Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MPW | |
Entity Registrant Name | MEDICAL PROPERTIES TRUST INC | |
Entity Central Index Key | 1,287,865 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 364,156,080 | |
MPT Operating Partnership, L.P. [Member] | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MPT OPERATING PARTNERSHIP, L.P. | |
Entity Central Index Key | 1,524,607 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Real estate assets | ||
Land, buildings and improvements, intangible lease assets, and other | $ 5,795,286 | $ 4,317,866 |
Mortgage loans | 1,777,555 | 1,060,400 |
Net investment in direct financing leases | 695,829 | 648,102 |
Gross investment in real estate assets | 8,268,670 | 6,026,368 |
Accumulated depreciation and amortization | (418,880) | (325,125) |
Net investment in real estate assets | 7,849,790 | 5,701,243 |
Cash and cash equivalents | 188,224 | 83,240 |
Interest and rent receivables | 105,817 | 57,698 |
Straight-line rent receivables | 166,142 | 116,861 |
Other loans | 151,709 | 155,721 |
Other assets | 465,358 | 303,773 |
Total Assets | 8,927,040 | 6,418,536 |
Liabilities | ||
Debt, net | 4,832,264 | 2,909,341 |
Accounts payable and accrued expenses | 180,631 | 207,711 |
Deferred revenue | 18,906 | 19,933 |
Lease deposits and other obligations to tenants | 54,035 | 28,323 |
Total Liabilities | 5,085,836 | 3,165,308 |
Equity / Capital | ||
Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding | ||
Common stock, $0.001 par value. Authorized 500,000 shares; issued and outstanding - 364,084 shares at September 30, 2017 and 320,514 shares at December 31, 2016 | 364 | 321 |
Limited Partners: | ||
Additional paid in capital | 4,330,495 | 3,775,336 |
Distributions in excess of net income | (468,473) | (434,114) |
Accumulated other comprehensive loss | (35,165) | (92,903) |
Treasury shares, at cost | (777) | (262) |
Total Medical Properties Trust, Inc. Stockholders' Equity (MPT Operating Partnership, L.P. capital) | 3,826,444 | 3,248,378 |
Non-controlling interests | 14,760 | 4,850 |
Total Equity / Capital | 3,841,204 | 3,253,228 |
Total Liabilities and Equity / Capital | 8,927,040 | 6,418,536 |
MPT Operating Partnership, L.P. [Member] | ||
Real estate assets | ||
Land, buildings and improvements, intangible lease assets, and other | 5,795,286 | 4,317,866 |
Mortgage loans | 1,777,555 | 1,060,400 |
Net investment in direct financing leases | 695,829 | 648,102 |
Gross investment in real estate assets | 8,268,670 | 6,026,368 |
Accumulated depreciation and amortization | (418,880) | (325,125) |
Net investment in real estate assets | 7,849,790 | 5,701,243 |
Cash and cash equivalents | 188,224 | 83,240 |
Interest and rent receivables | 105,817 | 57,698 |
Straight-line rent receivables | 166,142 | 116,861 |
Other loans | 151,709 | 155,721 |
Other assets | 465,358 | 303,773 |
Total Assets | 8,927,040 | 6,418,536 |
Liabilities | ||
Debt, net | 4,832,264 | 2,909,341 |
Accounts payable and accrued expenses | 92,793 | 132,868 |
Deferred revenue | 18,906 | 19,933 |
Lease deposits and other obligations to tenants | 54,035 | 28,323 |
Payable due to Medical Properties Trust, Inc. | 87,448 | 74,453 |
Total Liabilities | 5,085,446 | 3,164,918 |
Limited Partners: | ||
Accumulated other comprehensive loss | (35,165) | (92,903) |
Total Medical Properties Trust, Inc. Stockholders' Equity (MPT Operating Partnership, L.P. capital) | 3,826,834 | 3,248,768 |
Non-controlling interests | 14,760 | 4,850 |
Total Equity / Capital | 3,841,594 | 3,253,618 |
Total Liabilities and Equity / Capital | 8,927,040 | 6,418,536 |
MPT Operating Partnership, L.P. [Member] | General Partner [Member] | ||
Equity / Capital | ||
General Partner - issued and outstanding - 3,641 units at September 30, 2017 and 3,204 units at December 31, 2016 | 38,639 | 33,436 |
MPT Operating Partnership, L.P. [Member] | Common Units [Member] | ||
Limited Partners: | ||
Limited Partners Capital | $ 3,823,360 | $ 3,308,235 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 364,084,000 | 320,514,000 |
Common stock, shares outstanding | 364,084,000 | 320,514,000 |
MPT Operating Partnership, L.P. [Member] | Common Units [Member] | ||
Limited Partners, units issued | 360,443,000 | 317,310,000 |
Limited Partners, units outstanding | 360,443,000 | 317,310,000 |
General Partner [Member] | MPT Operating Partnership, L.P. [Member] | ||
General partner, units issued | 3,641,000 | 3,204,000 |
General partner, units outstanding | 3,641,000 | 3,204,000 |
LTIP Units [Member] | MPT Operating Partnership, L.P. [Member] | ||
LTIP Units, shares issued | 292,000 | 292,000 |
LTIP Units, shares outstanding | 292,000 | 292,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Net Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Rent billed | $ 110,930 | $ 82,387 | $ 311,140 | $ 234,408 |
Straight-line rent | 17,505 | 9,741 | 46,561 | 26,509 |
Income from direct financing leases | 19,115 | 14,678 | 55,307 | 47,181 |
Interest and fee income | 29,030 | 19,749 | 86,776 | 79,756 |
Total revenues | 176,580 | 126,555 | 499,784 | 387,854 |
Expenses | ||||
Real estate depreciation and amortization | 31,915 | 23,876 | 88,994 | 67,850 |
Impairment charges | (80) | 7,295 | ||
Property-related | 1,519 | (93) | 4,000 | 1,592 |
Acquisition expenses | 7,434 | 2,677 | 20,996 | 6,379 |
General and administrative | 15,011 | 12,305 | 43,287 | 35,821 |
Total operating expenses | 55,879 | 38,685 | 157,277 | 118,937 |
Operating income | 120,701 | 87,870 | 342,507 | 268,917 |
Other income (expense) | ||||
Interest expense | (42,759) | (40,262) | (120,498) | (121,132) |
Gain on sale of real estate and other asset dispositions, net | 18 | 44,616 | 7,431 | 61,294 |
Earnings (loss) from equity and other interests | 3,384 | 1,245 | 7,898 | (2,556) |
Unutilized financing fees/debt refinancing costs | (4,414) | (22,535) | (18,794) | (22,539) |
Other income (expense) | 481 | 99 | 1,101 | (118) |
Income tax expense | (530) | (490) | (783) | (1,173) |
Net other expense | (43,820) | (17,327) | (123,645) | (86,224) |
Income from continuing operations | 76,881 | 70,543 | 218,862 | 182,693 |
Loss from discontinued operations | (1) | |||
Net income | 76,881 | 70,543 | 218,862 | 182,692 |
Net income attributable to non-controlling interests | (417) | (185) | (1,013) | (683) |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 76,464 | $ 70,358 | $ 217,849 | $ 182,009 |
Earnings per common share - basic | ||||
Income from continuing operations attributable to MPT common stockholders (Operating Partnership partners) | $ 0.21 | $ 0.29 | $ 0.63 | $ 0.75 |
Loss from discontinued operations attributable to MPT common stockholders (Operating Partnership partners) | 0 | 0 | 0 | 0 |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 0.21 | $ 0.29 | $ 0.63 | $ 0.75 |
Weighted average shares outstanding - basic | 364,315 | 246,230 | 345,076 | 240,607 |
Earnings per common share - diluted | ||||
Income from continuing operations attributable to MPT common stockholders (Operating Partnership partners) | $ 0.21 | $ 0.28 | $ 0.63 | $ 0.75 |
Loss from discontinued operations attributable to MPT common stockholders (Operating Partnership partners) | 0 | 0 | 0 | 0 |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 0.21 | $ 0.28 | $ 0.63 | $ 0.75 |
Weighted average shares outstanding - diluted | 365,046 | 247,468 | 345,596 | 241,432 |
Dividends declared per common share | $ 0.24 | $ 0.23 | $ 0.72 | $ 0.68 |
MPT Operating Partnership, L.P. [Member] | ||||
Revenues | ||||
Rent billed | $ 110,930 | $ 82,387 | $ 311,140 | $ 234,408 |
Straight-line rent | 17,505 | 9,741 | 46,561 | 26,509 |
Income from direct financing leases | 19,115 | 14,678 | 55,307 | 47,181 |
Interest and fee income | 29,030 | 19,749 | 86,776 | 79,756 |
Total revenues | 176,580 | 126,555 | 499,784 | 387,854 |
Expenses | ||||
Real estate depreciation and amortization | 31,915 | 23,876 | 88,994 | 67,850 |
Impairment charges | (80) | 7,295 | ||
Property-related | 1,519 | (93) | 4,000 | 1,592 |
Acquisition expenses | 7,434 | 2,677 | 20,996 | 6,379 |
General and administrative | 15,011 | 12,305 | 43,287 | 35,821 |
Total operating expenses | 55,879 | 38,685 | 157,277 | 118,937 |
Operating income | 120,701 | 87,870 | 342,507 | 268,917 |
Other income (expense) | ||||
Interest expense | (42,759) | (40,262) | (120,498) | (121,132) |
Gain on sale of real estate and other asset dispositions, net | 18 | 44,616 | 7,431 | 61,294 |
Earnings (loss) from equity and other interests | 3,384 | 1,245 | 7,898 | (2,556) |
Unutilized financing fees/debt refinancing costs | (4,414) | (22,535) | (18,794) | (22,539) |
Other income (expense) | 481 | 99 | 1,101 | (118) |
Income tax expense | (530) | (490) | (783) | (1,173) |
Net other expense | (43,820) | (17,327) | (123,645) | (86,224) |
Income from continuing operations | 76,881 | 70,543 | 218,862 | 182,693 |
Loss from discontinued operations | (1) | |||
Net income | 76,881 | 70,543 | 218,862 | 182,692 |
Net income attributable to non-controlling interests | (417) | (185) | (1,013) | (683) |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 76,464 | $ 70,358 | $ 217,849 | $ 182,009 |
Earnings per common share - basic | ||||
Income from continuing operations attributable to MPT common stockholders (Operating Partnership partners) | $ 0.21 | $ 0.29 | $ 0.63 | $ 0.75 |
Loss from discontinued operations attributable to MPT common stockholders (Operating Partnership partners) | 0 | 0 | 0 | 0 |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 0.21 | $ 0.29 | $ 0.63 | $ 0.75 |
Weighted average shares outstanding - basic | 364,315 | 246,230 | 345,076 | 240,607 |
Earnings per common share - diluted | ||||
Income from continuing operations attributable to MPT common stockholders (Operating Partnership partners) | $ 0.21 | $ 0.28 | $ 0.63 | $ 0.75 |
Loss from discontinued operations attributable to MPT common stockholders (Operating Partnership partners) | 0 | 0 | 0 | 0 |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 0.21 | $ 0.28 | $ 0.63 | $ 0.75 |
Weighted average shares outstanding - diluted | 365,046 | 247,468 | 345,596 | 241,432 |
Dividends declared per common share | $ 0.24 | $ 0.23 | $ 0.72 | $ 0.68 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income | $ 76,881 | $ 70,543 | $ 218,862 | $ 182,692 |
Other comprehensive income: | ||||
Unrealized gain on interest rate swap | 854 | 2,494 | ||
Foreign currency translation gain | 17,426 | 4,450 | 57,738 | 10,354 |
Total comprehensive income | 94,307 | 75,847 | 276,600 | 195,540 |
Comprehensive income attributable to non-controlling interests | (417) | (185) | (1,013) | (683) |
Comprehensive income attributable to MPT common stockholders (Operating Partnership Partners) | 93,890 | 75,662 | 275,587 | 194,857 |
MPT Operating Partnership, L.P. [Member] | ||||
Net income | 76,881 | 70,543 | 218,862 | 182,692 |
Other comprehensive income: | ||||
Unrealized gain on interest rate swap | 854 | 2,494 | ||
Foreign currency translation gain | 17,426 | 4,450 | 57,738 | 10,354 |
Total comprehensive income | 94,307 | 75,847 | 276,600 | 195,540 |
Comprehensive income attributable to non-controlling interests | (417) | (185) | (1,013) | (683) |
Comprehensive income attributable to MPT common stockholders (Operating Partnership Partners) | $ 93,890 | $ 75,662 | $ 275,587 | $ 194,857 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net income | $ 218,862 | $ 182,692 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 93,805 | 69,720 |
Amortization of deferred financing costs and debt discount | 4,748 | 5,799 |
Direct financing lease interest accretion | (7,276) | (6,757) |
Straight-line rent revenue | (47,678) | (27,009) |
Share / (Unit)-based compensation expense | 7,148 | 5,832 |
Gain from sale of real estate and other asset dispositions, net | (7,431) | (61,294) |
Impairment charges | 7,295 | |
Straight-line rent and other write-off | 1,117 | 3,063 |
Unutilized financing fees/debt refinancing costs | 18,794 | 22,539 |
Other adjustments | (7,152) | (8,398) |
Changes in: | ||
Interest and rent receivables | (14,613) | (12,790) |
Accounts payable and accrued expenses | (40,378) | (12,403) |
Net cash provided by operating activities | 219,946 | 168,289 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (2,152,069) | (213,100) |
Net proceeds from sale of real estate | 64,362 | 198,767 |
Principal received on loans receivable | 6,760 | 804,809 |
Investment in loans receivable | (18,574) | (102,909) |
Construction in progress and other | (52,953) | (139,336) |
Investment in unsecured senior notes | (50,000) | |
Proceeds from sale of unsecured senior notes | 50,000 | |
Other investments, net | (73,982) | (52,701) |
Net cash (used for) provided by investing activities | (2,226,456) | 495,530 |
Financing activities | ||
Proceeds from term debt | 2,355,280 | 1,000,000 |
Payments of term debt | (688,221) | (515,221) |
Revolving credit facilities, net | 155,089 | (1,100,000) |
Distributions paid | (239,211) | (160,060) |
Lease deposits and other obligations to tenants | (7,467) | 13,784 |
Proceeds from sale of common shares, net of offering costs | 548,055 | 1,024,088 |
Debt issuance costs paid and other financing activities | (27,167) | (31,317) |
Net cash provided by financing activities | 2,096,358 | 231,274 |
Increase in cash and cash equivalents for period | 89,848 | 895,093 |
Effect of exchange rate changes | 15,136 | 4,283 |
Cash and cash equivalents at beginning of period | 83,240 | 195,541 |
Cash and cash equivalents at end of period | 188,224 | 1,094,917 |
Interest paid | 131,708 | 120,374 |
Supplemental schedule of non-cash investing activities: | ||
(Decrease) increase in development project construction costs incurred, not paid | (9,036) | 17,458 |
Supplemental schedule of non-cash financing activities: | ||
Distributions declared, not paid | 87,519 | 58,333 |
MPT Operating Partnership, L.P. [Member] | ||
Operating activities | ||
Net income | 218,862 | 182,692 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 93,805 | 69,720 |
Amortization of deferred financing costs and debt discount | 4,748 | 5,799 |
Direct financing lease interest accretion | (7,276) | (6,757) |
Straight-line rent revenue | (47,678) | (27,009) |
Share / (Unit)-based compensation expense | 7,148 | 5,832 |
Gain from sale of real estate and other asset dispositions, net | (7,431) | (61,294) |
Impairment charges | 7,295 | |
Straight-line rent and other write-off | 1,117 | 3,063 |
Unutilized financing fees/debt refinancing costs | 18,794 | 22,539 |
Other adjustments | (7,152) | (8,398) |
Changes in: | ||
Interest and rent receivables | (14,613) | (12,790) |
Accounts payable and accrued expenses | (40,378) | (12,403) |
Net cash provided by operating activities | 219,946 | 168,289 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (2,152,069) | (213,100) |
Net proceeds from sale of real estate | 64,362 | 198,767 |
Principal received on loans receivable | 6,760 | 804,809 |
Investment in loans receivable | (18,574) | (102,909) |
Construction in progress and other | (52,953) | (139,336) |
Investment in unsecured senior notes | (50,000) | |
Proceeds from sale of unsecured senior notes | 50,000 | |
Other investments, net | (73,982) | (52,701) |
Net cash (used for) provided by investing activities | (2,226,456) | 495,530 |
Financing activities | ||
Proceeds from term debt | 2,355,280 | 1,000,000 |
Payments of term debt | (688,221) | (515,221) |
Revolving credit facilities, net | 155,089 | (1,100,000) |
Distributions paid | (239,211) | (160,060) |
Lease deposits and other obligations to tenants | (7,467) | 13,784 |
Proceeds from sale of common shares, net of offering costs | 548,055 | 1,024,088 |
Debt issuance costs paid and other financing activities | (27,167) | (31,317) |
Net cash provided by financing activities | 2,096,358 | 231,274 |
Increase in cash and cash equivalents for period | 89,848 | 895,093 |
Effect of exchange rate changes | 15,136 | 4,283 |
Cash and cash equivalents at beginning of period | 83,240 | 195,541 |
Cash and cash equivalents at end of period | 188,224 | 1,094,917 |
Interest paid | 131,708 | 120,374 |
Supplemental schedule of non-cash investing activities: | ||
(Decrease) increase in development project construction costs incurred, not paid | (9,036) | 17,458 |
Supplemental schedule of non-cash financing activities: | ||
