Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 24, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35568 | ||
Entity Registrant Name | HEALTHCARE REALTY TRUST INCORPORATED | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 20-4738467 | ||
Entity Address, Address Line One | 3310 West End Avenue | ||
Entity Address, Address Line Two | Suite 700 | ||
Entity Address, City or Town | Nashville | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37203 | ||
City Area Code | 615 | ||
Local Phone Number | 269-8175 | ||
Title of 12(b) Security | Class A Common Stock, $0.01 par value per share | ||
Trading Symbol | HR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,374,706,546 | ||
Entity Common Stock, Shares Outstanding | 380,779,861 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive Proxy Statement relating to the Annual Meeting of Stockholders to be held on June 5, 2023 are incorporated by reference into Part III of this Report . | ||
Entity Central Index Key | 0001360604 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | BDO USA, LLP |
Auditor Location | Nashville, TN |
Auditor Firm ID | 243 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Real estate properties | ||
Land | $ 1,439,798 | $ 387,918 |
Buildings and improvements | 11,332,037 | 4,337,641 |
Lease intangibles | 959,998 | 120,478 |
Personal property | 11,907 | 11,761 |
Investment in financing receivables, net | 120,236 | 186,745 |
Financing lease right-of-use assets | 83,824 | 31,576 |
Construction in progress | 35,560 | 3,974 |
Land held for development | 74,265 | 24,849 |
Total real estate investments | 14,057,625 | 5,104,942 |
Less accumulated depreciation | (1,645,271) | (1,338,743) |
Total real estate investments, net | 12,412,354 | 3,766,199 |
Cash and cash equivalents | 60,961 | 13,175 |
Assets held for sale, net | 18,893 | 57 |
Operating lease right-of-use assets | 336,983 | 128,386 |
Investments in unconsolidated joint ventures | 327,248 | 161,942 |
Goodwill | 223,202 | 3,487 |
Other assets, net | 469,990 | 185,673 |
Total assets | 13,849,631 | 4,258,919 |
Liabilities | ||
Notes and bonds payable | 5,351,827 | 1,801,325 |
Accounts payable and accrued liabilities | 244,033 | 86,108 |
Liabilities of properties held for sale | 437 | 294 |
Operating lease liabilities | 279,895 | 96,138 |
Financing lease liabilities | 72,939 | 22,551 |
Other liabilities | 218,668 | 67,387 |
Total liabilities | 6,167,799 | 2,073,803 |
Commitments and contingencies (See Footnote 15) | ||
Redeemable non-controlling interests | 2,014 | 0 |
Stockholders' equity | ||
Preferred stock, $0.01 par value; 200,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 1,000,000 shares authorized; 380,590 and 150,457 shares issued and outstanding at December 31, 2022 and 2021, respectively. | 3,806 | 1,505 |
Additional paid-in capital | 9,587,637 | 3,972,917 |
Accumulated other comprehensive income (loss) | 2,140 | (9,981) |
Cumulative net income attributable to common stockholders | 1,307,055 | 1,266,158 |
Cumulative dividends | (3,329,562) | (3,045,483) |
Total stockholders’ equity | 7,571,076 | 2,185,116 |
Non-controlling interest | 108,742 | 0 |
Total equity | 7,679,818 | 2,185,116 |
Total liabilities, redeemable non-controlling interests, and stockholders' equity | $ 13,849,631 | $ 4,258,919 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued (in shares) | 380,590,000 | 150,457,000 |
Common stock, outstanding (in shares) | 380,590,000 | 150,457,000 |
Lease intangibles | $ 959,998 | $ 120,478 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Rental income | $ 907,451 | $ 520,334 | $ 492,262 |
Interest income | 11,480 | 4,192 | 0 |
Other operating | 13,706 | 10,291 | 7,367 |
Total Revenue | 932,637 | 534,817 | 499,629 |
Expenses | |||
Property operating | 344,038 | 212,273 | 196,514 |
General and administrative | 52,734 | 34,152 | 30,704 |
Acquisition and pursuit costs | 3,229 | 3,930 | 2,561 |
Merger-related costs | 103,380 | 0 | 0 |
Depreciation and amortization | 453,082 | 202,714 | 190,435 |
Total expenses | 956,463 | 453,069 | 420,214 |
Other income (expense) | |||
Gain on sales of real estate properties | 270,271 | 55,940 | 70,361 |
Interest expense | (146,691) | (53,124) | (56,174) |
Loss on extinguishment of debt | (2,401) | 0 | (21,503) |
Impairment of real estate properties | (54,427) | (17,101) | 0 |
Equity loss recognized during the period | (687) | (795) | (463) |
Interest and other (expense) income, net | (1,546) | (9) | 559 |
Total other income (expense) | 64,519 | (15,089) | (7,220) |
Net income | 40,693 | 66,659 | 72,195 |
Net loss attributable to non-controlling interests | 204 | 0 | 0 |
Net income attributable to common stockholders | $ 40,897 | $ 66,659 | $ 72,195 |
Basic and diluted earnings per share: | |||
Basic earnings per common share (in dollars per share) | $ 0.15 | $ 0.45 | $ 0.52 |
Diluted earnings per common share (in dollars per share) | $ 0.15 | $ 0.45 | $ 0.52 |
Weighted average number of shares outstanding, basic and diluted: | |||
Weighted average common shares outstanding - basic (in shares) | 252,356,203 | 142,637,166 | 133,930,145 |
Weighted average common shares outstanding - diluted (in shares) | 253,873,321 | 142,710,228 | 134,006,940 |
Revenue, Product and Service [Extensible List] | Service [Member] | Service [Member] |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 40,693 | $ 66,659 | $ 72,195 |
Interest rate swaps | |||
Reclassification adjustment for losses included in net income (interest expense) | 1,527 | 4,472 | 3,472 |
Gains (losses) arising during the period on interest rate swaps and treasury rate locks | 10,630 | ||
Net current-period other comprehensive income | 12,157 | 7,851 | (11,657) |
Comprehensive income | 52,850 | 74,510 | 60,538 |
Less: Comprehensive loss attributable to non-controlling interests | 168 | ||
Comprehensive income attributable to common stockholders | 53,018 | 74,510 | 60,538 |
Interest Rate Swaps | |||
Interest rate swaps | |||
Gains (losses) arising during the period on interest rate swaps and treasury rate locks | 10,630 | 3,379 | (10,862) |
Treasury Rate Locks | |||
Interest rate swaps | |||
Gains (losses) arising during the period on interest rate swaps and treasury rate locks | $ 0 | $ 0 | $ (4,267) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | Non- controlling Interests |
Beginning Balance at Dec. 31, 2019 | $ 1,900,009 | $ 0 | $ 1,347 | $ 3,485,003 | $ (6,175) | $ 1,127,304 | $ (2,707,470) | $ 1,900,009 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of stock, net of costs | 142,170 | 47 | 142,123 | 142,170 | |||||
Common stock redemption | (1,706) | (1) | (1,705) | (1,706) | |||||
Share-based compensation | 9,922 | 2 | 9,920 | 9,922 | |||||
Net income | 72,195 | 72,195 | 72,195 | ||||||
Reclassification adjustments for losses included in net income (interest expense) | 3,472 | ||||||||
Gains (Losses) arising during the period on interest rate swaps and treasury locks | (11,657) | (11,657) | (11,657) | ||||||
Dividends to common stockholders ($1.24 per share) | (162,557) | (162,557) | (162,557) | ||||||
Ending Balance at Dec. 31, 2020 | 1,948,376 | 0 | 1,395 | 3,635,341 | (17,832) | 1,199,499 | (2,870,027) | 1,948,376 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of stock, net of costs | 331,042 | 109 | 330,933 | 331,042 | |||||
Common stock redemption | (4,085) | (1) | (4,084) | (4,085) | |||||
Share-based compensation | 10,729 | 2 | 10,727 | 10,729 | |||||
Net income | 66,659 | 66,659 | 66,659 | ||||||
Reclassification adjustments for losses included in net income (interest expense) | 4,472 | ||||||||
Gains (Losses) arising during the period on interest rate swaps and treasury locks | 7,851 | 7,851 | 7,851 | ||||||
Dividends to common stockholders ($1.24 per share) | (175,456) | (175,456) | (175,456) | ||||||
Ending Balance at Dec. 31, 2021 | 2,185,116 | 0 | 1,505 | 3,972,917 | (9,981) | 1,266,158 | (3,045,483) | 2,185,116 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of stock, net of costs | 22,907 | 6 | 22,901 | 22,907 | |||||
Merger consideration transferred | 5,687,165 | 2,289 | 5,574,174 | 5,576,463 | 110,702 | ||||
Common stock redemption | (2,792) | (1) | (2,791) | (2,792) | |||||
Share-based compensation | 20,346 | 7 | 20,339 | 20,346 | |||||
Redemption of non-controlling interest | 0 | 97 | 97 | (97) | |||||
Net income | 40,693 | 40,897 | 40,897 | (204) | |||||
Reclassification adjustments for losses included in net income (interest expense) | 1,527 | 1,531 | 1,531 | (4) | |||||
Gains (Losses) arising during the period on interest rate swaps and treasury locks | 10,630 | 10,590 | 10,590 | 40 | |||||
Dividends to common stockholders ($1.24 per share) | (285,774) | (284,079) | (284,079) | (1,695) | |||||
Ending Balance at Dec. 31, 2022 | $ 7,679,818 | $ 0 | $ 3,806 | $ 9,587,637 | $ 2,140 | $ 1,307,055 | $ (3,329,562) | $ 7,571,076 | $ 108,742 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend per share to common stockholders (in dollars per share) | $ 1.24 | $ 1.21 | $ 1.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | |||
Net income | $ 40,693 | $ 66,659 | $ 72,195 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 453,082 | 202,714 | 190,435 |
Other amortization | 24,695 | 3,793 | 4,381 |
Share-based compensation | 20,346 | 10,729 | 9,922 |
Amortization of straight-line rent receivable (lessor) | (23,498) | (5,801) | (3,735) |
Amortization of straight-line rent on operating leases (lessee) | 3,374 | 1,498 | 1,490 |
Gain on sales of real estate properties | (270,271) | (55,940) | (70,361) |
Loss on extinguishment of debt | 2,401 | 0 | 21,503 |
Impairment of real estate properties | 54,427 | 17,101 | 0 |
Equity loss from unconsolidated joint ventures | 687 | 795 | 463 |
Distributions from unconsolidated joint ventures | 1,881 | 0 | 193 |
Proceeds from disposition of sales-type lease properties | 0 | 0 | 244,454 |
Non-cash interest from financing and real estate notes receivable | (2,257) | (391) | 0 |
Changes in operating assets and liabilities: | |||
Other assets, including right-of-use-assets | (26,098) | (11,436) | (727) |
Accounts payable and accrued liabilities | 24,191 | (839) | 4,555 |
Other liabilities | (30,906) | 3,747 | (4,679) |
Net cash provided by operating activities | 272,747 | 232,629 | 470,089 |
INVESTING ACTIVITIES | |||
Acquisitions of real estate | (402,529) | (365,943) | (397,349) |
Development of real estate | (37,862) | (4,029) | (3,089) |
Additional long-lived assets | (163,544) | (100,689) | (93,963) |
Funding of mortgages and notes receivable | (23,325) | 0 | 0 |
Investments in unconsolidated joint ventures | (99,967) | (89,600) | (65,663) |
Investment in financing receivable | (1,002) | (186,433) | 0 |
Proceeds from sales of real estate properties and additional long-lived assets | 1,201,068 | 184,221 | 4,898 |
Proceeds from notes receivable repayments | 1,688 | 0 | 0 |
Cash assumed in Merger, including restricted cash for special dividend payment | 1,159,837 | 0 | |
Net cash provided by (used in) investing activities | 1,634,364 | (562,473) | (555,166) |
FINANCING ACTIVITIES | |||
Net borrowings/(repayments) on unsecured credit facility | 40,000 | 210,000 | (293,000) |
Borrowings on term loans | 666,500 | 0 | 150,000 |
Repayment on term loan | (1,141,500) | 0 | 0 |
Borrowings of notes and bonds payable | 0 | 0 | 596,562 |
Repayments of notes and bonds payable | (20,042) | (24,557) | (47,845) |
Redemption of notes and bonds payable | (2,184) | 0 | (270,386) |
Dividends paid | (283,713) | (175,456) | (162,557) |
Special dividend paid in relation to the Merger | (1,123,648) | 0 | 0 |
Net proceeds from issuance of common stock | 22,902 | 331,119 | 142,000 |
Common stock redemptions | (3,192) | (3,803) | (1,436) |
Distributions to non-controlling interest of limited partners | (1,695) | 0 | 0 |
Settlement of treasury rate locks | 0 | 0 | (4,267) |
Debt issuance and assumption costs | (12,753) | (405) | (5,931) |
Payments made on finance leases | 0 | (9,182) | (3,417) |
Net cash (used in) provided by financing activities | (1,859,325) | 327,716 | 99,723 |
Increase (decrease) in cash and cash equivalents | 47,786 | (2,128) | 14,646 |
Cash and cash equivalents cash at beginning of period | 13,175 | 15,303 | 657 |
Cash and cash equivalents at end of period | 60,961 | 13,175 | 15,303 |
Supplemental Cash Flow Information | |||
Interest paid | 112,692 | 49,443 | 52,787 |
Mortgage notes payable assumed upon acquisition (adjusted to fair value) | 0 | 11,790 | 36,536 |
Invoices accrued for construction, tenant improvements and other capitalized costs | 48,292 | 17,655 | 14,935 |
Capitalized interest | 1,410 | 221 | 1,142 |
Real estate notes receivable assumed in Merger (adjusted to fair value) | 74,819 | 0 | 0 |
Unsecured credit facility and term loans assumed in Merger (adjusted to fair value) | 1,758,650 | 0 | 0 |
Senior notes assumed in Merger (adjusted to fair value) | 2,232,650 | 0 | 0 |
Consideration transferred in relation to the Merger | $ 5,576,463 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business Overview Healthcare Realty Trust Incorporated (the “Company”) is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. See Note 2 below for a discussion of the Merger between Legacy HR and Legacy HTA. The Company had gross investments of approximately $14.1 billion in 688 real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development, and corporate property as of December 31, 2022. The Company’s 688 real estate properties are located in 35 states and total approximately 40.3 million square feet. In addition, the Company had a weighted average ownership interest of approximately 48% in 33 real estate properties held in joint ventures. See Note 5 below for more details regarding the Company's joint ventures. Square footage and property count disclosures in these Notes to the Company's Consolidated Financial Statements are unaudited. Principles of Consolidation The Company’s Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and joint ventures and partnerships where the Company controls the operating activities. GAAP requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). Accounting Standards Codification Topic 810 broadly defines a VIE as an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary, with any minority interests reflected as non-controlling interests or redeemable non-controlling interests in the accompanying Consolidated Financial Statements. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk, the disposition of all or a portion of an interest held by the primary beneficiary, or changes in facts and circumstances that impact the power to direct activities of the VIE that most significantly impacts economic performance. The Company performs this analysis on an ongoing basis. For property holding entities not determined to be VIEs, the Company consolidates such entities in which it owns 100% of the equity or has a controlling financial interest evidenced by ownership of a majority voting interest. All intercompany balances and transactions are eliminated in consolidation. For entities in which the Company owns less than 100% of the equity interest, the Company consolidates the entity if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements. Healthcare Realty Holdings, L.P. (formally known as Healthcare Trust of America Holdings, LP) (the "OP") is 98.9% owned by the Company. Holders of operating partnership units (“OP Units”) are considered to be non-controlling interest holders in the OP and their ownership interests are reflected as equity on the accompanying Consolidated Balance Sheets. Further, a portion of the earnings and losses of the OP are allocated to non-controlling interest holders based on their respective ownership percentages. Upon conversion of OP Units to common stock, any difference between the fair value of the common stock issued and the carrying value of the OP Units converted to common stock is recorded as a component of equity. As of December 31, 2022 there were approximately 4.0 million, or 1.1%, of OP Units issued and outstanding held by non-controlling interest holders. Additionally, the Company is the primary beneficiary of this VIE. Accordingly, the Company consolidates the interests in the OP. As of December 31, 2022, the Company had three consolidated VIEs in addition to the OP where it is the primary beneficiary of the VIE based on the combination of operational control and the rights to receive residual returns or the obligation to absorb losses arising from the joint ventures. Accordingly, such joint ventures have been consolidated, and the table below summarizes the balance sheets of consolidated VIEs, excluding the OP, in the aggregate: (dollars in thousands) DECEMBER 31, 2022 Assets: Net real estate investments $ 46,322 Cash and cash equivalents 3,645 Receivables and other assets 2,385 Total assets $ 52,352 Liabilities: Accrued expenses and other liabilities $ 12,214 Total equity 40,138 Total liabilities and equity $ 52,352 As of December 31, 2022, the Company had three unconsolidated VIEs consisting of two notes receivables and one joint venture. The Company does not have the power or economics to direct the activities of the VIEs on a stand-alone basis, therefore it was determined that the Company was not the primary beneficiary. Therefore, the Company accounts for the two notes receivables as amortized cost and a joint venture arrangement under the equity method. See below for additional information regarding the Company's unconsolidated VIEs: ORIGINATION DATE LOCATION SOURCE CARRYING AMOUNT MAXIMUM EXPOSURE TO LOSS 2021 Houston, TX 1 Note receivable $ 29,753 $ 31,150 2021 Charlotte, NC 1 Note receivable 5,984 6,000 2022 Texas 2 Equity method 23,219 23,219 1 Assumed mortgage note receivable in connection with the Merger. 2 Includes investments in six properties. As of December 31, 2022, the Company's unconsolidated joint venture arrangements were accounted for using the equity method of accounting as the Company exercised significant influence over but did not control these entities. See Note 5 for more details regarding the Company's unconsolidated joint ventures. Use of Estimates in the Consolidated Financial Statements Preparation of the Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates and assumptions. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, impairments, collectability of tenant receivables, and fair value measurements, as applicable. Reclassifications Certain reclassifications have been made on the Company's prior year Consolidated Balance Sheet to conform to current year presentation. Previously, the Company's Lease intangibles were included in Building, improvements and lease intangibles and Goodwill was included with Other assets, net. These amounts are now classified as separate line items on the Company's Consolidated Balance Sheets. Segment Reporting The Company owns, leases, acquires, manages, finances, develops and redevelops outpatient and other healthcare-related properties. The Company is managed as one reporting unit, rather than multiple reporting units, for internal reporting purposes and for internal decision-making. Therefore, the Company discloses its operating results in a single reportable segment. Real Estate Properties Real estate properties are recorded at cost or at fair value if acquired in a transaction that is a business combination under Accounting Standards Codification Topic 805, Business Combinations . Cost or fair value at the time of acquisition is allocated among land, buildings, tenant improvements, lease and other intangibles, and personal property as applicable. During 2022 and 2021, the Company eliminated against accumulated depreciation approximately $19.6 million and $16.3 million, respectively, of fully amortized real estate intangibles that were initially recorded as a component of certain real estate acquisitions. Also during 2022 and 2021, approximately $4.1 million and $9.9 million, respectively, of fully depreciated tenant and capital improvements that were no longer in service were eliminated against accumulated depreciation. In addition, during 2021, the Company eliminated against accumulated depreciation approximately $7.1 million of a fully depreciated building that is being demolished and redeveloped. Depreciation expense of real estate properties for the three years ended December 31, 2022, 2021 and 2020 was $320.8 million, $170.0 million and $162.4 million, respectively. Depreciation and amortization of real estate assets in place as of December 31, 2022, is provided for on a straight-line basis over the asset’s estimated useful life: Land improvements 2.0 to 39.0 years Buildings and improvements 3.0 to 49.0 years Lease intangibles (including ground lease intangibles) 1.2 to 99.0 years Personal property 3.0 to 20.0 years The Company capitalizes direct costs, including costs such as construction costs and professional services, and indirect costs, including capitalized interest and overhead costs, associated with the development and construction of real estate assets while substantive activities are ongoing to prepare the assets for their intended use. Capitalized interest cost is calculated using the weighted average interest rate of the Company's unsecured debt or the interest rate on project specific debt, if applicable. The Company continues to capitalize interest on the unoccupied portion of the properties in stabilization for up to one year after the buildings have been placed into service, at which time the capitalization of interest must cease. Land Held for Development Land held for development includes parcels of land owned by the Company, upon which the Company intends to develop and own outpatient healthcare facilities. The Company's land held for development included twenty parcels as of December 31, 2022 and seven parcels as of December 31, 2021. The Company’s investments in land held for development totaled approximately $74.3 million as of December 31, 2022 and $24.8 million as of December 31, 2021. The current land that is held for development is located adjacent to certain of the Company's existing medical office buildings in California, Colorado, Connecticut, Florida, Georgia, Massachusetts, New York, North Carolina, Tennessee, Texas and Washington. Asset Impairment The Company assesses the potential for impairment of identifiable, definite-lived, intangible assets and long-lived assets, including real estate properties, whenever events occur or a change in circumstances indicates that the carrying value might not be fully recoverable. Indicators of impairment may include significant underperformance of an asset relative to historical or expected operating results; significant changes in the Company’s use of assets or the strategy for its overall business; plans to sell an asset before its depreciable life has ended; the expiration of a significant portion of leases in a property; or significant negative economic trends or negative industry trends for the Company or its tenants. In addition, the Company reviews for possible impairment, those assets subject to purchase options and those impacted by casualty losses, such as tornadoes and hurricanes. A property value is considered impaired only if management's estimate of current and projected (undiscounted and unleveraged) operating cash flows of the property is less than the net carrying value of the property. These estimates of future cash flows include only those that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the property based on its estimated remaining useful life. These estimates, including the useful life determination which can be affected by any potential sale of the property, are based on management's assumptions about its use of the property. Therefore, significant judgment is involved in estimating the current and projected cash flows. If management determines that the carrying value of the Company’s assets may not be fully recoverable based on the existence of any of the factors above, or others, management would measure and record an impairment charge based on the estimated fair value of the property or the estimated fair value less costs to sell the property. Acquisitions of Real Estate Properties with In-Place Leases The Company's acquisitions of real estate properties typically do not meet the definition of a business and are accounted for as asset acquisitions. Acquisitions of real estate properties with in-place leases are accounted for at relative fair value. When a building with in-place leases is acquired, the cost of the acquisition must be allocated between the tangible real estate assets "as-if-vacant" and the intangible real estate assets related to in-place leases based on their estimated fair values. Land fair value is estimated by using an assessment of comparable transactions and other relevant data. The Company considers whether any of the in-place lease rental rates are above- or below-market. An asset (if the actual rental rate is above-market) or a liability (if the actual rental rate is below-market) is calculated and recorded in an amount equal to the present value of the future cash flows that represent the difference between the actual lease rate and the estimated market rate. If an in-place lease is identified as a below-market rental rate, the Company would also evaluate any renewal options associated with that lease to determine if the intangible should include those periods. The values related to above- or below-market in-place lease intangibles are amortized over the remaining term of the leases upon acquisition to rental income where the Company is the lessor and to property operating expense where the Company is the lessee. The Company also estimates an absorption period, which can vary by property, assuming the building is vacant and must be leased up to the actual level of occupancy when acquired. During that absorption period, the owner would incur direct costs, such as tenant improvements, and would suffer lost rental income. Likewise, the owner would have acquired a measurable asset in that, assuming the building was vacant, certain fixed costs would be avoided because the actual in-place lessees would reimburse a certain portion of fixed costs through expense reimbursements during the absorption period. All of these intangible assets (above- or below-market lease, tenant improvement costs avoided, leasing costs avoided, rental income lost, and expenses recovered through in-place lessee reimbursements) are estimated and recorded in amounts equal to the present value of estimated future cash flows. The actual purchase price is allocated based on the various relative asset fair values described above. The building and tenant improvement components of the purchase price are depreciated over the estimated useful life of the building or the weighted average remaining term of the in-place leases. The at-market, in-place lease intangibles are amortized to depreciation and amortization expense over the weighted average remaining term of the leases, and customer relationship assets are amortized to depreciation amortization expense over terms applicable to each acquisition. Any goodwill recorded through a business combination would be reviewed for impairment at least annually and is not amortized. See Note 9 for more details on the Company’s intangible assets. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. In calculating fair value, a company must maximize the use of observable market inputs, minimize the use of unobservable market inputs and disclose in the form of an outlined hierarchy the details of such fair value measurements. A hierarchy of valuation techniques is defined to determine whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These inputs have created the following fair value hierarchy: • Level 1 – quoted prices for identical instruments in active markets; • Level 2 – quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3 – fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Executed purchase and sale agreements, that are binding agreements, are categorized as level one inputs. Brokerage estimates, letters of intent, or unexecuted purchase and sale agreements are considered to be level three as they are nonbinding in nature. Fair Value of Derivative Financial Instruments Derivative financial instruments are recorded at fair value on the Company's Consolidated Balance Sheets as other assets or other liabilities. The valuation of derivative instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. Fair values of derivatives are estimated by pricing models that consider the forward yield curves and discount rates. The fair value of the Company's forward starting interest rate swap contracts are estimated by pricing models that consider foreign trade rates and discount rates. Such amounts and the recognition of such amounts are subject to significant estimates that may change in the future. For derivatives designated in qualifying cash flow hedging relationships, the change in fair value of the effective portion of the derivatives is recognized in accumulated other comprehensive income (loss). Gains and losses are reclassified from accumulated other comprehensive income (loss) into earnings once the underlying hedged transaction is recognized in earnings. As of December 31, 2022 and 2021, the Company had $2.1 million recorded in accumulated other comprehensive income and $10.0 million recorded in accumulated other comprehensive loss, respectively, related to forward starting interest rate swaps entered into and settled during 2015 and 2020 and a hedge of the Company's variable rate debt. See Note 11 for additional information. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents includes short-term investments with original maturities of three months or less when purchased. Restricted cash includes cash held in escrow in connection with proceeds from the sales of certain real estate properties. The Company did not have any restricted cash for the years ended December 31, 2022 or 2021. Cash and cash equivalents are held in bank accounts and overnight investments. The Company maintains its bank deposits with large financial institutions in amounts that often exceed federally-insured limits. The Company has not experienced any losses in such accounts. Goodwill and Other Intangible Assets Goodwill and intangible assets with indefinite lives are not amortized, but are tested at least annually for impairment. Intangible assets with finite lives are amortized over their respective lives to their estimated residual values and are reviewed for impairment only when impairment indicators are present. Identifiable intangible assets of the Company are comprised of enterprise goodwill, in-place lease intangible assets, customer relationship intangible assets, and debt issuance costs. In-place lease and customer relationship intangible assets are amortized on a straight-line basis over the applicable lives of the assets. Debt issuance costs are amortized over the term of the debt instrument on the effective interest method or the straight-line method when the effective interest method is not applicable. Goodwill is not amortized but is evaluated annually as of December 31 for impairment. The Company's goodwill asset increased to $223.2 million in 2022 as a result of the Merger. The 2022 impairment evaluation indicated that no impairment had occurred with respect to the Company's goodwill asset. See Note 9 for more detail on the Company’s intangible assets. Contingent Liabilities From time to time, the Company may be subject to loss contingencies arising from legal proceedings and similar matters. Additionally, while the Company maintains comprehensive liability and property insurance with respect to each of its properties, the Company may be exposed to unforeseen losses related to uninsured or underinsured damages. The Company continually monitors any matters that may present a contingent liability, and, on a quarterly basis, management reviews the Company’s reserves and accruals in relation to each of them, adjusting provisions as necessary in view of changes in available information. Liabilities for contingencies are first recorded when a loss is determined to be both probable and can be reasonably estimated. Changes in estimates regarding the exposure to a contingent loss are reflected as adjustments to the related liability in the periods when they occur. Because of uncertainties inherent in the estimation of contingent liabilities, it is possible that the Company’s provision for contingent losses could change materially in the near term. To the extent that any significant losses, in addition to amounts recognized, are at least reasonably possible, such amounts will be disclosed in the notes to the Consolidated Financial Statements. Share-Based Compensation The Company has various employee and director share-based awards outstanding. These awards include non-vested common stock and options to purchase common stock granted to employees pursuant to the Company's Amended and Restated 2006 Incentive Plan, dated April 29, 2021 ("Incentive Plan"), which replaced the Company's 2015 Stock Incentive Plan (the "Legacy HR Stock Incentive Plan") following the Merger. References to the Incentive Plan include issuances under the Incentive Plan and the Legacy HR Stock Incentive Plan. Legacy HR's 2000 Employee Stock Purchase Plan (the "Legacy HR Employee Stock Purchase Plan") was terminated during 2022 and all outstanding options will expire by 2024. No new options will be issued under this plan. The Company recognizes share-based payments to employees and directors in the Consolidated Statements of Income on a straight-line basis over the requisite service period based on the fair value of the award on the measurement date. The Company recognizes the impact of forfeitures as they occur. See Note 13 for details on the Company’s share-based awards. Accumulated Other Comprehensive Income (Loss) Certain items must be included in comprehensive income, including items such as foreign currency translation adjustments, minimum pension liability adjustments, changes in the fair value of derivative instruments and unrealized gains or losses on available-for-sale securities. As of December 31, 2022, the Company’s accumulated other comprehensive income (loss) consists of the loss for changes in the fair value of active derivatives designated as cash flow hedges and the loss on the unamortized settlement of forward starting swaps and treasury hedges. See Note 11 for more details on the Company's derivative financial instruments. Revenue from Contracts with Customers (Topic 606) The Company recognizes certain revenue under the core principle of Topic 606. This requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance. Revenue that is accounted for under Topic 606 is segregated on the Company’s Consolidated Statements of Income in the Other operating line item. This line item includes parking income, management fee income and other miscellaneous income. Below is a detail of the amounts by category: YEAR ENDED DECEMBER 31, Dollars in thousands 2022 2021 2020 Type of Revenue Parking income $ 8,513 $ 7,859 $ 6,720 Management fee income 4,668 2,049 343 Miscellaneous 525 383 304 $ 13,706 $ 10,291 $ 7,367 The Company’s three major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied. The performance obligations that are identified for each of these items are satisfied over time and the Company recognizes revenue monthly based on this principle. In most cases, the revenue is due and payable on a monthly basis. The Company had a receivable balance of $1.5 million and $1.4 million for the years ended December 31, 2022 and 2021, respectively. Management fee income includes property management services provided to third parties and certain of the properties in the Company's unconsolidated joint ventures and is generally calculated, accrued and billed monthly based on a percentage of cash collections of tenant receivables for the month or a stated amount per square foot. Management fee income also includes amounts paid to the Company for its asset management services for certain of its unconsolidated joint ventures. Internal management fee income, where the Company manages its owned properties, is eliminated in consolidation. Rental Income Rental income related to non-cancelable operating leases is recognized as earned over the life of the lease agreements on a straight-line basis. The Company's lease agreements generally include provisions for stated annual increases or increases based on a Consumer Price Index ("CPI"). Rental income from properties under multi-tenant office lease arrangements and rental income from properties with single-tenant lease arrangements are included in rental income on the Company's Consolidated Statements of Income. For lessors, the new standard requires a lessor to classify leases as either sales-type, direct-financing or operating. A lease will be treated as a sale if it is considered to transfer control of the underlying asset to the lessee. A lease will be classified as direct-financing if risks and rewards are conveyed without the transfer of control. Otherwise, the lease is treated as an operating lease. Nonlease components, such as common area maintenance, are generally accounted for under Topic 606 and separated from the lease payments. However, the Company elected the lessor practical expedient allowing the Company to not separate these components when certain conditions are met. The combined component is accounted for under Accounting Standards Codification, Topic 842. The components of rental income are as follows: YEAR ENDED DECEMBER 31, Dollars in thousands 2022 2021 2020 Property operating income $ 883,953 $ 514,533 $ 488,527 Straight-line rent 23,498 5,801 3,735 Rental income $ 907,451 $ 520,334 $ 492,262 Federal Income Taxes The Company believes it has qualified to be taxed as a REIT and intends at all times to continue to qualify as a REIT under Sections 856 through 860 of the Internal Revenue Code. The Company must distribute at least 90% per annum of its real estate investment trust taxable income to its stockholders and meet other requirements to continue to qualify as a real estate investment trust. As a REIT, the Company is generally not subject to federal income tax on net income it distributes to its stockholders, but may be subject to certain state and local taxes and fees. See Note 16 for further discussion. If HR fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal income taxes on its taxable income and will not be permitted to qualify for treatment as a REIT for U.S. federal income tax purposes for four years following the year during which the qualification is lost unless the IRS grants it relief under certain statutory provisions. Such event could have a material adverse effect on its business, financial condition, results of operations and net cash available for dividend distributions to its stockholders. HR conducts substantially all of its operations through the OP. As a partnership, the OP generally is not liable for federal income taxes. The income and loss from the operations of the OP is included in the tax returns of its partners, including HR, who are responsible for reporting their allocable share of the partnership income and loss. Accordingly no provision for income tax has been made in the accompanying consolidated financial statements. The Company classifies interest and penalties related to uncertain tax positions, if any, in the Consolidated Financial Statements as a component of general and administrative expenses. No such amounts were recognized during the three years ended December 31, 2022. Federal tax returns for the years 2019, 2020, 2021 and 2022 are currently subject to examination by taxing authorities. State Income Taxes The Company must pay certain state income taxes and the provisions for such taxes are generally included in general and administrative expense on the Company’s Consolidated Statements of Income. See Note 16 for further discussion. Sales and Use Taxes The Company must pay sales and use taxes to certain state tax authorities based on rents collected from tenants in properties located in those states. The Company is generally reimbursed for these taxes by the tenant. The Company accounts for the payments to the taxing authority and subsequent reimbursement from the tenant on a net basis in rental income in the Company’s Consolidated Statements of Income. Assets Held for Sale Long-lived assets held for sale are reported at the lower of their carrying amount or their fair value less estimated cost to sell. Further, depreciation of these assets ceases at the time the assets are classified as held for sale. Losses resulting from the sale of such properties are characterized as impairment losses in the Consolidated Statements of Income. See Note 6 for more detail on assets held for sale. Earnings per Share The Company uses the two-class method of computing net earnings per common share. Earnings per common share is calculated by considering share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents as participating securities. Undistributed earnings (excess net income over dividend payments) are allocated on a pro rata basis to common shareholders and restricted shareholders. Undistributed losses (dividends in excess of net income) do not get allocated to restricted stockholders as they do not have the contractual obligation to share in losses. The amount of undistributed losses that applies to the restricted stockholders is allocated to the common stockholders. Basic earnings per common share is calculated using weighted average shares outstanding less issued and outstanding non-vested shares of common stock. Diluted earnings per common share is calculated using weighted average shares outstanding plus the dilutive effect of the outstanding stock options from the Legacy HR Employee Stock Purchase Plan using the treasury stock method and the average stock price during the period. Additionally, net income (loss) allocated to OP units has been included in the numerator and common stock related to redeemable OP units have been included in the denominator for the purpose of computing diluted earnings per share. See Note 14 for the calculations of earnings per share. Redeemable Non-Controlling Interests The Compan |
