interest amortization 6 | 1,618 | 747 | 2,300 | 1,458 | ||||||||||
Rent reserves, net | (54) | 16 | 1,317 | 159 | ||||||||||
Straight-line rent, net | (8,005) | (1,327) | (16,251) | (2,536) | ||||||||||
Stock-based compensation | 3,924 | 3,356 | 7,669 | 7,055 | ||||||||||
Unconsolidated JV non-cash items 7 | (316) | (242) | (598) | (513) | ||||||||||
Normalized FFO adjusted for non-cash items | $ | 147,818 | $ | 70,125 | $ | 298,539 | $ | 138,445 | ||||||
2nd generation TI | (17,236) | (5,051) | (26,118) | (9,950) | ||||||||||
Leasing commissions paid | (5,493) | (3,475) | (12,506) | (7,242) | ||||||||||
Capital additions | (8,649) | (4,557) | (17,595) | (7,177) | ||||||||||
FAD | $ | 116,440 | $ | 57,042 | $ | 242,320 | $ | 114,076 | ||||||
FFO weighted average common shares outstanding - diluted 8 | 383,409 | 150,545 | 383,372 | 150,203 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 13,957 | $ | 6,639 | $ | 22,105 | $ | 30,191 | |||||||
General and administrative expenses | 8,283 | 7,293 | 25,178 | 20,879 | |||||||||||
Transaction expenses (1) | 261 | 1,122 | 5,618 | 4,997 | |||||||||||
Depreciation and amortization expense | 70,491 | 47,864 | 172,900 | 130,430 | |||||||||||
Impairment | — | — | 5,093 | — | |||||||||||
Interest expense and net change in fair value of derivative financial instruments | 26,188 | 15,632 | 59,631 | 48,503 | |||||||||||
Gain on sale of real estate, net | — | — | (3 | ) | (4,212 | ) | |||||||||
Loss on extinguishment of debt, net | 774 | 3,000 | 11,192 | 3,022 | |||||||||||
Income from unconsolidated joint venture | (318 | ) | — | (381 | ) | — | |||||||||
Other expense (income) | 27 | (95 | ) | 13 | (220 | ) | |||||||||
NOI | $ | 119,663 | $ | 81,455 | $ | 301,346 | $ | 233,590 | |||||||
Straight-line rent adjustments, net | (3,009 | ) | (1,161 | ) | (5,834 | ) | (3,636 | ) | |||||||
Amortization of (below) and above market leases/leasehold interests, net and lease termination fees | 214 | 3 | 246 | 497 | |||||||||||
Cash NOI | $ | 116,868 | $ | 80,297 | $ | 295,758 | $ | 230,451 | |||||||
Notes receivable interest income | (503 | ) | (68 | ) | (1,089 | ) | (68 | ) | |||||||
Non Same-Property Cash NOI | (36,080 | ) | (2,186 | ) | (76,911 | ) | (19,255 | ) | |||||||
Same-Property Cash NOI (2) | $ | 80,285 | $ | 78,043 | $ | 217,758 | $ | 211,128 | |||||||
(1) For the three and nine months ended September 30, 2017, transaction costs have been adjusted to reflect the prospective presentation of the early adoption of ASU 2017-01 as of January 1, 2017. For the nine months ended September 30, 2017, transactions costs included $4.6 million of compensation and severance payments to Duke employees pursuant to the Duke purchase agreements in connection with the Duke Acquisition. | |||||||||||||||
(2) Same-Property includes 338 and 296 buildings for the three and nine months ended September 30, 2017 and 2016, respectively. |
NUMBER OF PROPERTIES | GROSS INVESTMENT at June 30, 2023 | MERGER COMBINED SAME STORE CASH NOI for the six months ended June 30, | ||||||||||||
Dollars in thousands | 2023 | 2022 | ||||||||||||
Merger combined same store properties | 594 | $ | 11,934,872 | $ | 362,342 | $ | 353,606 | |||||||
MERGER COMBINED SAME STORE RECONCILIATION | ||||||||