Distributions declared, not paid | $ 87,519 | $ 58,333 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization Medical Properties Trust, Inc., a Maryland corporation, was formed on August 27, 2003, under the Maryland General Corporation Law for the purpose of engaging in the business of investing in, owning, and leasing commercial real estate. Our operating partnership subsidiary, MPT Operating Partnership, L.P., (the “Operating Partnership”) through which we conduct all of our operations, was formed in September 2003. Through another wholly-owned subsidiary, Medical Properties Trust, LLC, we are the sole general partner of the Operating Partnership. At present, we directly own substantially all of the limited partnership interests in the Operating Partnership and have elected to report our required disclosures and that of the Operating Partnership on a combined basis except where material differences exist. We have operated as a real estate investment trust (“REIT”) since April 6, 2004, and accordingly, elected REIT status upon the filing in September 2005 of the calendar year 2004 federal income tax return. Accordingly, we will generally not be subject to federal income tax in the United States (“U.S.”), provided that we continue to qualify as a REIT and our distributions to our stockholders equal or exceed our taxable income. Certain activities we undertake must be conducted by entities which we elected to be treated as taxable REIT subsidiaries (“TRSs”). Our TRSs are subject to both U.S. federal and state income taxes. For our properties located outside the U.S., we are subject to local taxes; however, we do not expect to incur additional taxes in the U.S. as such income will flow through our REIT. Our primary business strategy is to acquire and develop real estate and improvements, primarily for long-term lease to providers of healthcare services such as operators of general acute care hospitals, inpatient physical rehabilitation hospitals, long-term acute care hospitals, surgery centers, centers for treatment of specific conditions such as cardiac, pulmonary, cancer, and neurological hospitals, and other healthcare-oriented facilities. We also make mortgage and other loans to operators of similar facilities. In addition, we may obtain profits or equity interests in our tenants, from time to time, in order to enhance our overall return. We manage our business as a single business segment. All of our properties are located in the U.S. and Europe. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Unaudited Interim Condensed Consolidated Financial Statements For information about significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. During the nine months ended September 30, 2017, there were no material changes to these policies. Recent Accounting Developments: Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. This standard is effective for us beginning January 1, 2018, and we plan to adopt under the modified retrospective approach. We do not expect this standard to have a significant impact on our financial results upon adoption, as a substantial portion of our revenue consists of rental income from leasing arrangements and interest income from loans, which are specifically excluded from ASU No. 2014-09. Under ASU No. 2014-09, we do expect more transactions to qualify as sales of real estate with gains on sales being recognized earlier than under current accounting guidance, as the new guidance is based on transfer of control versus whether or not the seller has continuing involvement. Thus, we expect to record an approximate $2 million adjustment to retained earnings upon adoption of ASU No. 2014-09 to fully recognize a gain on real estate sold in prior years that was required to be deferred under existing accounting guidance. Clarifying the Definition of a Business In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business” (“ASU 2017-01”). The amendments in ASU 2017-01 provide an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, in which case, the transaction would be accounted for as an asset acquisition rather than as a business combination. In addition, ASU 2017-01 clarifies the requirements for a set of activities to be considered a business and narrows the definition of an output. A reporting entity must apply the amendments in ASU 2017-01 using a prospective approach. We will adopt ASU 2017-01 on January 1, 2018 for our 2018 fiscal year. Upon adoption, we expect to recognize a majority of our real estate acquisitions as asset transactions rather than business combinations, which will result in the capitalization of third party transaction costs that are directly related to an acquisition. Indirect and internal transaction costs will continue to be expensed, but we do not expect to include these costs as an adjustment in deriving normalized funds from operations in the future. We expect this change in accounting, once adopted, may decrease our normalized funds from operations by $1 million to $2 million per quarter. Leases In February 2016, the FASB issued ASU 2016-02, “Leases”, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. We expect to adopt this new standard on January 1, 2019. We are continuing to evaluate this standard and the impact to us from both a lessor and lessee perspective. However, we do have leases in which we are the lessee, including ground leases, on which certain of our facilities reside, along with corporate office and equipment leases, that will be required to be recorded on our balance sheet upon adoption of this standard. From a lessor perspective, we do expect certain non-lease components (including property taxes, insurance and other operating expenses that the tenants of our facilities are required to pay pursuant to our “triple-net” leases) to be recorded gross versus net of the respective expenses upon adoption of this standard in 2019 in accordance with ASU No. 2014-09. Variable Interest Entities At September 30, 2017, we had loans to and/or equity investments in certain variable interest entities (“VIEs”), which are also tenants of our facilities. We have determined that we are not the primary beneficiary of these VIEs. The carrying value and classification of the related assets and maximum exposure to loss as a result of our involvement with these VIEs at September 30, 2017 are presented below (in thousands): VIE Type Maximum Loss Asset Type Classification Carrying Loans, net $ 331,857 Mortgage and other loans $ 235,287 Equity investments $ 13,242 Other assets $ — (1) Our maximum loss exposure related to loans with VIEs represents our current aggregate gross carrying value of the loan plus accrued interest and any other related assets (such as rent receivables), less any liabilities. Our maximum loss exposure related to our equity investment in VIEs represents the current carrying values of such investment plus any other related assets (such as rent receivables) less any liabilities. (2) Carrying amount reflects the net book value of our loan or equity interest only in the VIE. For the VIE types above, we do not consolidate the VIE because we do not have the ability to control the activities (such as the day-to-day healthcare operations of our borrower or investees) that most significantly impact the VIE’s economic performance. As of September 30, 2017, we were not required to provide any material financial support through a liquidity arrangement or otherwise to our unconsolidated VIEs, including circumstances in which it could be exposed to further losses (e.g., cash short falls). Typically, our loans are collateralized by assets of the borrower (some assets of which are on the premises of facilities owned by us) and further supported by limited guarantees made by certain principals of the borrower. See Note 3 and 7 for additional description of the nature, purpose and activities of our more significant VIEs and interests therein, such as Ernest Health, Inc. (“Ernest”). |
Real Estate and Lending Activit
Real Estate and Lending Activities | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Real Estate and Lending Activities | 3. Real Estate and Lending Activities Acquisitions We acquired the following assets (in thousands): Nine Months Ended September 30, 2017 2016 Assets Acquired Land and land improvements $ 196,094 $ 13,602 Building 987,442 125,744 Intangible lease assets — subject to amortization (weighted average useful life 28.7 years for 2017 and 19.4 years for 2016) 128,961 10,754 Net investments in direct financing leases 40,450 63,000 Mortgage loans 700,000 — Equity investments 100,000 — Liabilities assumed (878 ) — Total assets acquired $ 2,152,069 $ 213,100 Loans repaid (1) — (93,262 ) Total net assets acquired $ 2,152,069 $ 119,838 (1) $93.3 million loans advanced to Capella (now RCCH Healthcare Partners (“RCCH”)) in 2015 and repaid in 2016 as a part of the Capella Transaction discussed below. The purchase price allocations attributable to the 2017 acquisitions and certain acquisitions made in the last quarter of 2016 are preliminary. When all relevant information is obtained, resulting changes, if any, to our provisional purchase price allocation will be adjusted to reflect new information obtained about the facts and circumstances that existed as of the respective acquisition dates that, if known, would have affected the measurement of the amounts recognized as of those dates. 2017 Activity Steward Transactions On September 29, 2017, we acquired from IASIS Healthcare LLC (“IASIS”) a portfolio of ten acute care hospitals and one behavioral health facility, along with ancillary land and buildings, that are located in Arizona, Utah, Texas, and Arkansas. The portfolio is now operated by Steward Health Care System LLC (“Steward”), which separately completed its acquisition of IASIS on September 29, 2017. Our investment in the portfolio includes the acquisition of eight acute care hospitals and one behavioral health facility for approximately $700 million, the making of $700 million in mortgage loans on two acute care hospitals, and a $100 million minority equity contribution in Steward, for a combined investment of approximately $1.5 billion. The nine facilities acquired are being leased to Steward pursuant to the original long-term master lease agreement entered into in October 2016 that had an initial 15-year term with three 5-year extension options, plus annual inflation-based escalators. The terms of the mortgage loan are substantially similar to the master lease. On May 1, 2017, we acquired eight hospitals previously affiliated with Community Health Systems, Inc. in Florida, Ohio, and Pennsylvania for an aggregate purchase price of $301.3 million. These facilities are leased to Steward, pursuant to the original long-term master lease with Steward. MEDIAN Transactions During the third quarter of 2017, we acquired two rehabilitation hospitals in Germany for an aggregate purchase price of €39.2 million, in addition to 11 rehabilitation hospitals in Germany that we acquired in the second quarter of 2017 for an aggregate purchase price of €127 million. These 13 properties are leased to affiliates of Median Kliniken S.a.r.l. (“MEDIAN”), pursuant to a third master lease that has a fixed term ending in August 2043 with annual escalators at the greater of one percent or 70% of German consumer price index. These acquisitions are the final properties of the portfolio of 20 properties in Germany that we agreed to acquire in July 2016 for €215.7 million, of which seven properties totaling €49.5 million closed in December 2016. On June 22, 2017, we acquired an acute care hospital in Germany for a purchase price of €19.4 million of which €18.6 million was paid upon closing with the remainder being paid over four years. This property is leased to affiliates of MEDIAN, pursuant to an existing master lease agreement that ends in December 2042 with annual escalators at the greater of one percent or 70% of the German consumer price index. On January 30, 2017, we acquired an inpatient rehabilitation hospital in Germany for €8.4 million. This acquisition was the final property to close as part of the six hospital portfolio that we agreed to buy in September 2016 for an aggregate amount of €44.1 million. This property is leased to affiliates of MEDIAN pursuant to the original long-term master lease agreement reached with MEDIAN in 2015. Other Transactions On June 1, 2017, we acquired the real estate assets of Ohio Valley Medical Center, a 218-bed acute care hospital located in Wheeling, West Virginia, and the East Ohio Regional Hospital, a 139-bed acute care hospital in Martins Ferry, Ohio, from Ohio Valley Health Services, a not-for-profit entity in West Virginia, for an aggregate purchase price of approximately $40 million. We simultaneously leased the facilities to Alecto Healthcare Services LLC (“Alecto”), the current operator of three facilities in our portfolio, pursuant to a lease with a 15-year initial term with 2% annual minimum rent increases and three 5-year extension options. The facilities are cross-defaulted and cross-collateralized with our other hospitals currently operated by Alecto. We also agreed to provide up to $20.0 million in capital improvement funding on these two facilities - none of which has been funded to date. With these acquisitions, we also obtained a 20% interest in the operator of these facilities. On May 1, 2017, we acquired the real estate of St. Joseph Regional Medical Center, a 145-bed acute care hospital in Lewiston, Idaho for $87.5 million. This facility is leased to RCCH, pursuant to the existing long-term master lease entered into with RCCH in April 2016. From the respective acquisition dates, the properties acquired in 2017 contributed $16.7 million of revenue and $12.7 million of income (excluding related acquisition expenses and taxes) for the three months ended September 30, 2017, and $25.1 million of revenue and $18.8 million of income (excluding related acquisition expenses and taxes) for the nine months ended September 30, 2017. In addition, we expensed $5.4 million and $15.6 million of acquisition-related costs on these 2017 acquisitions for the three and nine months ended September 30, 2017, respectively. 2016 Activity On July 22, 2016, we acquired an acute care facility in Olympia, Washington in exchange for a $93.3 million loan and an additional $7 million in cash. The property has been leased to RCCH on terms substantially similar to those of the existing long-term master lease entered into with RCCH in April 2016. On June 22, 2016, we closed on the last property of the €688 million MEDIAN transaction, that was announced on April 29, 2015, for a purchase price of €41.6 million. Upon acquisition, this property became subject to an existing master lease between us and affiliates of MEDIAN that has a lease term ending December 2042 and annual escalators at the greater of one percent or 70% of the German consumer price index. On May 2, 2016, we acquired an acute care hospital in Newark, New Jersey for an aggregate purchase price of $63 million leased to Prime Healthcare Services, Inc. (“Prime”) pursuant to a new fifth master lease, which had a 15-year term with three five-year extension options, plus consumer price-indexed increases, limited to a 2% floor. Furthermore, we committed to advance an additional $30 million to Prime over a three-year period to be used solely for capital additions to the real estate; any such additions will be added to the basis upon which the lessee will pay us rents. None of the additional $30 million has been funded to date. From the respective acquisition dates, the properties acquired during the nine months ended September 30, 2016, contributed $4.6 million and $3.8 million of revenue and income (excluding related acquisition expenses), respectively, for the three months ended September 30, 2016. From the respective acquisition dates, the properties acquired during the nine months ended September 30, 2016 contributed $5.7 million and $4.9 million of revenue and income (excluding related acquisition expenses), respectively, for the nine months ended September 30, 2016. In addition, we incurred $2.4 million of acquisition-related costs on the 2016 acquisitions for the nine months ended September 30, 2016. Pro Forma Information The following unaudited supplemental pro forma operating data is presented for the three and nine months ended September 30, 2017 and 2016, as if each acquisition was completed on January 1, 2016 and January 1, 2015 for the period ended September 30, 2017 and 2016, respectively. Supplemental pro forma earnings were adjusted to exclude acquisition-related costs on consummated deals incurred. The unaudited supplemental pro forma operating data is not necessarily indicative of what the actual results of operations would have been assuming the transactions had been completed as set forth above, nor do they purport to represent our results of operations for future periods (in thousands, except per share/unit amounts). For the Three Months For the Nine Months Ended September 30, Ended September 30, 2017 2016 2017 2016 Total revenues $ 209,368 $ 207,898 $ 623,635 $ 622,798 Net income $ 102,112 $ 107,863 $ 311,306 $ 307,645 Net income per share/unit — diluted $ 0.28 $ 0.30 $ 0.85 $ 0.86 Development Activities During the first nine months of 2017, we completed construction on the following facilities: • Adeptus Health, Inc. (“Adeptus Health”) – We completed four acute care facilities for this tenant during 2017 totaling approximately $68 million in development costs. These facilities are leased pursuant to an existing long-term master lease. • IMED Group (“IMED”) – Our general acute facility located in Valencia, Spain opened on March 31, 2017, and is being leased to IMED pursuant to a 30-year lease that provides for quarterly fixed rent payments beginning six months from the lease start date with annual increases of 1% beginning April 1, 2020. Our ownership in this facility is effected through a joint venture between us and clients of AXA Real Estate, in which we own a 50% interest. Our share of the aggregate purchase and development cost of this facility is approximately €21 million. In April 2017, we completed the acquisition of the long leasehold interest of a development site in Birmingham, England from the Circle Health Group (“Circle”) (the tenant of our existing site in Bath, England) for a purchase price of £2.7 million. Simultaneously with the acquisition, we entered into contracts with the property landlord and the Circle committing us to construct an acute care hospital on the site. Our total development costs are anticipated to be approximately £30 million. Circle is contracted to enter into a lease of the hospital following completion of construction for an initial 15-year term with rent to be calculated based on our total development costs. See table below for a status update on our current development projects (in thousands): Property Commitment Costs Incurred as of Estimated Ernest (Flagstaff, Arizona) $ 28,067 $ 16,619 1Q 2018 Circle (Birmingham, England) 43,221 11,389 1Q 2019 $ 71,288 $ 28,008 Disposals 2017 Activity On March 31, 2017, we sold the EASTAR Health System real estate located in Muskogee, Oklahoma, which was leased to RCCH. Total proceeds from this transaction were approximately $64 million resulting in a gain of $7.4 million, partially offset by a $0.6 million non-cash charge to revenue to write-off related straight-line rent receivables on this property. 