Merger with HTA
Merger with HTA | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Merger with HTA | Merger with HTA On July 20, 2022 (the “Closing Date”), pursuant to the Agreement and Plan of Merger dated as of February 28, 2022 (the “Merger Agreement”), by and among Healthcare Realty Trust Incorporated, a Maryland corporation (now known as HRTI, LLC, a Maryland limited liability company) (“Legacy HR”), Healthcare Trust of America, Inc., a Maryland corporation (now known as Healthcare Realty Trust Incorporated) (“Legacy HTA”), the OP, and HR Acquisition 2, LLC, a Maryland limited liability company (“Merger Sub”), Merger Sub merged with and into Legacy HR, with Legacy HR continuing as the surviving entity and a wholly-owned subsidiary of Legacy HTA (the “Merger”). On the Closing Date, each outstanding share of Legacy HR common stock, $0.01 par value per share (the “Legacy HR Common Stock”), was cancelled and converted into the right to receive one share of Legacy HTA class A common stock at a fixed ratio of 1.00 to 1.00. Per the terms of the Merger Agreement, Legacy HTA declared a special dividend of $4.82 (the “Special Dividend”) for each outstanding share of Legacy HTA class A common stock, $0.01 par value per share ( the “Legacy HTA Common Stock”), and the OP declared a corresponding distribution to the holders of its partnership units, payable to Legacy HTA stockholders and OP unitholders of record on July 19, 2022. Immediately following the Merger, Legacy HR converted to a Maryland limited liability company and changed its name to HRTI, LLC and Legacy HTA changed its name to “Healthcare Realty Trust Incorporated”. In addition, the equity interests of Legacy HR were contributed by Legacy HTA by means of a contribution and assignment agreement to the OP such that Legacy HR became a wholly-owned subsidiary of the OP. The Company operates under the name “Healthcare Realty Trust Incorporated” and its shares of class A common stock, $0.01 par value per share, trade on the New York Stock Exchange (the “NYSE”) under the ticker symbol “HR”. For accounting purposes, the Merger was treated as a “reverse acquisition” in which Legacy HTA was considered the legal acquirer and Legacy HR was considered the accounting acquirer based on various factors, including, but not limited to: (i) the composition of the board of directors of the consolidated Company, (ii) the composition of senior management of the consolidated Company, and (iii) the premium transferred to the Legacy HTA stockholders. As a result, the historical financial statements of the accounting acquirer, Legacy HR, became the historical financial statements of the Company. The acquisition was accounted for using the acquisition method of accounting in accordance with ASC 805, which requires, among other things, the assets acquired, the liabilities assumed and non-controlling interests, if any, to be recognized at their acquisition date fair value. The implied consideration transferred on the Closing Date is as follows: Dollars in thousands, except for per share data Shares of Legacy HTA Common Stock outstanding as of July 20, 2022 as adjusted (a) 228,520,990 Exchange ratio 1.00 Implied shares of Legacy HR Common Stock issued 228,520,990 Adjusted closing price of Legacy HR Common Stock on July 20, 2022 (b) $ 24.37 Value of implied Legacy HR Common Stock issued $ 5,569,057 Fair value of Legacy HTA restricted stock awards attributable to pre-Merger services (c) 7,406 Consideration transferred $ 5,576,463 (a) Includes 228,520,990 shares of Legacy HTA Common Stock as of July 20, 2022. The number of shares of HTA Common Stock presented above was based on 228,857,717 total shares of Legacy HTA Common Stock outstanding as of the Closing Date, less 192 HTA fractional shares that were paid in cash less 336,535 shares of Legacy HTA restricted stock (net of 215,764 shares of Legacy HTA restricted stock withheld). For accounting purposes, these shares and units were converted to Legacy HR Common Stock, at an exchange ratio of 1.00 per share of HTA Common Stock. (b) For accounting purposes, the fair value of Legacy HR Common Stock issued to former holders of Legacy HTA Common Stock was based on the per share closing price of Legacy HR Common Stock on July 20, 2022. (c) Represents the fair value of Legacy HTA restricted shares which fully vested prior to the closing of the Merger or became fully vested as a result of the closing of the Merger and which are attributable to pre-combination services. Preliminary Purchase Price Allocation The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Closing Date: Dollars in thousands PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE MEASUREMENT PERIOD ADJUSTMENTS PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE ASSETS Real estate investments Land $ 985,926 $ 6,775 $ 992,701 Buildings and improvements 6,960,418 (83,662) 6,876,756 Lease intangible assets (a) 831,920 1,230 833,150 Financing lease right-of-use assets 9,874 3,146 13,020 Construction in progress 10,071 (6,744) 3,327 Land held for development 46,538 — 46,538 Total real estate investments $ 8,844,747 $ (79,255) $ 8,765,492 Assets held for sale, net 707,442 (7,946) 699,496 Investments in unconsolidated joint ventures 67,892 — 67,892 Cash and cash equivalents 26,034 11,403 37,437 Restricted cash 1,123,647 (1,247) 1,122,400 Operating lease right-of-use assets 198,261 17,786 216,047 Other assets, net (b) (c) 209,163 (3,840) 205,323 Total assets acquired $ 11,177,186 $ (63,099) $ 11,114,087 LIABILITIES Notes and bonds payable $ 3,991,300 $ — $ 3,991,300 Accounts payable and accrued liabilities 1,227,570 17,374 1,244,944 Liabilities of assets held for sale 28,677 (3,939) 24,738 Operating lease liabilities 173,948 10,173 184,121 Financing lease liabilities 10,720 (855) 9,865 Other liabilities 203,210 (11,541) 191,669 Total liabilities assumed $ 5,635,425 $ 11,212 $ 5,646,637 Net identifiable assets acquired $ 5,541,761 $ (74,311) $ 5,467,450 Non-controlling interest $ 110,702 $ — $ 110,702 Goodwill $ 145,404 $ 74,311 $ 219,715 (a) The weighted average amortization period for the acquired lease intangible assets is approximately 6 years. (b) Includes $15.9 million of contractual accounts receivable, which approximates fair value. (c) Includes $78.7 million of gross contractual real estate notes receivable, the fair value of which was $74.8 million, and the Company preliminarily expects to collect substantially all of the real estate notes receivable proceeds as of the Closing Date. The measurement period adjustments recorded during the year ended December 31, 2022 primarily resulted from updated valuations related to the Company’s real estate assets and liabilities and additional information obtained by the Company related to the properties acquired in the Merger and their respective tenants, and resulted in an increase to goodwill of $74.3 million. As of December 31, 2022, the Company had not finalized the determination of fair value of certain tangible and intangible assets acquired and liabilities assumed, including, but not limited to real estate assets and liabilities, notes receivables and goodwill. As such, the assessment of fair value of assets acquired and liabilities assumed is preliminary and was based on information that was available at the time the Consolidated Financial Statements were prepared. The finalization of the purchase accounting assessment could result in material changes in the Company’s determination of the fair value of assets acquired and liabilities assumed, which will be recorded as measurement period adjustments in the period in which they are identified, up to one year from the Closing Date. A preliminary estimate of approximately $219.7 million has been allocated to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. The recognized goodwill is attributable to expected synergies and benefits arising from the Merger, including anticipated general and administrative cost savings and potential economies of scale benefits in both tenant and vendor relationships following the closing of the Merger. None of the goodwill recognized is expected to be deductible for tax purposes. Merger related Costs In conjunction with the Merger, the Company incurred Merger-related costs of $103.4 million during the year ended December 31, 2022, which were included within Merger-related costs in results of operations. The Merger-related costs primarily consist of legal, consulting, banking services, and other Merger-related costs. Unaudited Pro Forma Financial Information The Consolidated Statement of Income for the year ended December 31, 2022 includes $351.8 million of revenues and $79.3 million of net loss associated with the results of operations of Legacy HTA from the Merger closing date to December 31, 2022. The following unaudited pro forma information presents a summary of our Consolidated Statements of Income for the years ended December 31, 2022 and 2021, as if the Merger had occurred on January 1, 2021. Adjustments in the pro forma financial information include but are not limited to the following: (i) additional depreciation and amortization expense related to the acquired tangible and intangible assets, (ii) additional interest expense on transaction-related borrowings, including assumed debt in connection with the Merger, (iii) additional rental income related to the assumed above and below-market leases, and straight-line rent and (iv) Merger-related costs and other one-time, non-recurring costs. The pro forma financial information excludes adjustments for estimated cost synergies or other effects of the integration of the Merger. The following pro forma financial information is not necessarily indicative of the results of operations had the acquisition been effected on the assumed date, nor is it necessarily an indication of trends in future results for a number of reasons, including, but not limited to, differences between the assumptions used to prepare the pro forma information, cost savings from operating efficiencies, potential synergies, and the impact of incremental costs incurred in integrating the businesses. YEAR ENDED Dollars in thousands 2022 2021 Total revenues $ 1,391,096 $ 1,316,743 Net income $ 130,445 $ (78,990) |
Property Investments
Property Investments | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate Investment Property, Net [Abstract] | |
Property Investments | Property Investments The Company invests in healthcare-related properties located throughout the United States. The Company provides management, leasing, development and redevelopment services, and capital for the construction of new facilities as well as for the acquisition of existing properties. The following table summarizes the Company’s consolidated investments at December 31, 2022. Dollars in thousands NUMBER OF PROPERTIES LAND BUILDINGS AND IMPROVEMENTS LEASE INTANGIBLES PERSONAL PROPERTY TOTAL ACCUMULATED DEPRECIATION Dallas, TX 45 $ 95,010 $ 1,116,725 $ 77,589 $ 551 $ 1,289,875 $ (202,031) Seattle, WA 29 64,295 623,166 13,444 726 701,631 (164,423) Los Angeles, CA 23 98,524 460,780 31,790 453 591,547 (129,663) Boston, MA 18 128,904 396,002 63,134 — 588,040 (13,513) Charlotte, NC 32 35,402 450,076 29,839 105 515,422 (95,363) Houston, TX 34 85,389 633,474 64,045 57 782,965 (63,486) Miami, FL 23 72,364 400,839 46,355 105 519,663 (52,920) Atlanta, GA 28 49,379 437,312 36,170 95 522,956 (63,773) Tampa, FL 20 31,533 377,455 36,838 33 445,859 (18,991) Denver, CO 33 76,698 497,235 45,854 609 620,396 (65,123) Raleigh, NC 27 56,620 363,359 37,446 9 457,434 (15,566) Phoenix, AZ 35 20,262 430,396 37,097 425 488,180 (30,281) Chicago, IL 7 32,374 266,672 20,608 81 319,735 (28,243) Indianapolis, IN 36 52,180 265,070 32,739 13 350,002 (19,705) Hartford, CT 30 43,326 204,049 31,803 — 279,178 (8,015) Nashville, TN 12 43,348 346,312 10,205 1,424 401,289 (92,720) New York, NY 14 64,402 167,819 26,430 — 258,651 (4,771) Austin, TX 13 27,064 271,692 18,568 142 317,466 (40,363) Orlando, FL 8 20,708 180,694 21,581 1 222,984 (11,654) Memphis, TN 11 13,901 184,540 4,211 317 202,969 (60,624) Other (51 markets) 210 326,262 3,256,027 273,568 1,223 3,857,080 (457,572) 688 1,437,945 11,329,694 959,314 6,369 13,733,322 (1,638,800) Construction in progress — — — — 35,560 — Land held for development — — — — — 74,265 (1,183) Financing lease right-of-use assets — — — — — 83,824 — Investment in financing receivables, net — — — — — 120,236 — Corporate property 1 — 1,853 2,343 684 5,538 10,418 (5,288) Total real estate investments 688 $ 1,439,798 $ 11,332,037 $ 959,998 $ 11,907 $ 14,057,625 $ (1,645,271) 1 Includes a 15,014 square foot building located in Charleston, South Carolina that is used as one of the Company's corporate offices. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Lessor Accounting Under ASC 842 The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s portfolio of single-tenant leases generally requires the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. The Company records these expenses on a net basis, with the exception of property taxes. Property taxes are recorded on a gross basis as a lessor cost in which the tenant reimburses the Company. The Company generally expects that collectability is probable at lease commencement. If the assessment of collectability changes after the lease commencement date and Rental income is not considered probable, Rental income is recognized on a cash basis and all previously recognized uncollectible Rental income is reversed in the period in which it is determined not to be probable of collection. In addition to the lease-specific collectability assessment performed under Topic 842, the Company may also apply a general reserve ("provision for bad debt"), as a reduction to Rental income, for its portfolio of operating lease receivables. The Company's leases typically have escalators that are either based on a stated percentage or an index such as CPI (consumer price index). In addition, most of the Company's leases include nonlease components such as reimbursement of operating expenses as additional rent or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the year ended December 31, 2022 was $907.5 million. Future minimum lease payments under the non-cancelable operating leases, excluding any reimbursements, as of December 31, 2022 are as follows: In thousands 2023 $ 928,516 2024 814,132 2025 701,659 2026 603,051 2027 500,645 2028 and thereafter 1,633,847 $ 5,181,850 Revenue Concentrations The Company’s real estate portfolio is leased to a diverse tenant base. The Company did not have any customers that account for 10% or more of the Company's revenues for the years ended December 31, 2022, 2021 and 2020. Purchase Option Provisions Certain of the Company’s leases include purchase option provisions. The provisions vary by agreement but generally allow the lessee to purchase the property covered by the agreement at fair market value or an amount equal to the Company’s gross investment. The Company expects that the purchase price from its purchase options will be greater than its net investment in the properties at the time of potential exercise by the lessee. The Company had investments of approximately $100.4 million in five real estate properties as of December 31, 2022 that were subject to purchase options that were exercisable. Lessee Accounting Under ASC 842 As of December 31, 2022, the Company was obligated, as the lessee, under operating and finance lease agreements consisting primarily of the Company’s ground leases. Contracts evaluated and treated as leases are those that convey the right to control the use of identified assets for a period of time in exchange for consideration. ASC 842 requires the recording of these leases based on the aggregate future cash flows, discounted utilizing the implicit rate in the lease, or, if not readily determinable, based upon the lessee's incremental borrowing rate, to which the Company utilizes market inputs that are both similar to the Company's credit profile and corresponding term of the leases. As of December 31, 2022, the Company had 242 properties totaling 17.8 million square feet that were held under ground leases. Some of the ground leases renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally either stated or based on the Consumer Price Index. The Company had 75 prepaid ground leases as of December 31, 2022. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $1.1 million for the year ended December 31, 2022 and $0.6 million for the years ended December 31, 2021 and 2020. The Company’s future lease payments (primarily for its 167 non-prepaid ground leases) as of December 31, 2022 were as follows: In thousands OPERATING FINANCING 2023 $ 15,641 $ 2,140 2024 $ 15,227 $ 2,182 2025 $ 14,814 $ 2,218 2026 $ 14,852 $ 2,255 2027 $ 14,921 $ 2,294 2028 and thereafter $ 939,165 $ 396,398 Total undiscounted lease payments $ 1,014,620 $ 407,487 Discount $ (734,725) $ (334,548) Lease liabilities $ 279,895 $ 72,939 The following table provides details of the Company's total lease expense for the year ended December 31, 2022: In thousands YEAR ENDED YEAR ENDED Operating lease cost Operating lease expense $ 12,699 $ 4,765 Variable lease expense 4,529 3,929 Finance lease cost Amortization of right-of-use assets 1,288 388 Interest on lease liabilities 2,876 1,032 Total lease expense $ 21,392 $ 10,114 Other information Operating cash flows outflows related to operating leases $ 12,816 $ 7,706 Operating cash flows outflows related to financing leases $ 1,838 $ 809 Financing cash flows outflows related to financing leases $ — $ 9,182 Right-of-use assets obtained in exchange for new finance lease liabilities $ 53,765 $ 3,827 Right-of-use assets obtained in exchange for new operating lease liabilities $ 216,047 $ 8,298 Weighted-average remaining lease term (excluding renewal options) - operating leases 47.5 47.6 Weighted-average remaining lease term (excluding renewal options) -finance leases 58.9 62.1 Weighted-average discount rate - operating leases 5.8 % 5.6 % Weighted-average discount rate - finance leases 5.0 % 5.3 % |
Leases | Leases Lessor Accounting Under ASC 842 The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s portfolio of single-tenant leases generally requires the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. The Company records these expenses on a net basis, with the exception of property taxes. Property taxes are recorded on a gross basis as a lessor cost in which the tenant reimburses the Company. The Company generally expects that collectability is probable at lease commencement. If the assessment of collectability changes after the lease commencement date and Rental income is not considered probable, Rental income is recognized on a cash basis and all previously recognized uncollectible Rental income is reversed in the period in which it is determined not to be probable of collection. In addition to the lease-specific collectability assessment performed under Topic 842, the Company may also apply a general reserve ("provision for bad debt"), as a reduction to Rental income, for its portfolio of operating lease receivables. The Company's leases typically have escalators that are either based on a stated percentage or an index such as CPI (consumer price index). In addition, most of the Company's leases include nonlease components such as reimbursement of operating expenses as additional rent or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the year ended December 31, 2022 was $907.5 million. Future minimum lease payments under the non-cancelable operating leases, excluding any reimbursements, as of December 31, 2022 are as follows: In thousands 2023 $ 928,516 2024 814,132 2025 701,659 2026 603,051 2027 500,645 2028 and thereafter 1,633,847 $ 5,181,850 Revenue Concentrations The Company’s real estate portfolio is leased to a diverse tenant base. The Company did not have any customers that account for 10% or more of the Company's revenues for the years ended December 31, 2022, 2021 and 2020. Purchase Option Provisions Certain of the Company’s leases include purchase option provisions. The provisions vary by agreement but generally allow the lessee to purchase the property covered by the agreement at fair market value or an amount equal to the Company’s gross investment. The Company expects that the purchase price from its purchase options will be greater than its net investment in the properties at the time of potential exercise by the lessee. The Company had investments of approximately $100.4 million in five real estate properties as of December 31, 2022 that were subject to purchase options that were exercisable. Lessee Accounting Under ASC 842 As of December 31, 2022, the Company was obligated, as the lessee, under operating and finance lease agreements consisting primarily of the Company’s ground leases. Contracts evaluated and treated as leases are those that convey the right to control the use of identified assets for a period of time in exchange for consideration. ASC 842 requires the recording of these leases based on the aggregate future cash flows, discounted utilizing the implicit rate in the lease, or, if not readily determinable, based upon the lessee's incremental borrowing rate, to which the Company utilizes market inputs that are both similar to the Company's credit profile and corresponding term of the leases. As of December 31, 2022, the Company had 242 properties totaling 17.8 million square feet that were held under ground leases. Some of the ground leases renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally either stated or based on the Consumer Price Index. The Company had 75 prepaid ground leases as of December 31, 2022. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $1.1 million for the year ended December 31, 2022 and $0.6 million for the years ended December 31, 2021 and 2020. The Company’s future lease payments (primarily for its 167 non-prepaid ground leases) as of December 31, 2022 were as follows: In thousands OPERATING FINANCING 2023 $ 15,641 $ 2,140 2024 $ 15,227 $ 2,182 2025 $ 14,814 $ 2,218 2026 $ 14,852 $ 2,255 2027 $ 14,921 $ 2,294 2028 and thereafter $ 939,165 $ 396,398 Total undiscounted lease payments $ 1,014,620 $ 407,487 Discount $ (734,725) $ (334,548) Lease liabilities $ 279,895 $ 72,939 The following table provides details of the Company's total lease expense for the year ended December 31, 2022: In thousands YEAR ENDED YEAR ENDED Operating lease cost Operating lease expense $ 12,699 $ 4,765 Variable lease expense 4,529 3,929 Finance lease cost Amortization of right-of-use assets 1,288 388 Interest on lease liabilities 2,876 1,032 Total lease expense $ 21,392 $ 10,114 Other information Operating cash flows outflows related to operating leases $ 12,816 $ 7,706 Operating cash flows outflows related to financing leases $ 1,838 $ 809 Financing cash flows outflows related to financing leases $ — $ 9,182 Right-of-use assets obtained in exchange for new finance lease liabilities $ 53,765 $ 3,827 Right-of-use assets obtained in exchange for new operating lease liabilities $ 216,047 $ 8,298 Weighted-average remaining lease term (excluding renewal options) - operating leases 47.5 47.6 Weighted-average remaining lease term (excluding renewal options) -finance leases 58.9 62.1 Weighted-average discount rate - operating leases 5.8 % 5.6 % Weighted-average discount rate - finance leases 5.0 % 5.3 % |
Acquisitions, Dispositions and
Acquisitions, Dispositions and Mortgage Repayments | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions, Dispositions and Mortgage Repayments | Acquisitions, Dispositions and Mortgage Repayments 2022 Acquisitions The following table details the Company's acquisitions, exclusive of the Merger, for the year ended December 31, 2022: Dollars in thousands TYPE 1 DATE ACQUIRED PURCHASE PRICE CASH 2 REAL OTHER 3 SQUARE FOOTAGE Dallas, TX 4 MOB 2/11/22 $ 8,175 $ 8,185 $ 8,202 $ (17) 18,000 San Francisco, CA 5 MOB 3/7/22 114,000 112,986 108,687 4,299 166,396 Atlanta, GA MOB 4/7/22 6,912 7,054 7,178 (124) 21,535 Denver, CO MOB 4/13/22 6,320 5,254 5,269 (15) 12,207 Colorado Springs, CO 6 MOB 4/13/22 13,680 13,686 13,701 (15) 25,800 Seattle, WA MOB 4/28/22 8,350 8,334 8,370 (36) 13,256 Houston, TX MOB 4/28/22 36,250 36,299 36,816 (517) 76,781 Los Angeles, CA MOB 4/29/22 35,000 35,242 25,400 9,842 34,282 Oklahoma City, OK MOB 4/29/22 11,100 11,259 11,334 (75) 34,944 Raleigh, NC 5 MOB 5/31/22 27,500 26,710 27,127 (417) 85,113 Tampa. FL 6 MOB 6/9/22 18,650 18,619 18,212 407 55,788 Seattle, WA MOB 8/1/22 4,850 4,806 4,882 (76) 10,593 Raleigh, NC MOB 8/9/22 3,783 3,878 3,932 (54) 11,345 Jacksonville, FL MOB 8/9/22 18,195 18,508 18,583 (75) 34,133 Atlanta, GA MOB 8/10/22 11,800 11,525 12,038 (513) 43,496 Denver, CO MOB 8/11/22 14,800 13,902 13,918 (16) 34,785 Raleigh, NC MOB 8/18/22 11,375 10,670 10,547 123 31,318 Nashville, TN MOB 9/15/22 21,000 20,764 20,572 192 61,932 Austin, TX MOB 9/29/22 5,450 5,449 5,572 (123) 15,000 Jacksonville, FL 4 MOB 10/12/22 3,600 3,530 3,609 (79) 6,200 Houston, TX MOB 11/21/22 5,500 5,469 5,513 (44) 28,369 Austin, TX 7 MOB 12/28/22 888 890 889 1 2,219 Denver, CO MOB 12/28/22 16,400 16,170 16,467 (297) 39,692 $ 403,578 $ 399,189 $ 386,818 $ 12,371 863,184 1 MOB = medical office building. 2 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Represents a single-tenant property. 5 Includes three properties. 6 Includes two properties. 7 The Company acquired additional ownership interests in an existing building bringing the Company's ownership to 71.4%. The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2022 as of the acquisition date: ESTIMATED ESTIMATED Building $ 250.7 14.0 - 38.0 Land 76.1 — Land Improvements 11.2 5.0 - 14.0 Intangibles At-market lease intangibles 48.8 1.5 - 13.4 Above-market lease intangibles (lessor) 15.9 1.3 - 15.6 Below-market lease intangibles (lessor) (2.2) 1.3 - 19.3 Below-market lease intangibles (lessee) 1.2 13.1 Other assets acquired 0.4 Accounts payable, accrued liabilities and other liabilities assumed (2.9) Total cash paid $ 399.2 Unconsolidated Joint Ventures As of December 31, 2022, the Company had a weighted average ownership interest of approximately 48% in 33 real estate properties held in joint ventures. 2022 Acquisitions The following table details the joint venture acquisitions for the year ended December 31, 2022: Dollars in thousands TYPE 1 DATE ACQUIRED PURCHASE PRICE CASH 2 REAL OTHER 3 SQUARE FOOTAGE San Francisco, CA 4 MOB 3/7/22 $ 67,175 $ 66,789 $ 65,179 $ 1,610 110,865 Los Angeles, CA 5 MOB 3/7/22 33,800 32,384 32,390 (6) 103,259 $ 100,975 $ 99,173 $ 97,569 $ 1,604 214,124 1 MOB = medical office building. 2 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Includes three properties. 5 Includes two properties. The Company's investment in and loss recognized for the years ended December 31, 2022 and 2021 related to its joint ventures accounted for under the equity method are shown in the table below: DECEMBER 31, Dollars in millions 2022 2021 Investments in unconsolidated joint ventures, beginning of period $ 161.9 $ 73.1 New investments during the period 1 167.9 89.6 Equity loss recognized during the period (0.7) (0.8) Owner distributions (1.9) — Investments in unconsolidated joint ventures, end of period $ 327.2 $ 161.9 1 For the year ended December 31, 2022, this included unconsolidated joint ventures acquired as part of the Merger, as well as investments in two joint ventures representing a 20% and 40% ownership interest in portfolios in Los Angeles, California and Dallas, Texas, respectively. Also, see 2022 Real Estate Asset Dispositions below for additional information. 2021 Acquisitions The following table details the Company's acquisitions for the year ended December 31, 2021: Dollars in thousands TYPE 1 DATE ACQUIRED PURCHASE PRICE 2 MORTGAGES ASSUMED 3 CASH 4 REAL ESTATE 2 OTHER 5 SQUARE FOOTAGE San Diego, CA 6 MOB 1/7/21 $ 17,150 $ — $ 17,182 $ 17,182 $ — 22,461 Dallas, TX 8 MOB 2/1/21 22,515 — 22,299 22,641 (342) 121,709 Atlanta, GA 8 MOB 2/17/21 9,800 — 10,027 10,073 (46) 44,567 Washington, D.C. MOB 3/3/21 12,750 — 12,709 12,658 51 26,496 Houston, TX MOB 5/14/21 13,500 — 12,986 13,379 (393) 45,393 San Diego, CA 6,7 MOB 5/28/21 102,650 — 103,984 104,629 (645) 160,394 Greensboro, NC MOB 6/28/21 9,390 — 9,475 10,047 (572) 25,168 Baltimore, MD MOB 6/29/21 14,600 — 14,357 14,437 (80) 33,316 Denver, CO 9 MOB 7/16/21 70,426 — 69,151 65,100 4,051 259,555 Greensboro, NC 6 MOB 7/19/21 6,400 — 6,374 6,514 (140) 18,119 Colorado Springs, CO MOB 7/27/21 33,400 — 32,738 33,241 (503) 69,526 Birmingham, AL MOB 8/19/21 9,250 — 9,355 9,388 (33) 29,942 Raleigh, NC MOB 9/20/21 5,780 — 5,821 5,810 11 18,280 Denver, CO MOB 9/22/21 20,250 — 19,630 19,405 225 83,604 Raleigh, NC MOB 9/30/21 10,000 — 9,921 9,874 47 29,178 Denver, CO MOB 11/15/21 7,700 — 7,383 7,431 (48) 18,599 Denver, CO MOB 11/18/21 22,400 — 22,343 22,422 (79) 30,185 Columbus, OH 10 MOB 12/1/21 16,275 — 15,970 7,365 8,605 71,930 Nashville, TN MOB 12/2/21 11,300 — 11,245 11,263 (18) 34,908 Colorado Springs, CO MOB 12/20/21 10,575 — 10,541 11,009 (468) 44,166 Columbus, OH 8 MOB 12/28/21 9,525 — 9,521 9,601 (80) 28,962 Los Angeles, CA MOB 12/28/21 20,500 (11,000) 9,396 20,316 80 56,762 Nashville, TN 11 MOB 12/29/21 19,775 — 19,833 19,982 (149) 85,590 Austin, TX MOB 12/29/21 20,500 — 20,696 20,741 (45) 62,548 Atlanta, GA MOB 12/30/21 4,900 — 4,772 4,419 353 11,840 Nashville, TN 12 MOB 12/30/21 54,000 — 53,923 54,072 (149) 74,489 Nashville, TN 12 MOB 12/30/21 20,500 — 19,833 19,825 8 32,454 $ 575,811 $ (11,000) $ 561,465 $ 562,824 $ 9,641 1,540,141 1 MOB = medical office building. 2 Includes investments in financing receivables and an $8.9 million right-of-use asset related to the Columbus, Ohio transaction. 3 The mortgages assumed in the acquisitions do not reflect the fair value adjustments totaling $0.8 million in aggregate recorded by the Company upon acquisition (included in Other). 4 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 5 Includes other assets acquired, liabilities assumed, intangibles, and fair value mortgage adjustments recognized at acquisition. 6 Represents a single-tenant property. 7 The Company acquired a single-tenant net lease property in San Diego, CA in a sale-leaseback transaction which was accounted for as a financing arrangement as required under ASC 842, Leases. 8 Includes two properties. 9 Includes three properties. 10 This sale-leaseback transaction was a multi-tenant lease property. A portion of the transaction totaling $7.4 million was accounted for as a financing receivable and the remaining $8.9 million was accounted for as an imputed lease arrangement. See Note 1 to the Consolidated Financial Statements accompanying this report for more information. 11 Includes purchase of an adjoining 2.7 acre land parcel that will be held for development. 12 This sale-leaseback transaction was a multi-tenant lease property which was accounted for as a financing arrangement as required under ASC 842, Leases. The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2021 as of the acquisition date: ESTIMATED ESTIMATED Building $ 275.1 18.0 - 44.0 Investment in financing receivables, net 185.9 0.5 - 34.0 Financing lease right of use assets 1 8.9 15.0 - 34.0 Land 34.1 — Land Improvements 8.9 6.0 - 16.0 Intangibles At-market lease intangibles 58.8 2.6 - 16.6 Above-market lease intangibles (lessor) 3.4 1.9 - 8.1 Below-market lease intangibles (lessor) (1.4) 3.1 - 21.8 Above-market lease intangibles (lessee) (0.3) 36.7 - 64.5 Below-market lease intangibles (lessee) 4.7 45.4 Mortgage notes payable assumed, including fair value adjustments (11.8) Other assets acquired 0.8 Accounts payable, accrued liabilities and other liabilities assumed (5.6) Total cash paid $ 561.5 1 The Company acquired a building in Columbus, Ohio in a sale lease back transaction totaling $16.3 million, in which $8.9 million was recorded as an imputed lease arrangement and the remaining $7.4 million was recorded as an investment in financing receivables. Unconsolidated Joint Ventures The following table details the joint venture acquisitions for the year ended December 31, 2021: Dollars in thousands TYPE 1 DATE ACQUIRED PURCHASE PRICE CASH 2 REAL OTHER 3 SQUARE FOOTAGE Denver, CO MOB 3/30/21 $ 14,375 $ 14,056 $ 14,550 $ (494) 59,359 Colorado Springs, CO MOB 4/1/21 7,200 7,288 7,347 (59) 27,510 Los Angeles, CA MOB 4/8/21 31,335 30,179 30,642 (463) 57,573 San Antonio, TX MOB 4/30/21 13,600 13,412 13,656 (244) 45,000 Los Angeles, CA MOB 5/10/21 24,600 24,259 24,147 112 73,078 Colorado Springs, CO 4 MOB 7/27/21 9,133 9,137 9,135 2 23,956 Denver, CO MOB 10/21/21 23,000 22,638 23,021 (383) 57,257 San Antonio, TX 5 MOB 12/10/21 42,300 41,892 42,190 (298) 117,597 San Antonio, TX MOB 12/29/21 6,094 6,218 6,308 (90) 22,381 San Antonio, TX MOB 12/29/21 8,850 8,915 8,866 49 30,542 $ 180,487 $ 177,994 $ 179,862 $ (1,868) 514,253 1 MOB = medical office building. 2 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Includes purchase of an adjoining 3.0 acre land parcel. 5 Includes three properties. 2022 Real Estate Asset Dispositions The following table details the Company's dispositions for the year ended December 31, 2022: Dollars in thousands TYPE 1 DATE DISPOSED SALES PRICE CLOSING ADJUSTMENTS NET PROCEEDS NET REAL ESTATE INVESTMENT OTHER 2 GAIN/ SQUARE FOOTAGE Loveland, CO 3, 4 MOB 2/24/22 $ 84,950 $ (45) $ 84,905 $ 40,095 $ 4 $ 44,806 150,291 San Antonio, TX 3 MOB 4/15/22 25,500 (2,272) 23,228 14,381 284 8,563 201,523 GA, FL, PA 5, 11 MOB 7/29/22 133,100 (8,109) 124,991 124,991 — — 316,739 GA, FL, TX 7, 11 MOB 8/4/22 160,917 (5,893) 155,024 151,819 3,205 — 343,545 Los Angeles, CA 5, 9, 11 MOB 8/5/22 134,845 (3,102) 131,743 131,332 411 — 283,780 Dallas, TX 7, 10, 11 MOB 8/30/22 114,290 (682) 113,608 113,608 — — 189,385 Indianapolis, IN 6, 12 MOB 8/31/22 238,845 (5,846) 232,999 84,767 4,324 143,908 506,406 Dallas, TX 3 MOB 10/4/22 104,025 (5,883) 98,142 38,872 6,436 52,834 291,328 Houston, TX MOB 10/21/22 32,000 (280) 31,720 10,762 744 20,214 134,910 College Station, TX MOB 11/10/22 49,177 (3,755) 45,422 44,918 475 28 122,942 El Paso, TX MOB 12/22/22 55,326 (4,002) 51,324 56,427 (1,897) (3,205) 110,465 Atlanta, GA 8 MOB 12/22/22 91,243 (4,326) 86,917 109,051 235 (22,369) 348,416 St. Louis, MO MOB 12/28/22 18,000 (1,471) 16,529 18,340 4 (1,815) 69,394 $ 1,242,218 $ (45,666) $ 1,196,552 $ 939,363 $ 14,225 $ 242,964 3,069,124 1 MOB = medical office building 2 Includes straight-line rent receivables, leasing commissions and lease inducements. 3 Includes two properties. 4 The Company deferred the tax gain through a 1031 exchange and reinvested the proceeds. 5 Includes four properties. 6 Includes five properties. 7 Includes six properties. 8 Includes nine properties. 9 Values and square feet are represented at 100%. The Company retained a 20% ownership interest in the joint venture with an unrelated third party that purchased these properties. 10 Values and square feet are represented at 100%. The Company retained a 40% ownership interest in the joint venture with an unrelated third party that purchased these properties. 11 These properties were acquired as part of the Merger and were included as assets held for sale in the purchase price allocation. 12 Two of the five properties included in this portfolio were acquired in the Merger and were included as assets held for sale in the purchase price allocation. Subsequent Dispositions On January 13, 2023, the Company disposed of two medical office buildings, one in Tampa, Florida and one in Miami, Florida, with a combined total of 224,037 square feet for an aggregate purchase price of $93.3 million. On January 30, 2023, the Company disposed of a 36,691 square foot medical office building in Dallas, Texas, for a purchase price of $19.2 million. The Company retained a 40% ownership interest in the joint venture that purchased this property. On February 10, 2023, the Company disposed of a 6,500 square foot medical office building in St. Louis, Missouri for a purchase price of $0.4 million. 2021 Real Estate Asset Dispositions The following table details the Company's dispositions for the year ended December 31, 2021: Dollars in thousands TYPE 1 DATE DISPOSED SALES PRICE CLOSING ADJUSTMENTS NET PROCEEDS NET REAL ESTATE INVESTMENT OTHER 2 GAIN/ SQUARE FOOTAGE Los Angeles, CA 3 MOB 3/11/21 $ 26,000 $ (555) $ 25,445 $ 6,046 $ 509 $ 18,890 73,906 Atlanta, GA MOB 4/12/21 8,050 (272) 7,778 5,675 151 1,952 19,732 Richmond, VA MOB 5/18/21 52,000 (314) 51,686 29,414 3,270 19,002 142,856 Gadsden, AL 4 MOB 5/19/21 5,500 (280) 5,220 5,914 175 (869) 120,192 Dallas, TX 5 MOB 7/9/21 23,000 (1,117) 21,883 18,733 1,966 1,184 190,160 Chicago, IL MOB 10/28/21 13,300 (388) 12,912 23,213 706 (11,007) 95,436 Des Moines, IA 6 MOB 12/8/21 47,000 (901) 46,099 32,312 1,037 12,750 132,617 Aberdeen, SD MOB 12/22/21 12,750 (299) 12,451 10,337 — 2,114 58,285 Dallas, TX MOB 12/23/21 800 (103) 697 712 167 (182) 13,818 $ 188,400 $ (4,229) $ 184,171 $ 132,356 $ 7,981 $ 43,834 847,002 1 MOB = medical office building 2 Includes straight-line rent receivables, leasing commissions and lease inducements. 3 Includes two properties sold to a single purchaser in two transactions which closed on March 5 and March 11, 2021. 4 Includes three properties. 5 Includes four properties and a land parcel sold under a single purchase agreement. |