SIX MONTHS ENDED JUNE 30, | ||||||||
Dollars in thousands | 2023 | 2022 | ||||||
Net (loss) income attributable to common stockholders | $ | (169,884) | $ | 48,357 | ||||
Other income (expense) | 207,225 | (21,814) | ||||||
General and administrative expense | 30,399 | 21,576 | ||||||
Depreciation and amortization expense | 367,671 | 109,772 | ||||||
Other expenses 1 | (4,029) | 20,963 | ||||||
Straight-line rent revenue, net | (16,251) | (2,536) | ||||||
Joint venture properties | 9,726 | 4,603 | ||||||
Other revenue 2 | (7,643) | (4,005) | ||||||
417,214 | 176,916 | |||||||
Pre-Merger Legacy HTA NOI | — | 255,388 | ||||||
Cash NOI | 417,214 | 432,304 | ||||||
Cash NOI not included in same store | (54,872) | (78,698) | ||||||
Merger combined same store cash NOI | $ | 362,342 | $ | 353,606 | ||||
LEGACY HR SAME STORE RECONCILIATION | ||||||||
SIX MONTHS ENDED JUNE 30, | ||||||||
Dollars in thousands | 2023 | 2022 | ||||||
Net (loss) income attributable to common stockholders | $ | (169,884) | $ | 48,357 | ||||
Other income (expense) | 207,225 | (21,814) | ||||||
General and administrative expense | 30,399 | 21,576 | ||||||
Depreciation and amortization expense | 367,671 | 109,772 | ||||||
Other expenses 1 | (4,029) | 20,963 | ||||||
Straight-line rent revenue, net | (16,251) | (2,536) | ||||||
Joint venture properties | 9,726 | 4,603 | ||||||
Other revenue 2 | (7,643) | (4,005) | ||||||
417,214 | 176,916 | |||||||
Cash NOI not included in same store | (261,468) | (26,048) | ||||||
Legacy HR same store cash NOI 3 | $ | 155,746 | $ | 150,868 |
AS OF JUNE 30, 2023 | ||||||||||||||
Dollars and square feet in thousands | PROPERTY COUNT | GROSS INVESTMENT 1 | SQUARE FEET | OCCUPANCY | ||||||||||
Merger combined same store properties | 594 | $ | 11,934,872 | 34,824 | 89.0 | % | ||||||||
Acquisitions | 62 | 1,087,583 | 2,878 | 87.3 | % | |||||||||
Development completions | 4 | 134,733 | 266 | 84.9 | % | |||||||||
Redevelopments | 12 | 325,247 | 1,204 | 55.8 | % | |||||||||
Planned Dispositions | 8 | 131,187 | 642 | 58.9 | % | |||||||||
Total owned real estate properties | 680 | $ | 13,613,622 | 39,814 | 87.4 | % |
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | Change | |||||||||
Cash and cash equivalents - beginning of period | $ | 11,231 | $ | 13,070 | $ | (1,839 | ) | ||||
Net cash provided by operating activities | 228,542 | 148,257 | 80,285 | ||||||||
Net cash used in investing activities | (2,487,471 | ) | (541,080 | ) | (1,946,391 | ) | |||||
Net cash provided by financing activities | 2,257,108 | 397,691 | 1,859,417 | ||||||||
Cash and cash equivalents - end of period | $ | 9,410 | $ | 17,938 | $ | (8,528 | ) |
THREE MONTHS ENDED JUNE 30, | CHANGE | |||||||||||||
Dollars in thousands | 2023 | 2022 | $ | % | ||||||||||
Contractual interest | $ | 52,766 | $ | 13,950 | $ | 38,816 | 278.3 | % | ||||||
Net discount/premium accretion | 9,649 | 79 | 9,570 | 12,113.9 | % | |||||||||
Debt issuance costs amortization | 1,562 | 708 | 854 | 120.6 | % | |||||||||
Amortization of interest rate swap settlement | 42 | 42 | — | — | % | |||||||||
Amortization of treasury hedge settlement | 107 | 107 | — | — | % | |||||||||
Fair value derivative | 997 | — | 997 | — | % | |||||||||