2016 Activity Capella Transaction Effective April 30, 2016, our investment in the operator of Capella Healthcare, Inc. (“Capella”) merged with Regional Care Hospital Partners, Inc. (“Regional Care”) (an affiliate of certain funds managed by affiliates of Apollo Global Management, LLC. (“Apollo”)) to form RCCH. As part of the transaction, we received net proceeds of approximately $550 million including approximately $492 million for our equity investment and loans made as part of the original Capella transaction that closed on August 31, 2015. In addition, we received $210 million in prepayment of two mortgage loans for hospitals in Russellville, Arkansas, and Lawton, Oklahoma, that we made in connection with the original Capella transaction. We made a new $93.3 million loan for a hospital property in Olympia, Washington that was subsequently converted to real estate on July 22, 2016. Additionally, we and an Apollo affiliate invested $50 million each in unsecured senior notes issued by RegionalCare, which we sold to a large institution on June 20, 2016 at par. The proceeds from this transaction represented the recoverability of our investment in full, except for transaction costs incurred of $6.3 million. We maintained our ownership of five hospitals in Hot Springs, Arkansas; Camden, South Carolina; Hartsville, South Carolina; Muskogee, Oklahoma; and McMinnville, Oregon. Pursuant to the transaction described above, the underlying leases, one of which is a master lease covering all but one property, was amended to shorten the initial fixed lease term, increase the security deposit, and eliminate the lessees’ purchase option provisions. Due to this lease amendment, we reclassified the lease of the properties under the master lease from a direct finance lease (“DFL”) to an operating lease. This reclassification resulted in a write-off of $2.6 million in unbilled DFL rent in the 2016 second quarter. Post Acute Transaction On May 23, 2016, we sold five properties (three of which were in Texas and two in Louisiana) that were leased and operated by Post Acute Medical (“Post Acute”). As part of this transaction, our outstanding loans of $4 million were paid in full, and we recovered our investment in the operations. Total proceeds from this transaction were $71 million resulting in a net gain of approximately $15 million. Corinth Transaction On June 17, 2016, we sold the Atrium Medical Center real estate located in Corinth, Texas, which was leased and operated by Corinth Investor Holdings. Total proceeds from the transaction were $28 million resulting in a gain on real estate of approximately $8 million. This gain on real estate was offset by approximately $9 million of non-cash charges that included the write-off of our investment in the operations of the facility, straight-line rent receivables, and a lease intangible. HealthSouth Transaction On July 20, 2016, we sold three inpatient rehabilitation hospitals located in Texas and operated by HealthSouth Corporation (“HealthSouth”) for $111.5 million, resulting in a net gain of approximately $45 million. The sales in 2017 and 2016 were not strategic shifts in our operations, and therefore the results of operations related to these facilities were not reclassified as discontinued operations. Summary of Operations for Assets Disposed in 2016 The following represents the operating results (excluding gain on sale, transaction costs, and impairment or other non-cash charges) from the properties which sold during 2016 (excluding loans repaid in the Capella Transaction) for the periods presented (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Revenues $ — $ 244 $ — $ 7,851 Real estate depreciation and amortization — — — (1,754 ) Property-related expenses — — — (114 ) Other income (expense) — 45 — (23 ) Income from real estate dispositions, net $ — $ 289 $ — $ 5,960 Leasing Operations At September 30, 2017, leases on two Alecto facilities, 15 Ernest facilities and 10 Prime facilities are accounted for as DFLs. The components of our net investment in DFLs consisted of the following (in thousands): As of September 30, As of December 31, Minimum lease payments receivable $ 2,312,621 $ 2,207,625 Estimated residual values 448,098 407,647 Less: Unearned income (2,064,890 ) (1,967,170 ) Net investment in direct financing leases $ 695,829 $ 648,102 Adeptus Health On April 4, 2017, we announced that we had agreed in principle with Deerfield Management Company, L.P. (“Deerfield”), a healthcare-only investment firm, to the restructuring in bankruptcy of Adeptus Health, a current tenant and operator of facilities representing less than 5% of our total gross assets. In furtherance of the restructuring, Adeptus Health and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code on April 19, 2017. Funds advised by Deerfield acquired Adeptus Health’s outstanding bank debt and Deerfield agreed to provide additional financing, along with operational and managerial support, to Adeptus Health as part of the restructuring. The Adeptus Health restructuring and terms of our agreement with Deerfield provided for the payment to us of 100% of the rent payable during the restructuring and the assumption by Deerfield of all our master leases and related agreements with Adeptus Health at current rental rates. Through November 3, 2017, Adeptus Health is current on its rent obligations to us. On September 29, 2017, the United States Bankruptcy Court for the Northern District of Texas, Dallas Division, entered an order confirming the Debtors’ Third Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code (the “Plan”). The Plan became effective on October 2, 2017 (the “Confirmation Effective Date”). In connection with the confirmation of the Plan, Deerfield agreed that it would assume all of the master leases and related agreements between us and Adeptus Health, cure all defaults that had arisen prior to the commencement of the bankruptcy proceedings with respect to all properties, and continue to pay rent with respect to all but 16 of the 56 Adeptus Health properties according to the terms of the master leases and related agreements. Rent will remain the same, and a previously disclosed rent concession was removed from the terms. We plan to re-lease or sell the remaining 16 properties, and Adeptus Health will continue to pay rent with respect to those 16 properties until the earlier of (a) transition to a new operator is complete, (b) two years following the Confirmation Effective Date (for one facility), (c) one year following the Confirmation Effective Date (for seven facilities), (d) six months following the Confirmation Effective Date (for three facilities), and (e) three months following the Confirmation Effective Date (for five facilities). These lease or sale transactions are expected to be completed by the end of 2019. Although no assurances can be made that we will not recognize a loss in the future, we believe the sale or re-leasing of the assets related to these 16 facilities will not result in any material loss or impairment. On April 4, 2017, we announced that our Louisiana freestanding emergency facilities then-operated by Adeptus Health (with a total budgeted investment of approximately $24.5 million) had been re-leased to Ochsner Clinic Foundation (“Ochsner”), a health care system in the New Orleans area. We incurred a non-cash charge of $0.5 million to write-off the straight-line rent receivables associated with the previous Adeptus Health lease on these properties. On October 18, 2017, Ochsner agreed to an amended and restated lease that provided for initial terms of 15 years with a 9.2% average minimum lease rate based on our total development and construction cost, as well as the addition of three five-year renewal options. Hoboken Facility In the first half of 2017, a subsidiary of the operator of our Hoboken facility acquired 20% of our subsidiary that owns the real estate for $10 million, which increased its interest in our real estate entity to 30%. This transaction is reflected in the non-controlling interest line of our condensed consolidated balance sheets. Loans The following is a summary of our loans (in thousands): As of September 30, 2017 As of December 31, 2016 Mortgage loans $ 1,777,555 $ 1,060,400 Acquisition loans 119,256 121,464 Working capital and other loans 32,453 34,257 $ 1,929,264 $ 1,216,121 As of September 30, 2017, our mortgage loans consist of loans made to four operators that are secured by the real estate of 14 properties, and include the $700 million investment made on September 29, 2017, as part of the Steward Transaction. Our non-mortgage loans typically consist of loans to our tenants for acquisitions and working capital purposes. At September 30, 2017, acquisition loans includes $114.4 million in loans to Ernest. Concentrations of Credit Risk Our revenue concentration for the nine months ended September 30, 2017 as compared to the prior year is as follows (dollars in thousands): Revenue by Operator For the Nine Months Ended For the Nine Months Ended Operators Total Percentage of Total Percentage of Steward (1) $ 114,776 23.0 % $ 20,969 5.4 % Prime 94,644 18.9 % 89,389 23.1 % MEDIAN 73,793 14.8 % 70,242 18.1 % Ernest 53,007 10.6 % 50,564 13.0 % Adeptus Health 39,638 7.9 % 25,873 6.7 % RCCH 30,668 6.1 % 42,776 11.0 % Other operators 93,258 18.7 % 88,041 22.7 % Total $ 499,784 100.0 % $ 387,854 100.0 % (1) Includes approximately $21.6 million and $21 million of revenue for the nine months ended September 30, 2017 and 2016, respectively, from facilities leased to IASIS prior to it being acquired by Steward on September 29, 2017. Revenue by U.S. State and Country For the Nine Months Ended For the Nine Months Ended U.S. States and Other Countries Total Percentage of Total Percentage of Massachusetts $ 79,741 16.0 % $ — — Texas 74,489 14.9 % 72,811 18.8 % California 49,681 9.9 % 49,724 12.8 % New Jersey 32,756 6.6 % 28,398 7.3 % Arizona 23,902 4.8 % 17,678 4.6 % All other states 147,606 29.5 % 143,289 36.9 % Total U.S. $ 408,175 81.7 % $ 311,900 80.4 % Germany $ 88,525 17.7 % $ 72,718 18.8 % United Kingdom, Italy, and Spain 3,084 0.6 % 3,236 0.8 % Total International $ 91,609 18.3 % $ 75,954 19.6 % Grand Total $ 499,784 100.0 % $ 387,854 100.0 % On a total gross asset basis, which is total assets before accumulated depreciation/amortization, assumes all real estate binding commitments on new investments and unfunded amounts on development deals and commenced capital improvement projects are fully funded (see Notes 9 and 10 of Item 1 on this Form 10-Q), and assumes cash on hand is fully used in these transactions, our concentration as of September 30, 2017 as compared to December 31, 2016 is as follows (dollars in thousands): Gross Assets by Operator As of September 30, 2017 As of December 31, 2016 Operators Total Gross Assets Percentage of Gross Assets Total Gross Assets Percentage of Gross Assets Steward (1) $ 3,445,379 36.8 % $ 1,609,583 22.5 % MEDIAN 1,209,767 12.9 % 993,677 13.9 % Prime 1,118,070 12.0 % 1,144,055 16.0 % Ernest 631,501 6.7 % 627,906 8.8 % RCCH 506,265 5.4 % 566,600 7.9 % Other operators 1,992,448 21.3 % 1,900,397 26.7 % Other assets 452,505 4.9 % 300,903 4.2 % Total $ 9,355,935 100.0 % $ 7,143,121 100.0 % (1) Includes approximately $360 million of gross assets as of December 31, 2016 related to facilities leased to IASIS prior to it being acquired by Steward on September 29, 2017. Gross Assets by U.S. State and Country As of September 30, 2017 As of December 31, 2016 U.S. States and Other Countries Total Gross Assets Percentage of Gross Assets Total Gross Assets Percentage of Gross Assets Massachusetts $ 1,284,156 13.7 % $ 1,250,000 17.5 % Texas 1,275,784 13.6 % 947,443 13.3 % Utah 1,035,793 11.1 % 107,151 1.5 % California 542,879 5.8 % 542,889 7.6 % Arizona 498,844 5.3 % 331,834 4.6 % All other states 2,506,538 26.8 % 2,234,332 31.3 % Other domestic assets 397,850 4.3 % 264,215 3.7 % Total U.S. $ 7,541,844 80.6 % $ 5,677,864 79.5 % Germany $ 1,556,392 16.6 % $ 1,281,649 17.9 % United Kingdom, Italy, and Spain 203,044 2.2 % 146,920 2.1 % Other international assets 54,655 0.6 % 36,688 0.5 % Total International $ 1,814,091 19.4 % $ 1,465,257 20.5 % Grand Total $ 9,355,935 100.0 % $ 7,143,121 100.0 % On an individual property basis, we had no investment of any single property greater than 3.8% of our total gross assets as of September 30, 2017. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt The following is a summary of our debt (dollar amounts in thousands): As of September 30, 2017 As of December 31, 2016 Revolving credit facility (A) $ 445,359 $ 290,000 Term loans 200,000 263,101 6.375% Senior Unsecured Notes due 2022: Principal amount 350,000 350,000 Unamortized premium 1,549 1,814 351,549 351,814 5.750% Senior Unsecured Notes due 2020 (B) — 210,340 4.000% Senior Unsecured Notes due 2022 (B) 590,700 525,850 5.500% Senior Unsecured Notes due 2024 300,000 300,000 6.375% Senior Unsecured Notes due 2024 500,000 500,000 3.325% Senior Unsecured Notes due 2025 (B) 590,700 — 5.250% Senior Unsecured Notes due 2026 500,000 500,000 5.000% Senior Unsecured Notes due 2027 1,400,000 — $ 4,878,308 $ 2,941,105 Debt issue costs, net (46,044 ) (31,764 ) $ 4,832,264 $ 2,909,341 (A) Includes £4 million of GBP-denominated borrowings that reflect the exchange rate at September 30, 2017. (B) These notes are Euro-denominated and reflect the exchange rate at September 30, 2017 and December 31, 2016, respectively. As of September 30, 2017, principal payments due on our debt (which exclude the effects of any discounts, premiums, or debt issue costs recorded) are as follows (in thousands): 2017 $ 350,000 (A) 2018 — 2019 — 2020 — 2021 445,359 Thereafter 4,081,400 Total $ 4,876,759 (A) The $350 million 6.375% Senior Unsecured Notes due 2022 were redeemed on October 7, 2017 with proceeds from our $1.4 billion 5.000% Senior Unsecured Notes due 2027. 2017 Activity Credit Facility On February 1, 2017, we replaced our unsecured credit facility with a new revolving credit and term loan agreement (“Credit Facility”). The new agreement includes a $1.3 billion unsecured revolving loan facility, a $200 million unsecured term loan facility, and a €200 million unsecured term loan facility. The new unsecured revolving loan facility matures in February 2021 and can be extended for an additional 12 months at our option. The $200 million unsecured term loan facility matures on February 1, 2022, and the €200 million unsecured term loan facility had a maturity date of January 31, 2020; however, it was paid off on March 30, 2017 – see below. The commitment fee on the revolving loan facility is paid at a rate of 0.25%. The term loan and/or revolving loan commitments may be increased in an aggregate amount not to exceed $500 million. At our election, loans under the Credit Facility may be made as either ABR Loans or Eurodollar Loans. The applicable margin for term loans that are ABR Loans is adjustable on a sliding scale from 0.00% to 0.95% based on our current credit rating. The applicable margin for term loans that are Eurodollar Loans is adjustable on a sliding scale from 0.90% to 1.95% based on our current credit rating. The applicable margin for revolving loans that are ABR Loans is adjustable on a sliding scale from 0.00% to 0.65% based on our current credit rating. The applicable margin for revolving loans that are Eurodollar Loans is adjustable on a sliding scale from 0.875% to 1.65% based on our current credit rating. The commitment fee is adjustable on a sliding scale from 0.125% to 0.30% based on our current credit rating and is payable on the revolving loan facility. At September 30, 2017, the interest rate in effect on our term loan and revolver was 2.74% and 2.48%, respectively. On March 30, 2017, we prepaid and extinguished the €200 million of outstanding term loans under the euro term loan facility portion of our Credit Facility. To fund such prepayment, including accrued and unpaid interest thereon, we used part of the proceeds of the 3.325% Senior Unsecured Notes due 2025 – see discussion below. 5.750% Senior Unsecured Notes due 2020 On March 4, 2017, we redeemed the €200 million aggregate principal amount of our 5.750% Senior Unsecured Notes due 2020 and incurred a redemption premium of approximately $9 million. We funded this redemption, including the premium and accrued interest, with the proceeds of the new euro term loan (see discussion above) together with cash on hand. 3.325% Senior Unsecured Notes due 2025 On March 24, 2017, we completed a €500 million senior unsecured notes offering (“3.325% Senior Unsecured Notes due 2025”). Interest on the notes is payable annually on March 24 of each year. The notes pay interest in cash at a rate of 3.325% per year. The notes mature on March 24, 2025. We may redeem some or all of the 3.325% Senior Unsecured Notes due 2025 at any time. If the notes are redeemed prior to 90 days before maturity, the redemption price will be equal to 100% of their principal amount, plus a make-whole premium, plus accrued and unpaid interest up to, but excluding, the applicable redemption date. Within the period beginning on or after 90 days before maturity, the notes may be redeemed, in whole or in part, at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the applicable redemption date. The 3.325% Senior Unsecured Notes due 2025 are fully and unconditionally guaranteed on a senior unsecured basis by us. In the event of a change of control, each holder of the notes may require us to repurchase some or all of our notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest up to, but excluding, the date of the purchase. 