Held for Sale
Held for Sale | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Held for Sale | Held for Sale Assets and liabilities of properties sold or classified as held for sale are separately identified on the Company’s Consolidated Balance Sheets. As of December 31, 2022 the Company had one property classified as held for sale, and as of December 31, 2021 the Company had no real estate properties classified as held for sale. The table below reflects the assets and liabilities classified as held for sale as of December 31, 2022 and 2021. DECEMBER 31, Dollars in thousands 2022 2021 Balance Sheet data Land $ 1,700 $ — Buildings and improvements 15,164 — Lease intangibles 1,986 — 18,850 — Accumulated depreciation — — Real estate assets held for sale, net 18,850 — Other assets, net 43 57 Assets held for sale, net $ 18,893 $ 57 Accounts payable and accrued liabilities $ 282 $ 169 Other liabilities 155 125 Liabilities of properties held for sale $ 437 $ 294 |
Impairment Charges
Impairment Charges | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Impairment Charges | Impairment Charges An asset is impaired when undiscounted cash flows expected to be generated by the asset are less than the carrying value of the asset. The Company must assess the potential for impairment of its long-lived assets, including real estate properties, whenever events occur or there is a change in circumstances, such as the sale of a property or the decision to sell a property, that indicate that the recorded value might not be fully recoverable. The Company recorded impairment charges on 12 properties sold and three additional properties associated with completed or planned disposition activity for the year ended December 31, 2022 totaling $54.4 million. The Company |
Other Assets and Liabilities
Other Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets and Liabilities | Other Assets and Liabilities Other Assets Other assets consist primarily of intangible assets, prepaid assets, real estate notes receivable, straight-line rent receivables, accounts receivable, additional long-lived assets and interest rate swaps. Items included in "Other assets, net" on the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021 are detailed in the table below: Dollars in thousands December 31, 2022 December 31, 2021 Real estate notes receivable, net $ 99,643 $ — Straight-line rent receivables 88,868 70,784 Prepaid assets 81,900 58,618 Above-market intangible assets, net 80,720 4,966 Accounts receivable, net 1 47,498 14,072 Additional long-lived assets, net 21,446 20,048 Interest rate swap assets 14,512 — Other receivables, net 7,169 — Investment in securities (2) 6,011 — Debt issuance costs, net 5,977 1,813 Project costs 4,337 5,129 Net investment in lease 1,828 — Customer relationship intangible assets, net 1,120 1,174 Other 8,961 9,069 $ 469,990 $ 185,673 1 This amount is net of allowance for doubtful accounts of $4.0 million 2 This amount represents the value of the Company's preferred stock investment in a data analytics platform. Accounts Payable and Accrued Liabilities The following table provides details of the items included in "Accounts payable and accrued liabilities" on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021: Dollars in thousands December 31, 2022 December 31, 2021 Accrued property taxes $ 78,185 $ 35,295 Accounts payable and capital expenditures 57,352 17,036 Accrued interest 50,037 12,060 Other operating accruals 58,459 21,717 $ 244,033 $ 86,108 Other Liabilities The following table provides details of the items included in "Other liabilities" on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021: Dollars in thousands December 31, 2022 December 31, 2021 Below-market intangible liabilities, net $ 97,935 $ 4,931 Deferred revenue 87,325 45,130 Security deposits 28,521 11,116 Interest rate swap liability 4,269 5,917 Other 618 293 $ 218,668 $ 67,387 |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Liabilities | Intangible Assets and Liabilities The Company has several types of intangible assets and liabilities included in its Consolidated Balance Sheets, including goodwill, debt issuance costs, above-, below-, and at-market lease intangibles, and customer relationship intangibles. For additional detail on the Company's debt issuance costs, see Note 10 to the Consolidated Financial Statements. The Company’s intangible assets and liabilities, including assets held for sale and excluding certain debt issuance costs, as of December 31, 2022 and 2021 consisted of the following: GROSS BALANCE ACCUMULATED AMORTIZATION WEIGHTED AVG. BALANCE SHEET CLASSIFICATION Dollars in millions 2022 2021 2022 2021 Goodwill $ 223.2 $ 3.5 $ — $ — N/A Goodwill Credit facility debt issuance costs 6.9 5.1 0.9 3.3 2.9 Other assets, net Above-market lease intangibles (lessor) 91.5 7.0 10.7 2.0 5.3 Other assets, net Customer relationship intangibles (lessor) 2.1 2.1 1.0 0.9 20.6 Other assets, net Below-market lease intangibles (lessor) (112.5) (10.1) (14.6) (5.1) 5.7 Other liabilities At-market lease intangibles 1,067.4 213.0 188.3 77.5 5.2 Real estate properties $ 1,278.6 $ 220.6 $ 186.3 $ 78.6 5.3 For the years ended December 31, 2022 and 2021, the Company recognized approximately $133.6 million and $33.7 million of intangible amortization, respectively. The following table represents expected amortization over the next five years of the Company’s intangible assets and liabilities in place as of December 31, 2022: Dollars in millions FUTURE AMORTIZATION OF INTANGIBLES, NET 2023 $ 233.8 2024 197.9 2025 151.1 2026 97.6 2027 64.3 |
Notes and Bonds Payable
Notes and Bonds Payable | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes and Bonds Payable | Notes and Bonds Payable DECEMBER 31, MATURITY DATES CONTRACTUAL INTEREST RATES EFFECTIVE INTEREST RATES PRINCIPAL PAYMENTS INTEREST PAYMENTS Dollars in thousands 2022 2021 $700M Unsecured Credit Facility $ — $ 210,000 5/23 LIBOR + 0.90% N/A At maturity Monthly $1.5B Unsecured Credit Facility 385,000 — 10/25 SOFR + 0.95% 5.27 % At maturity Monthly $350M Unsecured Term Loan 1 349,114 — 7/23 SOFR + 1.05% 5.17 % At maturity Monthly $200M Unsecured Term Loan 1 199,670 199,460 5/24 SOFR + 1.05% 5.17 % At maturity Monthly $150M Unsecured Term Loan 1 149,495 149,376 6/26 SOFR + 1.05% 5.17 % At maturity Monthly $300M Unsecured Term Loan 1 299,936 — 10/25 SOFR + 1.05% 5.17 % At maturity Monthly $200M Unsecured Term Loan 1 199,362 — 7/27 SOFR + 1.05% 5.17 % At maturity Monthly $300M Unsecured Term Loan 1 297,869 — 1/28 SOFR + 1.05% 5.17 % At maturity Monthly Senior Notes due 2025 1 249,115 249,040 5/25 3.88 % 4.12 % At maturity Semi-annual Senior Notes due 2026 1 571,587 — 8/26 3.50 % 4.94 % At maturity Semi-annual Senior Notes due 2027 1 479,553 — 7/27 3.75 % 4.76 % At maturity Semi-annual Senior Notes due 2028 1 296,852 296,612 1/28 3.63 % 3.85 % At maturity Semi-annual Senior Notes due 2030 1 565,402 — 2/30 3.10 % 5.30 % At maturity Semi-annual Senior Notes due 2030 1 296,385 296,813 3/30 2.40 % 2.72 % At maturity Semi-annual Senior Notes due 2031 1 295,547 295,374 3/31 2.05 % 2.25 % At maturity Semi-annual Senior Notes due 2031 1 632,693 — 3/31 2.00 % 5.13 % At maturity Semi-annual Mortgage notes payable 2 84,247 104,650 8/23-12/26 3.31%-4.77% 3.42%-4.84% Monthly Monthly $ 5,351,827 $ 1,801,325 1 Balances are shown net of discounts and unamortized issuance costs. 2 Balances are shown net of discounts and unamortized issuance costs and include premiums. The Company’s various debt agreements contain certain representations, warranties, and financial and other covenants customary in such loan agreements. Among other things, these provisions require the Company to maintain certain financial ratios and impose certain limits on the Company’s ability to incur indebtedness and create liens or encumbrances. As of December 31, 2022, the Company was in compliance with its financial covenant provisions under its various debt instruments. Exchange Offer In connection with the Merger, the OP offered to exchange all validly tendered and accepted notes of each series previously issued by Legacy HR (the “Old HR Notes”) for (i) up to $250,000,000 of 3.875% Senior Notes due 2025 (the “2025 Notes”), (ii) up to $300,000,000 of 3.625% Senior Notes due 2028 (the “2028 Notes”), (iii) up to $300,000,000 of 2.400% Senior Notes due 2030 (the “2030 Notes”) and (iv) up to $300,000,000 of 2.050% Senior Notes due 2031 to be issued by the OP (the “2031 Notes” and, collectively, the “New HR Notes”) and solicited consents from holders of the Old HR Notes to amend the indenture governing the Old HR Notes to eliminate substantially all of the restrictive covenants in such indenture (the “Exchange Offers”). Legacy HTA guaranteed the New HR Notes pursuant to (i) a guarantee of the 2025 Notes, (ii) a guarantee of the 2028 Notes, (iii) a guarantee of the 2030 Notes, and (iv) a guarantee of the 2031 Notes, each dated July 22, 2022. Legacy HTA and the OP filed a registration statement on Form S-4 (File No. 333-265593) relating to the issuance of the New HR Notes with the Securities and Exchange Commission (the “SEC”) on June 14, 2022, which was declared effective by the SEC on June 28, 2022. The following sets forth the results of the Exchange Offers: Series of Old HR Notes Tenders and Consents Received as of the Expiration Date Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes 3.875 % Senior Notes due 2025 $235,016,000 94.01 % 3.625 % Senior Notes due 2028 $290,246,000 96.75 % 2.400 % Senior Notes due 2030 $297,507,000 99.17 % 2.050 % Senior Notes due 2031 $298,858,000 99.62 % Senior Notes Assumed with the Merger In connection with the Merger, the Company assumed senior notes ("Legacy Senior Notes") that were originated on various dates prior to the date of the Merger by the OP (formerly, Healthcare Trust of America Holdings, LP). These notes are all fully and unconditionally guaranteed by the Company and have semi-annual payment requirements. In addition, the Legacy Senior Notes carry customary restrictive financial covenants, including limitations on our ability to incur additional indebtedness and requirements to maintain a pool of unencumbered assets. In addition, the corresponding indentures provide for the ability to redeem the Legacy Senior Notes, subject to certain "make whole" call provisions. The Legacy Senior Notes assumed by the Company consist of the following: COUPON PRINCIPAL OUTSTANDING AS OF Dollars in thousands FACE VALUE 12/31/2022 12/31/2021 Senior Notes due 2026 3.50% $ 600,000 $ 600,000 $ — Senior Notes due 2027 3.75% 500,000 500,000 — Senior Notes due 2030 3.10% 650,000 650,000 — Senior Notes due 2031 2.00% 800,000 800,000 — $ 2,550,000 $ 2,550,000 $ — The following table reconciles the Company’s aggregate Senior notes principal balance with the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021 DECEMBER 31, Dollars in thousands 2022 2021 Senior notes principal balance $ 3,699,500 $ 1,150,000 Unaccreted discount (304,919) (4,730) Debt issuance costs (7,447) (7,431) Senior notes carrying amount $ 3,387,134 $ 1,137,839 Credit Facilities The Unsecured Credit Facility restructured the parties’ existing bank facilities and added additional borrowing capacities for the Company following the Merger. The OP is the borrower under the Unsecured Credit Facility (in such capacity, the “Borrower”). • Legacy HR’s existing $700.0 million revolving credit facility under the Amended and Restated Credit Agreement, dated as of May 31, 2019 (as amended, restated, replaced, supplemented, or otherwise modified from time to time prior to July 20, 2022, the “Existing HR Revolving Credit Agreement”), by and among Legacy HR, the lenders party thereto from time to time and their assignees, as lenders, and Wells Fargo Bank, National Association, as the administrative agent (the “WF Administrative Agent”), was terminated, all outstanding obligations in respect thereof were deemed paid in full and all commitments thereunder were permanently reduced to zero and terminated. • Legacy HR’s existing $200.0 million term loan facility and existing $150.0 million term loan facility under the Amended and Restated Term Loan Agreement, dated as of May 31, 2019 (as amended, restated, replaced, supplemented, or otherwise modified from time to time prior to July 20, 2022, the “Existing HR Term Loan Agreement”), by and among Legacy HR, the lenders party thereto from time to time and their assignees, as lenders, and the WF Administrative Agent, in each, case, were deemed continued and assumed by the Borrower under the Credit Facility, and the Existing HR Term Loan Agreement was terminated. ◦ The existing $200.0 million term loan facility was amended to: (a) conform to the terms of the Borrower’s other term loan facilities under the Credit Facility; (b) include two one-year extension options, resulting in a latest final maturity in May 2026; and (c) reprice to align with the pricing for the Borrower’s other term loan facilities under the Credit Facility; and ◦ The existing $150.0 million term loan facility was amended to conform to the terms of the Borrower’s other term loan facilities under the Credit Facility, and the existing maturity in June 2026 remains unchanged under the Credit Facility. • Legacy HTA’s and the OP’s existing $1.0 billion revolving credit facility was upsized to $1.5 billion (the “Revolver”) pursuant to the Credit Facility. The Revolver currently matures in October 2025, and the Credit Facility adds an additional one-year extension option for the Revolver, for a total of two one-year extension options. • Legacy HTA’s and the OP’s existing $300.0 million term loan facility was deemed continued pursuant to the Credit Facility and was amended to conform to the terms of the Borrower’s other term loan facilities under the Credit Facility. The existing maturity in October 2025 remains unchanged under the Credit Facility. • Legacy HTA’s and the OP’s existing $200.0 million term loan facility was deemed continued pursuant to the Credit Facility and was amended to (a) conform to the terms of the Borrower’s other term loan facilities under the Credit Facility; (b) extend the maturity from January 2024 to July 20, 2027; and (c) reprice to align with the pricing for the Borrower’s other term loan facilities under the Credit Facility. • The Credit Facility provides for a new $350.0 million delayed-draw term loan facility that is available to be drawn for 12 months after July 20, 2022 and has an initial maturity date of July 20, 2023, with two one-year extension options. As of December 31, 2022, the $350.0 million Credit Facility was drawn in full. The terms of any delayed draw term loans funded thereunder conform to the terms of the Borrower’s other term loan facilities under the Credit Facility, and the pricing for such delayed draw term loans aligns with the pricing for the Borrower’s other term loan facilities under the Credit Facility. • The Credit Facility provides for a new $300.0 million term loan facility that was funded on July 20, 2022 and has a maturity date of January 20, 2028, with no extension options. The terms of such term loan facility conform to the terms of the Borrower’s other term loan facilities under the Credit Facility, and the pricing for such term loan facility aligns with the pricing for the Borrower’s other term loan facilities under the Credit Facility. The following table reconciles the Company’s aggregate term loan principal balance with the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021. DECEMBER 31, Dollars in thousands 2022 2021 Term loan principal balances $ 1,500,000 $ 350,000 Debt issuance costs (4,554) (1,164) Term Loans carrying amount $ 1,495,446 $ 348,836 $1.125 billion Asset Sale Term Loan The Company completed its draw of the $1.125 billion asset sale term loan on July 19, 2022. The principal balance was fully repaid on December 30, 2022. Mortgage Notes Payable The following table reconciles the Company’s aggregate mortgage notes principal balance with the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021. DECEMBER 31, Dollars in thousands 2022 2021 Mortgage notes payable principal balance $ 84,122 $ 103,664 Unamortized premium 486 1,720 Unaccreted discount (38) (83) Debt issuance costs (323) (651) Mortgage notes payable carrying amount $ 84,247 $ 104,650 Mortgage Activity On February 18, 2022, the Company repaid in full a mortgage note payable bearing interest at a rate of 4.70% that encumbered a 56,762 square foot property in California. The aggregate payoff price of $12.6 million consisted of outstanding principal of $11.0 million and a "make-whole" amount of approximately $1.6 million. The unamortized premium of $0.8 million and the unamortized cost on this note of $0.1 million were written off upon payoff. On February 24, 2022, the Company repaid in full a mortgage note payable bearing interest at a rate of 6.17% that encumbered a 80,153 square foot property in Colorado, in conjunction with the disposition of the property. The aggregate payoff price of $6.4 million consisted of outstanding principal of $5.8 million and a "make-whole" amount of approximately $0.6 million. The unamortized premium of $0.1 million was written off upon payoff. The following table details the Company’s mortgage notes payable, with related collateral. ORIGINAL BALANCE EFFECTIVE INTEREST RATE 10 MATURITY COLLATERAL 11 PRINCIPAL AND INTEREST PAYMENTS 9 INVESTMENT IN COLLATERAL BALANCE Dollars in millions 2022 2022 2021 Commercial Bank 1 15.0 5.25 % 4/27 MOB Monthly/20-yr amort. — — 6.1 Life Insurance Co. 2 11.0 3.64 % 5/27 MOB Monthly/10-yr amort. — — 11.6 Life Insurance Co. 3 12.3 3.86 % 8/23 MOB Monthly/7-yr amort. 25.9 10.0 10.3 Life Insurance Co. 4 9.0 4.84 % 12/23 MOB,OFC Monthly/10-yr amort. 24.5 6.8 7.1 Life Insurance Co. 5 13.3 4.13 % 1/24 MOB Monthly/10-yr amort. 22.5 11.7 12.0 Life Insurance Co. 6 6.8 3.96 % 2/24 MOB Monthly/7-yr amort. 14.7 5.8 6.0 Financial Services 7 9.7 4.32 % 9/24 MOB Monthly/10-yr amort. 16.6 7.5 7.8 Life Insurance Co. 8 16.5 3.43 % 12/25 MOB,OFC Monthly/7-yr amort. 39.1 16.2 16.7 Financial Services 11.5 3.71 % 1/26 MOB Monthly/10-yr amort. 40.5 8.3 8.7 Life Insurance Co. 19.2 4.08 % 12/26 MOB Monthly/10-yr amort. 44.5 17.9 18.4 $ 228.3 $ 84.2 $ 104.7 1 The Company repaid this loan at the time of disposal in February 2022. 2 The Company repaid this loan in February 2022. The Company's unencumbered gross investment was $20.6 million at December 31, 2022. 3 The unaccreted portion of the $0.2 million discount recorded on this note upon acquisition is included in the balance above. 4 The unamortized portion of the $0.1 million premium recorded on this note upon acquisition is included in the balance above. 5 The unamortized portion of the $0.8 million premium recorded on this note upon acquisition is included in the balance above. 6 The unamortized portion of the $0.2 million premium recorded on this note upon acquisition is included in the balance above. 7 The unamortized portion of the $0.1 million premium recorded on this note upon acquisition is included in the balance above. 8 The unamortized portion of the $0.7 million premium recorded on this note upon acquisition is included in the balance above. 9 Payable in monthly installments of principal and interest with the final payment due at maturity (unless otherwise noted). 10 The contractual interest rates for the eight outstanding mortgage notes ranged from 3.3% to 4.8% as of December 31, 2022. 11 MOB-Medical office building; OFC-Office Other Long-Term Debt Information Future maturities of the Company’s notes and bonds payable as of December 31, 2022 were as follows: Dollars in thousands PRINCIPAL MATURITIES NET ACCRETION/ AMORTIZATION 1 DEBT ISSUANCE COSTS 2 NOTES AND % 2023 $ 368,880 $ (38,805) $ (3,258) $ 326,817 6.1 % 2024 225,352 (40,922) (2,211) 182,219 3.4 % 2025 951,250 (43,193) (1,851) 906,206 16.9 % 2026 773,640 (41,798) (1,636) 730,206 13.6 % 2027 700,000 (36,192) (1,518) 662,290 12.4 % 2028 and thereafter 2,649,500 (103,561) (1,850) 2,544,089 47.6 % $ 5,668,622 $ (304,471) $ (12,324) $ 5,351,827 100.0 % 1 Includes discount accretion and premium amortization related to the Company’s Senior Notes and six mortgage notes payable. 2 Excludes approximately $6.0 million in debt issuance costs related to the Company's Unsecured Credit Facility included in other assets, net. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2022, 2021 and 2020, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During 2020, the Company entered into two treasury rate locks totaling $75.0 million and $40.0 million, respectively. The treasury rate locks were settled for an aggregate amount of $4.3 million concurrent with the Company's issuance of its Senior Notes due 2030. The settlement will be amortized over the 10-year term of the notes. As of December 31, 2022, the Company had interest rate derivatives that were designated as cash flow hedges of interest rate risk. The table below presents the notional value and weighted average rates of the Company's derivative financial instruments as of December 31, 2022 and 2021: NOTIONAL VALUE AS OF WEIGHTED AVERAGE RATE EXPIRATION DATE DECEMBER 31, 2022 January 31, 2023 $ 300,000 1.42 % January 15, 2024 200,000 1.21 % May 1, 2026 100,000 2.15 % December 1, 2026 150,000 3.84 % June 1, 2027 150,000 4.13 % December 1, 2027 250,000 3.79 % $ 1,150,000 2.63 % On February 16, 2023, the Company entered into a swap transaction with a notional amount of $50.0 million and a fixed rate of 4.16%. The swap agreement has an effective date of March 1, 2023 and a termination date of June 1, 2026. Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2022 and 2021. AS OF DECEMBER 31, 2022 AS OF DECEMBER 31, 2021 Dollars in thousands BALANCE SHEET LOCATION FAIR BALANCE SHEET LOCATION FAIR Derivatives designated as hedging instruments Interest rate swaps 2017 Other liabilities $ (420) Interest rate swaps 2018 Other liabilities (976) Interest rate swaps 2019 Other Assets $ 13,603 Other liabilities (4,521) Interest rate swaps 2022 Other Assets 909 — Interest rate swaps 2022 Other Liabilities (4,269) — Total derivatives designated as hedging instruments $ 10,243 $ (5,917) Tabular Disclosure of the Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below presents the effect of cash flow hedge accounting on Accumulated other comprehensive income (loss) as of December 31, 2022 related to the Company's outstanding interest rate swaps. AMOUNT OF GAIN/(LOSS) RECOGNIZED IN OCI AMOUNT OF (GAIN)/LOSS RECLASSIFIED Dollars in thousands 2022 2022 2021 Interest rate swaps 2017 $ 302 Interest expense $ 118 $ 527 Interest rate swaps 2018 616 Interest expense 361 1,194 Interest rate swaps 2019 12,964 Interest expense 563 2,157 Interest rate swaps 2022 (3,252) Interest expense (109) — Settled treasury hedges — Interest expense 426 426 Settled interest rate swaps — Interest expense 168 168 $ 10,630 Total interest expense $ 1,527 $ 4,472 The Company estimates that an additional $10.3 million will be reclassified from accumulated other comprehensive loss as a net decrease to interest expense over the next 12 months. Tabular Disclosure Offsetting Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of December 31, 2022. The net amounts of derivative liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative liabilities are presented on the Company's Consolidated Balance Sheets. Offsetting of Derivative Assets GROSS AMOUNTS GROSS AMOUNTS OFFSET NET AMOUNTS OF ASSETS GROSS AMOUNTS NOT OFFSET FINANCIAL INSTRUMENTS CASH NET Derivatives $ 14,512 $ — $ 14,512 $ (4,269) $ — $ 10,243 Offsetting of Derivative Liabilities GROSS AMOUNTS GROSS AMOUNTS OFFSET NET AMOUNTS OF LIABILITIES GROSS AMOUNTS NOT OFFSET FINANCIAL INSTRUMENTS CASH NET Derivatives $ (4,269) $ — $ (4,269) $ 4,269 $ — $ — Credit-risk-related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. As of December 31, 2022, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $2.1 million. As of December 31, 2022, the Company has not posted any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of $2.1 million. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock The Company had no preferred shares outstanding and had common shares outstanding for the three years ended December 31, 2022, 2021, and 2020 as follows: YEAR ENDED DECEMBER 31, 2022 2021 2020 Balance, beginning of year 150,457,433 139,487,375 134,706,154 Issuance of common stock 229,618,304 10,899,301 4,637,445 Non-vested share-based awards, net of withheld shares and forfeitures 514,157 70,757 143,776 Balance, end of year 380,589,894 150,457,433 139,487,375 At-The-Market Equity Offering Program The Company has in place an ATM equity offering program to sell shares of the Company’s common stock from time to time in at-the-market sales transactions. The Company has equity distribution agreements with various sales agents with respect to the ATM offering program of common stock with an aggregate sales amount of up to $750.0 million. As of December 31, 2022, $750.0 million remained available for issuance under the current ATM offering program. The Company's previous ATM agreements involving Legacy HR are no longer in effect following the Merger on July 20, 2022. The following table details the Company's at-the-market activity, including any forward transactions: WEIGHTED AVERAGE SALE PRICE SHARES PRICED SHARES SETTLED SHARES REMAINING TO BE SETTLED NET PROCEEDS 2021 $ 31.09 9,763,680 10,859,539 727,400 $ 330.3 2022 $ 31.73 — 727,400 — $ 22.3 Dividends Declared During 2022, the Company declared and paid common stock dividends aggregating $1.24 per share ($0.31 per share per quarter). On February 24, 2023, the Company declared a quarterly common stock dividend in the amount of $0.31 per share payable on March 21, 2023 to stockholders of record on March 7, 2023. Authorization to Repurchase Common Stock On August 2, 2022, the Company’s Board of Directors authorized the repurchase of up to $500.0 million of outstanding shares of the Company’s common stock either in the open market or through privately negotiated transactions, subject to market conditions, regulatory constraints, and other customary conditions. The Company is not obligated under this authorization to repurchase any specific number of shares. This authorization supersedes all previous stock repurchase authorizations. As of the date of these Consolidated Financial Statements, the Company has not repurchased any shares of its common stock under this authorization. Accumulated Other Comprehensive Income During the year ended December 31, 2020, the Company entered into two treasury rate locks that were settled for an aggregate amount of $4.3 million concurrent with the Company’s issuance of its Senior Notes due 2030. This amount will be reclassified out of accumulated other comprehensive over the 10-year term of the notes. The Company continues to amortize the 2015 settlement of forward-starting interest rate swaps. This amount will be reclassified out of accumulated other comprehensive income impacting net income over the 10-year term of the associated senior note issuance. See Note 11 for more information regarding the Company's derivative instruments. The following table represents the changes in accumulated other comprehensive income (loss) during the years ended December 31, 2022 and 2021: INTEREST RATE SWAPS Dollars in thousands 2022 2021 Beginning balance $ (9,981) $ (17,832) Other comprehensive loss before reclassifications 1,531 4,472 Amounts reclassified from accumulated other comprehensive income 10,590 3,379 Net current-period other comprehensive income 12,121 7,851 Ending balance $ 2,140 $ (9,981) The following table represents the details regarding the reclassifications from accumulated other comprehensive income (loss) during the year ended December 31, 2022 (dollars in thousands): DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE AMOUNT RECLASSIFIED AFFECTED LINE ITEM Amounts reclassified from accumulated other comprehensive income (loss) related to settled interest rate swaps $ 594 Interest Expense Amounts reclassified from accumulated other comprehensive income (loss) related to current interest rate swaps 937 Interest Expense $ 1,531 |
Stock and Other Incentive Plans
Stock and Other Incentive Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock and Other Incentive Plans | Stock and Other Incentive Plans Stock Incentive Plan The Legacy HR stockholders approved the Legacy HR Incentive Plan, which authorized the Company to issue 3,500,000 shares of common stock to its employees and directors. The Legacy HR Incentive Plan was replaced as of the merger date by the Incentive Plan. As of December 31, 2022 and 2021, the Company had issued a total of 3,417,696 and 2,386,822 restricted shares under the Incentive Plan and the Legacy HR Incentive Plan, respectively. Unvested awards under the Legacy HR Incentive Plan were assumed according to their existing terms by the Company in connection with the Merger. Non-vested shares issued under the Legacy HR Incentive Plan are generally subject to fixed vesting periods varying from three $13.9 million , $10.4 million and $9.7 million, respectively. The following table represents expected amortization of the Company's non-vested shares issued as of December 31, 2022: Dollars in millions FUTURE AMORTIZATION 2023 $ 12.0 2024 10.0 2025 8.3 2026 5.5 2027 0.4 2028 and thereafter 0.1 Total $ 36.3 Executive Incentive Plan The Compensation Committee has adopted an executive incentive plan pursuant to the Incentive Plan (the "Executive Incentive Plan") to provide specific award criteria with respect to incentive awards made under the Incentive Plan subject to the discretion of the Compensation Committee. Under the terms of the Executive Incentive Plan, the Company's named executive officers, and certain other members of senior management, may earn incentive awards in the form of cash, non-vested stock, restricted stock units ("RSUs"), and units in the OP ("OP Units"). For 2022, 2021 and 2020, compensation expense, included in general and administrative expense, resulting from the amortization of the Executive Incentive Plan non-vested share and RSU grants to officers was approximately $9.8 million , $6.6 million, and $5.9 million, respectively. Details of equity awards that have been issued under this plan are as follows: • On January 3, 2022, the Company granted non-vested stock awards to its named executive officers, and certain other members of senior management and employees, with a grant date fair value of $7.9 million, which consisted of an aggregate of 249,689 non-vested shares with a five-year vesting period, which will result in an annual compensation expense of $1.6 million for each of 2023, 2024, 2025 and 2026. • On January 3, 2022, the Company granted RSUs to its named executive officers, and certain other members of senior management and officers, with a grant date fair value of $9.7 million, which consisted of an aggregate 294,932 RSUs with a three-year performance period and a total five-year vesting period, which will result in an annual compensation expense of $1.9 million for each of 2023, 2024, 2025, and 2026. • On February 22, 2022, the Company granted a performance-based award to its named executive officers, senior vice presidents, and first vice presidents with a grant date fair value of $3.9 million, which consisted of an aggregate of 126,930 non-vested shares with a five-year vesting period, which will result in an annual compensation expense of $0.8 million for 2023, 2024, 2025 and 2026, and $0.1 million for 2027. • On December 12, 2022, the Company granted non-vested stock awards to its named executive officers in view of efforts with respect to the merger transaction and integration of the two companies, with a grant date fair value of $2.7 million, which consisted of an aggregate of 140,809 non-vested shares with a three-year vesting period, which will result in an compensation expense of $0.9 million for 2023, 2024 and 2025. • On January 4, 2023, the Company granted non-vested stock awards to its named executive officers, senior vice presidents, and first vice presidents with a grant date fair value of $4.1 million, which consisted of an aggregate of 205,264 shares with a ratable five-year vesting period, which will result in an annual compensation expense of $0.8 million for 2023, 2024, 2025, 2026 and 2027. • On January 4, 2023, the Company granted 627,547 in OP units to named executive officers with a three-year performance period and ratable vestings of 50% in year four and 50% in year five. The expense will be recognized on the straight-line basis over the five-year vesting period. • On January 4, 2023, the Company granted RSUs to certain of its non-executive senior officers consisting of an aggregate of 165,174 RSUs with ratable vestings of 50% in year four and 50% in year five. The expense will be recognized on the straight-line basis over the five-year vesting period Approximately 43% of the RSUs vest based on two market performance conditions. Relative and absolute total shareholder return ("TSR") awards containing these market performance conditions were valued using independent specialists. The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair values of $30.56 for the absolute TSR component and $41.30 for the relative TSR component for the January 2022 grant using the following assumptions: Volatility 30.0 % Dividend Assumption Accrued Expected term in years 3 years Risk-free rate 1.02 % Stock price (per share) $31.68 The remaining 57% of the RSUs vest upon certain operating performance conditions. With respect to the operating performance conditions of the January grant, the grant date fair value was $31.68 based on the Company's share price on the date of grant. The combined weighted average grant date fair value of the January 2022 RSUs was $33.04 per share. Long-Term Incentive Program In the first quarter of 2022, the Company granted a performance-based award to certain non-executive officers under the Long-term Incentive Program adopted under the Legacy HR Incentive Plan (the "LTIP") totaling approximately $0.6 million, which was granted in the form of 19,204 non-vested shares. In the first quarter of 2021, the Company granted a performance-based award to certain non-executive officers under the LTIP totaling approximately $0.6 million, which was granted in the form of 19,679 non-vested shares. The shares have vesting periods ranging from one For 2022, 2021 and 2020, compensation expense resulting from the amortization of non-vested share grants to officers was approximately $0.9 million , $1.0 million, and $1.1 million, respectively. Salary Deferral Plan The Company's salary deferral plan allows certain of its officers to elect to defer up to 50% of their base salary in the form of non-vested shares subject to long-term vesting. The number of shares will be increased through a Company match depending on the length of the vesting period selected by the officer. The officer's vesting period choices are: three years for a 30% match; five years for a 50% match; and eight years for a 100% match. During 2022, 2021 and 2020, the Company issued 17,381 shares, 21,396 shares and 17,570 shares, respectively, to its officers through the salary deferral plan. For 2022, 2021 and 2020, compensation expense resulting from the amortization of non-vested share grants to officers was approximately $0.9 million for each year , respectively. Non-employee Directors Incentive Plan The Company issues non-vested shares to its non-employee directors under the Incentive Plan. The directors’ shares have a one-year vesting period and are subject to forfeiture prior to such date upon termination of the director’s service, at no cost to the Company. For each of the years 2022, 2021 and 2020, compensation expense resulting from the amortization of non-vested share grants to directors was approximately $1.5 million , $1.2 million, and $1.0 million, respectively. • On May 13, 2022, the Company granted a non-vested stock award to eight of its directors, with a grant date fair value of $0.8 million, which consisted of an aggregate of 26,840 non-vested shares, with a one-year vesting period. • On August 2, 2022, the Company granted non-vested stock awards to twelve of its directors, with a grant date fair value of $1.8 million, which consisted of an aggregate of 70,816 non-vested shares, with a vesting period between one Other Grants The Company issued three one-time non-vested share grants related to executive management transition in 2016. For 2022, 2021 and 2020, compensation expense resulting from the amortization of these non-vested share grants to officers was approximately $0.8 million , $0.7 million, and $0.8 million, respectively. In 2022, the Company made discretionary awards of 5,806 shares of non-vested stock to three employees. A summary of the activity under the Incentive Plans and related information for the three years in the period ended December 31, 2022 follows: YEAR ENDED DECEMBER 31, Dollars in thousands, except per share data 2022 2021 2020 Share-based awards, beginning of year 1,562,028 1,766,061 1,754,066 Granted 657,475 203,701 197,999 Vested (418,949) (404,777) (186,004) Forfeited (5,426) (2,957) — Share-based awards, end of year 1,795,128 1,562,028 1,766,061 Weighted-average grant date fair value of Share-based awards, beginning of year $ 31.10 $ 30.51 $ 29.82 Share-based awards granted during the year $ 28.11 $ 30.86 $ 30.33 Share-based awards vested during the year $ 31.52 $ 28.38 $ 23.82 Stock-based awards forfeited during the year $ 31.48 $ 33.04 $ — Share-based awards, end of year $ 29.91 $ 31.10 $ 30.51 Grant date fair value of shares granted during the year $ 18,480 $ 6,286 $ 6,006 The vesting periods for the non-vested shares granted during 2022 ranged from one eight years with a weighted-average amortization period remaining as of December 31, 2022 of approximately 4.3 years . During 2022, 2021 and 2020, the Company withheld 137,892 s hares, 129,987 shares and 54,223 shares, respectively, of common stock from its officers to pay estimated withholding taxes related to the vesting of shares. 