Interest cost capitalization | (712) | (108) | (604) | 559.3 | % | |||||||||
Interest on lease liabilities | 923 | 765 | 158 | 20.7 | % | |||||||||
Total interest expense | $ | 65,334 | $ | 15,543 | $ | 49,791 | 320.3 | % |
SIX MONTHS ENDED JUNE 30, | CHANGE | |||||||||||||
Dollars in thousands | 2023 | 2022 | $ | % | ||||||||||
Contractual interest | $ | 103,533 | $ | 26,452 | $ | 77,081 | 291.4 | % | ||||||
Net discount/premium accretion | 19,240 | 129 | 19,111 | 14,814.7 | % | |||||||||
Debt issuance costs amortization | 3,037 | 1,419 | 1,618 | 114.0 | % | |||||||||
Amortization of interest rate swap settlement | 84 | 84 | — | — | % | |||||||||
Amortization of treasury hedge settlement | 213 | 213 | — | — | % | |||||||||
Fair value derivative | 2,426 | — | 2,426 | — | % | |||||||||
Interest cost capitalization | (1,282) | (145) | (1,137) | 784.1 | % | |||||||||
Interest on lease liabilities | 1,841 | 1,052 | 789 | 75.0 | % | |||||||||
Total interest expense | $ | 129,092 | $ | 29,204 | $ | 99,888 | 342.0 | % |
Expected Maturity Date | |||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | |||||||||||||||||||||
Fixed rate debt | $ | 915 | $ | 99,777 | $ | 104,821 | $ | 117,769 | $ | 303,424 | $ | 1,639,147 | $ | 2,265,853 | |||||||||||||
Weighted average interest rate on fixed rate debt (per annum) | 5.43 | % | 4.05 | % | 4.19 | % | 4.41 | % | 3.40 | % | 3.57 | % | 3.64 | % | |||||||||||||
Variable rate debt | $ | 251 | $ | 1,050 | $ | 1,119 | $ | 27,123 | $ | 509 | $ | 583,117 | $ | 613,169 | |||||||||||||
Weighted average interest rate on variable rate debt based on forward rates in effect as of September 30, 2017 (per annum) | 3.14 | % | 3.27 | % | 3.65 | % | 3.40 | % | 4.58 | % | 3.64 | % | 2.58 | % |
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 | ||||||||||
January 1 - January 31 | — | $ | — | — | — | |||||||||
February 1 - February 28 | 38,632 | 21.71 | — | — | ||||||||||
March 1 - March 31 | — | — | — | — | ||||||||||
April 1 - April 30 | — | — | — | — | ||||||||||
May 1 - May 31 | — | — | — | — | ||||||||||
June 1 - June 30 | — | — | — | — | ||||||||||
Total | 38,632 | $ | 21.71 |
Period | Total Number of Shares Purchased (1) (2) | Average Price Paid per Share (1) (2) | Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | Maximum Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs | |||||||||
July 1, 2017 to July 31, 2017 | — | $ | — | — | — | ||||||||
August 1, 2017 to August 31, 2017 | 2,466 | 30.64 | — | — | |||||||||
September 1, 2017 to September 30, 2017 | — | — | — | — | |||||||||
(1) Purchases mainly represent shares withheld to satisfy withholding obligations on the vesting of restricted shares. The price paid per share was the then closing price of our common stock on the NYSE. | |||||||||||||
(2) For each share of common stock redeemed by HTA, HTALP redeems a corresponding number of OP Units in the HTALP operating partnership. Therefore, the OP Units in the HTALP operating partnership repurchased by HTALP are the same as the shares of common stock repurchased by HTA as shown above. |
EXHIBIT | DESCRIPTION | |||||||
Exhibit 3.1 | ||||||||
Exhibit 3.2 | ||||||||
Exhibit 4.1 | ||||||||
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 | |||||
Chief Financial Officer | |||||