5.000% Senior Unsecured Notes due 2027 On September 7, 2017, we completed a $1.4 billion senior unsecured notes offering (“5.000% Senior Unsecured Notes due 2027”). Interest on the notes is payable annually on April 15 and October 15 of each year, commencing on April 15, 2018. The notes pay interest in cash at a rate of 5.000% per year. The notes mature on October 15, 2027. We may redeem some or all of the notes at any time prior to October 15, 2022 at a “make whole” redemption price. On or after October 15, 2022, we may redeem some or all of the notes at a premium that will decrease over time. In addition, at any time prior to October 15, 2020, we may redeem up to 40% of the notes at a redemption price equal to 105% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, using proceeds from one or more equity offerings. In the event of a change in control, each holder of the notes may require us to repurchase some or all of the notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest to the date of purchase. We used a portion of the net proceeds from the 5.000% Senior Unsecured Notes due 2027 offering to redeem the $350 million aggregate principal amount of our 6.375% Senior Unsecured Notes due 2022. The notes were repaid on October 7, 2017, and we will incur a debt refinancing charge of approximately $14 million in the fourth quarter of 2017, consisting of an $11.2 million redemption premium along with the write-off of the unamortized premium and deferred debt issuance costs associated with the redeemed notes. Furthermore, the completion of the 5.000% Senior Unsecured Notes due 2027 offering resulted in the cancellation of the $1.0 billion term loan facility commitment from JP Morgan Chase Bank, N.A. that we received to assist in funding the September 2017 Steward transaction. With this commitment, we paid $5.2 million of underwriting and other fees, which we fully expensed upon the cancellation of the commitment. Other On September 29, 2017, we prepaid the principal amount of the mortgage loan on our property in Kansas City, Missouri at par in the amount of $12.9 million. To fund such prepayment, including accrued and unpaid interest thereon, we used borrowings from the revolving credit facility portion of our Credit Facility. With the replacement of our old credit facility, the redemption of the 5.750% Senior Unsecured Notes due 2020, the payoff of our €200 million euro term loan, the cancellation of the $1.0 billion term loan facility commitment, and the payment of our $12.9 million mortgage loan, we incurred a debt refinancing charge of $18.8 million in the first nine months of 2017. 2016 Activity 5.250% Senior Unsecured Notes due 2026 On July 22, 2016, we completed a $500 million senior unsecured notes offering (“5.250% Senior Unsecured Notes due 2026”). Interest on the notes is payable on February 1 and August 1 of each year. Interest on the notes is to be paid in cash at a rate of 5.25% per year. The notes mature on August 1, 2026. We may redeem some or all of the notes at any time prior to August 1, 2021 at a “make whole” redemption price. On or after August 1, 2021, we may redeem some or all of the notes at a premium that will decrease over time. In addition, at any time prior to August 1, 2019, we may redeem up to 35% of the notes at a redemption price equal to 105.25% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, using proceeds from one or more equity offerings. In the event of a change in control, each holder of the notes may require us to repurchase some or all of the notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest to the date of purchase. We used the net proceeds from the 5.250% Senior Unsecured Notes due 2026 offering to redeem our $450 million 6.875% Senior Unsecured Notes due 2021. This redemption resulted in a $22.5 million debt refinancing charge during the 2016 third quarter, consisting of a $15.5 million redemption premium along with the write-off of deferred debt issuance costs associated with the redeemed notes. 6.375% Senior Unsecured Notes due 2024 On February 22, 2016, we completed a $500 million senior unsecured notes offering (“6.375% Senior Unsecured Notes due 2024”). Interest on the notes is payable on March 1 and September 1 of each year. Interest on the notes is paid in cash at a rate of 6.375% per year. The notes mature on March 1, 2024. We may redeem some or all of the notes at any time prior to March 1, 2019 at a “make whole” redemption price. On or after March 1, 2019, we may redeem some or all of the notes at a premium that will decrease over time. In addition, at any time prior to March 1, 2019, we may redeem up to 35% of the notes at a redemption price equal to 106.375% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, using proceeds from one or more equity offerings. In the event of a change in control, each holder of the notes may require us to repurchase some or all of the notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest to the date of purchase. Covenants Our debt facilities impose certain restrictions on us, including restrictions on our ability to: incur debts; create or incur liens; provide guarantees in respect of obligations of any other entity; make redemptions and repurchases of our capital stock; prepay, redeem or repurchase debt; engage in mergers or consolidations; enter into affiliated transactions; dispose of real estate or other assets; and change our business. In addition, the credit agreements governing our Credit Facility limit the amount of dividends we can pay as a percentage of normalized adjusted funds from operations (“FFO”), as defined in the agreements, on a rolling four quarter basis. At September 30, 2017, the dividend restriction was 95% of normalized adjusted FFO. The indentures governing our senior unsecured notes also limit the amount of dividends we can pay based on the sum of 95% of FFO, proceeds of equity issuances and certain other net cash proceeds. Finally, our senior unsecured notes require us to maintain total unencumbered assets (as defined in the related indenture) of not less than 150% of our unsecured indebtedness. In addition to these restrictions, the Credit Facility contains customary financial and operating covenants, including covenants relating to our total leverage ratio, fixed charge coverage ratio, secured leverage ratio, consolidated adjusted net worth, unsecured leverage ratio, and unsecured interest coverage ratio. This Credit Facility also contains customary events of default, including among others, nonpayment of principal or interest, material inaccuracy of representations and failure to comply with our covenants. If an event of default occurs and is continuing under the Credit Facility, the entire outstanding balance may become immediately due and payable. At September 30, 2017, we were in compliance with all such financial and operating covenants. |
Common Stock_Partners' Capital
Common Stock/Partners' Capital | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Common Stock/Partners' Capital | 5. Common Stock/Partners’ Capital Medical Properties Trust, Inc. 2017 Activity On May 1, 2017, we completed an underwritten public offering of approximately 43.1 million shares (including the exercise of the underwriters’ 30-day option to purchase an additional 5.6 million shares) of our common stock, resulting in net proceeds of approximately $548 million, after deducting offering expenses. 2016 Activity On September 30, 2016, we completed an underwritten public offering of 57.5 million shares (including the exercise of the underwriters’ 30-day option to purchase an additional 7.5 million shares) of our common stock, resulting in net proceeds of $799.5 million, after deducting estimated offering expenses. During the nine months ended September 30, 2016, we sold approximately 15 million shares of common stock under an at-the-market MPT Operating Partnership, L.P. At September 30, 2017, the Company has a 99.89% ownership interest in the Operating Partnership with the remainder owned by three other partners, two of whom are employees and one of whom is the estate of a former director. During the nine months ended September 30, 2017 and 2016, the Operating Partnership issued approximately 43.1 million units and approximately 72.5 million units, respectively, in direct response to the common stock offerings by Medical Properties Trust, Inc. |
Stock Awards
Stock Awards | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Awards | 6. Stock Awards We adopted the 2013 Equity Incentive Plan (the “Equity Incentive Plan”) during the second quarter of 2013, which authorizes the issuance of common stock options, restricted stock, restricted stock units, deferred stock units, stock appreciation rights, performance units and awards of interests in our Operating Partnership. The Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors. We have reserved 8,196,770 shares of common stock for awards under the Equity Incentive Plan for which 3.3 million shares remain available for future stock awards as of September 30, 2017. Share-based compensation expense totaled $7.1 million and $5.8 million for the nine months ended September 30, 2017 and 2016, respectively, of which $0.4 million relates to the acceleration of vestings on time-based awards previously granted to three former board members. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 7. Fair Value of Financial Instruments We have various assets and liabilities that are considered financial instruments. We estimate that the carrying value of cash and cash equivalents and accounts payable and accrued expenses approximate their fair values. We estimate the fair value of our interest and rent receivables using Level 2 inputs such as discounting the estimated future cash flows using the current rates at which similar receivables would be made to others with similar credit ratings and for the same remaining maturities. The fair value of our mortgage loans and working capital loans are estimated by using Level 2 inputs such as discounting the estimated future cash flows using the current rates which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. We determine the fair value of our senior unsecured notes using Level 2 inputs such as quotes from securities dealers and market makers. We estimate the fair value of our revolving credit facility and term loans using Level 2 inputs based on the present value of future payments, discounted at a rate which we consider appropriate for such debt. Fair value estimates are made at a specific point in time, are subjective in nature, and involve uncertainties and matters of significant judgment. Settlement of such fair value amounts may not be possible and may not be a prudent management decision. The following table summarizes fair value estimates for our financial instruments (in thousands): September 30, 2017 December 31, 2016 Book Fair Book Fair Asset (Liability) Value Value Value Value Interest and rent receivables $ 105,817 $ 105,803 $ 57,698 $ 57,707 Loans (1) 1,698,866 1,722,912 986,987 1,017,428 Debt, net (4,832,264 ) (5,032,821 ) (2,909,341 ) (2,966,759 ) (1) Excludes loans related to Ernest since they are recorded at fair value and discussed below. Items Measured at Fair Value on a Recurring Basis Our equity interest in Ernest along with their related loans are measured at fair value on a recurring basis as we elected to account for these investments using the fair value option method. We have elected to account for these investments at fair value due to the size of the investments and because we believe this method is more reflective of current values. We have not made a similar election for other existing equity interests or loans. At September 30, 2017, these amounts were as follows (in thousands): Fair Asset Type Asset Type Value Cost Classification Mortgage loans $ 115,000 $ 115,000 Mortgage loans Acquisition and other loans 115,398 115,398 Other loans Equity investments 3,300 3,300 Other assets $ 233,698 $ 233,698 Our mortgage and other loans with Ernest are recorded at fair value based on Level 2 inputs by discounting the estimated cash flows using the market rates which similar loans would be made to borrowers with similar credit ratings and the same remaining maturities. Our equity investment in Ernest is recorded at fair value based on Level 3 inputs, by using a discounted cash flow model, which requires significant estimates of our investee such as projected revenue and expenses and appropriate consideration of the underlying risk profile of the forecast assumptions associated with the investee. We classify the equity investment as Level 3, as we use certain unobservable inputs to the valuation methodology that are significant to the fair value measurement, and the valuation requires management judgment due to the absence of quoted market prices. For the cash flow model, our observable inputs include use of a capitalization rate, discount rate (which is based on a weighted-average cost of capital), and market interest rates, and our unobservable input includes an adjustment for a marketability discount (“DLOM”) on our equity investment of 40% at September 30, 2017. In regards to the underlying projection of revenues and expenses used in the discounted cash flow model, such projections are provided by Ernest. However, we will modify such projections (including underlying assumptions used) as needed based on our review and analysis of Ernest’s historical results, meetings with key members of management, and our understanding of trends and developments within the healthcare industry. In arriving at the DLOM, we started with a DLOM range based on the results of studies supporting valuation discounts for other transactions or structures without a public market. To select the appropriate DLOM within the range, we then considered many qualitative factors including the percent of control, the nature of the underlying investee’s business along with our rights as an investor pursuant to the operating agreement, the size of investment, expected holding period, number of shareholders, access to capital marketplace, etc. To illustrate the effect of movements in the DLOM, we performed a sensitivity analysis below by using basis point variations (dollars in thousands): Basis Point Change in Marketability Discount Estimated Increase (Decrease) +100 basis points $ (51 ) - 100 basis points 51 Because the fair value of Ernest investments noted above approximate their original cost, we did not recognize any unrealized gains/losses during the first nine months of 2017 or 2016. To date, we have not received any distribution payments from our equity investment in Ernest. |
Earnings Per Share_Common Unit
Earnings Per Share/Common Unit | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share/Common Unit | 8. Earnings Per Share/Common Unit Medical Properties Trust, Inc. Our earnings per share were calculated based on the following (in thousands): For the Three Months 2017 2016 Numerator: Net income $ 76,881 $ 70,543 Non-controlling interests’ share in net income (417 ) (185 ) Participating securities’ share in earnings (82 ) (154 ) Net income, less participating securities’ share in earnings $ 76,382 $ 70,204 Denominator: Basic weighted-average common shares 364,315 246,230 Dilutive potential common shares 731 1,238 Dilutive weighted-average common shares 365,046 247,468 For the Nine Months 2017 2016 Numerator: Income from continuing operations $ 218,862 $ 182,693 Non-controlling interests’ share in continuing operations (1,013 ) (683 ) Participating securities’ share in earnings (307 ) (430 ) Income from continuing operations, less participating securities’share in earnings 217,542 181,580 Loss from discontinued operations attributable to MPT common stockholders — (1 ) Net income, less participating securities’ share in earnings $ 217,542 $ 181,579 Denominator: Basic weighted-average common shares 345,076 240,607 Dilutive potential common shares 520 825 Dilutive weighted-average common shares 345,596 241,432 MPT Operating Partnership, L.P. Our earnings per common unit were calculated based on the following (in thousands): For the Three Months 2017 2016 Numerator: Net income $ 76,881 $ 70,543 Non-controlling interests’ share in net income (417 ) (185 ) Participating securities’ share in earnings (82 ) (154 ) Net income, less participating securities’ share in earnings $ 76,382 $ 70,204 Denominator: Basic weighted-average units 364,315 246,230 Dilutive potential units 731 1,238 Dilutive weighted-average units 365,046 247,468 For the Nine Months 2017 2016 Numerator: Income from continuing operations $ 218,862 $ 182,693 Non-controlling interests’ share in continuing operations (1,013 ) (683 ) Participating securities’ share in earnings (307 ) (430 ) Income from continuing operations, less participating securities’ share in earnings 217,542 181,580 Loss from discontinued operations attributable to MPT Operating Partnership partners — (1 ) Net income, less participating securities’ share in earnings $ 217,542 $ 181,579 Denominator: Basic weighted-average units 345,076 240,607 Dilutive potential units 520 825 Dilutive weighted-average units 345,596 241,432 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Commitments On September 28, 2016, we entered into a definitive agreement to acquire one acute care hospital in Washington for a purchase price of approximately $17.5 million. Upon closing, this facility will be leased to RCCH, pursuant to the current long-term master lease. Closing of the transaction, which is expected to be completed no later than the first quarter of 2018, is subject to customary real estate, regulatory and other closing conditions. Contingencies We are a party to various legal proceedings incidental to our business. In the opinion of management, after consultation with legal counsel, the ultimate liability, if any, with respect to those proceedings is not presently expected to materially affect our financial position, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events On October 5, 2017, we entered into definitive agreements to acquire three rehabilitation hospitals in Germany for an aggregate purchase price to us of approximately €80 million. Upon closing, the facilities will be leased to MEDIAN, pursuant to a new long-term |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Unaudited Interim Condensed Consolidated Financial Statements | Unaudited Interim Condensed Consolidated Financial Statements For information about significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. During the nine months ended September 30, 2017, there were no material changes to these policies. |