401(k) Plan The Company maintains a 401(k) plan that allows eligible employees to defer salary, subject to certain limitations imposed by the Internal Revenue Code. The Company provides a matching contribution of up to 3% of each eligible employee’s salary, subject to certain limitations. The Company’s matching contributions were approximately $1.2 million for the year ended December 31, 2022, $0.7 million for 2021 and $0.6 million for 2020. Employee Stock Purchase Plan The outstanding options relate only to the Legacy HR Employee Stock Purchase Plan, which was terminated in November 2022. No new options will be issued under the Legacy HR Employee Stock Purchase Plan and existing options will expire in March 2024. During the years ended December 31, 2022, 2021 and 2020, the Company recognized in general and administrative expenses approximately $0.4 million, $0.4 million, and $0.3 million, respectively, of compensation expense related to the annual grant of options to its employees to purchase shares under the Legacy HR Employee Stock Purchase Plan. Cash received from employees upon exercising options under the Legacy HR Employee Stock Purchase Plan was approximately $0.4 million for the year ended December 31, 2022, $0.8 million for the year ended December 31, 2021, and $0.7 million for the year ended December 31, 2020. A summary of the Legacy HR Employee Stock Purchase Plan activity and related information for the three years in the period ended December 31, 2022 is as follows: YEAR ENDED DECEMBER 31, Dollars in thousands, except per share data 2022 2021 2020 Options outstanding, beginning of year 348,514 341,647 332,659 Granted 255,960 253,200 212,716 Exercised (20,246) (30,281) (21,713) Forfeited (102,619) (71,630) (42,221) Expired (140,633) (144,422) (139,794) Options outstanding and exercisable, end of year 340,976 348,514 341,647 Weighted-average exercise price of Options outstanding, beginning of year $ 25.38 $ 24.70 $ 25.59 Options granted during the year $ 26.89 $ 25.16 $ 28.36 Options exercised during the year $ 20.97 $ 25.03 $ 24.10 Options forfeited during the year $ 21.88 $ 25.45 $ 25.29 Options expired during the year $ 23.36 $ 24.17 $ 23.74 Options outstanding, end of year $ 16.38 $ 25.38 $ 24.70 Weighted-average fair value of options granted during the year (calculated as of the grant date) $ 9.91 $ 9.05 $ 8.06 Intrinsic value of options exercised during the year $ 75 $ 165 $ 101 Intrinsic value of options outstanding and exercisable (calculated as of December 31) $ 985 $ 1,997 $ 1,673 Exercise prices of options outstanding (calculated as of December 31) $ 16.38 $ 25.91 $ 24.70 Weighted-average contractual life of outstanding options (calculated as of December 31, in years) 0.8 0.8 0.8 The fair values for these options were estimated at the date of grant using a Black-Scholes options pricing model with the weighted-average assumptions for the options granted during the period noted in the following table. The risk-free interest rate was based on the U.S. Treasury constant maturity-nominal two-year rate whose maturity is nearest to the date of the expiration of the latest option outstanding and exercisable; the expected dividend yield was based on the expected dividends of the current year as a percentage of the average stock price of the prior year; the expected life of each option was estimated using the historical exercise behavior of employees; expected volatility was based on historical volatility of the Company’s common stock; and expected forfeitures were based on historical forfeiture rates within the look-back period. 2022 2021 2020 Risk-free interest rates 0.73 % 0.13 % 1.58 % Expected dividend yields 3.97 % 4.11 % 3.69 % Expected life (in years) 1.44 1.43 1.43 Expected volatility 49.0 % 48.2 % 28.6 % Expected forfeiture rates 85 % 85 % 85 % |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company uses the two-class method of computing net earnings per common shares. The Company's non-vested share-based awards are considered participating securities pursuant to the two-class method. The Company used the treasury method to determine the dilution from the forward equity agreements during the period of time prior to settlement. The number of weighted-average shares outstanding used in the computation of earnings per common share for the year ended December 31, 2021 included the effect from the assumed issuance of 0.7 million shares of common stock pursuant to the settlement of the forward equity agreements at the contractual price, less the assumed repurchase of the common stock at the average market price using the proceeds of approximately $23.1 million, adjusted for costs to borrow. For the year ended December 31, 2021, 1,682 weighted-average incremental shares of common stock were excluded from the computation of weighted-average common shares outstanding - diluted, as the impact was anti-dilutive. As of and for the year ended December 31, 2022, these forward equity agreements settled and consequently, the Company did not have any remaining shares subject to unsettled forward sale agreements. The table below sets forth the computation of basic and diluted earnings per common share for the three years in the period ended December 31, 2022. YEAR ENDED DECEMBER 31, Dollars in thousands, except per share data 2022 2021 2020 Weighted average common shares outstanding Weighted average common shares outstanding 254,296,810 144,411,835 135,666,503 Non-vested shares (1,940,607) (1,774,669) (1,736,358) Weighted average common shares outstanding - basic 252,356,203 142,637,166 133,930,145 Weighted average common shares outstanding - basic 252,356,203 142,637,166 133,930,145 Dilutive effect of forward equity shares — — 6,283 Dilutive effect of OP Units 1,451,599 — — Dilutive effect of employee stock purchase plan 65,519 73,062 70,512 Weighted average common shares outstanding - diluted 253,873,321 142,710,228 134,006,940 Net income attributable to common stockholders $ 40,897 $ 66,659 $ 72,195 Dividends paid on nonvested share-based awards (2,437) (2,154) (2,083) Net income applicable to common stockholders - basic $ 38,460 $ 64,505 $ 70,112 Net income attributable to OP Units 81 — — Net income applicable to common stockholders - diluted $ 38,541 $ 64,505 $ 70,112 Basic earnings per common share - net income $ 0.15 $ 0.45 $ 0.52 Diluted earnings per common share - net income $ 0.15 $ 0.45 $ 0.52 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Re/development Activity During the year ended December 31, 2022, the Company funded $60.8 million toward development and redevelopment of properties. Tenant Improvements The Company may provide a tenant improvement allowance in new or renewal leases for the purpose of refurbishing or renovating tenant space. As of December 31, 2022, the Company had commitments of approximately $195.1 million that are expected to be spent on tenant improvements throughout the portfolio, excluding development properties currently under construction. Land Held for Development Land held for development includes parcels of land owned by the Company, upon which the Company intends to develop and own outpatient healthcare facilities. The Company's land held for development included twenty parcels as of December 31, 2022 and seven parcels as of December 31, 2021. The Company’s investments in land held for development totaled approximately $74.3 million as of December 31, 2022 and $24.8 million as of December 31, 2021. The current land held for development is located adjacent to certain of the Company's existing medical office buildings in New York, Massachusetts, California, Connecticut, Florida, North Carolina, Texas, Tennessee, Georgia, Washington, and Colorado. Security Deposits and Letters of Credit As of December 31, 2022, the Company held approximately $32.1 million in letters of credit and security deposits for the benefit of the Company in the event the obligated tenant fails to perform under the terms of its respective lease. Generally, the Company may, at its discretion and upon notification to the tenant, draw upon these instruments if there are any defaults under the leases. |
Other Data
Other Data | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Other Data | Other Data Taxable Income (unaudited) The Company has elected to be taxed as a REIT, as defined under the Internal Revenue Code. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its taxable income to its stockholders. As a REIT, the Company generally will not be subject to federal income tax on taxable income it distributes currently to its stockholders. Accordingly, no provision for federal income taxes has been made in the accompanying Consolidated Financial Statements. If the Company fails to qualify as a REIT for any taxable year, then it will be subject to federal income taxes at regular corporate rates, including any applicable alternative minimum tax, and may not be able to qualify as a REIT for four subsequent taxable years. Even if the Company qualifies as a REIT, it may be subject to certain state and local taxes on its income and property and to federal income and excise tax on its undistributed taxable income. Earnings and profits (as defined under the Internal Revenue Code), the current and accumulated amounts of which determine the taxability of distributions to stockholders, vary from net income attributable to common stockholders and taxable income because of different depreciation recovery periods, depreciation methods, and other items. While Legacy HR was considered the accounting acquirer in the Merger for GAAP purposes, Legacy HR’s separate tax existence ceased with the Merger and Legacy HTA continues as the tax successor. On a tax basis, the Company’s gross real estate assets totaled approximately $13.0 billion as of December 31, 2022. As of December 31, 2021 and 2020 gross real estate assets on a tax basis were $5.0 billion and $4.7 billion for Legacy HR and $8.2 billion and $7.9 billion for Legacy HTA, respectively. Characterization of Distributions (unaudited) Distributions in excess of earnings and profits generally constitute a return of capital. The following table gives the characterization of the distributions on the Company’s common stock for the three years ended December 31, 2022. For the three years ended December 31, 2022, there were no preferred shares outstanding. As such, no dividends were distributed related to preferred shares for those periods. YEAR ENDED DECEMBER 31, 2022 2021 2020 PER SHARE PER SHARE PER SHARE Tax Treatment of Dividends Pre-Merger Healthcare Trust of America Ordinary income 1 $ 0.5862 $ 0.7920 $ 0.6976 Return of capital 4.0162 0.4930 0.5582 Capital gain 1.2216 — 0.0092 Common stock distributions $ 5.8240 $ 1.2850 $ 1.2650 Tax Treatment of Dividends Pre-Merger Healthcare Realty Ordinary income 1 $ 0.2655 $ 0.7500 $ 0.7738 Return of capital 0.5555 0.3600 0.1084 Capital gain — 0.0964 0.3178 Common stock distributions $ 0.8210 $ 1.2064 $ 1.2000 Tax Treatment of Dividends Post-Merger Healthcare Realty Ordinary income 1 $ 0.0422 $ — $ — Return of capital 0.2889 — — Capital gain 0.0879 — — Common stock distributions $ 0.4190 $ — $ — 1 Reporting year ordinary income is also Code Section 199A eligible per the The Tax Cut and Jobs Act of 2017. State Income Taxes The Company must pay certain state income taxes, which are typically included in general and administrative expense on the Company’s Consolidated Statements of Income. The State of Texas gross margins tax on gross receipts from operations is disclosed in the table below as an income tax because it is considered such by the Securities and Exchange Commission. State income tax expense and state income tax payments for the three years ended December 31, 2022 are detailed in the table below: YEAR ENDED DECEMBER 31, Dollars in thousands 2022 2021 2020 State income tax expense Texas gross margins tax $ 1,693 $ 564 $ 546 Other 151 8 8 Total state income tax expense $ 1,844 $ 572 $ 554 State income tax payments, net of refunds and collections $ 1,834 $ 560 $ 557 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practical to estimate that value. • Cash, cash equivalents and restricted cash - The carrying amount approximates fair value. • Borrowings under the Unsecured Credit Facility, Unsecured Term Loan due 2024 and Unsecured Term Loan due 2026 - The carrying amount approximates fair value because the borrowings are based on variable market interest rates. • Senior unsecured notes payable - The fair value of notes and bonds payable is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements. • Mortgage notes payable - The fair value is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements. • Interest rate swap agreements - Interest rate swap agreements are recorded in other assets on the Company's Consolidated Balance Sheets at fair value. Fair value, using level 2 inputs, is estimated by utilizing pricing models that consider forward yield curves and discount rates. The table below details the fair value and carrying values for our other financial instruments as of December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE Notes and bonds payable 1, 2 $ 5,351.8 $ 5,149.6 $ 1,801.3 $ 1,797.4 Real estate notes receivable 1 $ 99.6 $ 99.6 $ — $ — 1 Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets. 2 Fair value for senior notes includes accrued interest as of December 31, 2022. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party TransactionsIn the ordinary course of conducting its business, the Company enters into agreements with affiliates in relation to the management and leasing of its real estate assets, including real estate assets owned through joint ventures. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts for the years ended December 31, 2022, 2021 and 2020 Dollars in thousands ADDITIONS AND DEDUCTIONS DESCRIPTION BALANCE CHARGED/(CREDITED) TO COSTS AND EXPENSES CHARGED UNCOLLECTIBLE ACCOUNTS WRITTEN-OFF BALANCE 2022 Accounts receivable allowance $ 654 $ 3,306 $ — $ 6 $ 3,954 2021 Accounts receivable allowance $ 604 $ 72 $ — $ 22 $ 654 2020 Accounts receivable allowance $ 418 $ 207 $ — $ 21 $ 604 |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Real Estate and Accumulated Depreciation | Schedule III – Real Estate and Accumulated Depreciation as of December 31, 2022 Dollars in thousands LAND 1 BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 MARKET NUMBER OF PROP. INITIAL INVESTMENT COST CAPITALIZED subsequent to acquisition TOTAL INITIAL INVESTMENT COST CAPITALIZED subsequent to acquisition TOTAL PERSONAL PROPERTY 2, 3, 5 1, 3 ACCUMULATED DEPRECIATION 4 ENCUMBRANCES 5 DATE CONST. Dallas, TX 45 $ 95,647 $ 1,063 $ 96,710 $ 1,081,969 $ 129,495 $ 1,211,464 $ 551 $ 1,308,725 $ 202,031 $ — 2003-2022 1974-2021 Seattle, WA 29 59,412 4,883 64,295 558,280 78,330 636,610 726 701,631 164,423 — 2008-2022 1974-2018 Los Angeles, CA 23 95,360 3,164 98,524 436,629 55,941 492,570 453 591,547 129,663 38,373 1993-2022 1959-2018 Boston, MA 18 128,904 — 128,904 456,963 2,173 459,136 — 588,040 13,513 — 2022 1860-2019 Charlotte, NC 32 35,366 36 35,402 454,299 25,616 479,915 105 515,422 95,363 — 2008-2022 1961-2018 Houston, TX 34 82,539 2,850 85,389 669,553 27,966 697,519 57 782,965 63,486 — 1993-2022 1974-2018 Miami, FL 23 72,304 60 72,364 429,781 17,413 447,194 105 519,663 52,920 — 1994-2022 1954-2021 Atlanta, GA 28 45,220 4,159 49,379 463,963 9,519 473,482 95 522,956 63,773 15,778 2017-2022 1960-2014 Tampa, FL 20 30,790 743 31,533 419,354 (5,061) 414,293 33 445,859 18,991 — 1994-2022 1954-2015 Denver, CO 33 70,478 6,220 76,698 491,881 51,208 543,089 609 620,396 65,123 6,818 2010-2022 1942-2020 Raleigh, NC 27 52,954 3,666 56,620 394,574 6,231 400,805 9 457,434 15,566 — 2019-2022 1977-2020 Phoenix, AZ 35 20,257 5 20,262 448,657 18,836 467,493 425 488,180 30,281 — 2007-2022 1971-2006 Chicago, IL 7 32,374 — 32,374 271,285 15,995 287,280 81 319,735 28,243 — 2004-2022 1970-2017 Indianapolis, IN 36 52,180 — 52,180 292,372 5,437 297,809 13 350,002 19,705 — 2019-2022 1988-2013 Hartford, CT 30 43,326 — 43,326 234,702 1,150 235,852 — 279,178 8,015 — 2022 1955-2017 Nashville, TN 12 41,291 2,057 43,348 272,122 84,395 356,517 1,424 401,289 92,720 — 2004-2022 1976-2021 New York, NY 14 64,402 — 64,402 192,029 2,220 194,249 — 258,651 4,771 — 2022 1920-2014 Austin, TX 13 25,718 1,346 27,064 261,585 28,675 290,260 142 317,466 40,363 — 2007-2022 1972-2015 Orlando, FL 8 20,698 10 20,708 198,719 3,556 202,275 1 222,984 11,654 — 1998-2022 1988-2009 Memphis, TN 11 12,811 1,090 13,901 118,426 70,325 188,751 317 202,969 60,624 — 1999-2022 1982-2021 Other (51 markets) 210 315,986 10,276 326,262 3,324,552 205,043 3,529,595 1,223 3,857,080 457,572 23,728 1993-2022 Total real estate 688 1,398,017 41,628 1,439,645 11,471,695 834,463 12,306,158 6,369 13,752,172 1,638,800 84,697 Land held for develop. — 74,265 — 74,265 — — — — 74,265 1,183 — Construction in Progress — — — — 35,560 — 35,560 — 35,560 — — Corporate property — 1,853 — 1,853 1,787 1,240 3,027 5,538 10,418 5,288 — Financing lease right-of-use assets — — — — — — — — 83,824 — — Investment in financing receivables, net — — — — — — — — 120,236 — — Total properties 688 1,474,135 $ 41,628 $ 1,515,763 $ 11,509,042 $ 835,703 $ 12,344,745 $ 11,907 $ 14,076,475 $ 1,645,271 $ 84,697 1 Includes one asset held for sale at 12/31/22 of approximately $18.9 million. 2 Total properties as of December 31, 2022 have an estimated aggregate total cost of $13.0 billion for federal income tax purposes. 3 Depreciation is provided for on a straight-line basis on buildings and improvements over 3.0 to 49.0 years, lease intangibles over 1.2 to 99.0 years, personal property over 3.0 to 20.0 years, and land improvements over 2.0 to 39.0 years. 4 Includes unamortized premium of $0.5 million and unaccreted discount of $38 thousand and debt issuance costs of $0.3 million as of December 31, 2022. 5 Includes merger of Healthcare Trust of America, Inc. buildings, acquired in 2022. 6 Rollforward of Total Property and Accumulated Depreciation, including assets held for sale, for the year ended December 31, 2022, 2021 and 2020 follows: YEAR ENDED DEC. 31, 2022 YEAR ENDED DEC. 31, 2021 YEAR ENDED DEC. 31, 2020 Dollars in thousands TOTAL PROPERTY ACCUMULATED DEPRECIATION TOTAL PROPERTY ACCUMULATED DEPRECIATION TOTAL PROPERTY ACCUMULATED DEPRECIATION Beginning balance $ 5,104,942 $ 1,338,743 $ 4,670,226 $ 1,249,679 $ 4,359,993 $ 1,121,102 Additions during the period Real estate acquired 9,780,070 241,285 374,912 7,668 430,205 8,313 Other improvements 219,783 205,703 103,035 191,875 80,462 178,636 Land held for development 49,416 — 2,021 — 2,579 282 Construction in progress 31,586 — 3,974 — — — Investment in financing receivable, net (66,509) — 186,745 — — — Financing lease right-of-use assets, net 52,249 — 11,909 — 19,667 — Corporate Properties 3,640 236 — — — — Retirement/dispositions Real estate (1,098,702) (140,696) (247,880) (110,479) (222,680) (58,654) Ending balance $ 14,076,475 $ 1,645,271 $ 5,104,942 $ 1,338,743 $ 4,670,226 $ 1,249,679 |
Schedule IV - Mortgage Loans on
Schedule IV - Mortgage Loans on Real Estate Assets | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate Assets | Schedule IV – Mortgage Loans on Real Estate Assets as of December 31, 2022 Dollars in thousands Final Maturity Date Payment Terms Prior Liens Face Amount Carrying Amount Principal Amount of Loans Subject to Delinquent Principal or Interest Mortgage loan on real estate located in: Texas 7.00 % 12/31/2023 (1) $ — $ 31,150 $ 30,552 $ — Florida 6.00 % 2/27/2026 (2) $ — 13,062 12,988 — Mezzanine loans on real estate located in: Texas 8.00 % 6/24/2024 (3) — 54,119 51,052 — North Carolina 8.00 % 12/22/2024 (4) — 6,000 5,493 — Total real estate notes receivable $ — $ 104,331 $ 100,085 $ — Accrued interest receivable — — 758 — Deferred fee — — (1,200) — Total real estate notes receivable, net $ — $ 104,331 $ 99,643 $ — 1 Twelve-month prefunded interest reserve, with principal sum and interest on unpaid principal due on the maturity date. 2 Construction loan up to $65 million with periodic disbursements. Interest only payments due with principal and any unpaid interest due on the maturity date. 3 Interest is accrued and funded utilizing interest reserves, funded through payment-in-kind interest, until such time the interest reserve is fully funded. Thereafter, interest only payments due with principal and any unpaid interest due on the maturity date. 4 Capitalized interest through maturity, with outstanding principal and accrued interest due on the maturity date. The following shows changes in the carrying amounts of mortgage loans on real estate assets during the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Balance as of the beginning of the year $ — $ — $ — Additions: Fair value real estate notes assumed 74,819 — — New real estate notes 23,325 — — Capitalized interest 1,499 — — Accretion of fees and other items — — — Deductions: Collection of real estate loans — — — Deferred fees and other items — — — Balance as of the end of the year $ 99,643 $ — $ — All other schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are omitted because they are not required under the related instructions or are not applicable, or because the required information is shown in the consolidated financial statements or notes thereto. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Business Overview | Business OverviewHealthcare Realty Trust Incorporated (the “Company”) is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. See Note 2 below for a discussion of the Merger between Legacy HR and Legacy HTA. The Company had gross investments of approximately $14.1 billion in 688 real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development, and corporate property as of December 31, 2022. The Company’s 688 real estate properties are located in 35 states and total approximately 40.3 million square feet. In addition, the Company had a weighted average ownership interest of approximately 48% in 33 real estate properties held in joint ventures. |
Principles of Consolidation | Principles of Consolidation The Company’s Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and joint ventures and partnerships where the Company controls the operating activities. GAAP requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). Accounting Standards Codification Topic 810 broadly defines a VIE as an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary, with any minority interests reflected as non-controlling interests or redeemable non-controlling interests in the accompanying Consolidated Financial Statements. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk, the disposition of all or a portion of an interest held by the primary beneficiary, or changes in facts and circumstances that impact the power to direct activities of the VIE that most significantly impacts economic performance. The Company performs this analysis on an ongoing basis. For property holding entities not determined to be VIEs, the Company consolidates such entities in which it owns 100% of the equity or has a controlling financial interest evidenced by ownership of a majority voting interest. All intercompany balances and transactions are eliminated in consolidation. For entities in which the Company owns less than 100% of the equity interest, the Company consolidates the entity if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements. Healthcare Realty Holdings, L.P. (formally known as Healthcare Trust of America Holdings, LP) (the "OP") is 98.9% owned by the Company. Holders of operating partnership units (“OP Units”) are considered to be non-controlling interest holders in the OP and their ownership interests are reflected as equity on the accompanying Consolidated Balance Sheets. Further, a portion of the earnings and losses of the OP are allocated to non-controlling interest holders based on their respective ownership percentages. Upon conversion of OP Units to common stock, any difference between the fair value of the common stock issued and the carrying value of the OP Units converted to common stock is recorded as a component of equity. As of December 31, 2022 there were approximately 4.0 million, or 1.1%, of OP Units issued and outstanding held by non-controlling interest holders. Additionally, the Company is the primary beneficiary of this VIE. Accordingly, the Company consolidates the interests in the OP. As of December 31, 2022, the Company had three consolidated VIEs in addition to the OP where it is the primary beneficiary of the VIE based on the combination of operational control and the rights to receive residual returns or the obligation to absorb losses arising from the joint ventures. Accordingly, such joint ventures have been consolidated, and the table below summarizes the balance sheets of consolidated VIEs, excluding the OP, in the aggregate: (dollars in thousands) DECEMBER 31, 2022 Assets: Net real estate investments $ 46,322 Cash and cash equivalents 3,645 Receivables and other assets 2,385 Total assets $ 52,352 Liabilities: Accrued expenses and other liabilities $ 12,214 Total equity 40,138 Total liabilities and equity $ 52,352 As of December 31, 2022, the Company had three unconsolidated VIEs consisting of two notes receivables and one joint venture. The Company does not have the power or economics to direct the activities of the VIEs on a stand-alone basis, therefore it was determined that the Company was not the primary beneficiary. Therefore, the Company accounts for the two notes receivables as amortized cost and a joint venture arrangement under the equity method. See below for additional information regarding the Company's unconsolidated VIEs: ORIGINATION DATE LOCATION SOURCE CARRYING AMOUNT MAXIMUM EXPOSURE TO LOSS 2021 Houston, TX 1 Note receivable $ 29,753 $ 31,150 2021 Charlotte, NC 1 Note receivable 5,984 6,000 2022 Texas 2 Equity method 23,219 23,219 1 Assumed mortgage note receivable in connection with the Merger. 2 Includes investments in six properties. |
Use of Estimates in the Consolidated Financial Statements | Use of Estimates in the Consolidated Financial Statements Preparation of the Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates and assumptions. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, impairments, collectability of tenant receivables, and fair value measurements, as applicable. |
Reclassifications | Reclassifications Certain reclassifications have been made on the Company's prior year Consolidated Balance Sheet to conform to current year presentation. Previously, the Company's Lease intangibles were included in Building, improvements and lease intangibles and Goodwill was included with Other assets, net. These amounts are now classified as separate line items on the Company's Consolidated Balance Sheets. |
Segment Reporting | Segment Reporting The Company owns, leases, acquires, manages, finances, develops and redevelops outpatient and other healthcare-related properties. The Company is managed as one reporting unit, rather than multiple reporting units, for internal reporting purposes and for internal decision-making. Therefore, the Company discloses its operating results in a single reportable segment. |
Real Estate Properties | Real Estate Properties Real estate properties are recorded at cost or at fair value if acquired in a transaction that is a business combination under Accounting Standards Codification Topic 805, Business Combinations . Cost or fair value at the time of acquisition is allocated among land, buildings, tenant improvements, lease and other intangibles, and personal property as applicable. During 2022 and 2021, the Company eliminated against accumulated depreciation approximately $19.6 million and $16.3 million, respectively, of fully amortized real estate intangibles that were initially recorded as a component of certain real estate acquisitions. Also during 2022 and 2021, approximately $4.1 million and $9.9 million, respectively, of fully depreciated tenant and capital improvements that were no longer in service were eliminated against accumulated depreciation. In addition, during 2021, the Company eliminated against accumulated depreciation approximately $7.1 million of a fully depreciated building that is being demolished and redeveloped. Depreciation expense of real estate properties for the three years ended December 31, 2022, 2021 and 2020 was $320.8 million, $170.0 million and $162.4 million, respectively. Depreciation and amortization of real estate assets in place as of December 31, 2022, is provided for on a straight-line basis over the asset’s estimated useful life: Land improvements 2.0 to 39.0 years Buildings and improvements 3.0 to 49.0 years Lease intangibles (including ground lease intangibles) 1.2 to 99.0 years Personal property 3.0 to 20.0 years The Company capitalizes direct costs, including costs such as construction costs and professional services, and indirect costs, including capitalized interest and overhead costs, associated with the development and construction of real estate assets while substantive activities are ongoing to prepare the assets for their intended use. Capitalized interest cost is calculated using the weighted average interest rate of the Company's unsecured debt or the interest rate on project specific debt, if applicable. The Company continues to capitalize interest on the unoccupied portion of the properties in stabilization for up to one year after the buildings have been placed into service, at which time the capitalization of interest must cease. |
Land Held for Development | Land Held for DevelopmentLand held for development includes parcels of land owned by the Company, upon which the Company intends to develop and own outpatient healthcare facilities. |
Asset Impairment | Asset Impairment The Company assesses the potential for impairment of identifiable, definite-lived, intangible assets and long-lived assets, including real estate properties, whenever events occur or a change in circumstances indicates that the carrying value might not be fully recoverable. Indicators of impairment may include significant underperformance of an asset relative to historical or expected operating results; significant changes in the Company’s use of assets or the strategy for its overall business; plans to sell an asset before its depreciable life has ended; the expiration of a significant portion of leases in a property; or significant negative economic trends or negative industry trends for the Company or its tenants. In addition, the Company reviews for possible impairment, those assets subject to purchase options and those impacted by casualty losses, such as tornadoes and hurricanes. A property value is considered impaired only if management's estimate of current and projected (undiscounted and unleveraged) operating cash flows of the property is less than the net carrying value of the property. These estimates of future cash flows include only those that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the property based on its estimated remaining useful life. These estimates, including the useful life determination which can be affected by any potential sale of the property, are based on management's assumptions about its use of the property. Therefore, significant judgment is involved in estimating the current and projected cash flows. If management determines that the carrying value of the Company’s assets may not be fully recoverable based on the existence of any of the factors above, or others, management would measure and record an impairment charge based on the estimated fair value of the property or the estimated fair value less costs to sell the property. |
Acquisitions of Real Estate Properties with In-Place Leases | Acquisitions of Real Estate Properties with In-Place Leases The Company's acquisitions of real estate properties typically do not meet the definition of a business and are accounted for as asset acquisitions. Acquisitions of real estate properties with in-place leases are accounted for at relative fair value. When a building with in-place leases is acquired, the cost of the acquisition must be allocated between the tangible real estate assets "as-if-vacant" and the intangible real estate assets related to in-place leases based on their estimated fair values. Land fair value is estimated by using an assessment of comparable transactions and other relevant data. The Company considers whether any of the in-place lease rental rates are above- or below-market. An asset (if the actual rental rate is above-market) or a liability (if the actual rental rate is below-market) is calculated and recorded in an amount equal to the present value of the future cash flows that represent the difference between the actual lease rate and the estimated market rate. If an in-place lease is identified as a below-market rental rate, the Company would also evaluate any renewal options associated with that lease to determine if the intangible should include those periods. The values related to above- or below-market in-place lease intangibles are amortized over the remaining term of the leases upon acquisition to rental income where the Company is the lessor and to property operating expense where the Company is the lessee. The Company also estimates an absorption period, which can vary by property, assuming the building is vacant and must be leased up to the actual level of occupancy when acquired. During that absorption period, the owner would incur direct costs, such as tenant improvements, and would suffer lost rental income. Likewise, the owner would have acquired a measurable asset in that, assuming the building was vacant, certain fixed costs would be avoided because the actual in-place lessees would reimburse a certain portion of fixed costs through expense reimbursements during the absorption period. All of these intangible assets (above- or below-market lease, tenant improvement costs avoided, leasing costs avoided, rental income lost, and expenses recovered through in-place lessee reimbursements) are estimated and recorded in amounts equal to the present value of estimated future cash flows. The actual purchase price is allocated based on the various relative asset fair values described above. The building and tenant improvement components of the purchase price are depreciated over the estimated useful life of the building or the weighted average remaining term of the in-place leases. The at-market, in-place lease intangibles are amortized to depreciation and amortization expense over the weighted average remaining term of the leases, and customer relationship assets are amortized to depreciation amortization expense over terms applicable to each acquisition. Any goodwill recorded through a business combination would be reviewed for impairment at least annually and is not amortized. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. In calculating fair value, a company must maximize the use of observable market inputs, minimize the use of unobservable market inputs and disclose in the form of an outlined hierarchy the details of such fair value measurements. A hierarchy of valuation techniques is defined to determine whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These inputs have created the following fair value hierarchy: • Level 1 – quoted prices for identical instruments in active markets; • Level 2 – quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3 – fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Executed purchase and sale agreements, that are binding agreements, are categorized as level one inputs. Brokerage estimates, letters of intent, or unexecuted purchase and sale agreements are considered to be level three as they are nonbinding in nature. |