Recent Accounting Developments | Recent Accounting Developments: Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. This standard is effective for us beginning January 1, 2018, and we plan to adopt under the modified retrospective approach. We do not expect this standard to have a significant impact on our financial results upon adoption, as a substantial portion of our revenue consists of rental income from leasing arrangements and interest income from loans, which are specifically excluded from ASU No. 2014-09. Under ASU No. 2014-09, we do expect more transactions to qualify as sales of real estate with gains on sales being recognized earlier than under current accounting guidance, as the new guidance is based on transfer of control versus whether or not the seller has continuing involvement. Thus, we expect to record an approximate $2 million adjustment to retained earnings upon adoption of ASU No. 2014-09 to fully recognize a gain on real estate sold in prior years that was required to be deferred under existing accounting guidance. Clarifying the Definition of a Business In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business” (“ASU 2017-01”). The amendments in ASU 2017-01 provide an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, in which case, the transaction would be accounted for as an asset acquisition rather than as a business combination. In addition, ASU 2017-01 clarifies the requirements for a set of activities to be considered a business and narrows the definition of an output. A reporting entity must apply the amendments in ASU 2017-01 using a prospective approach. We will adopt ASU 2017-01 on January 1, 2018 for our 2018 fiscal year. Upon adoption, we expect to recognize a majority of our real estate acquisitions as asset transactions rather than business combinations, which will result in the capitalization of third party transaction costs that are directly related to an acquisition. Indirect and internal transaction costs will continue to be expensed, but we do not expect to include these costs as an adjustment in deriving normalized funds from operations in the future. We expect this change in accounting, once adopted, may decrease our normalized funds from operations by $1 million to $2 million per quarter. Leases In February 2016, the FASB issued ASU 2016-02, “Leases”, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. We expect to adopt this new standard on January 1, 2019. We are continuing to evaluate this standard and the impact to us from both a lessor and lessee perspective. However, we do have leases in which we are the lessee, including ground leases, on which certain of our facilities reside, along with corporate office and equipment leases, that will be required to be recorded on our balance sheet upon adoption of this standard. From a lessor perspective, we do expect certain non-lease components (including property taxes, insurance and other operating expenses that the tenants of our facilities are required to pay pursuant to our “triple-net” leases) to be recorded gross versus net of the respective expenses upon adoption of this standard in 2019 in accordance with ASU No. 2014-09. |
Variable Interest Entities | Variable Interest Entities At September 30, 2017, we had loans to and/or equity investments in certain variable interest entities (“VIEs”), which are also tenants of our facilities. We have determined that we are not the primary beneficiary of these VIEs. The carrying value and classification of the related assets and maximum exposure to loss as a result of our involvement with these VIEs at September 30, 2017 are presented below (in thousands): VIE Type Maximum Loss Asset Type Classification Carrying Loans, net $ 331,857 Mortgage and other loans $ 235,287 Equity investments $ 13,242 Other assets $ — (1) Our maximum loss exposure related to loans with VIEs represents our current aggregate gross carrying value of the loan plus accrued interest and any other related assets (such as rent receivables), less any liabilities. Our maximum loss exposure related to our equity investment in VIEs represents the current carrying values of such investment plus any other related assets (such as rent receivables) less any liabilities. (2) Carrying amount reflects the net book value of our loan or equity interest only in the VIE. For the VIE types above, we do not consolidate the VIE because we do not have the ability to control the activities (such as the day-to-day healthcare operations of our borrower or investees) that most significantly impact the VIE’s economic performance. As of September 30, 2017, we were not required to provide any material financial support through a liquidity arrangement or otherwise to our unconsolidated VIEs, including circumstances in which it could be exposed to further losses (e.g., cash short falls). Typically, our loans are collateralized by assets of the borrower (some assets of which are on the premises of facilities owned by us) and further supported by limited guarantees made by certain principals of the borrower. See Note 3 and 7 for additional description of the nature, purpose and activities of our more significant VIEs and interests therein, such as Ernest Health, Inc. (“Ernest”). |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Carrying Value and Classification of Related Assets and Maximum Exposure to Loss | The carrying value and classification of the related assets and maximum exposure to loss as a result of our involvement with these VIEs at September 30, 2017 are presented below (in thousands): VIE Type Maximum Loss Asset Type Classification Carrying Loans, net $ 331,857 Mortgage and other loans $ 235,287 Equity investments $ 13,242 Other assets $ — (1) Our maximum loss exposure related to loans with VIEs represents our current aggregate gross carrying value of the loan plus accrued interest and any other related assets (such as rent receivables), less any liabilities. Our maximum loss exposure related to our equity investment in VIEs represents the current carrying values of such investment plus any other related assets (such as rent receivables) less any liabilities. (2) Carrying amount reflects the net book value of our loan or equity interest only in the VIE. |
Real Estate and Lending Activ19
Real Estate and Lending Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Assets Acquired | We acquired the following assets (in thousands): Nine Months Ended September 30, 2017 2016 Assets Acquired Land and land improvements $ 196,094 $ 13,602 Building 987,442 125,744 Intangible lease assets — subject to amortization (weighted average useful life 28.7 years for 2017 and 19.4 years for 2016) 128,961 10,754 Net investments in direct financing leases 40,450 63,000 Mortgage loans 700,000 — Equity investments 100,000 — Liabilities assumed (878 ) — Total assets acquired $ 2,152,069 $ 213,100 Loans repaid (1) — (93,262 ) Total net assets acquired $ 2,152,069 $ 119,838 (1) $93.3 million loans advanced to Capella (now RCCH Healthcare Partners (“RCCH”)) in 2015 and repaid in 2016 as a part of the Capella Transaction. |
Schedule of Unaudited Supplemental Pro Forma Operating Data | The unaudited supplemental pro forma operating data is not necessarily indicative of what the actual results of operations would have been assuming the transactions had been completed as set forth above, nor do they purport to represent our results of operations for future periods (in thousands, except per share/unit amounts). For the Three Months For the Nine Months Ended September 30, Ended September 30, 2017 2016 2017 2016 Total revenues $ 209,368 $ 207,898 $ 623,635 $ 622,798 Net income $ 102,112 $ 107,863 $ 311,306 $ 307,645 Net income per share/unit — diluted $ 0.28 $ 0.30 $ 0.85 $ 0.86 |
Summary of Status Update on Current Development Projects | See table below for a status update on our current development projects (in thousands): Property Commitment Costs Incurred as of Estimated Ernest (Flagstaff, Arizona) $ 28,067 $ 16,619 1Q 2018 Circle (Birmingham, England) 43,221 11,389 1Q 2019 $ 71,288 $ 28,008 |
Summary of Operations for Assets Disposed in 2016 | The following represents the operating results (excluding gain on sale, transaction costs, and impairment or other non-cash charges) from the properties which sold during 2016 (excluding loans repaid in the Capella Transaction) for the periods presented (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Revenues $ — $ 244 $ — $ 7,851 Real estate depreciation and amortization — — — (1,754 ) Property-related expenses — — — (114 ) Other income (expense) — 45 — (23 ) Income from real estate dispositions, net $ — $ 289 $ — $ 5,960 |
Components of Net Investment in Direct Financing Leases | The components of our net investment in DFLs consisted of the following (in thousands): As of September 30, As of December 31, Minimum lease payments receivable $ 2,312,621 $ 2,207,625 Estimated residual values 448,098 407,647 Less: Unearned income (2,064,890 ) (1,967,170 ) Net investment in direct financing leases $ 695,829 $ 648,102 |
Summary of Loans | The following is a summary of our loans (in thousands): As of September 30, 2017 As of December 31, 2016 Mortgage loans $ 1,777,555 $ 1,060,400 Acquisition loans 119,256 121,464 Working capital and other loans 32,453 34,257 $ 1,929,264 $ 1,216,121 |
Schedule of Revenue by Operator | Revenue by Operator For the Nine Months Ended For the Nine Months Ended Operators Total Percentage of Total Percentage of Steward (1) $ 114,776 23.0 % $ 20,969 5.4 % Prime 94,644 18.9 % 89,389 23.1 % MEDIAN 73,793 14.8 % 70,242 18.1 % Ernest 53,007 10.6 % 50,564 13.0 % Adeptus Health 39,638 7.9 % 25,873 6.7 % RCCH 30,668 6.1 % 42,776 11.0 % Other operators 93,258 18.7 % 88,041 22.7 % Total $ 499,784 100.0 % $ 387,854 100.0 % (1) Includes approximately $21.6 million and $21 million of revenue for the nine months ended September 30, 2017 and 2016, respectively, from facilities leased to IASIS prior to it being acquired by Steward on September 29, 2017. |
Schedule of Revenue from External Customers by Geographic Areas | Revenue by U.S. State and Country For the Nine Months Ended For the Nine Months Ended U.S. States and Other Countries Total Percentage of Total Percentage of Massachusetts $ 79,741 16.0 % $ — — Texas 74,489 14.9 % 72,811 18.8 % California 49,681 9.9 % 49,724 12.8 % New Jersey 32,756 6.6 % 28,398 7.3 % Arizona 23,902 4.8 % 17,678 4.6 % All other states 147,606 29.5 % 143,289 36.9 % Total U.S. $ 408,175 81.7 % $ 311,900 80.4 % Germany $ 88,525 17.7 % $ 72,718 18.8 % United Kingdom, Italy, and Spain 3,084 0.6 % 3,236 0.8 % Total International $ 91,609 18.3 % $ 75,954 19.6 % Grand Total $ 499,784 100.0 % $ 387,854 100.0 % |
Schedule of Gross Assets by Operator | Gross Assets by Operator As of September 30, 2017 As of December 31, 2016 Operators Total Gross Assets Percentage of Gross Assets Total Gross Assets Percentage of Gross Assets Steward (1) $ 3,445,379 36.8 % $ 1,609,583 22.5 % MEDIAN 1,209,767 12.9 % 993,677 13.9 % Prime 1,118,070 12.0 % 1,144,055 16.0 % Ernest 631,501 6.7 % 627,906 8.8 % RCCH 506,265 5.4 % 566,600 7.9 % Other operators 1,992,448 21.3 % 1,900,397 26.7 % Other assets 452,505 4.9 % 300,903 4.2 % Total $ 9,355,935 100.0 % $ 7,143,121 100.0 % (1) Includes approximately $360 million of gross assets as of December 31, 2016 related to facilities leased to IASIS prior to it being acquired by Steward on September 29, 2017. |
Schedule of Gross Assets by Geographic Areas | Gross Assets by U.S. State and Country As of September 30, 2017 As of December 31, 2016 U.S. States and Other Countries Total Gross Assets Percentage of Gross Assets Total Gross Assets Percentage of Gross Assets Massachusetts $ 1,284,156 13.7 % $ 1,250,000 17.5 % Texas 1,275,784 13.6 % 947,443 13.3 % Utah 1,035,793 11.1 % 107,151 1.5 % California 542,879 5.8 % 542,889 7.6 % Arizona 498,844 5.3 % 331,834 4.6 % All other states 2,506,538 26.8 % 2,234,332 31.3 % Other domestic assets 397,850 4.3 % 264,215 3.7 % Total U.S. $ 7,541,844 80.6 % $ 5,677,864 79.5 % Germany $ 1,556,392 16.6 % $ 1,281,649 17.9 % United Kingdom, Italy, and Spain 203,044 2.2 % 146,920 2.1 % Other international assets 54,655 0.6 % 36,688 0.5 % Total International $ 1,814,091 19.4 % $ 1,465,257 20.5 % Grand Total $ 9,355,935 100.0 % $ 7,143,121 100.0 % |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following is a summary of our debt (dollar amounts in thousands): As of September 30, 2017 As of December 31, 2016 Revolving credit facility (A) $ 445,359 $ 290,000 Term loans 200,000 263,101 6.375% Senior Unsecured Notes due 2022: Principal amount 350,000 350,000 Unamortized premium 1,549 1,814 351,549 351,814 5.750% Senior Unsecured Notes due 2020 (B) — 210,340 4.000% Senior Unsecured Notes due 2022 (B) 590,700 525,850 5.500% Senior Unsecured Notes due 2024 300,000 300,000 6.375% Senior Unsecured Notes due 2024 500,000 500,000 3.325% Senior Unsecured Notes due 2025 (B) 590,700 — 5.250% Senior Unsecured Notes due 2026 500,000 500,000 5.000% Senior Unsecured Notes due 2027 1,400,000 — $ 4,878,308 $ 2,941,105 Debt issue costs, net (46,044 ) (31,764 ) $ 4,832,264 $ 2,909,341 (A) Includes £4 million of GBP-denominated borrowings that reflect the exchange rate at September 30, 2017. (B) These notes are Euro-denominated and reflect the exchange rate at September 30, 2017 and December 31, 2016, respectively. |
Principal Payments Due on Debt | As of September 30, 2017, principal payments due on our debt (which exclude the effects of any discounts, premiums, or debt issue costs recorded) are as follows (in thousands): 2017 $ 350,000 (A) 2018 — 2019 — 2020 — 2021 445,359 Thereafter 4,081,400 Total $ 4,876,759 (A) The $350 million 6.375% Senior Unsecured Notes due 2022 were redeemed on October 7, 2017 with proceeds from our $1.4 billion 5.000% Senior Unsecured Notes due 2027. |
Fair Value of Financial Instr21
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Information of Financial Instruments | The following table summarizes fair value estimates for our financial instruments (in thousands): September 30, 2017 December 31, 2016 Book Fair Book Fair Asset (Liability) Value Value Value Value Interest and rent receivables $ 105,817 $ 105,803 $ 57,698 $ 57,707 Loans (1) 1,698,866 1,722,912 986,987 1,017,428 Debt, net (4,832,264 ) (5,032,821 ) (2,909,341 ) (2,966,759 ) (1) Excludes loans related to Ernest since they are recorded at fair value and discussed below. |
Equity Interest in Related Party and Related Loans Measured at Fair Value on Recurring Basis | At September 30, 2017, these amounts were as follows (in thousands): Fair Asset Type Asset Type Value Cost Classification Mortgage loans $ 115,000 $ 115,000 Mortgage loans Acquisition and other loans 115,398 115,398 Other loans Equity investments 3,300 3,300 Other assets $ 233,698 $ 233,698 |
Summary Showing Sensitivity Analysis by Using Basis Point Variations | To illustrate the effect of movements in the DLOM, we performed a sensitivity analysis below by using basis point variations (dollars in thousands): Basis Point Change in Marketability Discount Estimated Increase (Decrease) +100 basis points $ (51 ) - 100 basis points 51 |
Earnings Per Share_Common Unit