Fair Value of Derivative Financial Instruments | Fair Value of Derivative Financial InstrumentsDerivative financial instruments are recorded at fair value on the Company's Consolidated Balance Sheets as other assets or other liabilities. The valuation of derivative instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. Fair values of derivatives are estimated by pricing models that consider the forward yield curves and discount rates. The fair value of the Company's forward starting interest rate swap contracts are estimated by pricing models that consider foreign trade rates and discount rates. Such amounts and the recognition of such amounts are subject to significant estimates that may change in the future. For derivatives designated in qualifying cash flow hedging relationships, the change in fair value of the effective portion of the derivatives is recognized in accumulated other comprehensive income (loss). Gains and losses are reclassified from accumulated other comprehensive income (loss) into earnings once the underlying hedged transaction is recognized in earnings. As of December 31, 2022 and 2021, the Company had $2.1 million recorded in accumulated other comprehensive income and $10.0 million recorded in accumulated other comprehensive loss, respectively, related to forward starting interest rate swaps entered into and settled during 2015 and 2020 and a hedge of the Company's variable rate debt. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents includes short-term investments with original maturities of three months or less when purchased. Restricted cash includes cash held in escrow in connection with proceeds from the sales of certain real estate properties. The Company did not have any restricted cash for the years ended December 31, 2022 or 2021. Cash and cash equivalents are held in bank accounts and overnight investments. The Company maintains its bank deposits with large financial institutions in amounts that often exceed federally-insured limits. The Company has not experienced any losses in such accounts. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and intangible assets with indefinite lives are not amortized, but are tested at least annually for impairment. Intangible assets with finite lives are amortized over their respective lives to their estimated residual values and are reviewed for impairment only when impairment indicators are present. Identifiable intangible assets of the Company are comprised of enterprise goodwill, in-place lease intangible assets, customer relationship intangible assets, and debt issuance costs. In-place lease and customer relationship intangible assets are amortized on a straight-line basis over the applicable lives of the assets. Debt issuance costs are amortized |
Contingent Liabilities | Contingent Liabilities From time to time, the Company may be subject to loss contingencies arising from legal proceedings and similar matters. Additionally, while the Company maintains comprehensive liability and property insurance with respect to each of its properties, the Company may be exposed to unforeseen losses related to uninsured or underinsured damages. The Company continually monitors any matters that may present a contingent liability, and, on a quarterly basis, management reviews the Company’s reserves and accruals in relation to each of them, adjusting provisions as necessary in view of changes in available information. Liabilities for contingencies are first recorded when a loss is determined to be both probable and can be reasonably estimated. Changes in estimates regarding the exposure to a contingent loss are reflected as adjustments to the related liability in the periods when they occur. Because of uncertainties inherent in the estimation of contingent liabilities, it is possible that the Company’s provision for contingent losses could change materially in the near term. To the extent that any significant losses, in addition to amounts recognized, are at least reasonably possible, such amounts will be disclosed in the notes to the Consolidated Financial Statements. |
Stock-based Compensation | Share-Based CompensationThe Company has various employee and director share-based awards outstanding. These awards include non-vested common stock and options to purchase common stock granted to employees pursuant to the Company's Amended and Restated 2006 Incentive Plan, dated April 29, 2021 ("Incentive Plan"), which replaced the Company's 2015 Stock Incentive Plan (the "Legacy HR Stock Incentive Plan") following the Merger. References to the Incentive Plan include issuances under the Incentive Plan and the Legacy HR Stock Incentive Plan. Legacy HR's 2000 Employee Stock Purchase Plan (the "Legacy HR Employee Stock Purchase Plan") was terminated during 2022 and all outstanding options will expire by 2024. No new options will be issued under this plan. The Company recognizes share-based payments to employees and directors in the Consolidated Statements of Income on a straight-line basis over the requisite service period based on the fair value of the award on the measurement date. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Certain items must be included in comprehensive income, including items such as foreign currency translation adjustments, minimum pension liability adjustments, changes in the fair value of derivative instruments and unrealized gains or losses on available-for-sale securities. As of December 31, 2022, the Company’s accumulated other comprehensive income (loss) consists of the loss for changes in the fair value of active derivatives designated as cash flow hedges and the loss on the unamortized settlement of forward starting swaps and treasury hedges. |
Revenue from Contract with Customers (Topic 606) | Revenue from Contracts with Customers (Topic 606) The Company recognizes certain revenue under the core principle of Topic 606. This requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance. The Company’s three major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied. The performance obligations that are identified for each of these items are satisfied over time and the Company recognizes revenue monthly based on this principle. In most cases, the revenue is due and payable on a monthly basis. The Company had a receivable balance of $1.5 million and $1.4 million for the years ended December 31, 2022 and 2021, respectively. Management fee income includes property management services provided to third parties and certain of the properties in the Company's unconsolidated joint ventures and is generally calculated, accrued and billed monthly based on a percentage of cash collections of tenant receivables for the month or a stated amount per square foot. Management fee income also includes amounts paid to the Company for its asset management services for certain of its unconsolidated joint ventures. Internal management fee income, where the Company manages its owned properties, is eliminated in consolidation. Rental Income Rental income related to non-cancelable operating leases is recognized as earned over the life of the lease agreements on a straight-line basis. The Company's lease agreements generally include provisions for stated annual increases or increases based on a Consumer Price Index ("CPI"). Rental income from properties under multi-tenant office lease arrangements and rental income from properties with single-tenant lease arrangements are included in rental income on the Company's Consolidated Statements of Income. For lessors, the new standard requires a lessor to classify leases as either sales-type, direct-financing or operating. A lease will be treated as a sale if it is considered to transfer control of the underlying asset to the lessee. A lease will be classified as direct-financing if risks and rewards are conveyed without the transfer of control. Otherwise, the lease is treated as an operating lease. Nonlease components, such as common area maintenance, are generally accounted for under Topic 606 and separated from the lease payments. However, the Company elected the lessor practical expedient allowing the Company to not separate these components when certain conditions are met. The combined component is accounted for under Accounting Standards Codification, Topic 842. |
Federal Income Taxes | Federal Income Taxes The Company believes it has qualified to be taxed as a REIT and intends at all times to continue to qualify as a REIT under Sections 856 through 860 of the Internal Revenue Code. The Company must distribute at least 90% per annum of its real estate investment trust taxable income to its stockholders and meet other requirements to continue to qualify as a real estate investment trust. As a REIT, the Company is generally not subject to federal income tax on net income it distributes to its stockholders, but may be subject to certain state and local taxes and fees. See Note 16 for further discussion. If HR fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal income taxes on its taxable income and will not be permitted to qualify for treatment as a REIT for U.S. federal income tax purposes for four years following the year during which the qualification is lost unless the IRS grants it relief under certain statutory provisions. Such event could have a material adverse effect on its business, financial condition, results of operations and net cash available for dividend distributions to its stockholders. HR conducts substantially all of its operations through the OP. As a partnership, the OP generally is not liable for federal income taxes. The income and loss from the operations of the OP is included in the tax returns of its partners, including HR, who are responsible for reporting their allocable share of the partnership income and loss. Accordingly no provision for income tax has been made in the accompanying consolidated financial statements. The Company classifies interest and penalties related to uncertain tax positions, if any, in the Consolidated Financial Statements as a component of general and administrative expenses. No such amounts were recognized during the three years ended December 31, 2022. Federal tax returns for the years 2019, 2020, 2021 and 2022 are currently subject to examination by taxing authorities. |
State Income Taxes | State Income TaxesThe Company must pay certain state income taxes and the provisions for such taxes are generally included in general and administrative expense on the Company’s Consolidated Statements of Income. |
Sales and Use Taxes | Sales and Use Taxes The Company must pay sales and use taxes to certain state tax authorities based on rents collected from tenants in properties located in those states. The Company is generally reimbursed for these taxes by the tenant. The Company accounts for the payments to the taxing authority and subsequent reimbursement from the tenant on a net basis in rental income in the Company’s Consolidated Statements of Income. |
Assets Held for Sale | Assets Held for SaleLong-lived assets held for sale are reported at the lower of their carrying amount or their fair value less estimated cost to sell. Further, depreciation of these assets ceases at the time the assets are classified as held for sale. Losses resulting from the sale of such properties are characterized as impairment losses in the Consolidated Statements of Income. |
Earnings Per Share | Earnings per Share The Company uses the two-class method of computing net earnings per common share. Earnings per common share is calculated by considering share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents as participating securities. Undistributed earnings (excess net income over dividend payments) are allocated on a pro rata basis to common shareholders and restricted shareholders. Undistributed losses (dividends in excess of net income) do not get allocated to restricted stockholders as they do not have the contractual obligation to share in losses. The amount of undistributed losses that applies to the restricted stockholders is allocated to the common stockholders. |
Redeemable Non-Controlling Interests | Redeemable Non-Controlling InterestsThe Company accounts for redeemable equity securities in accordance with Accounting Standards Update 2009-04 Liabilities (Topic 480): Accounting for Redeemable Equity Instruments, which requires that equity securities redeemable at the option of the holder, not solely within our control, be classified outside permanent stockholders’ equity. The Company classifies redeemable equity securities as redeemable non-controlling interests in the accompanying Consolidated Balance Sheet. Accordingly, the Company records the carrying amount at the greater of the initial carrying amount (increased or decreased for the non-controlling interest’s share of net income or loss and distributions) or the redemption value. We measure the redemption value and record an adjustment to the carrying value of the equity securities as a component of redeemable non-controlling interest. |
Investments in Financing Receivables, Net | Investments in Financing Receivables, Net In accordance with Accounting Standards Codification ("ASC") 842, for transactions in which the Company enters into a contract to acquire an asset and leases it back to the seller (i.e., a sale-leaseback transaction), control of the asset is not considered to have transferred when the seller-lessee has a purchase option. As a result, the Company does not recognize the underlying real estate asset but instead recognizes a financial asset in accordance with ASC 310 “Receivables”. The Company had two and four medical office buildings that were accounted for as separate sale-lease back transactions and recorded as investments in financing receivables as of December 31, 2022 and 2021, respectively. Income from Financing Receivables, net The Company recognizes the related interest income from the financing receivable based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable will not equal the cash payments from the lease. Acquisition costs incurred in connection with entering into the financing receivable are treated as loan origination fees. These costs are classified with the financing receivable and are included in the balance of the net investment. Amortization of these amounts will be recognized as a reduction to Interest income from financing receivable, net over the life of the lease. Real Estate Notes Receivable |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards Update No. 2020-04 and 2022-06 On March 12, 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848) . ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR and Term SOFR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of consolidated balance sheets | Accordingly, such joint ventures have been consolidated, and the table below summarizes the balance sheets of consolidated VIEs, excluding the OP, in the aggregate: (dollars in thousands) DECEMBER 31, 2022 Assets: Net real estate investments $ 46,322 Cash and cash equivalents 3,645 Receivables and other assets 2,385 Total assets $ 52,352 Liabilities: Accrued expenses and other liabilities $ 12,214 Total equity 40,138 Total liabilities and equity $ 52,352 |
Schedule of variable interest entity | Therefore, the Company accounts for the two notes receivables as amortized cost and a joint venture arrangement under the equity method. See below for additional information regarding the Company's unconsolidated VIEs: ORIGINATION DATE LOCATION SOURCE CARRYING AMOUNT MAXIMUM EXPOSURE TO LOSS 2021 Houston, TX 1 Note receivable $ 29,753 $ 31,150 2021 Charlotte, NC 1 Note receivable 5,984 6,000 2022 Texas 2 Equity method 23,219 23,219 1 Assumed mortgage note receivable in connection with the Merger. 2 Includes investments in six properties. |
Schedule of assets' estimated useful life | Depreciation and amortization of real estate assets in place as of December 31, 2022, is provided for on a straight-line basis over the asset’s estimated useful life: Land improvements 2.0 to 39.0 years Buildings and improvements 3.0 to 49.0 years Lease intangibles (including ground lease intangibles) 1.2 to 99.0 years Personal property 3.0 to 20.0 years |
Schedule of disaggregation of revenue | Below is a detail of the amounts by category: YEAR ENDED DECEMBER 31, Dollars in thousands 2022 2021 2020 Type of Revenue Parking income $ 8,513 $ 7,859 $ 6,720 Management fee income 4,668 2,049 343 Miscellaneous 525 383 304 $ 13,706 $ 10,291 $ 7,367 |
Schedule of rental income | The components of rental income are as follows: YEAR ENDED DECEMBER 31, Dollars in thousands 2022 2021 2020 Property operating income $ 883,953 $ 514,533 $ 488,527 Straight-line rent 23,498 5,801 3,735 Rental income $ 907,451 $ 520,334 $ 492,262 |
Schedule of notes receivable | (dollars in thousands) ORIGINATION MATURITY STATED INTEREST RATE MAXIMUM LOAN COMMITMENT OUTSTANDING as of Mezzanine loans Texas 6/24/2021 6/24/2024 8 % $ 54,119 $ 54,119 North Carolina 12/22/2021 12/22/2024 8 % 6,000 6,000 60,119 60,119 Mortgage loan Texas 6/30/2021 12/31/2023 7 % $ 31,150 $ 31,150 Florida 5/17/2022 2/27/2026 6 % 65,000 13,062 $ 96,150 $ 44,212 Accrued interest 758 Fair-value discount and fees (5,446) $ 99,643 |
Merger with HTA (Tables)
Merger with HTA (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Consideration Transferred | The implied consideration transferred on the Closing Date is as follows: Dollars in thousands, except for per share data Shares of Legacy HTA Common Stock outstanding as of July 20, 2022 as adjusted (a) 228,520,990 Exchange ratio 1.00 Implied shares of Legacy HR Common Stock issued 228,520,990 Adjusted closing price of Legacy HR Common Stock on July 20, 2022 (b) $ 24.37 Value of implied Legacy HR Common Stock issued $ 5,569,057 Fair value of Legacy HTA restricted stock awards attributable to pre-Merger services (c) 7,406 Consideration transferred $ 5,576,463 (a) Includes 228,520,990 shares of Legacy HTA Common Stock as of July 20, 2022. The number of shares of HTA Common Stock presented above was based on 228,857,717 total shares of Legacy HTA Common Stock outstanding as of the Closing Date, less 192 HTA fractional shares that were paid in cash less 336,535 shares of Legacy HTA restricted stock (net of 215,764 shares of Legacy HTA restricted stock withheld). For accounting purposes, these shares and units were converted to Legacy HR Common Stock, at an exchange ratio of 1.00 per share of HTA Common Stock. (b) For accounting purposes, the fair value of Legacy HR Common Stock issued to former holders of Legacy HTA Common Stock was based on the per share closing price of Legacy HR Common Stock on July 20, 2022. |
Schedule of Fair Values of the Assets Acquired And Liabilities Assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Closing Date: Dollars in thousands PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE MEASUREMENT PERIOD ADJUSTMENTS PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE ASSETS Real estate investments Land $ 985,926 $ 6,775 $ 992,701 Buildings and improvements 6,960,418 (83,662) 6,876,756 Lease intangible assets (a) 831,920 1,230 833,150 Financing lease right-of-use assets 9,874 3,146 13,020 Construction in progress 10,071 (6,744) 3,327 Land held for development 46,538 — 46,538 Total real estate investments $ 8,844,747 $ (79,255) $ 8,765,492 Assets held for sale, net 707,442 (7,946) 699,496 Investments in unconsolidated joint ventures 67,892 — 67,892 Cash and cash equivalents 26,034 11,403 37,437 Restricted cash 1,123,647 (1,247) 1,122,400 Operating lease right-of-use assets 198,261 17,786 216,047 Other assets, net (b) (c) 209,163 (3,840) 205,323 Total assets acquired $ 11,177,186 $ (63,099) $ 11,114,087 LIABILITIES Notes and bonds payable $ 3,991,300 $ — $ 3,991,300 Accounts payable and accrued liabilities 1,227,570 17,374 1,244,944 Liabilities of assets held for sale 28,677 (3,939) 24,738 Operating lease liabilities 173,948 10,173 184,121 Financing lease liabilities 10,720 (855) 9,865 Other liabilities 203,210 (11,541) 191,669 Total liabilities assumed $ 5,635,425 $ 11,212 $ 5,646,637 Net identifiable assets acquired $ 5,541,761 $ (74,311) $ 5,467,450 Non-controlling interest $ 110,702 $ — $ 110,702 Goodwill $ 145,404 $ 74,311 $ 219,715 (a) The weighted average amortization period for the acquired lease intangible assets is approximately 6 years. (b) Includes $15.9 million of contractual accounts receivable, which approximates fair value. (c) Includes $78.7 million of gross contractual real estate notes receivable, the fair value of which was $74.8 million, and the Company preliminarily expects to collect substantially all of the real estate notes receivable proceeds as of the Closing Date. The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2022 as of the acquisition date: ESTIMATED ESTIMATED Building $ 250.7 14.0 - 38.0 Land 76.1 — Land Improvements 11.2 5.0 - 14.0 Intangibles At-market lease intangibles 48.8 1.5 - 13.4 Above-market lease intangibles (lessor) 15.9 1.3 - 15.6 Below-market lease intangibles (lessor) (2.2) 1.3 - 19.3 Below-market lease intangibles (lessee) 1.2 13.1 Other assets acquired 0.4 Accounts payable, accrued liabilities and other liabilities assumed (2.9) Total cash paid $ 399.2 The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2021 as of the acquisition date: ESTIMATED ESTIMATED Building $ 275.1 18.0 - 44.0 Investment in financing receivables, net 185.9 0.5 - 34.0 Financing lease right of use assets 1 8.9 15.0 - 34.0 Land 34.1 — Land Improvements 8.9 6.0 - 16.0 Intangibles At-market lease intangibles 58.8 2.6 - 16.6 Above-market lease intangibles (lessor) 3.4 1.9 - 8.1 Below-market lease intangibles (lessor) (1.4) 3.1 - 21.8 Above-market lease intangibles (lessee) (0.3) 36.7 - 64.5 Below-market lease intangibles (lessee) 4.7 45.4 Mortgage notes payable assumed, including fair value adjustments (11.8) Other assets acquired 0.8 Accounts payable, accrued liabilities and other liabilities assumed (5.6) Total cash paid $ 561.5 |
Schedule of Business Acquisition, Pro Forma Information | The following pro forma financial information is not necessarily indicative of the results of operations had the acquisition been effected on the assumed date, nor is it necessarily an indication of trends in future results for a number of reasons, including, but not limited to, differences between the assumptions used to prepare the pro forma information, cost savings from operating efficiencies, potential synergies, and the impact of incremental costs incurred in integrating the businesses. YEAR ENDED Dollars in thousands 2022 2021 Total revenues $ 1,391,096 $ 1,316,743 Net income $ 130,445 $ (78,990) |
Property Investments (Tables)
Property Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate Investment Property, Net [Abstract] | |
Schedule of property investment | The following table summarizes the Company’s consolidated investments at December 31, 2022. Dollars in thousands NUMBER OF PROPERTIES LAND BUILDINGS AND IMPROVEMENTS LEASE INTANGIBLES PERSONAL PROPERTY TOTAL ACCUMULATED DEPRECIATION Dallas, TX 45 $ 95,010 $ 1,116,725 $ 77,589 $ 551 $ 1,289,875 $ (202,031) Seattle, WA 29 64,295 623,166 13,444 726 701,631 (164,423) Los Angeles, CA 23 98,524 460,780 31,790 453 591,547 (129,663) Boston, MA 18 128,904 396,002 63,134 — 588,040 (13,513) Charlotte, NC 32 35,402 450,076 29,839 105 515,422 (95,363) Houston, TX 34 85,389 633,474 64,045 57 782,965 (63,486) Miami, FL 23 72,364 400,839 46,355 105 519,663 (52,920) Atlanta, GA 28 49,379 437,312 36,170 95 522,956 (63,773) Tampa, FL 20 31,533 377,455 36,838 33 445,859 (18,991) Denver, CO 33 76,698 497,235 45,854 609 620,396 (65,123) Raleigh, NC 27 56,620 363,359 37,446 9 457,434 (15,566) Phoenix, AZ 35 20,262 430,396 37,097 425 488,180 (30,281) Chicago, IL 7 32,374 266,672 20,608 81 319,735 (28,243) Indianapolis, IN 36 52,180 265,070 32,739 13 350,002 (19,705) Hartford, CT 30 43,326 204,049 31,803 — 279,178 (8,015) Nashville, TN 12 43,348 346,312 10,205 1,424 401,289 (92,720) New York, NY 14 64,402 167,819 26,430 — 258,651 (4,771) Austin, TX 13 27,064 271,692 18,568 142 317,466 (40,363) Orlando, FL 8 20,708 180,694 21,581 1 222,984 (11,654) Memphis, TN 11 13,901 184,540 4,211 317 202,969 (60,624) Other (51 markets) 210 326,262 3,256,027 273,568 1,223 3,857,080 (457,572) 688 1,437,945 11,329,694 959,314 6,369 13,733,322 (1,638,800) Construction in progress — — — — 35,560 — Land held for development — — — — — 74,265 (1,183) Financing lease right-of-use assets — — — — — 83,824 — Investment in financing receivables, net — — — — — 120,236 — Corporate property 1 — 1,853 2,343 684 5,538 10,418 (5,288) Total real estate investments 688 $ 1,439,798 $ 11,332,037 $ 959,998 $ 11,907 $ 14,057,625 $ (1,645,271) 1 Includes a 15,014 square foot building located in Charleston, South Carolina that is used as one of the Company's corporate offices. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of future minimum lease payments due to the Company under property operating agreements | Future minimum lease payments under the non-cancelable operating leases, excluding any reimbursements, as of December 31, 2022 are as follows: In thousands 2023 $ 928,516 2024 814,132 2025 701,659 2026 603,051 2027 500,645 2028 and thereafter 1,633,847 $ 5,181,850 |
Schedule of future minimum operating lease payments | The Company’s future lease payments (primarily for its 167 non-prepaid ground leases) as of December 31, 2022 were as follows: In thousands OPERATING FINANCING 2023 $ 15,641 $ 2,140 2024 $ 15,227 $ 2,182 2025 $ 14,814 $ 2,218 2026 $ 14,852 $ 2,255 2027 $ 14,921 $ 2,294 2028 and thereafter $ 939,165 $ 396,398 Total undiscounted lease payments $ 1,014,620 $ 407,487 Discount $ (734,725) $ (334,548) Lease liabilities $ 279,895 $ 72,939 |
Schedule of future minimum finance lease payments | The Company’s future lease payments (primarily for its 167 non-prepaid ground leases) as of December 31, 2022 were as follows: In thousands OPERATING FINANCING 2023 $ 15,641 $ 2,140 2024 $ 15,227 $ 2,182 2025 $ 14,814 $ 2,218 2026 $ 14,852 $ 2,255 2027 $ 14,921 $ 2,294 2028 and thereafter $ 939,165 $ 396,398 Total undiscounted lease payments $ 1,014,620 $ 407,487 Discount $ (734,725) $ (334,548) Lease liabilities $ 279,895 $ 72,939 |
Schedule of lease cost | The following table provides details of the Company's total lease expense for the year ended December 31, 2022: In thousands YEAR ENDED YEAR ENDED Operating lease cost Operating lease expense $ 12,699 $ 4,765 Variable lease expense 4,529 3,929 Finance lease cost Amortization of right-of-use assets 1,288 388 Interest on lease liabilities 2,876 1,032 Total lease expense $ 21,392 $ 10,114 Other information Operating cash flows outflows related to operating leases $ 12,816 $ 7,706 Operating cash flows outflows related to financing leases $ 1,838 $ 809 Financing cash flows outflows related to financing leases $ — $ 9,182 Right-of-use assets obtained in exchange for new finance lease liabilities $ 53,765 $ 3,827 Right-of-use assets obtained in exchange for new operating lease liabilities $ 216,047 $ 8,298 Weighted-average remaining lease term (excluding renewal options) - operating leases 47.5 47.6 Weighted-average remaining lease term (excluding renewal options) -finance leases 58.9 62.1 Weighted-average discount rate - operating leases 5.8 % 5.6 % Weighted-average discount rate - finance leases 5.0 % 5.3 % |
Acquisitions, Dispositions an_2
Acquisitions, Dispositions and Mortgage Repayments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of acquisitions | The following table details the Company's acquisitions, exclusive of the Merger, for the year ended December 31, 2022: Dollars in thousands TYPE 1 DATE ACQUIRED PURCHASE PRICE CASH 2 REAL OTHER 3 SQUARE FOOTAGE Dallas, TX 4 MOB 2/11/22 $ 8,175 $ 8,185 $ 8,202 $ (17) 18,000 San Francisco, CA 5 MOB 3/7/22 114,000 112,986 108,687 4,299 166,396 Atlanta, GA MOB 4/7/22 6,912 7,054 7,178 (124) 21,535 Denver, CO MOB 4/13/22 6,320 5,254 5,269 (15) 12,207 Colorado Springs, CO 6 MOB 4/13/22 13,680 13,686 13,701 (15) 25,800 Seattle, WA MOB 4/28/22 8,350 8,334 8,370 (36) 13,256 Houston, TX MOB 4/28/22 36,250 36,299 36,816 (517) 76,781 Los Angeles, CA MOB 4/29/22 35,000 35,242 25,400 9,842 34,282 Oklahoma City, OK MOB 4/29/22 11,100 11,259 11,334 (75) 34,944 Raleigh, NC 5 MOB 5/31/22 27,500 26,710 27,127 (417) 85,113 Tampa. FL 6 MOB 6/9/22 18,650 18,619 18,212 407 55,788 Seattle, WA MOB 8/1/22 4,850 4,806 4,882 (76) 10,593 Raleigh, NC MOB 8/9/22 3,783 3,878 3,932 (54) 11,345 Jacksonville, FL MOB 8/9/22 18,195 18,508 18,583 (75) 34,133 Atlanta, GA MOB 8/10/22 11,800 11,525 12,038 (513) 43,496 Denver, CO MOB 8/11/22 14,800 13,902 13,918 (16) 34,785 Raleigh, NC MOB 8/18/22 11,375 10,670 10,547 123 31,318 Nashville, TN MOB 9/15/22 21,000 20,764 20,572 192 61,932 Austin, TX MOB 9/29/22 5,450 5,449 5,572 (123) 15,000 Jacksonville, FL 4 MOB 10/12/22 3,600 3,530 3,609 (79) 6,200 Houston, TX MOB 11/21/22 5,500 5,469 5,513 (44) 28,369 Austin, TX 7 MOB 12/28/22 888 890 889 1 2,219 Denver, CO MOB 12/28/22 16,400 16,170 16,467 (297) 39,692 $ 403,578 $ 399,189 $ 386,818 $ 12,371 863,184 1 MOB = medical office building. 2 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Represents a single-tenant property. 5 Includes three properties. 6 Includes two properties. 7 The Company acquired additional ownership interests in an existing building bringing the Company's ownership to 71.4%. The following table details the Company's acquisitions for the year ended December 31, 2021: Dollars in thousands TYPE 1 DATE ACQUIRED PURCHASE PRICE 2 MORTGAGES ASSUMED 3 CASH 4 REAL ESTATE 2 OTHER 5 SQUARE FOOTAGE San Diego, CA 6 MOB 1/7/21 $ 17,150 $ — $ 17,182 $ 17,182 $ — 22,461 Dallas, TX 8 MOB 2/1/21 22,515 — 22,299 22,641 (342) 121,709 Atlanta, GA 8 MOB 2/17/21 9,800 — 10,027 10,073 (46) 44,567 Washington, D.C. MOB 3/3/21 12,750 — 12,709 12,658 51 26,496 Houston, TX MOB 5/14/21 13,500 — 12,986 13,379 (393) 45,393 San Diego, CA 6,7 MOB 5/28/21 102,650 — 103,984 104,629 (645) 160,394 Greensboro, NC MOB 6/28/21 9,390 — 9,475 10,047 (572) 25,168 Baltimore, MD MOB 6/29/21 14,600 — 14,357 14,437 (80) 33,316 Denver, CO 9 MOB 7/16/21 70,426 — 69,151 65,100 4,051 259,555 Greensboro, NC 6 MOB 7/19/21 6,400 — 6,374 6,514 (140) 18,119 Colorado Springs, CO MOB 7/27/21 33,400 — 32,738 33,241 (503) 69,526 Birmingham, AL MOB 8/19/21 9,250 — 9,355 9,388 (33) 29,942 Raleigh, NC MOB 9/20/21 5,780 — 5,821 5,810 11 18,280 Denver, CO MOB 9/22/21 20,250 — 19,630 19,405 225 83,604 Raleigh, NC MOB 9/30/21 10,000 — 9,921 9,874 47 29,178 Denver, CO MOB 11/15/21 7,700 — 7,383 7,431 (48) 18,599 Denver, CO MOB 11/18/21 22,400 — 22,343 22,422 (79) 30,185 Columbus, OH 10 MOB 12/1/21 16,275 — 15,970 7,365 8,605 71,930 Nashville, TN MOB 12/2/21 11,300 — 11,245 11,263 (18) 34,908 Colorado Springs, CO MOB 12/20/21 10,575 — 10,541 11,009 (468) 44,166 Columbus, OH 8 MOB 12/28/21 9,525 — 9,521 9,601 (80) 28,962 Los Angeles, CA MOB 12/28/21 20,500 (11,000) 9,396 20,316 80 56,762 Nashville, TN 11 MOB 12/29/21 19,775 — 19,833 19,982 (149) 85,590 Austin, TX MOB 12/29/21 20,500 — 20,696 20,741 (45) 62,548 Atlanta, GA MOB 12/30/21 4,900 — 4,772 4,419 353 11,840 Nashville, TN 12 MOB 12/30/21 54,000 — 53,923 54,072 (149) 74,489 Nashville, TN 12 MOB 12/30/21 20,500 — 19,833 19,825 8 32,454 $ 575,811 $ (11,000) $ 561,465 $ 562,824 $ 9,641 1,540,141 1 MOB = medical office building. 2 Includes investments in financing receivables and an $8.9 million right-of-use asset related to the Columbus, Ohio transaction. 3 The mortgages assumed in the acquisitions do not reflect the fair value adjustments totaling $0.8 million in aggregate recorded by the Company upon acquisition (included in Other). 4 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 5 Includes other assets acquired, liabilities assumed, intangibles, and fair value mortgage adjustments recognized at acquisition. 6 Represents a single-tenant property. 7 The Company acquired a single-tenant net lease property in San Diego, CA in a sale-leaseback transaction which was accounted for as a financing arrangement as required under ASC 842, Leases. 8 Includes two properties. 9 Includes three properties. 10 This sale-leaseback transaction was a multi-tenant lease property. A portion of the transaction totaling $7.4 million was accounted for as a financing receivable and the remaining $8.9 million was accounted for as an imputed lease arrangement. See Note 1 to the Consolidated Financial Statements accompanying this report for more information. 11 Includes purchase of an adjoining 2.7 acre land parcel that will be held for development. 12 This sale-leaseback transaction was a multi-tenant lease property which was accounted for as a financing arrangement as required under ASC 842, Leases. |
Schedule of assets acquired and liabilities assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Closing Date: Dollars in thousands PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE MEASUREMENT PERIOD ADJUSTMENTS PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE ASSETS Real estate investments Land $ 985,926 $ 6,775 $ 992,701 Buildings and improvements 6,960,418 (83,662) 6,876,756 Lease intangible assets (a) 831,920 1,230 833,150 Financing lease right-of-use assets 9,874 3,146 13,020 Construction in progress 10,071 (6,744) 3,327 Land held for development 46,538 — 46,538 Total real estate investments $ 8,844,747 $ (79,255) $ 8,765,492 Assets held for sale, net 707,442 (7,946) 699,496 Investments in unconsolidated joint ventures 67,892 — 67,892 Cash and cash equivalents 26,034 11,403 37,437 Restricted cash 1,123,647 (1,247) 1,122,400 Operating lease right-of-use assets 198,261 17,786 216,047 Other assets, net (b) (c) 209,163 (3,840) 205,323 Total assets acquired $ 11,177,186 $ (63,099) $ 11,114,087 LIABILITIES Notes and bonds payable $ 3,991,300 $ — $ 3,991,300 Accounts payable and accrued liabilities 1,227,570 17,374 1,244,944 Liabilities of assets held for sale 28,677 (3,939) 24,738 Operating lease liabilities 173,948 10,173 184,121 Financing lease liabilities 10,720 (855) 9,865 Other liabilities 203,210 (11,541) 191,669 Total liabilities assumed $ 5,635,425 $ 11,212 $ 5,646,637 Net identifiable assets acquired $ 5,541,761 $ (74,311) $ 5,467,450 Non-controlling interest $ 110,702 $ — $ 110,702 Goodwill $ 145,404 $ 74,311 $ 219,715 (a) The weighted average amortization period for the acquired lease intangible assets is approximately 6 years. (b) Includes $15.9 million of contractual accounts receivable, which approximates fair value. (c) Includes $78.7 million of gross contractual real estate notes receivable, the fair value of which was $74.8 million, and the Company preliminarily expects to collect substantially all of the real estate notes receivable proceeds as of the Closing Date. The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2022 as of the acquisition date: ESTIMATED ESTIMATED Building $ 250.7 14.0 - 38.0 Land 76.1 — Land Improvements 11.2 5.0 - 14.0 Intangibles At-market lease intangibles 48.8 1.5 - 13.4 Above-market lease intangibles (lessor) 15.9 1.3 - 15.6 Below-market lease intangibles (lessor) (2.2) 1.3 - 19.3 Below-market lease intangibles (lessee) 1.2 13.1 Other assets acquired 0.4 Accounts payable, accrued liabilities and other liabilities assumed (2.9) Total cash paid $ 399.2 The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2021 as of the acquisition date: ESTIMATED ESTIMATED Building $ 275.1 18.0 - 44.0 Investment in financing receivables, net 185.9 0.5 - 34.0 Financing lease right of use assets 1 8.9 15.0 - 34.0 Land 34.1 — Land Improvements 8.9 6.0 - 16.0 Intangibles At-market lease intangibles 58.8 2.6 - 16.6 Above-market lease intangibles (lessor) 3.4 1.9 - 8.1 Below-market lease intangibles (lessor) (1.4) 3.1 - 21.8 Above-market lease intangibles (lessee) (0.3) 36.7 - 64.5 Below-market lease intangibles (lessee) 4.7 45.4 Mortgage notes payable assumed, including fair value adjustments (11.8) Other assets acquired 0.8 Accounts payable, accrued liabilities and other liabilities assumed (5.6) Total cash paid $ 561.5 |
Schedule of Joint Venture Transactions | 2022 Acquisitions The following table details the joint venture acquisitions for the year ended December 31, 2022: Dollars in thousands TYPE 1 DATE ACQUIRED PURCHASE PRICE CASH 2 REAL OTHER 3 SQUARE FOOTAGE San Francisco, CA 4 MOB 3/7/22 $ 67,175 $ 66,789 $ 65,179 $ 1,610 110,865 Los Angeles, CA 5 MOB 3/7/22 33,800 32,384 32,390 (6) 103,259 $ 100,975 $ 99,173 $ 97,569 $ 1,604 214,124 1 MOB = medical office building. 2 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Includes three properties. 5 Includes two properties. The following table details the joint venture acquisitions for the year ended December 31, 2021: Dollars in thousands TYPE 1 DATE ACQUIRED PURCHASE PRICE CASH 2 REAL OTHER 3 SQUARE FOOTAGE Denver, CO MOB 3/30/21 $ 14,375 $ 14,056 $ 14,550 $ (494) 59,359 Colorado Springs, CO MOB 4/1/21 7,200 7,288 7,347 (59) 27,510 Los Angeles, CA MOB 4/8/21 31,335 30,179 30,642 (463) 57,573 San Antonio, TX MOB 4/30/21 13,600 13,412 13,656 (244) 45,000 Los Angeles, CA MOB 5/10/21 24,600 24,259 24,147 112 73,078 Colorado Springs, CO 4 MOB 7/27/21 9,133 9,137 9,135 2 23,956 Denver, CO MOB 10/21/21 23,000 22,638 23,021 (383) 57,257 San Antonio, TX 5 MOB 12/10/21 42,300 41,892 42,190 (298) 117,597 San Antonio, TX MOB 12/29/21 6,094 6,218 6,308 (90) 22,381 San Antonio, TX MOB 12/29/21 8,850 8,915 8,866 49 30,542 $ 180,487 $ 177,994 $ 179,862 $ (1,868) 514,253 1 MOB = medical office building. 2 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Includes purchase of an adjoining 3.0 acre land parcel. 5 Includes three properties. |
Schedule of equity method investments | The Company's investment in and loss recognized for the years ended December 31, 2022 and 2021 related to its joint ventures accounted for under the equity method are shown in the table below: DECEMBER 31, Dollars in millions 2022 2021 Investments in unconsolidated joint ventures, beginning of period $ 161.9 $ 73.1 New investments during the period 1 167.9 89.6 Equity loss recognized during the period (0.7) (0.8) Owner distributions (1.9) — Investments in unconsolidated joint ventures, end of period $ 327.2 $ 161.9 1 For the year ended December 31, 2022, this included unconsolidated joint ventures acquired as part of the Merger, as well as investments in two joint ventures representing a 20% and 40% ownership interest in portfolios in Los Angeles, California and Dallas, Texas, respectively. Also, see 2022 Real Estate Asset Dispositions below for additional information. |
Schedule of dispositions | The following table details the Company's dispositions for the year ended December 31, 2022: Dollars in thousands TYPE 1 DATE DISPOSED SALES PRICE CLOSING ADJUSTMENTS NET PROCEEDS NET REAL ESTATE INVESTMENT OTHER 2 GAIN/ SQUARE FOOTAGE Loveland, CO 3, 4 MOB 2/24/22 $ 84,950 $ (45) $ 84,905 $ 40,095 $ 4 $ 44,806 150,291 San Antonio, TX 3 MOB 4/15/22 25,500 (2,272) 23,228 14,381 284 8,563 201,523 GA, FL, PA 5, 11 MOB 7/29/22 133,100 (8,109) 124,991 124,991 — — 316,739 GA, FL, TX 7, 11 MOB 8/4/22 160,917 (5,893) 155,024 151,819 3,205 — 343,545 Los Angeles, CA 5, 9, 11 MOB 8/5/22 134,845 (3,102) 131,743 131,332 411 — 283,780 Dallas, TX 7, 10, 11 MOB 8/30/22 114,290 (682) 113,608 113,608 — — 189,385 Indianapolis, IN 6, 12 MOB 8/31/22 238,845 (5,846) 232,999 84,767 4,324 143,908 506,406 Dallas, TX 3 MOB 10/4/22 104,025 (5,883) 98,142 38,872 6,436 52,834 291,328 Houston, TX MOB 10/21/22 32,000 (280) 31,720 10,762 744 20,214 134,910 College Station, TX MOB 11/10/22 49,177 (3,755) 45,422 44,918 475 28 122,942 El Paso, TX MOB 12/22/22 55,326 (4,002) 51,324 56,427 (1,897) (3,205) 110,465 Atlanta, GA 8 MOB 12/22/22 91,243 (4,326) 86,917 109,051 235 (22,369) 348,416 St. Louis, MO MOB 12/28/22 18,000 (1,471) 16,529 18,340 4 (1,815) 69,394 $ 1,242,218 $ (45,666) $ 1,196,552 $ 939,363 $ 14,225 $ 242,964 3,069,124 1 MOB = medical office building 2 Includes straight-line rent receivables, leasing commissions and lease inducements. 3 Includes two properties. 4 The Company deferred the tax gain through a 1031 exchange and reinvested the proceeds. 5 Includes four properties. 6 Includes five properties. 7 Includes six properties. 8 Includes nine properties. 9 Values and square feet are represented at 100%. The Company retained a 20% ownership interest in the joint venture with an unrelated third party that purchased these properties. 10 Values and square feet are represented at 100%. The Company retained a 40% ownership interest in the joint venture with an unrelated third party that purchased these properties. 11 These properties were acquired as part of the Merger and were included as assets held for sale in the purchase price allocation. 12 Two of the five properties included in this portfolio were acquired in the Merger and were included as assets held for sale in the purchase price allocation. The following table details the Company's dispositions for the year ended December 31, 2021: Dollars in thousands TYPE 1 DATE DISPOSED SALES PRICE CLOSING ADJUSTMENTS NET PROCEEDS NET REAL ESTATE INVESTMENT OTHER 2 GAIN/ SQUARE FOOTAGE Los Angeles, CA 3 MOB 3/11/21 $ 26,000 $ (555) $ 25,445 $ 6,046 $ 509 $ 18,890 73,906 Atlanta, GA MOB 4/12/21 8,050 (272) 7,778 5,675 151 1,952 19,732 Richmond, VA MOB 5/18/21 52,000 (314) 51,686 29,414 3,270 19,002 142,856 Gadsden, AL 4 MOB 5/19/21 5,500 (280) 5,220 5,914 175 (869) 120,192 Dallas, TX 5 MOB 7/9/21 23,000 (1,117) 21,883 18,733 1,966 1,184 190,160 Chicago, IL MOB 10/28/21 13,300 (388) 12,912 23,213 706 (11,007) 95,436 Des Moines, IA 6 MOB 12/8/21 47,000 (901) 46,099 32,312 1,037 12,750 132,617 Aberdeen, SD MOB 12/22/21 12,750 (299) 12,451 10,337 — 2,114 58,285 Dallas, TX MOB 12/23/21 800 (103) 697 712 167 (182) 13,818 $ 188,400 $ (4,229) $ 184,171 $ 132,356 $ 7,981 $ 43,834 847,002 1 MOB = medical office building 2 Includes straight-line rent receivables, leasing commissions and lease inducements. 3 Includes two properties sold to a single purchaser in two transactions which closed on March 5 and March 11, 2021. 4 Includes three properties. 5 Includes four properties and a land parcel sold under a single purchase agreement. |
Held for Sale (Tables)
Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of disposal groups, including discontinued operations, income statement, balance sheet and additional disclosures | The table below reflects the assets and liabilities classified as held for sale as of December 31, 2022 and 2021. DECEMBER 31, Dollars in thousands 2022 2021 Balance Sheet data Land $ 1,700 $ — Buildings and improvements 15,164 — Lease intangibles 1,986 — 18,850 — Accumulated depreciation — — Real estate assets held for sale, net 18,850 — Other assets, net 43 57 Assets held for sale, net $ 18,893 $ 57 Accounts payable and accrued liabilities $ 282 $ 169 Other liabilities 155 125 Liabilities of properties held for sale $ 437 $ 294 |
Other Assets and Liabilities (T
Other Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Items included in "Other assets, net" on the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021 are detailed in the table below: Dollars in thousands December 31, 2022 December 31, 2021 Real estate notes receivable, net $ 99,643 $ — Straight-line rent receivables 88,868 70,784 Prepaid assets 81,900 58,618 Above-market intangible assets, net 80,720 4,966 Accounts receivable, net 1 47,498 14,072 Additional long-lived assets, net 21,446 20,048 Interest rate swap assets 14,512 — Other receivables, net 7,169 — Investment in securities (2) 6,011 — Debt issuance costs, net 5,977 1,813 Project costs 4,337 5,129 Net investment in lease 1,828 — Customer relationship intangible assets, net 1,120 1,174 Other 8,961 9,069 $ 469,990 $ 185,673 1 This amount is net of allowance for doubtful accounts of $4.0 million 2 This amount represents the value of the Company's preferred stock investment in a data analytics platform. |
Schedule of accounts payable and accrued liabilities | The following table provides details of the items included in "Accounts payable and accrued liabilities" on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021: Dollars in thousands December 31, 2022 December 31, 2021 Accrued property taxes $ 78,185 $ 35,295 Accounts payable and capital expenditures 57,352 17,036 Accrued interest 50,037 12,060 Other operating accruals 58,459 21,717 $ 244,033 $ 86,108 |
Schedule of other liabilities | The following table provides details of the items included in "Other liabilities" on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021: Dollars in thousands December 31, 2022 December 31, 2021 Below-market intangible liabilities, net $ 97,935 $ 4,931 Deferred revenue 87,325 45,130 Security deposits 28,521 11,116 Interest rate swap liability 4,269 5,917 Other 618 293 $ 218,668 $ 67,387 |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite lived intangible assets and liabilities | The Company’s intangible assets and liabilities, including assets held for sale and excluding certain debt issuance costs, as of December 31, 2022 and 2021 consisted of the following: GROSS BALANCE ACCUMULATED AMORTIZATION WEIGHTED AVG. BALANCE SHEET CLASSIFICATION Dollars in millions 2022 2021 2022 2021 Goodwill $ 223.2 $ 3.5 $ — $ — N/A Goodwill Credit facility debt issuance costs 6.9 5.1 0.9 3.3 2.9 Other assets, net Above-market lease intangibles (lessor) 91.5 7.0 10.7 2.0 5.3 Other assets, net Customer relationship intangibles (lessor) 2.1 2.1 1.0 0.9 20.6 Other assets, net Below-market lease intangibles (lessor) (112.5) (10.1) (14.6) (5.1) 5.7 Other liabilities At-market lease intangibles 1,067.4 213.0 188.3 77.5 5.2 Real estate properties $ 1,278.6 $ 220.6 $ 186.3 $ 78.6 5.3 |
Schedule of expected net future amortization expense | The following table represents expected amortization over the next five years of the Company’s intangible assets and liabilities in place as of December 31, 2022: Dollars in millions FUTURE AMORTIZATION OF INTANGIBLES, NET 2023 $ 233.8 2024 197.9 2025 151.1 2026 97.6 2027 64.3 |
Notes and Bonds Payable (Tables
Notes and Bonds Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instrument [Line Items] | |
Schedule of debt | DECEMBER 31, MATURITY DATES CONTRACTUAL INTEREST RATES EFFECTIVE INTEREST RATES PRINCIPAL PAYMENTS INTEREST PAYMENTS Dollars in thousands 2022 2021 $700M Unsecured Credit Facility $ — $ 210,000 5/23 LIBOR + 0.90% N/A At maturity Monthly $1.5B Unsecured Credit Facility 385,000 — 10/25 SOFR + 0.95% 5.27 % At maturity Monthly $350M Unsecured Term Loan 1 349,114 — 7/23 SOFR + 1.05% 5.17 % At maturity Monthly $200M Unsecured Term Loan 1 199,670 199,460 5/24 SOFR + 1.05% 5.17 % At maturity Monthly $150M Unsecured Term Loan 1 149,495 149,376 6/26 SOFR + 1.05% 5.17 % At maturity Monthly $300M Unsecured Term Loan 1 299,936 — 10/25 SOFR + 1.05% 5.17 % At maturity Monthly $200M Unsecured Term Loan 1 199,362 — 7/27 SOFR + 1.05% 5.17 % At maturity Monthly $300M Unsecured Term Loan 1 297,869 — 1/28 SOFR + 1.05% 5.17 % At maturity Monthly Senior Notes due 2025 1 249,115 249,040 5/25 3.88 % 4.12 % At maturity Semi-annual Senior Notes due 2026 1 571,587 — 8/26 3.50 % 4.94 % At maturity Semi-annual Senior Notes due 2027 1 479,553 — 7/27 3.75 % 4.76 % At maturity Semi-annual Senior Notes due 2028 1 296,852 296,612 1/28 3.63 % 3.85 % At maturity Semi-annual Senior Notes due 2030 1 565,402 — 2/30 3.10 % 5.30 % At maturity Semi-annual Senior Notes due 2030 1 296,385 296,813 3/30 2.40 % 2.72 % At maturity Semi-annual Senior Notes due 2031 1 295,547 295,374 3/31 2.05 % 2.25 % At maturity Semi-annual Senior Notes due 2031 1 632,693 — 3/31 2.00 % 5.13 % At maturity Semi-annual Mortgage notes payable 2 84,247 104,650 8/23-12/26 3.31%-4.77% 3.42%-4.84% Monthly Monthly $ 5,351,827 $ 1,801,325 1 Balances are shown net of discounts and unamortized issuance costs. 2 Balances are shown net of discounts and unamortized issuance costs and include premiums. |
Schedule of debt exchange offers | The following sets forth the results of the Exchange Offers: Series of Old HR Notes Tenders and Consents Received as of the Expiration Date Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes 3.875 % Senior Notes due 2025 $235,016,000 94.01 % 3.625 % Senior Notes due 2028 $290,246,000 96.75 % 2.400 % Senior Notes due 2030 $297,507,000 99.17 % 2.050 % Senior Notes due 2031 $298,858,000 99.62 % |
Schedule of senior notes assumed with the merger | The Legacy Senior Notes assumed by the Company consist of the following: COUPON PRINCIPAL OUTSTANDING AS OF Dollars in thousands FACE VALUE 12/31/2022 12/31/2021 Senior Notes due 2026 3.50% $ 600,000 $ 600,000 $ — Senior Notes due 2027 3.75% 500,000 500,000 — Senior Notes due 2030 3.10% 650,000 650,000 — Senior Notes due 2031 2.00% 800,000 800,000 — $ 2,550,000 $ 2,550,000 $ — |
Schedule of mortgage notes payable | The following table details the Company’s mortgage notes payable, with related collateral. ORIGINAL BALANCE EFFECTIVE INTEREST RATE 10 MATURITY COLLATERAL 11 PRINCIPAL AND INTEREST PAYMENTS 9 INVESTMENT IN COLLATERAL BALANCE Dollars in millions 2022 2022 2021 Commercial Bank 1 15.0 5.25 % 4/27 MOB Monthly/20-yr amort. — — 6.1 Life Insurance Co. 2 11.0 3.64 % 5/27 MOB Monthly/10-yr amort. — — 11.6 Life Insurance Co. 3 12.3 3.86 % 8/23 MOB Monthly/7-yr amort. 25.9 10.0 10.3 Life Insurance Co. 4 9.0 4.84 % 12/23 MOB,OFC Monthly/10-yr amort. 24.5 6.8 7.1 Life Insurance Co. 5 13.3 4.13 % 1/24 MOB Monthly/10-yr amort. 22.5 11.7 12.0 Life Insurance Co. 6 6.8 3.96 % 2/24 MOB Monthly/7-yr amort. 14.7 5.8 6.0 Financial Services 7 9.7 4.32 % 9/24 MOB Monthly/10-yr amort. 16.6 7.5 7.8 Life Insurance Co. 8 16.5 3.43 % 12/25 MOB,OFC Monthly/7-yr amort. 39.1 16.2 16.7 Financial Services 11.5 3.71 % 1/26 MOB Monthly/10-yr amort. 40.5 8.3 8.7 Life Insurance Co. 19.2 4.08 % 12/26 MOB Monthly/10-yr amort. 44.5 17.9 18.4 $ 228.3 $ 84.2 $ 104.7 1 The Company repaid this loan at the time of disposal in February 2022. 2 The Company repaid this loan in February 2022. The Company's unencumbered gross investment was $20.6 million at December 31, 2022. 3 The unaccreted portion of the $0.2 million discount recorded on this note upon acquisition is included in the balance above. 4 The unamortized portion of the $0.1 million premium recorded on this note upon acquisition is included in the balance above. 5 The unamortized portion of the $0.8 million premium recorded on this note upon acquisition is included in the balance above. 6 The unamortized portion of the $0.2 million premium recorded on this note upon acquisition is included in the balance above. 7 The unamortized portion of the $0.1 million premium recorded on this note upon acquisition is included in the balance above. 8 The unamortized portion of the $0.7 million premium recorded on this note upon acquisition is included in the balance above. 9 Payable in monthly installments of principal and interest with the final payment due at maturity (unless otherwise noted). 10 The contractual interest rates for the eight outstanding mortgage notes ranged from 3.3% to 4.8% as of December 31, 2022. 11 MOB-Medical office building; OFC-Office |
Schedule of future contractual maturities of the company's notes and bonds payable | Future maturities of the Company’s notes and bonds payable as of December 31, 2022 were as follows: Dollars in thousands PRINCIPAL MATURITIES NET ACCRETION/ AMORTIZATION 1 DEBT ISSUANCE COSTS 2 NOTES AND % 2023 $ 368,880 $ (38,805) $ (3,258) $ 326,817 6.1 % 2024 225,352 (40,922) (2,211) 182,219 3.4 % 2025 951,250 (43,193) (1,851) 906,206 16.9 % 2026 773,640 (41,798) (1,636) 730,206 13.6 % 2027 700,000 (36,192) (1,518) 662,290 12.4 % 2028 and thereafter 2,649,500 (103,561) (1,850) 2,544,089 47.6 % $ 5,668,622 $ (304,471) $ (12,324) $ 5,351,827 100.0 % 1 Includes discount accretion and premium amortization related to the Company’s Senior Notes and six mortgage notes payable. 2 Excludes approximately $6.0 million in debt issuance costs related to the Company's Unsecured Credit Facility included in other assets, net. |
Senior Notes | |
Debt Instrument [Line Items] | |
Schedule of senior notes assumed with the merger | The following table reconciles the Company’s aggregate Senior notes principal balance with the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021 DECEMBER 31, Dollars in thousands 2022 2021 Senior notes principal balance $ 3,699,500 $ 1,150,000 Unaccreted discount (304,919) (4,730) Debt issuance costs (7,447) (7,431) Senior notes carrying amount $ 3,387,134 $ 1,137,839 |
Term Loan Net | Term Loan | |
Debt Instrument [Line Items] | |
Schedule of debt | The following table reconciles the Company’s aggregate term loan principal balance with the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021. DECEMBER 31, Dollars in thousands 2022 2021 Term loan principal balances $ 1,500,000 $ 350,000 Debt issuance costs (4,554) (1,164) Term Loans carrying amount $ 1,495,446 $ 348,836 |
Mortgage Notes Payable | Mortgage Notes | |
Debt Instrument [Line Items] | |
Schedule of debt | The following table reconciles the Company’s aggregate mortgage notes principal balance with the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021. DECEMBER 31, Dollars in thousands 2022 2021 Mortgage notes payable principal balance $ 84,122 $ 103,664 Unamortized premium 486 1,720 Unaccreted discount (38) (83) Debt issuance costs (323) (651) Mortgage notes payable carrying amount $ 84,247 $ 104,650 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of cash flow hedges included in accumulated other comprehensive income (loss) | the Company had interest rate derivatives that were designated as cash flow hedges of interest rate risk. The table below presents the notional value and weighted average rates of the Company's derivative financial instruments as of December 31, 2022 and 2021: NOTIONAL VALUE AS OF WEIGHTED AVERAGE RATE EXPIRATION DATE DECEMBER 31, 2022 January 31, 2023 $ 300,000 1.42 % January 15, 2024 200,000 1.21 % May 1, 2026 100,000 2.15 % December 1, 2026 150,000 3.84 % June 1, 2027 150,000 4.13 % December 1, 2027 250,000 3.79 % $ 1,150,000 2.63 % On February 16, 2023, the Company entered into a swap transaction with a notional amount of $50.0 million and a fixed rate of 4.16%. The swap agreement has an effective date of March 1, 2023 and a termination date of June 1, 2026. The table below presents the effect of cash flow hedge accounting on Accumulated other comprehensive income (loss) as of December 31, 2022 related to the Company's outstanding interest rate swaps. AMOUNT OF GAIN/(LOSS) RECOGNIZED IN OCI AMOUNT OF (GAIN)/LOSS RECLASSIFIED Dollars in thousands 2022 2022 2021 Interest rate swaps 2017 $ 302 Interest expense $ 118 $ 527 Interest rate swaps 2018 616 Interest expense 361 1,194 Interest rate swaps 2019 12,964 Interest expense 563 2,157 Interest rate swaps 2022 (3,252) Interest expense (109) — Settled treasury hedges — Interest expense 426 426 Settled interest rate swaps — Interest expense 168 168 $ 10,630 Total interest expense $ 1,527 $ 4,472 |
Schedule of derivative instruments in statement of financial position, fair value | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2022 and 2021. AS OF DECEMBER 31, 2022 AS OF DECEMBER 31, 2021 Dollars in thousands BALANCE SHEET LOCATION FAIR BALANCE SHEET LOCATION FAIR Derivatives designated as hedging instruments Interest rate swaps 2017 Other liabilities $ (420) Interest rate swaps 2018 Other liabilities (976) Interest rate swaps 2019 Other Assets $ 13,603 Other liabilities (4,521) Interest rate swaps 2022 Other Assets 909 — Interest rate swaps 2022 Other Liabilities (4,269) — Total derivatives designated as hedging instruments $ 10,243 $ (5,917) |
Schedule of offsetting assets | The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of December 31, 2022. The net amounts of derivative liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative liabilities are presented on the Company's Consolidated Balance Sheets. Offsetting of Derivative Assets GROSS AMOUNTS GROSS AMOUNTS OFFSET NET AMOUNTS OF ASSETS GROSS AMOUNTS NOT OFFSET FINANCIAL INSTRUMENTS CASH NET Derivatives $ 14,512 $ — $ 14,512 $ (4,269) $ — $ 10,243 Offsetting of Derivative Liabilities GROSS AMOUNTS GROSS AMOUNTS OFFSET NET AMOUNTS OF LIABILITIES GROSS AMOUNTS NOT OFFSET FINANCIAL INSTRUMENTS CASH NET Derivatives $ (4,269) $ — $ (4,269) $ 4,269 $ — $ — |
Schedule of offsetting liabilities | The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of December 31, 2022. The net amounts of derivative liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative liabilities are presented on the Company's Consolidated Balance Sheets. Offsetting of Derivative Assets GROSS AMOUNTS GROSS AMOUNTS OFFSET NET AMOUNTS OF ASSETS GROSS AMOUNTS NOT OFFSET FINANCIAL INSTRUMENTS CASH NET Derivatives $ 14,512 $ — $ 14,512 $ (4,269) $ — $ 10,243 Offsetting of Derivative Liabilities GROSS AMOUNTS GROSS AMOUNTS OFFSET NET AMOUNTS OF LIABILITIES GROSS AMOUNTS NOT OFFSET FINANCIAL INSTRUMENTS CASH NET Derivatives $ (4,269) $ — $ (4,269) $ 4,269 $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of reconciliation of the beginning and ending common stock outstanding | The Company had no preferred shares outstanding and had common shares outstanding for the three years ended December 31, 2022, 2021, and 2020 as follows: YEAR ENDED DECEMBER 31, 2022 2021 2020 Balance, beginning of year 150,457,433 139,487,375 134,706,154 Issuance of common stock 229,618,304 10,899,301 4,637,445 Non-vested share-based awards, net of withheld shares and forfeitures 514,157 70,757 143,776 Balance, end of year 380,589,894 150,457,433 139,487,375 |
Schedule of sale of stock under market equity offering Program | The Company has in place an ATM equity offering program to sell shares of the Company’s common stock from time to time in at-the-market sales transactions. The Company has equity distribution agreements with various sales agents with respect to the ATM offering program of common stock with an aggregate sales amount of up to $750.0 million. As of December 31, 2022, $750.0 million remained available for issuance under the current ATM offering program. The Company's previous ATM agreements involving Legacy HR are no longer in effect following the Merger on July 20, 2022. The following table details the Company's at-the-market activity, including any forward transactions: WEIGHTED AVERAGE SALE PRICE SHARES PRICED SHARES SETTLED SHARES REMAINING TO BE SETTLED NET PROCEEDS 2021 $ 31.09 9,763,680 10,859,539 727,400 $ 330.3 2022 $ 31.73 — 727,400 — $ 22.3 |
Schedule of reconciliation of beginning and ending balances of accumulated other comprehensive income | The following table represents the changes in accumulated other comprehensive income (loss) during the years ended December 31, 2022 and 2021: INTEREST RATE SWAPS Dollars in thousands 2022 2021 Beginning balance $ (9,981) $ (17,832) Other comprehensive loss before reclassifications 1,531 4,472 Amounts reclassified from accumulated other comprehensive income 10,590 3,379 Net current-period other comprehensive income 12,121 7,851 Ending balance $ 2,140 $ (9,981) |
Schedule of reclassifications out of accumulated other comprehensive income | The following table represents the details regarding the reclassifications from accumulated other comprehensive income (loss) during the year ended December 31, 2022 (dollars in thousands): DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE AMOUNT RECLASSIFIED AFFECTED LINE ITEM Amounts reclassified from accumulated other comprehensive income (loss) related to settled interest rate swaps $ 594 Interest Expense Amounts reclassified from accumulated other comprehensive income (loss) related to current interest rate swaps 937 Interest Expense $ 1,531 |
Stock and Other Incentive Pla_2
Stock and Other Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of unrecognized compensation cost, nonvested awards | The following table represents expected amortization of the Company's non-vested shares issued as of December 31, 2022: Dollars in millions FUTURE AMORTIZATION 2023 $ 12.0 2024 10.0 2025 8.3 2026 5.5 2027 0.4 2028 and thereafter 0.1 Total $ 36.3 |
Schedule of other than stock options, valuation assumptions | The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair values of $30.56 for the absolute TSR component and $41.30 for the relative TSR component for the January 2022 grant using the following assumptions: Volatility 30.0 % Dividend Assumption Accrued Expected term in years 3 years Risk-free rate 1.02 % Stock price (per share) $31.68 |
Schedule of the activity under the incentive plans the previous directors' plan | A summary of the activity under the Incentive Plans and related information for the three years in the period ended December 31, 2022 follows: YEAR ENDED DECEMBER 31, Dollars in thousands, except per share data 2022 2021 2020 Share-based awards, beginning of year 1,562,028 1,766,061 1,754,066 Granted 657,475 203,701 197,999 Vested (418,949) (404,777) (186,004) Forfeited (5,426) (2,957) — Share-based awards, end of year 1,795,128 1,562,028 1,766,061 Weighted-average grant date fair value of Share-based awards, beginning of year $ 31.10 $ 30.51 $ 29.82 Share-based awards granted during the year $ 28.11 $ 30.86 $ 30.33 Share-based awards vested during the year $ 31.52 $ 28.38 $ 23.82 Stock-based awards forfeited during the year $ 31.48 $ 33.04 $ — Share-based awards, end of year $ 29.91 $ 31.10 $ 30.51 Grant date fair value of shares granted during the year $ 18,480 $ 6,286 $ 6,006 |
Schedule of the employee stock purchase plan activity | A summary of the Legacy HR Employee Stock Purchase Plan activity and related information for the three years in the period ended December 31, 2022 is as follows: YEAR ENDED DECEMBER 31, Dollars in thousands, except per share data 2022 2021 2020 Options outstanding, beginning of year 348,514 341,647 332,659 Granted 255,960 253,200 212,716 Exercised (20,246) (30,281) (21,713) Forfeited (102,619) (71,630) (42,221) Expired (140,633) (144,422) (139,794) Options outstanding and exercisable, end of year 340,976 348,514 341,647 Weighted-average exercise price of Options outstanding, beginning of year $ 25.38 $ 24.70 $ 25.59 Options granted during the year $ 26.89 $ 25.16 $ 28.36 Options exercised during the year $ 20.97 $ 25.03 $ 24.10 Options forfeited during the year $ 21.88 $ 25.45 $ 25.29 Options expired during the year $ 23.36 $ 24.17 $ 23.74 Options outstanding, end of year $ 16.38 $ 25.38 $ 24.70 Weighted-average fair value of options granted during the year (calculated as of the grant date) $ 9.91 $ 9.05 $ 8.06 Intrinsic value of options exercised during the year $ 75 $ 165 $ 101 Intrinsic value of options outstanding and exercisable (calculated as of December 31) $ 985 $ 1,997 $ 1,673 Exercise prices of options outstanding (calculated as of December 31) $ 16.38 $ 25.91 $ 24.70 Weighted-average contractual life of outstanding options (calculated as of December 31, in years) 0.8 0.8 0.8 |
Schedule of stock options, valuation assumptions | 2022 2021 2020 Risk-free interest rates 0.73 % 0.13 % 1.58 % Expected dividend yields 3.97 % 4.11 % 3.69 % Expected life (in years) 1.44 1.43 1.43 Expected volatility 49.0 % 48.2 % 28.6 % Expected forfeiture rates 85 % 85 % 85 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The table below sets forth the computation of basic and diluted earnings per common share for the three years in the period ended December 31, 2022. YEAR ENDED DECEMBER 31, Dollars in thousands, except per share data 2022 2021 2020 Weighted average common shares outstanding Weighted average common shares outstanding 254,296,810 144,411,835 135,666,503 Non-vested shares (1,940,607) (1,774,669) (1,736,358) Weighted average common shares outstanding - basic 252,356,203 142,637,166 133,930,145 Weighted average common shares outstanding - basic 252,356,203 142,637,166 133,930,145 Dilutive effect of forward equity shares — — 6,283 Dilutive effect of OP Units 1,451,599 — — Dilutive effect of employee stock purchase plan 65,519 73,062 70,512 Weighted average common shares outstanding - diluted 253,873,321 142,710,228 134,006,940 Net income attributable to common stockholders $ 40,897 $ 66,659 $ 72,195 Dividends paid on nonvested share-based awards (2,437) (2,154) (2,083) Net income applicable to common stockholders - basic $ 38,460 $ 64,505 $ 70,112 Net income attributable to OP Units 81 — — Net income applicable to common stockholders - diluted $ 38,541 $ 64,505 $ 70,112 Basic earnings per common share - net income $ 0.15 $ 0.45 $ 0.52 Diluted earnings per common share - net income $ 0.15 $ 0.45 $ 0.52 |
Other Data (Tables)
Other Data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of characterization of distributions on common stock | For the three years ended December 31, 2022, there were no preferred shares outstanding. As such, no dividends were distributed related to preferred shares for those periods. YEAR ENDED DECEMBER 31, 2022 2021 2020 PER SHARE PER SHARE PER SHARE Tax Treatment of Dividends Pre-Merger Healthcare Trust of America Ordinary income 1 $ 0.5862 $ 0.7920 $ 0.6976 Return of capital 4.0162 0.4930 0.5582 Capital gain 1.2216 — 0.0092 Common stock distributions $ 5.8240 $ 1.2850 $ 1.2650 Tax Treatment of Dividends Pre-Merger Healthcare Realty Ordinary income 1 $ 0.2655 $ 0.7500 $ 0.7738 Return of capital 0.5555 0.3600 0.1084 Capital gain — 0.0964 0.3178 Common stock distributions $ 0.8210 $ 1.2064 $ 1.2000 Tax Treatment of Dividends Post-Merger Healthcare Realty Ordinary income 1 $ 0.0422 $ — $ — Return of capital 0.2889 — — Capital gain 0.0879 — — Common stock distributions $ 0.4190 $ — $ — |
Schedule of state income taxes | State income tax expense and state income tax payments for the three years ended December 31, 2022 are detailed in the table below: YEAR ENDED DECEMBER 31, Dollars in thousands 2022 2021 2020 State income tax expense Texas gross margins tax $ 1,693 $ 564 $ 546 Other 151 8 8 Total state income tax expense $ 1,844 $ 572 $ 554 State income tax payments, net of refunds and collections $ 1,834 $ 560 $ 557 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value and carrying values for notes and bonds payable, mortgage notes receivable and notes receivable | The table below details the fair value and carrying values for our other financial instruments as of December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE Notes and bonds payable 1, 2 $ 5,351.8 $ 5,149.6 $ 1,801.3 $ 1,797.4 Real estate notes receivable 1 $ 99.6 $ 99.6 $ — $ — 1 Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets. 2 Fair value for senior notes includes accrued interest as of December 31, 2022. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) shares in Millions, ft² in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) ft² property variable_interest_entity state jointVenture reporting_unit note_receivable building shares | Dec. 31, 2021 USD ($) property | Dec. 31, 2020 USD ($) | Jul. 20, 2022 USD ($) | |
Business Overview [Abstract] | ||||
Gross investment, amount, total | $ 14,100,000,000 | |||
Real estate properties and mortgages | property | 688 | |||
Number of owned real estate properties | property | 688 | |||
Number of states that the Company owns real estate in | state | 35 | |||
Square footage of owned real estate properties | ft² | 40.3 | |||
Number of buildings | building | 33 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Equity ownership for consolidation (percent) | 100% | |||
Number of entities | variable_interest_entity | 3 | |||
Segment Reporting [Abstract] | ||||
Number of Reporting Units | reporting_unit | 1 | |||
Real Estate Properties [Abstract] | ||||
Elimination of real estate lease intangibles against accumulated depreciation | $ 133,600,000 | $ 33,700,000 | ||
Depreciation | $ 320,800,000 | $ 170,000,000 | $ 162,400,000 | |
Maximum period up to which interest capitalize on properties in stabilization | 1 year | |||
Land Held for Development [Abstract] | ||||
Number of land parcels held for development | property | 20 | 7 | ||
Land held for development | $ 74,300,000 | $ 24,800,000 | ||
Goodwill and Intangible Assets [Abstract] | ||||
Goodwill | 223,202,000 | 3,487,000 | $ 219,715,000 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue Received | $ 1,500,000 | 1,400,000 | ||
Federal Income Taxes [Abstract] | ||||
Percentage of distribution of taxable income for qualify as REIT | 90% | |||
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | 0 | $ 0 | |
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests [Abstract] | ||||
Redeemable non-controlling interests | 2,014,000 | $ 0 | ||
Leases [Abstract] | ||||
Investments in notes receivable | $ 99,600,000 | |||
Variable Interest Entity | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of entities | variable_interest_entity | 3 | |||
Number of notes receivable | note_receivable | 2 | |||
Number of joint ventures | jointVenture | 1 | |||
Healthcare Trustof America Holdings L P | Non-Controlling Interest Holders | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Limited partners capital account outstanding | shares | 4 | |||
Limited partners ownership interest (in percent) | 1.10% | |||
Medical Office Building | ||||
Business Overview [Abstract] | ||||
Number of buildings | property | 2 | 4 | ||
Real Estate Properties Held In Joint Ventures Member | ||||
Real Estate Properties [Line Items] | ||||
Weighted average ownership interest (percent) | 48% | |||
Business Overview [Abstract] | ||||
Weighted average ownership interest (percent) | 48% | |||
Property Entities Not Determined to be VIEs | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Equity interest owned (percent) | 100% | |||
Healthcare Trustof America Holdings L P | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Equity interest owned (percent) | 98.90% | |||
Interest Rate Swap | ||||
Derivative Instrument Detail [Abstract] | ||||
Accumulated other comprehensive income (loss), net of tax | $ 2,100,000 | $ 10,000,000 | ||
Tenant and Capital Improvements | ||||
Real Estate Properties [Abstract] | ||||
Fully depreciated tenant and capital improvements eliminated against accumulated depreciation | 4,100,000 | 9,900,000 | ||
Buildings and improvements | ||||
Real Estate Properties [Abstract] | ||||
Fully depreciated tenant and capital improvements eliminated against accumulated depreciation | 7,100,000 | |||
At Market Lease Intangibles | ||||
Real Estate Properties [Abstract] | ||||
Elimination of real estate lease intangibles against accumulated depreciation | $ 19,600,000 | $ 16,300,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Consolidated balance sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Net real estate investments | $ 12,412,354 | $ 3,766,199 |
Cash and cash equivalents | 60,961 | 13,175 |
Total assets | 13,849,631 | 4,258,919 |
Liabilities: | ||
Total equity | 7,571,076 | 2,185,116 |
Total liabilities, redeemable non-controlling interests, and stockholders' equity | 13,849,631 | $ 4,258,919 |
Variable interest entity | ||
Assets: | ||
Net real estate investments | 46,322 | |
Cash and cash equivalents | 3,645 | |
Receivables and other assets | 2,385 | |
Total assets | 52,352 | |
Liabilities: | ||
Accrued expenses and other liabilities | 12,214 | |
Total equity | 40,138 | |
Total liabilities, redeemable non-controlling interests, and stockholders' equity | $ 52,352 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Variable interest entity (Details) $ in Thousands | Dec. 31, 2022 USD ($) property |
Variable Interest Entity [Line Items] | |
Number of owned real estate properties | property | 688 |
Houston, TX | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Notes receivable, carrying amount | $ 29,753 |
MAXIMUM EXPOSURE TO LOSS | 31,150 |
Charlotte, NC | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Notes receivable, carrying amount | 5,984 |
MAXIMUM EXPOSURE TO LOSS | $ 6,000 |
Texas | Variable Interest Entity | |
Variable Interest Entity [Line Items] | |
Number of owned real estate properties | property | 6 |
Texas | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Equity method investments | $ 23,219 |
MAXIMUM EXPOSURE TO LOSS | $ 23,219 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Useful lives of real estate assets and liabilities (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset estimated useful life | 2 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset estimated useful life | 39 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset estimated useful life | 3 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset estimated useful life | 49 years |
Lease intangibles (including ground lease intangibles) | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset estimated useful life | 1 year 2 months 12 days |
Intangible asset useful life | 1 year 2 months 12 days |
Lease intangibles (including ground lease intangibles) | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset estimated useful life | 99 years |
Intangible asset useful life | 99 years |
Personal property | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset estimated useful life | 3 years |
Personal property | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset estimated useful life | 20 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Other operating | $ 13,706 | $ 10,291 | $ 7,367 |
Parking income | |||
Disaggregation of Revenue [Line Items] | |||
Other operating | 8,513 | 7,859 | 6,720 |
Management fee income | |||
Disaggregation of Revenue [Line Items] | |||
Other operating | 4,668 | 2,049 | 343 |
Miscellaneous | |||
Disaggregation of Revenue [Line Items] | |||
Other operating | $ 525 | $ 383 | $ 304 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Components of rental income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Property operating income | $ 883,953 | $ 514,533 | $ 488,527 |
Straight-line rent | 23,498 | 5,801 | 3,735 |
Rental income | $ 907,451 | $ 520,334 | $ 492,262 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Notes Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest | $ 758 | |
Fair-value discount and fees | (5,446) | |
Investment in financing receivables, net | 120,236 | $ 186,745 |
Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Investment in financing receivables, net | $ 99,643 | |
Mezzanine Loans Texas | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
STATED INTEREST RATE | 8% | |
MAXIMUM LOAN COMMITMENT | $ 54,119 | |
REAL ESTATE NOTES RECEIVABLE, GROSS | $ 54,119 | |
Mezzanine Loan - North Carolina | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
STATED INTEREST RATE | 8% | |
MAXIMUM LOAN COMMITMENT | $ 6,000 | |
REAL ESTATE NOTES RECEIVABLE, GROSS | 6,000 | |
Mezzanine Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
MAXIMUM LOAN COMMITMENT | 60,119 | |
REAL ESTATE NOTES RECEIVABLE, GROSS | $ 60,119 | |