Earnings Per Share/Common Unit (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | Medical Properties Trust, Inc. Our earnings per share were calculated based on the following (in thousands): For the Three Months 2017 2016 Numerator: Net income $ 76,881 $ 70,543 Non-controlling interests’ share in net income (417 ) (185 ) Participating securities’ share in earnings (82 ) (154 ) Net income, less participating securities’ share in earnings $ 76,382 $ 70,204 Denominator: Basic weighted-average common shares 364,315 246,230 Dilutive potential common shares 731 1,238 Dilutive weighted-average common shares 365,046 247,468 For the Nine Months 2017 2016 Numerator: Income from continuing operations $ 218,862 $ 182,693 Non-controlling interests’ share in continuing operations (1,013 ) (683 ) Participating securities’ share in earnings (307 ) (430 ) Income from continuing operations, less participating securities’share in earnings 217,542 181,580 Loss from discontinued operations attributable to MPT common stockholders — (1 ) Net income, less participating securities’ share in earnings $ 217,542 $ 181,579 Denominator: Basic weighted-average common shares 345,076 240,607 Dilutive potential common shares 520 825 Dilutive weighted-average common shares 345,596 241,432 MPT Operating Partnership, L.P. Our earnings per common unit were calculated based on the following (in thousands): For the Three Months 2017 2016 Numerator: Net income $ 76,881 $ 70,543 Non-controlling interests’ share in net income (417 ) (185 ) Participating securities’ share in earnings (82 ) (154 ) Net income, less participating securities’ share in earnings $ 76,382 $ 70,204 Denominator: Basic weighted-average units 364,315 246,230 Dilutive potential units 731 1,238 Dilutive weighted-average units 365,046 247,468 For the Nine Months 2017 2016 Numerator: Income from continuing operations $ 218,862 $ 182,693 Non-controlling interests’ share in continuing operations (1,013 ) (683 ) Participating securities’ share in earnings (307 ) (430 ) Income from continuing operations, less participating securities’ share in earnings 217,542 181,580 Loss from discontinued operations attributable to MPT Operating Partnership partners — (1 ) Net income, less participating securities’ share in earnings $ 217,542 $ 181,579 Denominator: Basic weighted-average units 345,076 240,607 Dilutive potential units 520 825 Dilutive weighted-average units 345,596 241,432 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Accounting Standards Update No. 2017-01 [Member] | Minimum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Decrease normalized funds from operations | $ (1) |
Accounting Standards Update No. 2017-01 [Member] | Maximum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Decrease normalized funds from operations | (2) |
Accounting Standards Update 2014-09 [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Adjustment to retained earnings | $ 2 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Carrying Value and Classification of Related Assets and Maximum Exposure to Loss (Detail) | Sep. 30, 2017USD ($) |
Mortgage and other loans [Member] | |
Variable Interest Entity [Line Items] | |
Carrying Amount | $ 235,287,000 |
Loans, net [Member] | |
Variable Interest Entity [Line Items] | |
Maximum Loss Exposure | 331,857,000 |
Equity investments [Member] | |
Variable Interest Entity [Line Items] | |
Maximum Loss Exposure | $ 13,242,000 |
Real Estate and Lending Activ25
Real Estate and Lending Activities - Assets Acquired (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | |||
Total assets acquired | $ 2,152,069 | $ 213,100 | |
Equity investments | 100,000 | ||
Liabilities assumed | (878) | ||
Loans repaid | [1] | (93,262) | |
Total net assets acquired | 2,152,069 | 119,838 | |
Land and Land Improvements [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | 196,094 | 13,602 | |
Building [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | 987,442 | 125,744 | |
Intangible Lease Assets - Subject to Amortization [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | 128,961 | 10,754 | |
Net Investments in Direct Financing Leases [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | 40,450 | $ 63,000 | |
Mortgage Loans [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | $ 700,000 | ||
[1] | $93.3 million loans advanced to Capella (now RCCH Healthcare Partners ("RCCH")) in 2015 and repaid in 2016 as a part of the Capella Transaction. |
Real Estate and Lending Activ26
Real Estate and Lending Activities - Assets Acquired (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Business Acquisition [Line Items] | |||
Loans repaid | [1] | $ 93,262 | |
Intangible Lease Assets - Subject to Amortization [Member] | |||
Business Acquisition [Line Items] | |||
Weighted average useful life of acquired intangible lease assets (in years) | 28 years 8 months 12 days | 19 years 4 months 24 days | |
Capella [Member] | |||
Business Acquisition [Line Items] | |||
Loans repaid | $ 93,262 | ||
[1] | $93.3 million loans advanced to Capella (now RCCH Healthcare Partners ("RCCH")) in 2015 and repaid in 2016 as a part of the Capella Transaction. |
Real Estate and Lending Activ27
Real Estate and Lending Activities - 2017 Activity - Additional Information (Detail) - 2017 [Member] € in Millions | Sep. 29, 2017USD ($)FacilityHospitalHealth_Center | Jun. 22, 2017EUR (€) | Jun. 01, 2017USD ($)Bed | May 01, 2017USD ($)BedHospital | Jan. 30, 2017EUR (€) | Dec. 31, 2016EUR (€)Property | Jul. 31, 2016EUR (€)Property | Sep. 30, 2017USD ($)Hospital | Sep. 30, 2017EUR (€)Hospital | Jun. 30, 2017EUR (€)Hospital | Jan. 30, 2017EUR (€)Hospital | Sep. 30, 2017USD ($) |
Subsidiaries | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of facilities acquired | Facility | 9 | |||||||||||
Equity interest acquired | $ 100,000,000 | |||||||||||
Combined purchase price and investment amount | $ 1,500,000,000 | |||||||||||
Term of lease | 15 years | |||||||||||
Mortgage [Member] | Subsidiaries | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amount of mortgage loan | $ 700,000,000 | |||||||||||
Number of mortgage facilities | Hospital | 2 | |||||||||||
Number of lease extension options | Hospital | 3 | |||||||||||
Period of options extension | 5 years | |||||||||||
IASIS Healthcare [Member] | Subsidiaries | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price of acquisition | $ 700,000,000 | |||||||||||
Business Acquisitions [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Revenue contributed by the acquired entity | $ 16,700,000 | $ 25,100,000 | ||||||||||
Income contributed by the acquired entity | 12,700,000 | 18,800,000 | ||||||||||
Acquisition related costs | $ 5,400,000 | $ 15,600,000 | ||||||||||
Acute Care Hospital [Member] | IASIS Healthcare [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of facilities closed | Hospital | 10 | |||||||||||
Acute Care Hospital [Member] | IASIS Healthcare [Member] | Subsidiaries | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of facilities acquired | Hospital | 8 | |||||||||||
Acute Care Hospital [Member] | Alecto Healthcare Services [Member] | Ohio Valley Medical Center [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of beds acquired | Bed | 218 | |||||||||||
Acute Care Hospital [Member] | Alecto Healthcare Services [Member] | East Ohio Regional Hospital [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of beds acquired | Bed | 139 | |||||||||||
Behavioral Health Care Facility [Member] | IASIS Healthcare [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of facilities closed | Health_Center | 1 | |||||||||||
Behavioral Health Care Facility [Member] | IASIS Healthcare [Member] | Subsidiaries | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of facilities acquired | Health_Center | 1 | |||||||||||
West Virginia and Ohio [Member] | Acute Care Hospital [Member] | Alecto Healthcare Services [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price of acquisition | $ 40,000,000 | |||||||||||
Term of lease | 15 years | |||||||||||
Purchase price of acquisition funded | $ 0 | |||||||||||
Percentage of increase in annual rent | 2.00% | |||||||||||
Number of lease extension options | 3 | |||||||||||
Term of lease extension | 5 years | |||||||||||
Additional fund committed to the tenant for capital improvements | $ 20,000,000 | |||||||||||
Ownership interest percentage in operator facility | 20.00% | |||||||||||
Florida, Ohio, and Pennsylvania [Member] | Community Health Systems, Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of facilities acquired | Hospital | 8 | |||||||||||
Purchase price of acquisition | $ 301,300,000 | |||||||||||
Germany [Member] | Acute Care Hospital [Member] | MEDIAN [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price of acquisition | € | € 19.4 | |||||||||||
Lease agreement, end date | 2042-12 | |||||||||||
Lease rent increase percentage | 1.00% | |||||||||||
Lease rate | 70.00% | |||||||||||
Purchase price of acquisition funded | € | € 18.6 | |||||||||||
Remaining payment period | 4 years | |||||||||||
Germany [Member] | Rehabilitation Hospital with Covenant Health System [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of facilities acquired | Hospital | 6 | |||||||||||
Purchase price of acquisition | € | € 8.4 | € 44.1 | ||||||||||
Germany [Member] | Rehabilitation Hospital with Covenant Health System [Member] | Third Master Lease [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of facilities acquired | 20 | 2 | 2 | 11 | ||||||||
Acquisition costs | € | € 215.7 | € 39.2 | € 127 | |||||||||
Lease agreement, end date | 2043-08 | 2043-08 | ||||||||||
Number of properties closed | Property | 7 | |||||||||||
Amount of properties closed | € | € 49.5 | |||||||||||
Lease rent increase percentage | 1.00% | 1.00% | ||||||||||
Lease rate | 70.00% | 70.00% | 70.00% | |||||||||
IDAHO, Lewiston | Acute Care Hospital [Member] | St. Joseph Regional Medical Center [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price of acquisition | $ 87,500,000 | |||||||||||
Number of beds acquired | Bed | 145 |
Real Estate and Lending Activ28
Real Estate and Lending Activities - 2016 Activity - Additional Information (Detail) $ in Thousands, € in Millions | Jul. 22, 2016USD ($) | Jun. 22, 2016EUR (€) | May 02, 2016USD ($)RenewalOptions | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Business Acquisition [Line Items] | ||||||
Loans repaid | [1] | $ 93,262 | $ 93,262 | |||
2016 [Member] | MEDIAN [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Value of properties closed | € | € 41.6 | |||||
Acquisition costs | € | € 688 | |||||
Lease agreement, end date | 2042-12 | |||||
Lease rent increase percentage | 1.00% | |||||
Lease rate | 70.00% | |||||
2016 [Member] | New Jersey [Member] | Acute Care Hospital [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition costs | $ 63,000 | |||||
Term of lease | 15 years | |||||
Number of lease extension options | RenewalOptions | 3 | |||||
Term of lease extension | 5 years | |||||
Increase in consumer price-index, floor rate | 2.00% | |||||
Commitment to advance an additional amount for capital additions | $ 30,000 | |||||
Commitment period to advance an additional amount for capital additions | 3 years | |||||
Capella [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Loans repaid | 93,262 | 93,262 | ||||
Capella [Member] | 2016 [Member] | Olympia, Washington [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Loans repaid | $ 93,300 | |||||
Cash paid for acquisition transaction | $ 7,000 | |||||
Business Acquisitions [Member] | 2016 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Revenue contributed by the acquired entity | 4,600 | 5,700 | ||||
Income contributed by the acquired entity | $ 3,800 | 4,900 | ||||
Acquisition related costs | $ 2,400 | |||||
[1] | $93.3 million loans advanced to Capella (now RCCH Healthcare Partners ("RCCH")) in 2015 and repaid in 2016 as a part of the Capella Transaction. |
Real Estate and Lending Activ29
Real Estate and Lending Activities - Schedule of Unaudited Supplemental Pro Forma Operating Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Combinations [Abstract] | ||||
Total revenues | $ 209,368 | $ 207,898 | $ 623,635 | $ 622,798 |
Net income | $ 102,112 | $ 107,863 | $ 311,306 | $ 307,645 |
Net income per share/unit - diluted | $ 0.28 | $ 0.30 | $ 0.85 | $ 0.86 |
Real Estate and Lending Activ30
Real Estate and Lending Activities - Development Activities - Additional Information (Detail) € in Millions, £ in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | |
Apr. 30, 2017GBP (£) | Sep. 30, 2017USD ($)Facility | Sep. 30, 2017EUR (€)Facility | |
Birmingham, England | |||
Business Acquisition [Line Items] | |||
Purchase price of acquisition | £ 2.7 | ||
Term of lease, years | 15 years | ||
Total development costs anticipated | £ 30 | ||
Development Activities [Member] | Adeptus Health [Member] | Acute Care Facilities [Member] | |||
Business Acquisition [Line Items] | |||
Number of facilities constructed | Facility | 4 | 4 | |
Acquisition costs | $ | $ 68 | ||
Development Activities [Member] | IMED [Member] | Acute Care Facilities [Member] | Spain [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition costs | € | € 21 | ||
Ownership interests acquired | 50.00% | 50.00% | |
Lease rate | 12.20% | 12.20% | |
Lessor direct financing lease description | Quarterly fixed rent payments beginning six months from the lease start date with annual increases of 1% beginning April 1, 2020. | Quarterly fixed rent payments beginning six months from the lease start date with annual increases of 1% beginning April 1, 2020. | |
Lease rent increase percentage | 1.00% | 1.00% |
Real Estate and Lending Activ31
Real Estate and Lending Activities - Summary of Status Update on Current Development Projects (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Business Acquisition [Line Items] | |
Commitment | $ 71,288 |
Costs Incurred as of 09/30/2017 | 28,008 |
Ernest [Member] | Flagstaff, Arizona [Member] | |
Business Acquisition [Line Items] | |
Commitment | 28,067 |
Costs Incurred as of 09/30/2017 | $ 16,619 |
Estimated Completion Date | 1Q 2018 |
Circle [Member] | Birmingham, England [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 43,221 |
Costs Incurred as of 09/30/2017 | $ 11,389 |
Estimated Completion Date | 1Q 2019 |
Real Estate and Lending Activ32
Real Estate and Lending Activities - Disposals - Additional Information (Detail) $ in Millions | Mar. 31, 2017USD ($) |
Business Combinations [Abstract] | |
Proceeds from sale of facilities | $ 64 |
Gain on real estate dispositions | 7.4 |
Gain offset by non-cash charges | $ 0.6 |
Real Estate and Lending Activ33
Real Estate and Lending Activities - Capella Transaction - Additional Information (Detail) - Capella [Member] $ in Millions | Apr. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2016Hospital |
Business Acquisition [Line Items] | |||
Net proceeds from transaction | $ 550 | ||
Net proceeds from equity investment and loans | 492 | ||
Proceeds from prepayment of mortgage loans | 210 | ||
New loan for hospital property | 93.3 | ||
Investment on unsecured senior notes | 50 | ||
Transaction costs incurred | $ 6.3 | ||
Number of hospital owned | Hospital | 5 | ||
Write off of unbilled direct finance lease rent | $ 2.6 |
Real Estate and Lending Activ34
Real Estate and Lending Activities - Post Acute Transaction - Additional Information (Detail) $ in Millions | Mar. 31, 2017USD ($) | Jun. 17, 2016USD ($) | May 23, 2016USD ($)Property |
Business Acquisition [Line Items] | |||
Proceeds from sale of real estate | $ 64 | ||
Gain on real estate dispositions | $ 7.4 | ||
Post Acute [Member] | |||
Business Acquisition [Line Items] | |||
Number of properties sold | Property | 5 | ||
Outstanding loans paid in full | $ 4 | ||
Proceeds from sale of real estate | $ 28 | 71 | |
Gain on real estate dispositions | $ 15 | ||
Post Acute [Member] | Texas [Member] | |||
Business Acquisition [Line Items] | |||
Number of properties sold | Property | 3 | ||
Post Acute [Member] | Louisiana [Member] | |||
Business Acquisition [Line Items] | |||
Number of properties sold | Property | 2 |
Real Estate and Lending Activ35
Real Estate and Lending Activities - Corinth Transaction - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 17, 2016 | May 23, 2016 |
Proceeds from sale of real estate | $ 64 | ||
Gain offset by non-cash charges | $ 0.6 | ||
Post Acute [Member] | |||
Proceeds from sale of real estate | $ 28 | $ 71 | |
Gain on sale of real estate | 8 | ||
Post Acute [Member] | Texas [Member] | |||
Gain offset by non-cash charges | $ 9 |
Real Estate and Lending Activ36
Real Estate and Lending Activities - HealthSouth Transaction - Additional Information (Detail) $ in Millions | Mar. 31, 2017USD ($) | Jul. 20, 2016USD ($)Hospital |
Proceeds from sale of facilities | $ 64 | |
Gain on real estate dispositions | $ 7.4 | |
HealthSouth [Member] | ||
Proceeds from sale of facilities | $ 111.5 | |
Gain on real estate dispositions | $ 45 | |
HealthSouth [Member] | Texas [Member] | ||
Number of hospitals sold | Hospital | 3 |
Real Estate and Lending Activ37
Real Estate and Lending Activities - Summary of Operations for Assets Disposed in 2016 (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||
Revenues | $ 244 | $ 7,851 |
Real estate depreciation and amortization | (1,754) | |
Property-related expenses | (114) | |
Other income (expense) | 45 | (23) |
Income from real estate dispositions, net | $ 289 | $ 5,960 |
Real Estate and Lending Activ38
Real Estate and Lending Activities - Leasing Operations - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Leases | |
Alecto Healthcare Services [Member] | |
Business Acquisition [Line Items] | |
Number of direct financing leases | 2 |
Ernest [Member] | |
Business Acquisition [Line Items] | |
Number of direct financing leases | 15 |
Prime Facilities [Member] | |
Business Acquisition [Line Items] | |
Number of direct financing leases | 10 |
Real Estate and Lending Activ39