Mortgage Loan Texas | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
STATED INTEREST RATE | 7% | |
MAXIMUM LOAN COMMITMENT | $ 31,150 | |
REAL ESTATE NOTES RECEIVABLE, GROSS | $ 31,150 | |
Mortgage Loan Florida | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
STATED INTEREST RATE | 6% | |
MAXIMUM LOAN COMMITMENT | $ 65,000 | |
REAL ESTATE NOTES RECEIVABLE, GROSS | 13,062 | |
Mortgage Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
MAXIMUM LOAN COMMITMENT | 96,150 | |
REAL ESTATE NOTES RECEIVABLE, GROSS | $ 44,212 |
Merger with HTA - Narrative (De
Merger with HTA - Narrative (Details) - USD ($) | 12 Months Ended | |||
Jul. 20, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | ||
Goodwill | $ 219,715,000 | $ 223,202,000 | $ 3,487,000 | |
Goodwill expected to be tax deductible | 0 | |||
Merger-related costs | 103,380,000 | $ 0 | $ 0 | |
Revenues contributed from Legacy HTA | 351,800,000 | |||
Results of operations from Legacy HTA | $ 79,300,000 | |||
MEASUREMENT PERIOD ADJUSTMENTS | ||||
Business Acquisition [Line Items] | ||||
Goodwill adjustment incomplete | $ 74,300,000 | |||
HealthCare Realty Trust Incorporated | Common Class A | ||||
Business Acquisition [Line Items] | ||||
Common stock, par value (dollars per share) | $ 0.01 | |||
HealthCare Realty Trust, Inc. | ||||
Business Acquisition [Line Items] | ||||
Common stock, par value (dollars per share) | 0.01 | |||
Healthcare Trust Of America, Inc | ||||
Business Acquisition [Line Items] | ||||
Common stock, par value (dollars per share) | $ 0.01 | |||
Conversion Ratio | 1 | |||
Dividends per share to common stockholders, declared (in USD per share) | $ 4.82 |
Merger with HTA (Details)
Merger with HTA (Details) | 12 Months Ended | ||
Jul. 20, 2022 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Business Acquisition [Line Items] | |||
Shares of Legacy HTA Common Stock outstanding as of July 20, 2022 as adjusted (in shares) | 228,857,717 | 380,590,000 | 150,457,000 |
Implied shares of Legacy HR Common Stock issued (in shares) | 228,520,990 | ||
Adjusted closing price of Legacy HR Common Stock on July 20, 2022 (in dollars per share) | $ / shares | $ 24.37 | ||
Value of implied Legacy HR Common Stock issued | $ | $ 5,569,057,000 | ||
Fair value of Legacy HTA restricted stock awards attributable to pre-Merger services | $ | $ 7,406,000 | ||
PURCHASE PRICE | $ | $ 5,576,463,000 | $ 8,900,000 | |
Healthcare Trust Of America, Inc | |||
Business Acquisition [Line Items] | |||
Shares of Legacy HTA Common Stock outstanding as of July 20, 2022 as adjusted (in shares) | 228,520,990 | ||
Exchange ratio | 1 | ||
Common Stock, fractional (in shares) | 192 | ||
Healthcare Trust Of America, Inc | Restricted Stock | |||
Business Acquisition [Line Items] | |||
Shares of Legacy HTA Common Stock outstanding as of July 20, 2022 as adjusted (in shares) | 336,535 | ||
Common Stock, withheld (in shares) | 215,764 |
Merger with HTA - Schedule of F
Merger with HTA - Schedule of Fair Values of the Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 20, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Real estate investments | |||
Land | $ 992,701 | ||
Buildings and improvements | 6,876,756 | ||
Lease intangible assets | 833,150 | ||
Financing lease right-of-use assets | 13,020 | ||
Construction in progress | 3,327 | ||
Land held for development | 46,538 | ||
Total real estate investments | 8,765,492 | ||
Assets held for sale, net | 699,496 | ||
Investments in unconsolidated joint ventures | 67,892 | ||
Cash and cash equivalents | 37,437 | ||
Restricted cash | 1,122,400 | ||
Operating lease right-of-use assets | 216,047 | ||
Other assets, net | 205,323 | $ 400 | $ 800 |
Total assets acquired | 11,114,087 | ||
LIABILITIES | |||
Notes and bonds payable | 3,991,300 | ||
Accounts payable and accrued liabilities | 1,244,944 | ||
Liabilities of assets held for sale | 24,738 | ||
Operating lease liabilities | 184,121 | ||
Financing lease liabilities | 9,865 | ||
Other liabilities | 191,669 | ||
Total liabilities assumed | 5,646,637 | ||
Net identifiable assets acquired | 5,467,450 | 399,200 | 561,500 |
Non-controlling interest | 110,702 | ||
Goodwill | 219,715 | $ 223,202 | $ 3,487 |
Weighted average amortization period for the acquired lease intangible assets | 6 years | ||
Gross contractual accounts receivable | 15,900 | ||
Gross contractual real estate notes receivable | 78,700 | ||
Gross contractual real estate notes receivable at fair value | 74,800 | ||
MEASUREMENT PERIOD ADJUSTMENTS | |||
Land | 6,775 | ||
Buildings and improvements | (83,662) | ||
Lease intangible assets | 1,230 | ||
Financing lease right-of-use assets | 3,146 | ||
Construction in progress | (6,744) | ||
Total real estate investments | (79,255) | ||
Assets held for sale, net | (7,946) | ||
Cash and cash equivalents | 11,403 | ||
Restricted cash | (1,247) | ||
Operating lease right-of-use assets | 17,786 | ||
Other assets, net | (3,840) | ||
Total assets acquired | (63,099) | ||
Accounts payable and accrued liabilities | 17,374 | ||
Liabilities of assets held for sale | (3,939) | ||
Operating lease liabilities | 10,173 | ||
Financing lease liabilities | (855) | ||
Other liabilities | (11,541) | ||
Total liabilities assumed | 11,212 | ||
Net identifiable assets acquired | (74,311) | ||
Goodwill | 74,311 | ||
Previously Reported | |||
Real estate investments | |||
Land | 985,926 | ||
Buildings and improvements | 6,960,418 | ||
Lease intangible assets | 831,920 | ||
Financing lease right-of-use assets | 9,874 | ||
Construction in progress | 10,071 | ||
Land held for development | 46,538 | ||
Total real estate investments | 8,844,747 | ||
Assets held for sale, net | 707,442 | ||
Investments in unconsolidated joint ventures | 67,892 | ||
Cash and cash equivalents | 26,034 | ||
Restricted cash | 1,123,647 | ||
Operating lease right-of-use assets | 198,261 | ||
Other assets, net | 209,163 | ||
Total assets acquired | 11,177,186 | ||
LIABILITIES | |||
Notes and bonds payable | 3,991,300 | ||
Accounts payable and accrued liabilities | 1,227,570 | ||
Liabilities of assets held for sale | 28,677 | ||
Operating lease liabilities | 173,948 | ||
Financing lease liabilities | 10,720 | ||
Other liabilities | 203,210 | ||
Total liabilities assumed | 5,635,425 | ||
Net identifiable assets acquired | 5,541,761 | ||
Non-controlling interest | 110,702 | ||
Goodwill | $ 145,404 |
Merger with HTA - Schedule of B
Merger with HTA - Schedule of Business Acquisition, Pro Forma Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
Total revenues | $ 1,391,096 | $ 1,316,743 |
Net income | $ 130,445 | $ (78,990) |
Property Investments (Details)
Property Investments (Details) $ in Thousands | Dec. 31, 2022 USD ($) ft² property | Dec. 31, 2021 USD ($) |
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 688 | |
LAND | $ 1,439,798 | |
BUILDINGS AND IMPROVEMENTS | 11,332,037 | $ 4,337,641 |
LEASE INTANGIBLES | 959,998 | |
Personal property | 11,907 | 11,761 |
Total real estate investments | 14,057,625 | 5,104,942 |
ACCUMULATED DEPRECIATION | $ (1,645,271) | $ (1,338,743) |
Construction in progress | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 0 | |
LAND | $ 0 | |
BUILDINGS AND IMPROVEMENTS | 0 | |
LEASE INTANGIBLES | ||
Personal property | 0 | |
Total real estate investments | 35,560 | |
ACCUMULATED DEPRECIATION | $ 0 | |
Land held for development | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 0 | |
LAND | $ 0 | |
BUILDINGS AND IMPROVEMENTS | 0 | |
LEASE INTANGIBLES | 0 | |
Personal property | 0 | |
Total real estate investments | 74,265 | |
ACCUMULATED DEPRECIATION | $ (1,183) | |
Financing lease right-of-use assets | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 0 | |
LAND | $ 0 | |
BUILDINGS AND IMPROVEMENTS | 0 | |
LEASE INTANGIBLES | 0 | |
Personal property | 0 | |
Total real estate investments | 83,824 | |
ACCUMULATED DEPRECIATION | $ 0 | |
Investment in financing receivables, net | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 0 | |
LAND | $ 0 | |
BUILDINGS AND IMPROVEMENTS | 0 | |
LEASE INTANGIBLES | 0 | |
Personal property | 0 | |
Total real estate investments | 120,236 | |
ACCUMULATED DEPRECIATION | $ 0 | |
Corporate Property | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 0 | |
LAND | $ 1,853 | |
BUILDINGS AND IMPROVEMENTS | 2,343 | |
LEASE INTANGIBLES | 684 | |
Personal property | 5,538 | |
Total real estate investments | 10,418 | |
ACCUMULATED DEPRECIATION | $ (5,288) | |
Area of land | ft² | 15,014 | |
Number of corporate office | property | 1 | |
Medical office/outpatient | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 688 | |
LAND | $ 1,437,945 | |
BUILDINGS AND IMPROVEMENTS | 11,329,694 | |
LEASE INTANGIBLES | 959,314 | |
Personal property | 6,369 | |
Total real estate investments | 13,733,322 | |
ACCUMULATED DEPRECIATION | $ (1,638,800) | |
Medical office/outpatient | Dallas, TX | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 45 | |
LAND | $ 95,010 | |
BUILDINGS AND IMPROVEMENTS | 1,116,725 | |
LEASE INTANGIBLES | 77,589 | |
Personal property | 551 | |
Total real estate investments | 1,289,875 | |
ACCUMULATED DEPRECIATION | $ (202,031) | |
Medical office/outpatient | Seattle, WA | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 29 | |
LAND | $ 64,295 | |
BUILDINGS AND IMPROVEMENTS | 623,166 | |
LEASE INTANGIBLES | 13,444 | |
Personal property | 726 | |
Total real estate investments | 701,631 | |
ACCUMULATED DEPRECIATION | $ (164,423) | |
Medical office/outpatient | Los Angeles, CA | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 23 | |
LAND | $ 98,524 | |
BUILDINGS AND IMPROVEMENTS | 460,780 | |
LEASE INTANGIBLES | 31,790 | |
Personal property | 453 | |
Total real estate investments | 591,547 | |
ACCUMULATED DEPRECIATION | $ (129,663) | |
Medical office/outpatient | Boston, MA | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 18 | |
LAND | $ 128,904 | |
BUILDINGS AND IMPROVEMENTS | 396,002 | |
LEASE INTANGIBLES | 63,134 | |
Personal property | 0 | |
Total real estate investments | 588,040 | |
ACCUMULATED DEPRECIATION | $ (13,513) | |
Medical office/outpatient | Charlotte, NC | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 32 | |
LAND | $ 35,402 | |
BUILDINGS AND IMPROVEMENTS | 450,076 | |
LEASE INTANGIBLES | 29,839 | |
Personal property | 105 | |
Total real estate investments | 515,422 | |
ACCUMULATED DEPRECIATION | $ (95,363) | |
Medical office/outpatient | Houston, TX | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 34 | |
LAND | $ 85,389 | |
BUILDINGS AND IMPROVEMENTS | 633,474 | |
LEASE INTANGIBLES | 64,045 | |
Personal property | 57 | |
Total real estate investments | 782,965 | |
ACCUMULATED DEPRECIATION | $ (63,486) | |
Medical office/outpatient | Florida | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 23 | |
LAND | $ 72,364 | |
BUILDINGS AND IMPROVEMENTS | 400,839 | |
LEASE INTANGIBLES | 46,355 | |
Personal property | 105 | |
Total real estate investments | 519,663 | |
ACCUMULATED DEPRECIATION | $ (52,920) | |
Medical office/outpatient | Atlanta, GA | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 28 | |
LAND | $ 49,379 | |
BUILDINGS AND IMPROVEMENTS | 437,312 | |
LEASE INTANGIBLES | 36,170 | |
Personal property | 95 | |
Total real estate investments | 522,956 | |
ACCUMULATED DEPRECIATION | $ (63,773) | |
Medical office/outpatient | Tampa, FL | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 20 | |
LAND | $ 31,533 | |
BUILDINGS AND IMPROVEMENTS | 377,455 | |
LEASE INTANGIBLES | 36,838 | |
Personal property | 33 | |
Total real estate investments | 445,859 | |
ACCUMULATED DEPRECIATION | $ (18,991) | |
Medical office/outpatient | Denver, CO | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 33 | |
LAND | $ 76,698 | |
BUILDINGS AND IMPROVEMENTS | 497,235 | |
LEASE INTANGIBLES | 45,854 | |
Personal property | 609 | |
Total real estate investments | 620,396 | |
ACCUMULATED DEPRECIATION | $ (65,123) | |
Medical office/outpatient | Raleigh, NC | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 27 | |
LAND | $ 56,620 | |
BUILDINGS AND IMPROVEMENTS | 363,359 | |
LEASE INTANGIBLES | 37,446 | |
Personal property | 9 | |
Total real estate investments | 457,434 | |
ACCUMULATED DEPRECIATION | $ (15,566) | |
Medical office/outpatient | Phoenix, AZ | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 35 | |
LAND | $ 20,262 | |
BUILDINGS AND IMPROVEMENTS | 430,396 | |
LEASE INTANGIBLES | 37,097 | |
Personal property | 425 | |
Total real estate investments | 488,180 | |
ACCUMULATED DEPRECIATION | $ (30,281) | |
Medical office/outpatient | Chicago, IL | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 7 | |
LAND | $ 32,374 | |
BUILDINGS AND IMPROVEMENTS | 266,672 | |
LEASE INTANGIBLES | 20,608 | |
Personal property | 81 | |
Total real estate investments | 319,735 | |
ACCUMULATED DEPRECIATION | $ (28,243) | |
Medical office/outpatient | Indianapolis, IN | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 36 | |
LAND | $ 52,180 | |
BUILDINGS AND IMPROVEMENTS | 265,070 | |
LEASE INTANGIBLES | 32,739 | |
Personal property | 13 | |
Total real estate investments | 350,002 | |
ACCUMULATED DEPRECIATION | $ (19,705) | |
Medical office/outpatient | Hartford, CT | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 30 | |
LAND | $ 43,326 | |
BUILDINGS AND IMPROVEMENTS | 204,049 | |
LEASE INTANGIBLES | 31,803 | |
Personal property | 0 | |
Total real estate investments | 279,178 | |
ACCUMULATED DEPRECIATION | $ (8,015) | |
Medical office/outpatient | Nashville, TN | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 12 | |
LAND | $ 43,348 | |
BUILDINGS AND IMPROVEMENTS | 346,312 | |
LEASE INTANGIBLES | 10,205 | |
Personal property | 1,424 | |
Total real estate investments | 401,289 | |
ACCUMULATED DEPRECIATION | $ (92,720) | |
Medical office/outpatient | New York, NY | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 14 | |
LAND | $ 64,402 | |
BUILDINGS AND IMPROVEMENTS | 167,819 | |
LEASE INTANGIBLES | 26,430 | |
Personal property | 0 | |
Total real estate investments | 258,651 | |
ACCUMULATED DEPRECIATION | $ (4,771) | |
Medical office/outpatient | Austin, TX | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 13 | |
LAND | $ 27,064 | |
BUILDINGS AND IMPROVEMENTS | 271,692 | |
LEASE INTANGIBLES | 18,568 | |
Personal property | 142 | |
Total real estate investments | 317,466 | |
ACCUMULATED DEPRECIATION | $ (40,363) | |
Medical office/outpatient | Orlando, FL | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 8 | |
LAND | $ 20,708 | |
BUILDINGS AND IMPROVEMENTS | 180,694 | |
LEASE INTANGIBLES | 21,581 | |
Personal property | 1 | |
Total real estate investments | 222,984 | |
ACCUMULATED DEPRECIATION | $ (11,654) | |
Medical office/outpatient | Memphis, TN | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 11 | |
LAND | $ 13,901 | |
BUILDINGS AND IMPROVEMENTS | 184,540 | |
LEASE INTANGIBLES | 4,211 | |
Personal property | 317 | |
Total real estate investments | 202,969 | |
ACCUMULATED DEPRECIATION | $ (60,624) | |
Medical office/outpatient | Other (51 markets) | ||
Summary of Company's investment | ||
NUMBER OF PROPERTIES | property | 210 | |
LAND | $ 326,262 | |
BUILDINGS AND IMPROVEMENTS | 3,256,027 | |
LEASE INTANGIBLES | 273,568 | |
Personal property | 1,223 | |
Total real estate investments | 3,857,080 | |
ACCUMULATED DEPRECIATION | $ (457,572) |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) renewal_option | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Leases [Abstract] | |||
Rental income | $ 907,451 | $ 520,334 | $ 492,262 |
Approximate Investment in real estate properties subject to outstanding contractual option to purchase | $ 100,400 | ||
Number of exercisable purchase options | renewal_option | 5 |
Leases - Non-cancelable Operati
Leases - Non-cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 928,516 |
2024 | 814,132 |
2025 | 701,659 |
2026 | 603,051 |
2027 | 500,645 |
2028 and thereafter | 1,633,847 |
Lease payments receivable | $ 5,181,850 |
Leases - Ground Leases (Details
Leases - Ground Leases (Details) ft² in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) ft² property | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Real Estate [Line Items] | |||
Number of properties subject to ground leases | 242 | ||
Square feet subject to ground leases | ft² | 17.8 | ||
Number of ground leases prepaid | 75 | ||
Amortization of prepaid rent | $ | $ 1.1 | $ 0.6 | $ 0.6 |
Number of ground leases, excluding prepaid leases | 167 | ||
Minimum | |||
Real Estate [Line Items] | |||
Ground leases, initial term | 40 years | ||
Maximum | |||
Real Estate [Line Items] | |||
Ground leases, initial term | 99 years |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
OPERATING | ||
2023 | $ 15,641 | |
2024 | 15,227 | |
2025 | 14,814 | |
2026 | 14,852 | |
2027 | 14,921 | |
2028 and thereafter | 939,165 | |
Total undiscounted lease payments | 1,014,620 | |
Discount | (734,725) | |
Lease liabilities | 279,895 | $ 96,138 |
FINANCING | ||
2023 | 2,140 | |
2024 | 2,182 | |
2025 | 2,218 | |
2026 | 2,255 | |
2027 | 2,294 | |
2028 and thereafter | 396,398 | |
Total undiscounted lease payments | 407,487 | |
Discount | (334,548) | |
Lease liabilities | $ 72,939 | $ 22,551 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating lease cost | |||
Operating lease expense | $ 12,699 | $ 4,765 | |
Variable lease expense | 4,529 | 3,929 | |
Finance lease cost | |||
Finance lease right of use asset | 1,288 | 388 | |
Interest on lease liabilities | 2,876 | 1,032 | |
Total lease expense | 21,392 | 10,114 | |
Other information | |||
Operating cash flows outflows related to operating leases | 12,816 | 7,706 | |
Operating cash flows outflows related to financing leases | 1,838 | 809 | |
Financing cash flows outflows related to financing leases | 0 | 9,182 | $ 3,417 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 216,047 | 3,827 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 53,765 | $ 8,298 | |
Weighted-average remaining lease term (excluding renewal options) - operating leases | 47 years 6 months | 47 years 7 months 6 days | |
Weighted-average remaining lease term (excluding renewal options) -finance leases | 58 years 10 months 24 days | 62 years 1 month 6 days | |
Weighted-average discount rate - operating leases | 5.80% | 5.60% | |
Weighted-average discount rate - finance leases | 5% | 5.30% |
Acquisitions, Dispositions an_3
Acquisitions, Dispositions and Mortgage Repayments - Acquisitions (Details) $ in Thousands | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Dec. 28, 2022 USD ($) ft² | Nov. 21, 2022 USD ($) ft² | Oct. 12, 2022 USD ($) ft² | Sep. 29, 2022 USD ($) ft² | Sep. 15, 2022 USD ($) ft² | Aug. 18, 2022 USD ($) ft² | Aug. 11, 2022 USD ($) ft² | Aug. 10, 2022 USD ($) ft² | Aug. 09, 2022 USD ($) ft² | Aug. 01, 2022 USD ($) ft² | Jun. 09, 2022 USD ($) ft² | May 31, 2022 USD ($) ft² | Apr. 29, 2022 USD ($) ft² | Apr. 28, 2022 USD ($) ft² | Apr. 13, 2022 USD ($) ft² | Apr. 07, 2022 USD ($) ft² | Mar. 07, 2022 USD ($) ft² | Feb. 11, 2022 USD ($) ft² | Dec. 30, 2021 USD ($) ft² | Dec. 29, 2021 USD ($) ft² | Dec. 28, 2021 USD ($) ft² | Dec. 20, 2021 USD ($) ft² | Dec. 02, 2021 USD ($) ft² | Dec. 01, 2021 USD ($) ft² | Nov. 18, 2021 USD ($) ft² | Nov. 15, 2021 USD ($) ft² | Sep. 30, 2021 USD ($) | Sep. 22, 2021 USD ($) ft² | Sep. 20, 2021 USD ($) ft² | Aug. 19, 2021 USD ($) ft² | Jul. 27, 2021 USD ($) ft² | Jul. 19, 2021 USD ($) ft² | Jul. 16, 2021 USD ($) ft² | Jun. 29, 2021 USD ($) ft² | Jun. 28, 2021 USD ($) ft² | May 28, 2021 USD ($) ft² | May 14, 2021 USD ($) ft² | Mar. 03, 2021 USD ($) ft² | Feb. 17, 2021 USD ($) ft² | Feb. 01, 2021 USD ($) ft² | Jan. 07, 2021 USD ($) ft² | Dec. 31, 2022 USD ($) a ft² property | Dec. 31, 2021 USD ($) ft² property | Sep. 30, 2022 USD ($) ft² | |
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 5,576,463 | $ 8,900 | ||||||||||||||||||||||||||||||||||||||||||
Operating lease right-of-use assets | 336,983 | 128,386 | ||||||||||||||||||||||||||||||||||||||||||
Financing lease receivable | 7,400 | 16,300 | ||||||||||||||||||||||||||||||||||||||||||
Imputed lease arrangement | $ 8,900 | $ 7,400 | ||||||||||||||||||||||||||||||||||||||||||
Dallas, TX | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Number of properties acquired | property | 2 | |||||||||||||||||||||||||||||||||||||||||||
San Francisco, CA | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Number of properties acquired | property | 3 | |||||||||||||||||||||||||||||||||||||||||||
Atlanta, GA | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Number of properties acquired | property | 9 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Denver, CO | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Number of properties acquired | property | 3 | |||||||||||||||||||||||||||||||||||||||||||
Columbus, OH | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Number of properties acquired | property | 2 | |||||||||||||||||||||||||||||||||||||||||||
Colorado Springs, CO | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Number of properties acquired | property | 2 | |||||||||||||||||||||||||||||||||||||||||||
Raleigh, NC | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Number of properties acquired | property | 3 | |||||||||||||||||||||||||||||||||||||||||||
Tampa, FL | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Number of properties acquired | property | 2 | |||||||||||||||||||||||||||||||||||||||||||
Nashville, TN | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Area of land | a | 2.7 | |||||||||||||||||||||||||||||||||||||||||||
Austin,TX | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Additional of ownership existing | 71.40% | |||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 403,578 | $ 575,811 | ||||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | (11,000) | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 399,189 | 561,465 | ||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 386,818 | 562,824 | ||||||||||||||||||||||||||||||||||||||||||
OTHER | $ 12,371 | $ 9,641 | ||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 863,184 | 1,540,141 | ||||||||||||||||||||||||||||||||||||||||||
Fair value adjustments included in Other | $ 800 | |||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | San Diego, CA | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 102,650 | $ 17,150 | ||||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 103,984 | 17,182 | ||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 104,629 | 17,182 | ||||||||||||||||||||||||||||||||||||||||||
OTHER | $ (645) | $ 0 | ||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 160,394 | 22,461 | ||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Dallas, TX | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 8,175 | $ 22,515 | ||||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 8,185 | 22,299 | ||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 8,202 | 22,641 | ||||||||||||||||||||||||||||||||||||||||||
OTHER | $ (17) | $ (342) | ||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 18,000 | 121,709 | ||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | San Francisco, CA | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 114,000 | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 112,986 | |||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 108,687 | |||||||||||||||||||||||||||||||||||||||||||
OTHER | $ 4,299 | |||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 166,396 | |||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Atlanta, GA | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 11,800 | $ 6,912 | $ 4,900 | $ 9,800 | ||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 11,525 | 7,054 | 4,772 | 10,027 | ||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 12,038 | 7,178 | 4,419 | 10,073 | ||||||||||||||||||||||||||||||||||||||||
OTHER | $ (513) | $ (124) | $ 353 | $ (46) | ||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 43,496 | 21,535 | 11,840 | 44,567 | ||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Denver, CO | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 16,400 | $ 14,800 | $ 6,320 | $ 22,400 | $ 7,700 | $ 20,250 | $ 70,426 | |||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 16,170 | 13,902 | 5,254 | 22,343 | 7,383 | 19,630 | 69,151 | |||||||||||||||||||||||||||||||||||||
REAL ESTATE | 16,467 | 13,918 | 5,269 | 22,422 | 7,431 | 19,405 | 65,100 | |||||||||||||||||||||||||||||||||||||
OTHER | $ (297) | $ (16) | $ (15) | $ (79) | $ (48) | $ 225 | $ 4,051 | |||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 39,692 | 34,785 | 12,207 | 30,185 | 18,599 | 83,604 | 259,555 | |||||||||||||||||||||||||||||||||||||
Medical Office Building | Columbus, OH | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 9,525 | $ 16,275 | ||||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 9,521 | 15,970 | ||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 9,601 | 7,365 | ||||||||||||||||||||||||||||||||||||||||||
OTHER | $ (80) | $ 8,605 | ||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 28,962 | 71,930 | ||||||||||||||||||||||||||||||||||||||||||
Operating lease right-of-use assets | $ 8,900 | |||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Colorado Springs, CO | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 13,680 | $ 10,575 | $ 33,400 | |||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 13,686 | 10,541 | 32,738 | |||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 13,701 | 11,009 | 33,241 | |||||||||||||||||||||||||||||||||||||||||
OTHER | $ (15) | $ (468) | $ (503) | |||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 25,800 | 44,166 | 69,526 | |||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Seattle, WA | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 4,850 | $ 8,350 | ||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 4,806 | 8,334 | ||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 4,882 | 8,370 | ||||||||||||||||||||||||||||||||||||||||||
OTHER | $ (76) | $ (36) | ||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 10,593 | 13,256 | ||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Houston, TX | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 5,500 | $ 36,250 | $ 13,500 | |||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 5,469 | 36,299 | 12,986 | |||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 5,513 | 36,816 | 13,379 | |||||||||||||||||||||||||||||||||||||||||
OTHER | $ (44) | $ (517) | $ (393) | |||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 28,369 | 76,781 | 45,393 | |||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Los Angeles, CA | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 35,000 | $ 20,500 | ||||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | (11,000) | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 35,242 | 9,396 | ||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 25,400 | 20,316 | ||||||||||||||||||||||||||||||||||||||||||
OTHER | $ 9,842 | $ 80 | ||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 34,282 | 56,762 | ||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Oklahoma City, OK | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 11,100 | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 11,259 | |||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 11,334 | |||||||||||||||||||||||||||||||||||||||||||
OTHER | $ (75) | |||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 34,944 | |||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Raleigh, NC | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 11,375 | $ 3,783 | $ 27,500 | $ 10,000 | $ 5,780 | |||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 10,670 | 3,878 | 26,710 | $ 9,921 | 5,821 | |||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 10,547 | 3,932 | 27,127 | 5,810 | $ 9,874 | |||||||||||||||||||||||||||||||||||||||
OTHER | $ 123 | $ (54) | $ (417) | $ 11 | $ 47 | |||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 31,318 | 11,345 | 85,113 | 18,280 | 29,178 | |||||||||||||||||||||||||||||||||||||||
Medical Office Building | Tampa, FL | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 18,650 | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 18,619 | |||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 18,212 | |||||||||||||||||||||||||||||||||||||||||||
OTHER | $ 407 | |||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 55,788 | |||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Jacksonville, FL | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 3,600 | $ 18,195 | ||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 3,530 | 18,508 | ||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 3,609 | 18,583 | ||||||||||||||||||||||||||||||||||||||||||
OTHER | $ (79) | $ (75) | ||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 6,200 | 34,133 | ||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Nashville, TN | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 21,000 | $ 54,000 | $ 19,775 | $ 11,300 | ||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 20,764 | 53,923 | 19,833 | 11,245 | ||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 20,572 | 54,072 | 19,982 | 11,263 | ||||||||||||||||||||||||||||||||||||||||
OTHER | $ 192 | $ (149) | $ (149) | $ (18) | ||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 61,932 | 74,489 | 85,590 | 34,908 | ||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Austin,TX | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 888 | $ 5,450 | $ 20,500 | |||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 890 | 5,449 | 20,696 | |||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 889 | 5,572 | 20,741 | |||||||||||||||||||||||||||||||||||||||||
OTHER | $ 1 | $ (123) | $ (45) | |||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 2,219 | 15,000 | 62,548 | |||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Washington, D.C. | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 12,750 | |||||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 12,709 | |||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 12,658 | |||||||||||||||||||||||||||||||||||||||||||
OTHER | $ 51 | |||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 26,496 | |||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Greensboro, NC | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 6,400 | $ 9,390 | ||||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 6,374 | 9,475 | ||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 6,514 | 10,047 | ||||||||||||||||||||||||||||||||||||||||||
OTHER | $ (140) | $ (572) | ||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 18,119 | 25,168 | ||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Baltimore, MD | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 14,600 | |||||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 14,357 | |||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 14,437 | |||||||||||||||||||||||||||||||||||||||||||
OTHER | $ (80) | |||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 33,316 | |||||||||||||||||||||||||||||||||||||||||||
Medical Office Building | Birmingham, AL | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 9,250 | |||||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 9,355 | |||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 9,388 | |||||||||||||||||||||||||||||||||||||||||||
OTHER | $ (33) | |||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 29,942 | |||||||||||||||||||||||||||||||||||||||||||
Medical Office Building 2 | Nashville, TN | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
PURCHASE PRICE | $ 20,500 | |||||||||||||||||||||||||||||||||||||||||||
MORTAGES ASSUMED | 0 | |||||||||||||||||||||||||||||||||||||||||||
CASH CONSIDERATION | 19,833 | |||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | 19,825 | |||||||||||||||||||||||||||||||||||||||||||
OTHER | $ 8 | |||||||||||||||||||||||||||||||||||||||||||
Purchase price allocation square footage | ft² | 32,454 |
Acquisitions, Dispositions an_4
Acquisitions, Dispositions and Mortgage Repayments - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 28, 2021 | Dec. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 20, 2022 | |
Business Acquisition [Line Items] | |||||
Building | $ 6,876,756 | ||||
Land | 992,701 | ||||
Mortgage notes payable assumed, including fair value adjustments | $ (11,800) | ||||
Other assets acquired | $ 400 | 800 | 205,323 | ||
Accounts payable, accrued liabilities and other liabilities assumed | (2,900) | (5,600) | |||
Total cash paid | 399,200 | 561,500 | $ 5,467,450 | ||
Financing lease receivable | 7,400 | 16,300 | |||
Purchase price | 5,576,463 | 8,900 | |||
Imputed lease arrangement | 8,900 | 7,400 | |||
Medical Office Building | |||||
Business Acquisition [Line Items] | |||||
Purchase price | 403,578 | 575,811 | |||
Medical Office Building | Columbus, OH | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 9,525 | $ 16,275 | |||
At-market lease intangibles | |||||
Business Acquisition [Line Items] | |||||
Intangibles | 48,800 | 58,800 | |||
Above-market lease intangibles (lessor) | |||||
Business Acquisition [Line Items] | |||||
Intangibles | 15,900 | 3,400 | |||
Below-market lease intangibles (lessor) | |||||
Business Acquisition [Line Items] | |||||
Intangibles | (2,200) | (1,400) | |||
Above-market lease intangibles (lessee) | |||||
Business Acquisition [Line Items] | |||||
Intangibles | 300 | ||||
Below-market lease intangibles (lessee) | |||||
Business Acquisition [Line Items] | |||||
Intangibles | $ 1,200 | $ 4,700 | |||
Intangible asset useful life | 13 years 1 month 6 days | 45 years 4 months 24 days | |||
Building | |||||
Business Acquisition [Line Items] | |||||
Building | $ 250,700 | $ 275,100 | |||
Investment in financing receivables, net | |||||
Business Acquisition [Line Items] | |||||
Investment in financing receivables, net | 185,900 | ||||
Financing lease right-of-use assets | |||||
Business Acquisition [Line Items] | |||||
Financing lease right of use assets 1 | 8,900 | ||||
Land | |||||
Business Acquisition [Line Items] | |||||
Land | 76,100 | 34,100 | |||
Land Improvements | |||||
Business Acquisition [Line Items] | |||||
Land Improvements | $ 11,200 | $ 8,900 | |||
Minimum | At-market lease intangibles | |||||
Business Acquisition [Line Items] | |||||
Intangible asset useful life | 1 year 6 months | 2 years 7 months 6 days | |||
Minimum | Above-market lease intangibles (lessor) | |||||
Business Acquisition [Line Items] | |||||
Intangible asset useful life | 1 year 3 months 18 days | 1 year 10 months 24 days | |||
Minimum | Below-market lease intangibles (lessor) | |||||
Business Acquisition [Line Items] | |||||
Intangible asset useful life | 1 year 3 months 18 days | 3 years 1 month 6 days | |||
Minimum | Above-market lease intangibles (lessee) | |||||
Business Acquisition [Line Items] | |||||
Intangible asset useful life | 36 years 8 months 12 days | ||||
Minimum | Building | |||||
Business Acquisition [Line Items] | |||||
Asset estimated useful life | 14 years | 18 years | |||
Minimum | Investment in financing receivables, net | |||||
Business Acquisition [Line Items] | |||||
Asset estimated useful life | 6 months | ||||
Minimum | Financing lease right-of-use assets | |||||
Business Acquisition [Line Items] | |||||
Asset estimated useful life | 15 years | ||||
Minimum | Land Improvements | |||||
Business Acquisition [Line Items] | |||||
Asset estimated useful life | 5 years | 6 years | |||
Maximum | At-market lease intangibles | |||||
Business Acquisition [Line Items] | |||||
Intangible asset useful life | 13 years 4 months 24 days | 16 years 7 months 6 days | |||
Maximum | Above-market lease intangibles (lessor) | |||||
Business Acquisition [Line Items] | |||||
Intangible asset useful life | 15 years 7 months 6 days | 8 years 1 month 6 days | |||
Maximum | Below-market lease intangibles (lessor) | |||||
Business Acquisition [Line Items] | |||||
Intangible asset useful life | 19 years 3 months 18 days | 21 years 9 months 18 days | |||
Maximum | Above-market lease intangibles (lessee) | |||||
Business Acquisition [Line Items] | |||||
Intangible asset useful life | 64 years 6 months | ||||
Maximum | Building | |||||
Business Acquisition [Line Items] | |||||
Asset estimated useful life | 38 years | 44 years | |||
Maximum | Investment in financing receivables, net | |||||
Business Acquisition [Line Items] | |||||
Asset estimated useful life | 34 years | ||||
Maximum | Financing lease right-of-use assets | |||||
Business Acquisition [Line Items] | |||||
Asset estimated useful life | 34 years | ||||
Maximum | Land Improvements | |||||
Business Acquisition [Line Items] | |||||
Asset estimated useful life | 14 years | 16 years |
Acquisitions, Dispositions an_5
Acquisitions, Dispositions and Mortgage Repayments - Narrative (Details) $ in Thousands | Jan. 30, 2023 USD ($) ft² | Feb. 10, 2023 USD ($) ft² | Jan. 13, 2023 USD ($) ft² property | Dec. 31, 2022 USD ($) ft² building |
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||
Number of buildings | building | 33 | |||
Area of building sold | ft² | 3,069,124 | |||
SALES PRICE | $ | $ 1,242,218 | |||
Subsequent Event | ||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||
Number of medical buildings included in disposition | property | 2 | |||
Area of building sold | ft² | 36,691 | 6,500 | 224,037 | |
SALES PRICE | $ | $ 19,200 | $ 400 | $ 93,300 | |
Joint venture, ownership (in percentage) | 40% | |||
Real Estate Properties Held In Joint Ventures Member | ||||
Real Estate Acquisitions and Mortgage Note Financing [Line Items] | ||||
Weighted average ownership interest (percent) | 48% |
Acquisitions, Dispositions an_6
Acquisitions, Dispositions and Mortgage Repayments - Subsequent Acquisitions (Details) $ in Thousands | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) ft² |
Business Acquisition [Line Items] | ||
SQUARE FOOTAGE unaudited | ft² | 214,124 | 514,253 |
PURCHASE PRICE | $ | $ 100,975 | $ 180,487 |
Acquisitions, Dispositions an_7
Acquisitions, Dispositions and Mortgage Repayments - Joint Ventures (Details) $ in Thousands | 12 Months Ended | |||||||||||||