Real Estate and Lending Activities - Components of Net Investment in Direct Financing Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Business Combinations [Abstract] | ||
Minimum lease payments receivable | $ 2,312,621 | $ 2,207,625 |
Estimated residual values | 448,098 | 407,647 |
Less: Unearned income | (2,064,890) | (1,967,170) |
Net investment in direct financing leases | $ 695,829 | $ 648,102 |
Real Estate and Lending Activ40
Real Estate and Lending Activities - Adeptus Health - Additional Information (Detail) $ in Millions | Oct. 18, 2017RenewalOptions | Apr. 04, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($)Facility |
Business Acquisition [Line Items] | ||||
Gain offset by non-cash charges | $ 0.6 | |||
Louisiana [Member] | Ochsner [Member] | ||||
Business Acquisition [Line Items] | ||||
Total budgeted investment | $ 24.5 | |||
Gain offset by non-cash charges | $ 0.5 | |||
Subsequent Event [Member] | Louisiana [Member] | Ochsner [Member] | ||||
Business Acquisition [Line Items] | ||||
Term of lease, years | 15 years | |||
Average minimum lease rate on development and construction cost | 9.20% | |||
Number of lease extension options | RenewalOptions | 3 | |||
Term of lease extension, years | 5 years | |||
Adeptus Health [Member] | ||||
Business Acquisition [Line Items] | ||||
Date plan of reorganization confirmed | Sep. 29, 2017 | |||
Date plan of reorganization confirmed effective | Oct. 2, 2017 | |||
Number of facilities expected to sell re-lease or sell | Facility | 16 | |||
Number of leased properties | Facility | 56 | |||
Expected lease maturity year | 2,019 | |||
Adeptus Health [Member] | Total Gross Assets [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of Total Gross Assets | 5.00% | |||
Adeptus Health [Member] | Deerfield [Member] | ||||
Business Acquisition [Line Items] | ||||
Pre-bankruptcy payment percentage of rent | 100.00% |
Real Estate and Lending Activ41
Real Estate and Lending Activities - Hoboken Facility - Additional Information (Detail) - Hoboken Facility [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Business Acquisition [Line Items] | |
Ownership interests acquired | 20.00% |
Acquisition costs | $ 10 |
Ownership interests after acquisition | 30.00% |
Real Estate and Lending Activ42
Real Estate and Lending Activities - Summary of Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Loans [Line Items] | ||
Loans, Balance | $ 1,929,264 | $ 1,216,121 |
Mortgage Loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | 1,777,555 | 1,060,400 |
Acquisition Loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | 119,256 | 121,464 |
Working Capital and Other Loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | $ 32,453 | $ 34,257 |
Real Estate and Lending Activ43
Real Estate and Lending Activities - Loans - Additional Information (Detail) $ in Millions | Sep. 30, 2017USD ($)PropertyOperator |
Ernest Transaction and Other Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Existing mortgage loans | $ 114.4 |
Mortgage Loans [Member] | Steward [Member] | |
Business Acquisition [Line Items] | |
Number of Real Estate Properties | Property | 14 |
Number Of Operators | Operator | 4 |
Existing mortgage loans | $ 700 |
Real Estate and Lending Activ44
Real Estate and Lending Activities - Schedule of Revenue by Operator (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Investment And Revenue From External Customers [Line Items] | |||||
Total Revenue | $ 176,580 | $ 126,555 | $ 499,784 | $ 387,854 | |
Revenue [Member] | Credit Concentration Risk [Member] | |||||
Investment And Revenue From External Customers [Line Items] | |||||
Total Revenue | $ 499,784 | $ 387,854 | |||
Percentage of Total Revenue | 100.00% | 100.00% | |||
Revenue [Member] | Credit Concentration Risk [Member] | Steward [Member] | |||||
Investment And Revenue From External Customers [Line Items] | |||||
Total Revenue | [1] | $ 114,776 | $ 20,969 | ||
Percentage of Total Revenue | [1] | 23.00% | 5.40% | ||
Revenue [Member] | Credit Concentration Risk [Member] | Prime [Member] | |||||
Investment And Revenue From External Customers [Line Items] | |||||
Total Revenue | $ 94,644 | $ 89,389 | |||
Percentage of Total Revenue | 18.90% | 23.10% | |||
Revenue [Member] | Credit Concentration Risk [Member] | MEDIAN [Member] | |||||
Investment And Revenue From External Customers [Line Items] | |||||
Total Revenue | $ 73,793 | $ 70,242 | |||
Percentage of Total Revenue | 14.80% | 18.10% | |||
Revenue [Member] | Credit Concentration Risk [Member] | Ernest [Member] | |||||
Investment And Revenue From External Customers [Line Items] | |||||
Total Revenue | $ 53,007 | $ 50,564 | |||
Percentage of Total Revenue | 10.60% | 13.00% | |||
Revenue [Member] | Credit Concentration Risk [Member] | Adeptus Health [Member] | |||||
Investment And Revenue From External Customers [Line Items] | |||||
Total Revenue | $ 39,638 | $ 25,873 | |||
Percentage of Total Revenue | 7.90% | 6.70% | |||
Revenue [Member] | Credit Concentration Risk [Member] | RCCH [Member] | |||||
Investment And Revenue From External Customers [Line Items] | |||||
Total Revenue | $ 30,668 | $ 42,776 | |||
Percentage of Total Revenue | 6.10% | 11.00% | |||
Revenue [Member] | Credit Concentration Risk [Member] | Other Operators [Member] | |||||
Investment And Revenue From External Customers [Line Items] | |||||
Total Revenue | $ 93,258 | $ 88,041 | |||
Percentage of Total Revenue | 18.70% | 22.70% | |||
[1] | Includes approximately $21.6 million and $21 million of revenue for the nine months ended September 30, 2017 and 2016, respectively, from facilities leased to IASIS prior to it being acquired by Steward on September 29, 2017. |
Real Estate and Lending Activ45
Real Estate and Lending Activities - Schedule of Revenue by Operator (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investment And Revenue From External Customers [Line Items] | ||||
Total Revenue | $ 176,580 | $ 126,555 | $ 499,784 | $ 387,854 |
IASIS Healthcare [Member] | ||||
Investment And Revenue From External Customers [Line Items] | ||||
Total Revenue | $ 21,600 | $ 21,000 |
Real Estate and Lending Activ46
Real Estate and Lending Activities - Schedule of Revenue from External Customers by Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 176,580 | $ 126,555 | $ 499,784 | $ 387,854 |
Revenue [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 499,784 | $ 387,854 | ||
Percentage of Total Revenue | 100.00% | 100.00% | ||
Revenue [Member] | Massachusetts [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 79,741 | |||
Percentage of Total Revenue | 16.00% | |||
Revenue [Member] | Texas [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 74,489 | $ 72,811 | ||
Percentage of Total Revenue | 14.90% | 18.80% | ||
Revenue [Member] | California [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 49,681 | $ 49,724 | ||
Percentage of Total Revenue | 9.90% | 12.80% | ||
Revenue [Member] | New Jersey [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 32,756 | $ 28,398 | ||
Percentage of Total Revenue | 6.60% | 7.30% | ||
Revenue [Member] | Arizona [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 23,902 | $ 17,678 | ||
Percentage of Total Revenue | 4.80% | 4.60% | ||
Revenue [Member] | All Other States [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 147,606 | $ 143,289 | ||
Percentage of Total Revenue | 29.50% | 36.90% | ||
Revenue [Member] | United States [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 408,175 | $ 311,900 | ||
Percentage of Total Revenue | 81.70% | 80.40% | ||
Revenue [Member] | Germany [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 88,525 | $ 72,718 | ||
Percentage of Total Revenue | 17.70% | 18.80% | ||
Revenue [Member] | United Kingdom, Italy, and Spain [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 3,084 | $ 3,236 | ||
Percentage of Total Revenue | 0.60% | 0.80% | ||
Revenue [Member] | International [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 91,609 | $ 75,954 | ||
Percentage of Total Revenue | 18.30% | 19.60% |
Real Estate and Lending Activ47
Real Estate and Lending Activities - Schedule of Gross Assets by Operator (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | ||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 8,927,040 | $ 6,418,536 | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 9,355,935 | $ 7,143,121 | |
Percentage of Total Gross Assets | 100.00% | 100.00% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Steward [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | [1] | $ 3,445,379 | $ 1,609,583 |
Percentage of Total Gross Assets | [1] | 36.80% | 22.50% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | MEDIAN [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 1,209,767 | $ 993,677 | |
Percentage of Total Gross Assets | 12.90% | 13.90% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Prime [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 1,118,070 | $ 1,144,055 | |
Percentage of Total Gross Assets | 12.00% | 16.00% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Ernest [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 631,501 | $ 627,906 | |
Percentage of Total Gross Assets | 6.70% | 8.80% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | RCCH [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 506,265 | $ 566,600 | |
Percentage of Total Gross Assets | 5.40% | 7.90% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Other Operators [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 1,992,448 | $ 1,900,397 | |
Percentage of Total Gross Assets | 21.30% | 26.70% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Other Assets [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 452,505 | $ 300,903 | |
Percentage of Total Gross Assets | 4.90% | 4.20% | |
[1] | (1) Includes approximately $360 million of gross assets as of December 31, 2016 related to facilities leased to IASIS prior to it being acquired by Steward on September 29, 2017. |
Real Estate and Lending Activ48
Real Estate and Lending Activities - Schedule of Gross Assets by Operator (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investment And Revenue From External Customers [Line Items] | ||
Total assets | $ 8,927,040 | $ 6,418,536 |
IASIS Healthcare [Member] | ||
Investment And Revenue From External Customers [Line Items] | ||
Total assets | $ 360,000 |
Real Estate and Lending Activ49
Real Estate and Lending Activities - Schedule of Gross Assets by Geographic Areas (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 8,927,040 | $ 6,418,536 |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 9,355,935 | $ 7,143,121 |
Percentage of Total Gross Assets | 100.00% | 100.00% |
Total Gross Assets [Member] | Massachusetts [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,284,156 | $ 1,250,000 |
Percentage of Total Gross Assets | 13.70% | 17.50% |
Total Gross Assets [Member] | Texas [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,275,784 | $ 947,443 |
Percentage of Total Gross Assets | 13.60% | 13.30% |
Total Gross Assets [Member] | Utah [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,035,793 | $ 107,151 |
Percentage of Total Gross Assets | 11.10% | 1.50% |
Total Gross Assets [Member] | California [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 542,879 | $ 542,889 |
Percentage of Total Gross Assets | 5.80% | 7.60% |
Total Gross Assets [Member] | Arizona [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 498,844 | $ 331,834 |
Percentage of Total Gross Assets | 5.30% | 4.60% |
Total Gross Assets [Member] | All Other States [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 2,506,538 | $ 2,234,332 |
Percentage of Total Gross Assets | 26.80% | 31.30% |
Total Gross Assets [Member] | Other Domestic Assets [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 397,850 | $ 264,215 |
Percentage of Total Gross Assets | 4.30% | 3.70% |
Total Gross Assets [Member] | United States [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 7,541,844 | $ 5,677,864 |
Percentage of Total Gross Assets | 80.60% | 79.50% |
Total Gross Assets [Member] | Germany [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,556,392 | $ 1,281,649 |
Percentage of Total Gross Assets | 16.60% | 17.90% |
Total Gross Assets [Member] | United Kingdom, Italy, and Spain [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 203,044 | $ 146,920 |
Percentage of Total Gross Assets | 2.20% | 2.10% |
Total Gross Assets [Member] | Other International Assets [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 54,655 | $ 36,688 |
Percentage of Total Gross Assets | 0.60% | 0.50% |
Total Gross Assets [Member] | International [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,814,091 | $ 1,465,257 |
Percentage of Total Gross Assets | 19.40% | 20.50% |
Real Estate and Lending Activ50
Real Estate and Lending Activities - Concentrations of Credit Risk - Additional Information (Detail) - Pro Forma [Member] - Total Gross Assets [Member] - Customer Concentration Risk [Member] | Sep. 30, 2017Investment |
Business Acquisition [Line Items] | |
Number of investment in property | 0 |
Maximum percentage of entity's gross assets invested on single property | 3.80% |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Debt | $ 4,876,759 | ||
Debt, net | 4,832,264 | $ 2,909,341 | |
Debt issue costs, net | (46,044) | (31,764) | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 445,359 | 290,000 |
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 200,000 | 263,101 | |
6.375% Senior Unsecured Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 350,000 | 350,000 | |
Unamortized premium | 1,549 | 1,814 | |
Debt, net | 351,549 | 351,814 | |
5.750% Senior Unsecured Notes Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 210,340 | |
4.000% Senior Unsecured Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 590,700 | 525,850 |
5.500% Senior Unsecured Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 300,000 | 300,000 | |
6.375% Senior Unsecured Notes due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 500,000 | 500,000 | |
3.325% Senior Unsecured Notes Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 590,700 | |
5.250% Senior Unsecured Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 500,000 | 500,000 | |
5.000% Senior Unsecured Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 1,400,000 | ||
Senior Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt | $ 4,878,308 | $ 2,941,105 | |
[1] | Includes £4 million of GBP-denominated borrowings that reflect the exchange rate at September 30, 2017. | ||
[2] | These notes are Euro-denominated and reflect the exchange rate at September 30, 2017 and December 31, 2016, respectively. |
Debt - Summary of Debt (Parenth
Debt - Summary of Debt (Parenthetical) (Detail) $ in Thousands, £ in Millions | Sep. 30, 2017USD ($) | Sep. 30, 2017GBP (£) | Sep. 07, 2017 | Mar. 24, 2017 | Mar. 04, 2017 | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||||||
Debt | $ 4,876,759 | ||||||
6.375% Senior Unsecured Notes Due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, interest rate | 6.375% | 6.375% | 6.375% | ||||
Debt | $ 350,000 | $ 350,000 | |||||
5.750% Senior Unsecured Notes Due 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, interest rate | 5.75% | 5.75% | 5.75% | 5.75% | |||
Debt | [1] | $ 210,340 | |||||
4.000% Senior Unsecured Notes due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, interest rate | 4.00% | 4.00% | 4.00% | ||||
Debt | [1] | $ 590,700 | $ 525,850 | ||||
5.500% Senior Unsecured Notes Due 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, interest rate | 5.50% | 5.50% | 5.50% | ||||
Debt | $ 300,000 | $ 300,000 | |||||
6.375% Senior Unsecured Notes due 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, interest rate | 6.375% | 6.375% | 6.375% | ||||
Debt | $ 500,000 | $ 500,000 | |||||
3.325% Senior Unsecured Notes Due 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, interest rate | 3.325% | 3.325% | 3.325% | 3.325% | |||
Debt | [1] | $ 590,700 | |||||
5.250% Senior Unsecured Notes Due 2026 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, interest rate | 5.25% | 5.25% | 5.25% | ||||
Debt | $ 500,000 | $ 500,000 | |||||
5.000% Senior Unsecured Notes Due 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, interest rate | 5.00% | 5.00% | 5.00% | 5.00% | |||
Debt | $ 1,400,000 | ||||||
GBP-denominated Borrowings [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt | £ | £ 4 | ||||||
[1] | These notes are Euro-denominated and reflect the exchange rate at September 30, 2017 and December 31, 2016, respectively. |
Debt - Principal Payments Due f
Debt - Principal Payments Due for Debt (Detail) $ in Thousands | Sep. 30, 2017USD ($) | |
Debt Disclosure [Abstract] | ||
2,017 | $ 350,000 | [1] |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 445,359 | |
Thereafter | 4,081,400 | |
Total | $ 4,876,759 | |
[1] | The $350 million 6.375% Senior Unsecured Notes due 2022 were redeemed on October 7, 2017 with proceeds from our $1.4 billion 5.000% Senior Unsecured Notes due 2027. |
Debt - Principal Payments Due54
Debt - Principal Payments Due for Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Oct. 07, 2017 | Sep. 07, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||
Payments of term debt | $ 688,221 | $ 515,221 | |||
Proceeds from term debt | $ 2,355,280 | $ 1,000,000 | |||
6.375% Senior Unsecured Notes Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, interest rate | 6.375% | 6.375% | |||
6.375% Senior Unsecured Notes Due 2022 [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Payments of term debt | $ 350,000 | ||||
Senior unsecured notes, interest rate | 6.375% | ||||
5.000% Senior Unsecured Notes Due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, interest rate | 5.00% | 5.00% | 5.00% | ||
Proceeds from term debt | $ 1,400,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions | Oct. 07, 2017USD ($) | Sep. 29, 2017USD ($) | Sep. 07, 2017USD ($) | Mar. 30, 2017EUR (€) | Mar. 24, 2017EUR (€) | Mar. 04, 2017USD ($) | Mar. 04, 2017EUR (€) | Feb. 01, 2017USD ($) | Jul. 22, 2016USD ($) | Feb. 22, 2016USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Feb. 01, 2017EUR (€) | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||||||||||||||
Total Facility amount at a rate | 0.25% | |||||||||||||||
Aggregate committed amount of credit facility | $ 500,000,000 | |||||||||||||||
Payments of term debt | $ 688,221,000 | $ 515,221,000 | ||||||||||||||
Debt refinancing charge | $ 18,800,000 | |||||||||||||||
Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Commitment fee | 0.125% | |||||||||||||||
Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Commitment fee | 0.30% | |||||||||||||||
Unsecured Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount of senior unsecured debt | $ 1,300,000,000 | |||||||||||||||
Debt instrument, maturity date | Feb. 28, 2021 | |||||||||||||||
Term Loans [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount of senior unsecured debt | $ 200,000,000 | € 200 | ||||||||||||||
Debt instrument, maturity date | Feb. 1, 2022 | |||||||||||||||
Interest rate at end of period | 2.74% | |||||||||||||||
Prepaid and extinguished of outstanding term loans | $ 12,900,000 | € 200 | ||||||||||||||
Term Loans [Member] | Euro [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, maturity date | Jan. 31, 2020 | |||||||||||||||
Term Loans [Member] | J P Morgan Chase Bank [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate committed amount of credit facility | $ 1,000,000,000 | |||||||||||||||
Cancellation fees | $ 5,200,000 | |||||||||||||||
Alternate Base Rate [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable margin | 0.00% | |||||||||||||||
Applicable margin for revolving loans | 0.00% | |||||||||||||||
Alternate Base Rate [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable margin | 0.95% | |||||||||||||||
Applicable margin for revolving loans | 0.65% | |||||||||||||||
Revolver [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate at end of period | 2.48% | |||||||||||||||
Eurodollar Loans [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable margin | 0.90% | |||||||||||||||
Applicable margin for revolving loans | 0.875% | |||||||||||||||
Eurodollar Loans [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable margin | 1.95% | |||||||||||||||
Applicable margin for revolving loans | 1.65% | |||||||||||||||
5.750% Senior Unsecured Notes Due 2020 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount of senior unsecured debt redeemed | € | € 200 | |||||||||||||||
Senior unsecured notes, interest rate | 5.75% | 5.75% | 5.75% | 5.75% | ||||||||||||
Senior notes, redemption date | Mar. 4, 2017 | Mar. 4, 2017 | ||||||||||||||
Senior unsecured notes, redemption description | We redeemed the €200 million aggregate principal amount of our 5.750% Senior Unsecured Notes due 2020 and incurred a redemption premium of approximately $9 million. We funded this redemption, including the premium and accrued interest, with the proceeds of the new euro term loan together with cash on hand. | |||||||||||||||
Redemption premium | $ 9,000,000 | |||||||||||||||
3.325% Senior Unsecured Notes Due 2025 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, maturity date | Mar. 24, 2025 | |||||||||||||||
Senior unsecured notes, interest rate | 3.325% | 3.325% | 3.325% | |||||||||||||
Senior unsecured notes, redemption description | Notes are redeemed prior to 90 days before maturity, the redemption price will be equal to 100% of their principal amount, plus a make-whole premium, plus accrued and unpaid interest up to, but excluding, the applicable redemption date. Within the period beginning on or after 90 days before maturity, the notes may be redeemed, in whole or in part, at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the applicable redemption date. The 3.325% Senior Unsecured Notes due 2025 are fully and unconditionally guaranteed on a senior unsecured basis by us. In the event of a change of control, each holder of the notes may require us to repurchase some or all of our notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest up to, but excluding, the date of the purchase. | |||||||||||||||
Senior unsecured notes face amount | € | € 500 | |||||||||||||||
Senior notes frequency of periodic payment | Interest on the notes is payable annually on March 24 of each year. | |||||||||||||||
Senior unsecured notes, redemption period | 90 days | |||||||||||||||
Senior notes, repurchased price percentage on principal amount plus accrued and unpaid interest | 101.00% | |||||||||||||||
3.325% Senior Unsecured Notes Due 2025 [Member] | Redeemed Prior to 90 Days [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior unsecured notes, redemption percentage on principal amount | 100.00% | |||||||||||||||
3.325% Senior Unsecured Notes Due 2025 [Member] | Redeemed Beginning on or After 90 Days [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior unsecured notes, redemption percentage on principal amount | 100.00% | |||||||||||||||
6.375% Senior Unsecured Notes due 2024 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior unsecured notes, interest rate | 6.375% | 6.375% | ||||||||||||||
6.375% Senior Unsecured Notes due 2024 [Member] | Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, maturity date | Mar. 1, 2024 | |||||||||||||||
Senior unsecured notes, interest rate | 6.375% | |||||||||||||||
Senior unsecured notes, redemption description | We may redeem up to 35% of the notes at a redemption price equal to 106.375% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, using proceeds from one or more equity offerings. In the event of a change in control, each holder of the notes may require us to repurchase some or all of the notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest to the date of purchase. | |||||||||||||||
Senior unsecured notes face amount | $ 500,000,000 | |||||||||||||||
Senior notes frequency of periodic payment | Interest on the notes is paid in cash at a rate of 6.375% per year. | |||||||||||||||
Senior notes, repurchased price percentage on principal amount plus accrued and unpaid interest | 101.00% | |||||||||||||||
Debt instrument, redemption price percentage | 106.375% | |||||||||||||||
Senior notes, earliest redemption date | Mar. 1, 2019 | |||||||||||||||
6.375% Senior Unsecured Notes due 2024 [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior unsecured notes, redemption percentage on principal amount | 35.00% | |||||||||||||||
5.000% Senior Unsecured Notes Due 2027 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, maturity date | Oct. 15, 2027 | |||||||||||||||
Senior unsecured notes, interest rate | 5.00% | 5.00% | 5.00% | |||||||||||||
Senior unsecured notes, redemption description | We may redeem up to 40% of the notes at a redemption price equal to 105% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, using proceeds from one or more equity offerings. In the event of a change in control, each holder of the notes may require us to repurchase some or all of the notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest to the date of purchase. | |||||||||||||||
Senior unsecured notes face amount | $ 1,400,000,000 | |||||||||||||||
Senior notes frequency of periodic payment | Interest on the notes is payable annually on April 15 and October 15 of each year, commencing on April 15, 2018. | |||||||||||||||
Senior notes, repurchased price percentage on principal amount plus accrued and unpaid interest | 101.00% | |||||||||||||||
Debt instrument, redemption price percentage | 105.00% | |||||||||||||||
Senior notes, earliest redemption date | Oct. 15, 2022 | |||||||||||||||
Senior unsecured notes, commencing date of payment | Apr. 15, 2018 | |||||||||||||||
5.000% Senior Unsecured Notes Due 2027 [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior unsecured notes, redemption percentage on principal amount | 40.00% | |||||||||||||||
6.375% Senior Unsecured Notes Due 2022 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior unsecured notes, interest rate | 6.375% | 6.375% | ||||||||||||||
6.375% Senior Unsecured Notes Due 2022 [Member] | Scenario, Forecast [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption premium | $ 11,200,000 | |||||||||||||||
Debt refinancing charge | $ 14,000,000 | |||||||||||||||
6.375% Senior Unsecured Notes Due 2022 [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior unsecured notes, interest rate | 6.375% | |||||||||||||||
Payments of term debt | $ 350,000,000 | |||||||||||||||
6.875% Senior Unsecured Notes Due 2021 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption premium | $ 15,500,000 | |||||||||||||||
Debt refinancing charge | $ 22,500,000 | |||||||||||||||
Note redeemed | $ 450,000,000 | |||||||||||||||
5.250% Senior Unsecured Notes Due 2026 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior unsecured notes, interest rate | 5.25% | 5.25% | ||||||||||||||
5.250% Senior Unsecured Notes Due 2026 [Member] | Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, maturity date | Aug. 1, 2026 | |||||||||||||||
Senior unsecured notes, interest rate | 5.25% | |||||||||||||||
Senior unsecured notes, redemption description | We may redeem up to 35% of the notes at a redemption price equal to 105.25% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, using proceeds from one or more equity offerings. In the event of a change in control, each holder of the notes may require us to repurchase some or all of the notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest to the date of purchase. | |||||||||||||||
Senior unsecured notes face amount | $ 500,000,000 | |||||||||||||||
Senior notes frequency of periodic payment | Interest on the notes is to be paid in cash at a rate of 5.25% per year. | |||||||||||||||
Senior notes, repurchased price percentage on principal amount plus accrued and unpaid interest | 101.00% | |||||||||||||||
Debt instrument, redemption price percentage | 105.25% | |||||||||||||||
Senior notes, earliest redemption date | Aug. 1, 2021 | |||||||||||||||
5.250% Senior Unsecured Notes Due 2026 [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior unsecured notes, redemption percentage on principal amount | 35.00% |
Debt - Covenants - Additional I
Debt - Covenants - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Percentage of dividends which could be paid from adjusted operating funds | 95.00% |
Percentage of dividends which could be paid from operation funds | 95.00% |
Maximum percentage of total unencumbered assets | 150.00% |
Common Stock_Partners' Capital
Common Stock/Partners' Capital - Additional Information (Detail) shares in Thousands, $ in Thousands | May 01, 2017USD ($)shares | Sep. 30, 2016USD ($)shares | Sep. 30, 2017USD ($)PartnerEmployeeDirectorshares | Sep. 30, 2016USD ($)shares | Dec. 31, 2016shares |
Class of Stock [Line Items] | |||||
Common stock, shares issued | shares | 364,084 | 320,514 | |||
Proceeds from sale of common shares / units, net of offering costs | $ | $ 548,055 | $ 1,024,088 | |||
Public Offering [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock, shares issued | shares | 43,100 | 57,500 | 57,500 | ||
Additional shares purchased by underwriters | shares | 5,600 | 7,500 | |||
Proceeds from sale of common shares / units, net of offering costs | $ | $ 548,000 | $ 799,500 | |||
MPT Operating Partnership, L.P. [Member] | |||||
Class of Stock [Line Items] | |||||
Proceeds from sale of common shares / units, net of offering costs | $ | $ 548,055 | $ 1,024,088 | |||
Number of units sold | shares | 43,100 | 72,500 | |||
MPT Operating Partnership, L.P. [Member] | |||||
Class of Stock [Line Items] | |||||
Ownership interest in equity | 99.89% | ||||
Number of other partners | Partner | 3 | ||||
Employee [Member] | |||||
Class of Stock [Line Items] | |||||
Number of partners shared remaining ownership percentage | Employee | 2 | ||||
Former Director [Member] | |||||
Class of Stock [Line Items] | |||||
Number of partners shared remaining ownership percentage | Director | 1 | ||||
Market Equity Offering Program [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock, shares issued | shares | 15,000 | 15,000 | |||
Proceeds from sale of common shares / units, net of offering costs | $ | $ 224,000 | ||||
Sales commissions, amount | $ | $ 2,800 |
Stock Awards - Additional Infor
Stock Awards - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)board_membershares | Sep. 30, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share / (Unit)-based compensation expense | $ | $ 7,148 | $ 5,832 |
Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reserved shares of common stock for awards under the Equity Incentive Plan | shares | 8,196,770 | |
Common stock remaining for future stock awards transferred to the equity incentive plan | shares | 3,300,000 | |
Time Based Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation acceleration of vestings | $ | $ 400 | |
Number of former board member | board_member | 3 |
Fair Value of Financial Instr59
Fair Value of Financial Instruments - Summary of Fair Value Information of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Interest and rent receivables, Book value | $ 105,817 | $ 57,698 |
Loans, Book value | 1,698,866 | 986,987 |
Debt, net Book value | (4,832,264) | (2,909,341) |
Interest and rent receivables, Fair value | 105,803 | 57,707 |
Loans, Fair value | 1,722,912 | 1,017,428 |
Debt, net Fair value | $ (5,032,821) | $ (2,966,759) |
Fair Value of Financial Instr60
Fair Value of Financial Instruments - Equity Interest in Related Party and Related Loans Measured at Fair Value on Recurring Basis (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | $ 233,698 |
Cost | 233,698 |
Fair Value Measurements, Recurring [Member] | Equity investments [Member] | Other Assets [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 3,300 |
Cost | 3,300 |
Fair Value Measurements, Recurring [Member] | Acquisition and Other Loans [Member] | Other Loans [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 115,398 |
Cost | 115,398 |
Fair Value Measurements, Recurring [Member] | Mortgage Loans [Member] | Mortgage Loans [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 115,000 |
Cost | $ 115,000 |
Fair Value of Financial Instr61
Fair Value of Financial Instruments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Adjustment for DLOM on our equity investment | 40.00% |
Fair Value of Financial Instr62
Fair Value of Financial Instruments - Summary Showing Sensitivity Analysis by Using Basis Point Variations (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Fair Value Disclosures [Abstract] | |
Estimated Increase (Decrease) In Fair Value of Financial Instruments plus 100 basis points | $ (51) |
Estimated Increase (Decrease) In Fair Value of Financial Instruments minus 100 basis points | $ 51 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Income from continuing operations | $ 76,881 | $ 70,543 | $ 218,862 | $ 182,693 |
Non-controlling interests' share in net income | (417) | (185) | (1,013) | (683) |
Participating securities' share in earnings | (82) | (154) | (307) | (430) |
Income from continuing operations, less participating securities' share in earnings | 217,542 | 181,580 | ||
Loss from discontinued operations attributable to MPT common stockholders | (1) | |||
Net income, less participating securities' share in earnings | $ 76,382 | $ 70,204 | $ 217,542 | $ 181,579 |
Basic weighted-average common shares | 364,315 | 246,230 | 345,076 | 240,607 |
Dilutive potential common shares | 731 | 1,238 | 520 | 825 |
Dilutive weighted-average common shares | 365,046 | 247,468 | 345,596 | 241,432 |
MPT Operating Partnership, L.P. [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Income from continuing operations | $ 76,881 | $ 70,543 | $ 218,862 | $ 182,693 |
Non-controlling interests' share in net income | (417) | (185) | (1,013) | (683) |
Participating securities' share in earnings | (82) | (154) | (307) | (430) |
Income from continuing operations, less participating securities' share in earnings | 217,542 | 181,580 | ||
Loss from discontinued operations attributable to MPT common stockholders | (1) | |||
Net income, less participating securities' share in earnings | $ 76,382 | $ 70,204 | $ 217,542 | $ 181,579 |
Basic weighted-average common shares | 364,315 | 246,230 | 345,076 | 240,607 |
Dilutive potential common shares | 731 | 1,238 | 520 | 825 |
Dilutive weighted-average common shares | 365,046 | 247,468 | 345,596 | 241,432 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Washington and Idaho [Member] - Acute Care Hospital [Member] $ in Millions | Sep. 28, 2016USD ($)Hospital |
Commitment And Contingencies [Line Items] | |
Number of facilities acquired | Hospital | 1 |
Purchase price of acquisition | $ | $ 17.5 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Rehabilitation Hospital with Covenant Health System [Member] - Germany [Member] € in Millions | Oct. 05, 2017EUR (€)Hospital |
Subsequent Event [Line Items] | |
Number of facilities acquired | Hospital | 3 |
Purchase price of acquisition | € | € 80 |
Term of lease | 27 years |
Lease rent increase percentage | 1.00% |
Lease rate | 70.00% |