Aug. 30, 2022 | Mar. 07, 2022 USD ($) ft² property | Dec. 29, 2021 USD ($) ft² | Dec. 10, 2021 USD ($) ft² | Oct. 21, 2021 USD ($) ft² | Jul. 27, 2021 USD ($) ft² | May 10, 2021 USD ($) ft² | Apr. 30, 2021 USD ($) ft² | Apr. 08, 2021 USD ($) ft² | Apr. 01, 2021 USD ($) ft² | Mar. 30, 2021 USD ($) ft² | Dec. 31, 2022 USD ($) a ft² property jointVenture building | Dec. 31, 2021 USD ($) ft² property | Dec. 31, 2020 USD ($) | |
Real Estate [Line Items] | ||||||||||||||
Number of buildings | building | 33 | |||||||||||||
PURCHASE PRICE | $ 100,975 | $ 180,487 | ||||||||||||
CASH CONSIDERATION | 99,173 | 177,994 | ||||||||||||
REAL ESTATE | 97,569 | 179,862 | ||||||||||||
OTHER | $ 1,604 | $ (1,868) | ||||||||||||
SQUARE FOOTAGE unaudited | ft² | 214,124 | 514,253 | ||||||||||||
NUMBER OF PROPERTIES | property | 688 | |||||||||||||
Equity Method Investments [Roll Forward] | ||||||||||||||
Equity loss recognized during the period | $ (687) | $ (795) | $ (463) | |||||||||||
Owner distributions | $ (1,900) | $ 0 | ||||||||||||
Real Estate Properties Held In Joint Ventures Member | ||||||||||||||
Real Estate [Line Items] | ||||||||||||||
Joint venture ownership (percent) | 48% | |||||||||||||
San Francisco, CA | ||||||||||||||
Real Estate [Line Items] | ||||||||||||||
PURCHASE PRICE | $ 67,175 | |||||||||||||
CASH CONSIDERATION | 66,789 | |||||||||||||
REAL ESTATE | 65,179 | |||||||||||||
OTHER | $ 1,610 | |||||||||||||
SQUARE FOOTAGE unaudited | ft² | 110,865 | |||||||||||||
Los Angeles, CA | ||||||||||||||
Real Estate [Line Items] | ||||||||||||||
PURCHASE PRICE | $ 33,800 | $ 24,600 | $ 31,335 | |||||||||||
CASH CONSIDERATION | 32,384 | 24,259 | 30,179 | |||||||||||
REAL ESTATE | 32,390 | 24,147 | 30,642 | |||||||||||
OTHER | $ (6) | $ 112 | $ (463) | |||||||||||
SQUARE FOOTAGE unaudited | ft² | 103,259 | 73,078 | 57,573 | |||||||||||
Denver, CO | ||||||||||||||
Real Estate [Line Items] | ||||||||||||||
PURCHASE PRICE | $ 23,000 | $ 14,375 | ||||||||||||
CASH CONSIDERATION | 22,638 | 14,056 | ||||||||||||
REAL ESTATE | 23,021 | 14,550 | ||||||||||||
OTHER | $ (383) | $ (494) | ||||||||||||
SQUARE FOOTAGE unaudited | ft² | 57,257 | 59,359 | ||||||||||||
Colorado Springs, CO | ||||||||||||||
Real Estate [Line Items] | ||||||||||||||
PURCHASE PRICE | $ 9,133 | $ 7,200 | ||||||||||||
CASH CONSIDERATION | 9,137 | 7,288 | ||||||||||||
REAL ESTATE | 9,135 | 7,347 | ||||||||||||
OTHER | $ 2 | $ (59) | ||||||||||||
SQUARE FOOTAGE unaudited | ft² | 23,956 | 27,510 | ||||||||||||
San Antonio, TX | ||||||||||||||
Real Estate [Line Items] | ||||||||||||||
PURCHASE PRICE | $ 42,300 | $ 13,600 | ||||||||||||
CASH CONSIDERATION | 41,892 | 13,412 | ||||||||||||
REAL ESTATE | 42,190 | 13,656 | ||||||||||||
OTHER | $ (298) | $ (244) | ||||||||||||
SQUARE FOOTAGE unaudited | ft² | 117,597 | 45,000 | ||||||||||||
Area of land | a | 3 | |||||||||||||
NUMBER OF PROPERTIES | property | 3 | |||||||||||||
Dallas, TX | ||||||||||||||
Equity Method Investments [Roll Forward] | ||||||||||||||
Joint venture, ownership (in percentage) | 40% | |||||||||||||
Medical Office Building | ||||||||||||||
Real Estate [Line Items] | ||||||||||||||
Number of buildings | property | 2 | 4 | ||||||||||||
Medical Office Building | San Francisco, CA | ||||||||||||||
Real Estate [Line Items] | ||||||||||||||
NUMBER OF PROPERTIES | property | 3 | |||||||||||||
Medical Office Building | San Antonio, TX | ||||||||||||||
Real Estate [Line Items] | ||||||||||||||
PURCHASE PRICE | $ 6,094 | |||||||||||||
CASH CONSIDERATION | 6,218 | |||||||||||||
REAL ESTATE | 6,308 | |||||||||||||
OTHER | $ (90) | |||||||||||||
SQUARE FOOTAGE unaudited | ft² | 22,381 | |||||||||||||
Medical Office Building 2 | Los Angeles, CA | ||||||||||||||
Real Estate [Line Items] | ||||||||||||||
NUMBER OF PROPERTIES | property | 2 | |||||||||||||
Medical Office Building 2 | San Antonio, TX | ||||||||||||||
Real Estate [Line Items] | ||||||||||||||
PURCHASE PRICE | $ 8,850 | |||||||||||||
CASH CONSIDERATION | 8,915 | |||||||||||||
REAL ESTATE | 8,866 | |||||||||||||
OTHER | $ 49 | |||||||||||||
SQUARE FOOTAGE unaudited | ft² | 30,542 | |||||||||||||
Parking Garages | ||||||||||||||
Equity Method Investments [Roll Forward] | ||||||||||||||
Investments in unconsolidated joint ventures, beginning of period | $ 161,900 | $ 73,100 | ||||||||||||
New investments during the period1 | 167,900 | 89,600 | ||||||||||||
Equity loss recognized during the period | (700) | (800) | ||||||||||||
Investments in unconsolidated joint ventures, end of period | $ 327,200 | $ 161,900 | $ 73,100 | |||||||||||
Parking Garages | Los Angeles, CA | ||||||||||||||
Equity Method Investments [Roll Forward] | ||||||||||||||
Number of joint ventures | jointVenture | 2 | |||||||||||||
Parking Garages | Los Angeles, CA | Limited Liability Company One | ||||||||||||||
Equity Method Investments [Roll Forward] | ||||||||||||||
Joint venture, ownership (in percentage) | 20% | |||||||||||||
Parking Garages | Dallas, TX | Limited Liability Company Two | ||||||||||||||
Equity Method Investments [Roll Forward] | ||||||||||||||
Joint venture, ownership (in percentage) | 40% |
Acquisitions, Dispositions an_8
Acquisitions, Dispositions and Mortgage Repayments - Dispositions (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2022 USD ($) ft² | Dec. 22, 2022 USD ($) ft² | Nov. 10, 2022 USD ($) ft² | Oct. 21, 2022 USD ($) ft² | Oct. 04, 2022 USD ($) ft² property | Aug. 31, 2022 USD ($) ft² property | Aug. 30, 2022 USD ($) ft² property | Aug. 05, 2022 USD ($) ft² property | Aug. 04, 2022 USD ($) ft² property | Jul. 29, 2022 USD ($) ft² property | Apr. 15, 2022 USD ($) ft² property | Feb. 24, 2022 USD ($) ft² property | Dec. 23, 2021 USD ($) ft² | Dec. 22, 2021 USD ($) ft² | Dec. 08, 2021 USD ($) ft² property | Oct. 28, 2021 USD ($) ft² | Jul. 09, 2021 USD ($) ft² property | May 19, 2021 USD ($) ft² property | May 18, 2021 USD ($) ft² | Apr. 21, 2021 USD ($) ft² | Mar. 11, 2021 USD ($) ft² | Jun. 30, 2021 property | Dec. 31, 2022 USD ($) ft² property | Dec. 31, 2021 USD ($) ft² property | Apr. 12, 2021 USD ($) | |
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 1,242,218 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (45,666) | ||||||||||||||||||||||||
NET PROCEEDS | 1,196,552 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 939,363 | ||||||||||||||||||||||||
OTHER including receivables | 14,225 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 242,964 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 3,069,124 | ||||||||||||||||||||||||
Purchase price | $ 5,576,463 | $ 8,900 | |||||||||||||||||||||||
Number of properties sold | property | 12 | 5 | |||||||||||||||||||||||
Number of land parcels held for development | property | 20 | 7 | |||||||||||||||||||||||
Real Estate Dispositions | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 188,400 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (4,229) | ||||||||||||||||||||||||
NET PROCEEDS | 184,171 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 132,356 | ||||||||||||||||||||||||
OTHER including receivables | 7,981 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 43,834 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 847,002 | ||||||||||||||||||||||||
Loveland, CO | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 84,950 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (45) | ||||||||||||||||||||||||
NET PROCEEDS | 84,905 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 40,095 | ||||||||||||||||||||||||
OTHER including receivables | 4 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 44,806 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 150,291 | ||||||||||||||||||||||||
Number of buildings acquired | property | 2 | ||||||||||||||||||||||||
San Antonio, TX | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 25,500 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (2,272) | ||||||||||||||||||||||||
NET PROCEEDS | 23,228 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 14,381 | ||||||||||||||||||||||||
OTHER including receivables | 284 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 8,563 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 201,523 | ||||||||||||||||||||||||
Number of buildings acquired | property | 2 | ||||||||||||||||||||||||
GA, FL, PA | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 133,100 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (8,109) | ||||||||||||||||||||||||
NET PROCEEDS | 124,991 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 124,991 | ||||||||||||||||||||||||
OTHER including receivables | 0 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 0 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 316,739 | ||||||||||||||||||||||||
Number of buildings acquired | property | 4 | ||||||||||||||||||||||||
GA, FL, TX | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 160,917 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (5,893) | ||||||||||||||||||||||||
NET PROCEEDS | 155,024 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 151,819 | ||||||||||||||||||||||||
OTHER including receivables | 3,205 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 0 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 343,545 | ||||||||||||||||||||||||
Number of buildings acquired | property | 6 | ||||||||||||||||||||||||
Los Angeles, CA | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 134,845 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (3,102) | ||||||||||||||||||||||||
NET PROCEEDS | 131,743 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 131,332 | ||||||||||||||||||||||||
OTHER including receivables | 411 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 0 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 283,780 | ||||||||||||||||||||||||
Number of buildings acquired | property | 4 | ||||||||||||||||||||||||
Values and square feet, represented percentage (in percent) | 100% | ||||||||||||||||||||||||
Joint venture, ownership (in percentage) | 20% | ||||||||||||||||||||||||
Los Angeles, CA | Real Estate Dispositions | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
Number of properties sold | property | 2 | ||||||||||||||||||||||||
Dallas, TX | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 104,025 | $ 114,290 | |||||||||||||||||||||||
CLOSING ADJUSTMENTS | (5,883) | (682) | |||||||||||||||||||||||
NET PROCEEDS | 98,142 | 113,608 | |||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 38,872 | 113,608 | |||||||||||||||||||||||
OTHER including receivables | 6,436 | 0 | |||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 52,834 | $ 0 | |||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 291,328 | 189,385 | |||||||||||||||||||||||
Number of buildings acquired | property | 2 | 6 | |||||||||||||||||||||||
Values and square feet, represented percentage (in percent) | 100% | ||||||||||||||||||||||||
Joint venture, ownership (in percentage) | 40% | ||||||||||||||||||||||||
Dallas, TX | Real Estate Dispositions | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 800 | $ 23,000 | |||||||||||||||||||||||
CLOSING ADJUSTMENTS | (103) | (1,117) | |||||||||||||||||||||||
NET PROCEEDS | 697 | 21,883 | |||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 712 | 18,733 | |||||||||||||||||||||||
OTHER including receivables | 167 | 1,966 | |||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ (182) | $ 1,184 | |||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 13,818 | 190,160 | |||||||||||||||||||||||
Number of properties sold | property | 4 | ||||||||||||||||||||||||
Indianapolis, IN | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 238,845 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (5,846) | ||||||||||||||||||||||||
NET PROCEEDS | 232,999 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 84,767 | ||||||||||||||||||||||||
OTHER including receivables | 4,324 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 143,908 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 506,406 | ||||||||||||||||||||||||
Number of buildings acquired | property | 5 | ||||||||||||||||||||||||
Number of properties acquired in the merger | property | 2 | ||||||||||||||||||||||||
Los Angeles, CA | Real Estate Dispositions | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 26,000 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (555) | ||||||||||||||||||||||||
NET PROCEEDS | 25,445 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 6,046 | ||||||||||||||||||||||||
OTHER including receivables | 509 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 18,890 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 73,906 | ||||||||||||||||||||||||
Atlanta, GA | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 91,243 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (4,326) | ||||||||||||||||||||||||
NET PROCEEDS | 86,917 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 109,051 | ||||||||||||||||||||||||
OTHER including receivables | 235 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ (22,369) | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 348,416 | ||||||||||||||||||||||||
Number of buildings acquired | property | 9 | 2 | |||||||||||||||||||||||
Atlanta, GA | Real Estate Dispositions | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 8,050 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (272) | ||||||||||||||||||||||||
NET PROCEEDS | 7,778 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 5,675 | ||||||||||||||||||||||||
OTHER including receivables | $ 151 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 1,952 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 19,732 | ||||||||||||||||||||||||
Richmond, VA | Real Estate Dispositions | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 52,000 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (314) | ||||||||||||||||||||||||
NET PROCEEDS | 51,686 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 29,414 | ||||||||||||||||||||||||
OTHER including receivables | 3,270 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 19,002 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 142,856 | ||||||||||||||||||||||||
Gadsden, AL | Real Estate Dispositions | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 5,500 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (280) | ||||||||||||||||||||||||
NET PROCEEDS | 5,220 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 5,914 | ||||||||||||||||||||||||
OTHER including receivables | 175 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ (869) | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 120,192 | ||||||||||||||||||||||||
Number of properties sold | property | 3 | ||||||||||||||||||||||||
Chicago, IL | Real Estate Dispositions | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 13,300 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (388) | ||||||||||||||||||||||||
NET PROCEEDS | 12,912 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 23,213 | ||||||||||||||||||||||||
OTHER including receivables | 706 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ (11,007) | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 95,436 | ||||||||||||||||||||||||
Des Moines, IA | Real Estate Dispositions | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 47,000 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (901) | ||||||||||||||||||||||||
NET PROCEEDS | 46,099 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 32,312 | ||||||||||||||||||||||||
OTHER including receivables | 1,037 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 12,750 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 132,617 | ||||||||||||||||||||||||
Number of properties sold | property | 3 | ||||||||||||||||||||||||
Number of land parcels held for development | property | 2 | ||||||||||||||||||||||||
Aberdeen, SD | Real Estate Dispositions | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 12,750 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (299) | ||||||||||||||||||||||||
NET PROCEEDS | 12,451 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 10,337 | ||||||||||||||||||||||||
OTHER including receivables | 0 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 2,114 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 58,285 | ||||||||||||||||||||||||
Houston, TX | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 32,000 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (280) | ||||||||||||||||||||||||
NET PROCEEDS | 31,720 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 10,762 | ||||||||||||||||||||||||
OTHER including receivables | 744 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 20,214 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 134,910 | ||||||||||||||||||||||||
College Station, TX | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 49,177 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (3,755) | ||||||||||||||||||||||||
NET PROCEEDS | 45,422 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 44,918 | ||||||||||||||||||||||||
OTHER including receivables | 475 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ 28 | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 122,942 | ||||||||||||||||||||||||
El Paso, TX | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 55,326 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (4,002) | ||||||||||||||||||||||||
NET PROCEEDS | 51,324 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 56,427 | ||||||||||||||||||||||||
OTHER including receivables | (1,897) | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ (3,205) | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 110,465 | ||||||||||||||||||||||||
St. Louis, MO | |||||||||||||||||||||||||
Real Estate Dispositions [Line Items] | |||||||||||||||||||||||||
SALES PRICE | $ 18,000 | ||||||||||||||||||||||||
CLOSING ADJUSTMENTS | (1,471) | ||||||||||||||||||||||||
NET PROCEEDS | 16,529 | ||||||||||||||||||||||||
NET REAL ESTATE INVESTMENT | 18,340 | ||||||||||||||||||||||||
OTHER including receivables | 4 | ||||||||||||||||||||||||
GAIN/ (IMPAIRMENT) | $ (1,815) | ||||||||||||||||||||||||
SQUARE FOOTAGE unaudited | ft² | 69,394 |
Held for Sale - Narrative (Deta
Held for Sale - Narrative (Details) - property | Dec. 31, 2022 | Dec. 31, 2021 |
Asset Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of properties held for sale | 1 | 0 |
Held for - Sale Assets Held for
Held for - Sale Assets Held for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Balance Sheet data (as of the period ended): | ||
Land | $ 1,439,798 | $ 387,918 |
Buildings and improvements | 11,332,037 | 4,337,641 |
Lease intangibles | 959,998 | 120,478 |
Total real estate investments | 14,057,625 | 5,104,942 |
Less accumulated depreciation | (1,645,271) | (1,338,743) |
Total real estate investments, net | 12,412,354 | 3,766,199 |
Assets held for sale, net | 18,893 | 57 |
Liabilities of properties held for sale | 437 | 294 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Balance Sheet data (as of the period ended): | ||
Land | 1,700 | 0 |
Buildings and improvements | 15,164 | 0 |
Lease intangibles | 1,986 | 0 |
Total real estate investments | 18,850 | 0 |
Less accumulated depreciation | 0 | 0 |
Total real estate investments, net | 18,850 | 0 |
Other assets, net | 43 | 57 |
Assets held for sale, net | 18,893 | 57 |
Accounts payable and accrued liabilities | 282 | 169 |
Other liabilities | 155 | 125 |
Liabilities of properties held for sale | $ 437 | $ 294 |
Impairment Charges (Details)
Impairment Charges (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) property | |
Property, Plant and Equipment [Abstract] | ||
Number of properties sold | property | 12 | 5 |
Number of properties redeveloped | property | 3 | 1 |
Impairment charges | $ | $ 54.4 | |
Impairments | $ | $ 17.1 |
Other Assets and Liabilities -
Other Assets and Liabilities - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Real estate notes receivable, net | $ 99,643 | $ 0 |
Straight-line rent receivables | 88,868 | 70,784 |
Prepaid assets | 81,900 | 58,618 |
Above-market intangible assets, net | 80,720 | 4,966 |
Accounts receivable, net | 47,498 | 14,072 |
Additional long-lived assets, net | 21,446 | 20,048 |
Interest rate swap assets | 14,512 | 0 |
Other receivables, net | 7,169 | 0 |
Investment in securities | 6,011 | 0 |
Debt issuance costs, net | 5,977 | 1,813 |
Project costs | 4,337 | 5,129 |
Net investment in lease | 1,828 | 0 |
Customer relationship intangible assets, net | 1,120 | 1,174 |
Other | 8,961 | 9,069 |
Other assets | 469,990 | $ 185,673 |
Allowance for doubtful accounts | $ 4,000 |
Other Assets and Liabilities _2
Other Assets and Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Accrued property taxes | $ 78,185 | $ 35,295 |
Accounts payable and capital expenditures | 57,352 | 17,036 |
Accrued interest | 50,037 | 12,060 |
Other operating accruals | 58,459 | 21,717 |
Accounts payable and accrued liabilities | $ 244,033 | $ 86,108 |
Other Assets and Liabilities _3
Other Assets and Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Below-market intangible liabilities, net | $ 97,935 | $ 4,931 |
Deferred revenue | 87,325 | 45,130 |
Security deposits | 28,521 | 11,116 |
Interest rate swap liability | 4,269 | 5,917 |
Other | 618 | 293 |
Other liabilities | $ 218,668 | $ 67,387 |
Intangible Assets and Liabili_3
Intangible Assets and Liabilities - Components of intangible assets and liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of finite lived intangible assets and liabilities | ||
Intangible assets and liabilities, gross | $ 1,278.6 | $ 220.6 |
Intangible assets and liabilities, accumulated amortization | $ 186.3 | 78.6 |
Assets and liabilities, weighted avg. life (years) | 5 years 3 months 18 days | |
Below-market lease intangibles (lessor) | Other liabilities | ||
Schedule of finite lived intangible assets and liabilities | ||
Liabilities gross balance | $ (112.5) | (10.1) |
Liabilities accumulated amortization | $ (14.6) | (5.1) |
Liabilities, weighted avg. life (years) | 5 years 8 months 12 days | |
Goodwill | Goodwill | ||
Schedule of finite lived intangible assets and liabilities | ||
Assets gross balance | $ 223.2 | 3.5 |
Assets accumulated amortization | 0 | 0 |
Credit facility debt issuance costs | Goodwill | ||
Schedule of finite lived intangible assets and liabilities | ||
Assets gross balance | 6.9 | 5.1 |
Assets accumulated amortization | $ 0.9 | 3.3 |
Assets, weighted avg. life (years) | 2 years 10 months 24 days | |
Above-market lease intangibles (lessor) | Goodwill | ||
Schedule of finite lived intangible assets and liabilities | ||
Assets gross balance | $ 91.5 | 7 |
Assets accumulated amortization | $ 10.7 | 2 |
Assets, weighted avg. life (years) | 5 years 3 months 18 days | |
Customer relationship intangibles (lessor) | Goodwill | ||
Schedule of finite lived intangible assets and liabilities | ||
Assets gross balance | $ 2.1 | 2.1 |
Assets accumulated amortization | $ 1 | 0.9 |
Assets, weighted avg. life (years) | 20 years 7 months 6 days | |
At-market lease intangibles | At-market lease intangibles | ||
Schedule of finite lived intangible assets and liabilities | ||
Assets gross balance | $ 1,067.4 | 213 |
Assets accumulated amortization | $ 188.3 | $ 77.5 |
Assets, weighted avg. life (years) | 5 years 2 months 12 days |
Intangible Assets and Liabili_4
Intangible Assets and Liabilities - Expected future amortization expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible amortization expense | $ 133.6 | $ 33.7 |
Future Amortization of Intangibles, Net [Abstract] | ||
2023 | 233.8 | |
2024 | 197.9 | |
2025 | 151.1 | |
2026 | 97.6 | |
2027 | $ 64.3 |
Notes and Bonds Payable (Detail
Notes and Bonds Payable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Senior notes carrying amount | $ 5,351,827,000 | $ 1,801,325,000 |
Line of Credit | $700M Unsecured Credit Facility | ||
Debt Instrument [Line Items] | ||
Face value | 700,000,000 | |
Senior notes carrying amount | $ 0 | 210,000,000 |
Line of Credit | $700M Unsecured Credit Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Contractual interest rates, basis spread on variable rate | 0.90% | |
Line of Credit | $1.5B Unsecured Credit Facility | ||
Debt Instrument [Line Items] | ||
Face value | $ 1,500,000,000 | |
Senior notes carrying amount | $ 385,000,000 | 0 |
EFFECTIVE INTEREST RATES | 5.27% | |
Line of Credit | $1.5B Unsecured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Contractual interest rates, basis spread on variable rate | 0.95% | |
Medium-term Notes | $350 million Unsecured Term Loan due 2023, net of issuance costs | ||
Debt Instrument [Line Items] | ||
Face value | $ 350,000,000 | |
Senior notes carrying amount | $ 349,114,000 | 0 |
EFFECTIVE INTEREST RATES | 5.17% | |
Medium-term Notes | $350 million Unsecured Term Loan due 2023, net of issuance costs | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Contractual interest rates, basis spread on variable rate | 1.05% | |
Medium-term Notes | $200 million Unsecured Term Loan due 2024, net of issuance costs | ||
Debt Instrument [Line Items] | ||
Face value | $ 200,000,000 | |
Senior notes carrying amount | $ 199,670,000 | 199,460,000 |
EFFECTIVE INTEREST RATES | 5.17% | |
Medium-term Notes | $200 million Unsecured Term Loan due 2024, net of issuance costs | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Contractual interest rates, basis spread on variable rate | 1.05% | |
Medium-term Notes | $150 million Unsecured Term Loan due 2026, net of issuance costs | ||
Debt Instrument [Line Items] | ||
Face value | $ 150,000,000 | |
Senior notes carrying amount | $ 149,495,000 | 149,376,000 |
EFFECTIVE INTEREST RATES | 5.17% | |
Medium-term Notes | $150 million Unsecured Term Loan due 2026, net of issuance costs | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Contractual interest rates, basis spread on variable rate | 1.05% | |
Medium-term Notes | $300 million Unsecured Term Loan due 2025, net of issuance costs | ||
Debt Instrument [Line Items] | ||
Face value | $ 300,000,000 | |
Senior notes carrying amount | $ 299,936,000 | 0 |
EFFECTIVE INTEREST RATES | 5.17% | |
Medium-term Notes | $300 million Unsecured Term Loan due 2025, net of issuance costs | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Contractual interest rates, basis spread on variable rate | 1.05% | |
Medium-term Notes | $200 million Unsecured Term Loan due 2027, net of issuance costs | ||
Debt Instrument [Line Items] | ||
Face value | $ 200,000,000 | |
Senior notes carrying amount | $ 199,362,000 | 0 |
EFFECTIVE INTEREST RATES | 5.17% | |
Medium-term Notes | $200 million Unsecured Term Loan due 2027, net of issuance costs | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Contractual interest rates, basis spread on variable rate | 1.05% | |
Medium-term Notes | $300 million Unsecured Term Loan due 2028, net of issuance costs | ||
Debt Instrument [Line Items] | ||
Face value | $ 300,000,000 | |
Senior notes carrying amount | $ 297,869,000 | 0 |
EFFECTIVE INTEREST RATES | 5.17% | |
Medium-term Notes | $300 million Unsecured Term Loan due 2028, net of issuance costs | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Contractual interest rates, basis spread on variable rate | 1.05% | |
Senior Notes | Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Senior notes carrying amount | $ 249,115,000 | 249,040,000 |
Contractual interest rates | 3.88% | |
EFFECTIVE INTEREST RATES | 4.12% | |
Senior Notes | Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Senior notes carrying amount | $ 571,587,000 | 0 |
Contractual interest rates | 3.50% | |
EFFECTIVE INTEREST RATES | 4.94% | |
Senior Notes | Senior Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Senior notes carrying amount | $ 479,553,000 | 0 |
Contractual interest rates | 3.75% | |
EFFECTIVE INTEREST RATES | 4.76% | |
Senior Notes | Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Senior notes carrying amount | $ 296,852,000 | 296,612,000 |
Contractual interest rates | 3.63% | |
EFFECTIVE INTEREST RATES | 3.85% | |
Senior Notes | Senior Notes Due 2030 One | ||
Debt Instrument [Line Items] | ||
Senior notes carrying amount | $ 565,402,000 | 0 |
Contractual interest rates | 3.10% | |
EFFECTIVE INTEREST RATES | 5.30% | |
Senior Notes | Senior Notes Due 2030 Two | ||
Debt Instrument [Line Items] | ||
Senior notes carrying amount | $ 296,385,000 | 296,813,000 |
Contractual interest rates | 2.40% | |
EFFECTIVE INTEREST RATES | 2.72% | |
Senior Notes | Senior Notes Due 2031 One | ||
Debt Instrument [Line Items] | ||
Senior notes carrying amount | $ 295,547,000 | 295,374,000 |
Contractual interest rates | 2.05% | |
EFFECTIVE INTEREST RATES | 2.25% | |
Senior Notes | Senior Notes Due 2031 Two | ||
Debt Instrument [Line Items] | ||
Senior notes carrying amount | $ 632,693,000 | 0 |
Contractual interest rates | 2% | |
EFFECTIVE INTEREST RATES | 5.13% | |
Mortgage Notes | Mortgage Notes Payable | ||
Debt Instrument [Line Items] | ||
Face value | $ 84,122,000 | 103,664,000 |
Senior notes carrying amount | $ 84,247,000 | $ 104,650,000 |
Minimum | Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest rates | 3.30% | |
Minimum | Mortgage Notes | Mortgage Notes Payable | ||
Debt Instrument [Line Items] | ||
Contractual interest rates | 3.31% | |
EFFECTIVE INTEREST RATES | 3.42% | |
Maximum | Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest rates | 4.80% | |
Maximum | Mortgage Notes | Mortgage Notes Payable | ||
Debt Instrument [Line Items] | ||
Contractual interest rates | 4.77% | |
EFFECTIVE INTEREST RATES | 4.84% |
Notes and Bonds Payable - Narra
Notes and Bonds Payable - Narrative (Details) | Jul. 20, 2022 USD ($) extension_option | Feb. 24, 2022 USD ($) ft² | Feb. 18, 2022 USD ($) ft² | Dec. 31, 2022 USD ($) | Jul. 22, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Debt Instrument [Line Items] | ||||||
Senior notes carrying amount | $ 5,351,827,000 | $ 1,801,325,000 | ||||
Mortgage Notes | ||||||
Debt Instrument [Line Items] | ||||||
Amount of debt repaid | $ 5,800,000 | $ 11,000,000 | ||||
Effective interest rate | 6.17% | 4.70% | ||||
Encumbered square footage | ft² | 56,762 | |||||
Redemption price | $ 6,400,000 | $ 12,600,000 | ||||
Debt redeemed, make whole amount | 1,600,000 | |||||
Unamortized premium | 600,000 | 800,000 | ||||
Write off of deferred debt issuance cost | $ 100,000 | $ 100,000 | ||||
Mortgage Notes | Colorado Springs, CO | ||||||
Debt Instrument [Line Items] | ||||||
Encumbered square footage | ft² | 80,153 | |||||
Amended and Restated Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amount of debt repaid | $ 700,000,000 | |||||
Term Loan Facility Due May 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Amount of debt repaid | 200,000,000 | |||||
Term Loan Facility Due June 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Amount of debt repaid | 150,000,000 | |||||
Amended Term Loan Facility Due May 2026 | ||||||
Debt Instrument [Line Items] | ||||||
FACE VALUE | $ 200,000,000 | |||||
Number of extension options | extension_option | 2 | |||||
Extension option period | 1 year | |||||
Amended Term Loan Facility Due June 2026 | ||||||
Debt Instrument [Line Items] | ||||||
FACE VALUE | $ 150,000,000 | |||||
Credit Facility Maturing October 2025 | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Number of extension options | extension_option | 2 | |||||
Credit facility | $ 1,500,000,000 | 1,000,000,000 | ||||
Term Loan Facility Due October 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | 300,000,000 | |||||
Term Loan Facility Due January 2024 - July 20, 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 200,000,000 | |||||
Delayed Term Loan Facility due July 20, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Number of extension options | extension_option | 2 | |||||
Credit facility | $ 350,000,000 | |||||
Delayed credit facility, period available for draws | 12 months | |||||
Term Loan Facility Due January 20, 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 300,000,000 | |||||
1.125 billion Asset Sale Term Loan | Medium-term Notes | ||||||
Debt Instrument [Line Items] | ||||||
FACE VALUE | 1,125,000,000 | |||||
Healthcare Trust Of America, Inc | ||||||
Debt Instrument [Line Items] | ||||||
FACE VALUE | 3,699,500,000 | $ 2,550,000,000 | 1,150,000,000 | |||
Senior notes carrying amount | 3,387,134,000 | $ 1,137,839,000 | ||||
Healthcare Trust Of America, Inc | 3.875% Senior Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Business combination, validly tendered and accepted notes, exchange amount | $ 250,000,000 | |||||
Interest rate on senior notes | 3.875% | 3.875% | ||||
Healthcare Trust Of America, Inc | 3.625% Senior Notes Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Business combination, validly tendered and accepted notes, exchange amount | $ 300,000,000 | |||||
Interest rate on senior notes | 3.625% | 3.625% | ||||
Healthcare Trust Of America, Inc | 2.400% Senior Notes Due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Business combination, validly tendered and accepted notes, exchange amount | $ 300,000,000 | |||||
Interest rate on senior notes | 2.40% | 2.40% | ||||
Healthcare Trust Of America, Inc | 2.050% Senior Notes Due 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Business combination, validly tendered and accepted notes, exchange amount | $ 300,000,000 | |||||
Interest rate on senior notes | 2.05% | 2.05% |
Notes and Bonds Payable - Sched
Notes and Bonds Payable - Schedule of Debt Exchange Offers (Details) - Healthcare Trust Of America, Inc - USD ($) | Dec. 31, 2022 | Jul. 22, 2022 |
3.875% Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Tenders and Consents Received as of the Expiration Date | $ 235,016,000 | |
Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes | 94.01% | |
Fixed interest rate (percent) | 3.875% | 3.875% |
3.625% Senior Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Tenders and Consents Received as of the Expiration Date | $ 290,246,000 | |
Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes | 96.75% | |
Fixed interest rate (percent) | 3.625% | 3.625% |
2.400% Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Tenders and Consents Received as of the Expiration Date | $ 297,507,000 | |
Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes | 99.17% | |
Fixed interest rate (percent) | 2.40% | 2.40% |
2.050% Senior Notes Due 2031 | ||
Debt Instrument [Line Items] | ||
Tenders and Consents Received as of the Expiration Date | $ 298,858,000 | |
Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes | 99.62% | |
Fixed interest rate (percent) | 2.05% | 2.05% |
Notes and Bonds Payable - Sch_2
Notes and Bonds Payable - Schedule of Senior Notes Assumed with the Merger (Details) - Healthcare Trust Of America, Inc - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jul. 22, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
FACE VALUE | $ 3,699,500,000 | $ 2,550,000,000 | $ 1,150,000,000 |
Debt instrument, debt default, amount | $ 2,550,000,000 | 0 | |
Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Fixed interest rate (percent) | 350% | ||
FACE VALUE | 600,000,000 | ||
Debt instrument, debt default, amount | $ 600,000,000 | 0 | |
Senior Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Fixed interest rate (percent) | 375% | ||
FACE VALUE | 500,000,000 | ||
Debt instrument, debt default, amount | $ 500,000,000 | 0 | |
Senior Notes due 2030 | |||
Debt Instrument [Line Items] | |||
Fixed interest rate (percent) | 310% | ||
FACE VALUE | 650,000,000 | ||
Debt instrument, debt default, amount | $ 650,000,000 | 0 | |
Senior Notes due 2031 | |||
Debt Instrument [Line Items] | |||
Fixed interest rate (percent) | 200% | ||
FACE VALUE | $ 800,000,000 | ||
Debt instrument, debt default, amount | $ 800,000,000 | $ 0 |
Notes and Bonds Payable - Senio
Notes and Bonds Payable - Senior and Term Notes (Details) - USD ($) | Dec. 31, 2022 | Jul. 22, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Debt issuance costs | $ (5,977,000) | $ (1,813,000) | |
Notes and bonds payable | 5,351,827,000 | 1,801,325,000 | |
Healthcare Trust Of America, Inc | |||
Debt Instrument [Line Items] | |||
FACE VALUE | 3,699,500,000 | $ 2,550,000,000 | 1,150,000,000 |
Unaccreted discount | (304,919,000) | (4,730,000) | |
Debt issuance costs | (7,447,000) | (7,431,000) | |
Notes and bonds payable | $ 3,387,134,000 | $ 1,137,839,000 |
Notes and Bonds Payable - Mortg
Notes and Bonds Payable - Mortgage Notes (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (5,977,000) | $ (1,813,000) |
Notes and bonds payable | 5,351,827,000 | 1,801,325,000 |
Term Loan Net | Term Loan | ||
Debt Instrument [Line Items] | ||
Face value | 1,500,000,000 | 350,000,000 |
Debt issuance costs | (4,554,000) | (1,164,000) |
Notes and bonds payable | 1,495,446,000 | 348,836,000 |
Mortgage Notes Payable | Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Face value | 84,122,000 | 103,664,000 |
Unamortized premium | 486,000 | 1,720,000 |
Unaccreted discount | (38,000) | (83,000) |
Debt issuance costs | (323,000) | (651,000) |
Notes and bonds payable | $ 84,247,000 | $ 104,650,000 |
Notes and Bonds Payable - Detai
Notes and Bonds Payable - Details of Mortgage Notes (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) mortage_note_payable | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||
Number of outstanding mortgage notes | mortage_note_payable | 6 | |
Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Investment in collateral | $ 228,300,000 | |
Mortgage notes payable carrying amount | $ 84,200,000 | $ 104,700,000 |
Number of outstanding mortgage notes | mortage_note_payable | 8 | |
Mortgage Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Contractual interest rates | 3.30% | |
Mortgage Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Contractual interest rates | 4.80% | |
Mortgage Notes | Mortgage Notes 5.25% | Commercial Bank | ||
Debt Instrument [Line Items] | ||
FACE VALUE | $ 15,000,000 | |
Effective interest rate | 5.25% | |
Collateral | MOB | |
Investment in collateral | $ 0 | |
Mortgage notes payable carrying amount | $ 0 | 6,100,000 |
Principal and interest amortization period | 20 years | |
Mortgage Notes | Mortgage Notes 3.64% | Life Insurance Co. | ||
Debt Instrument [Line Items] | ||
FACE VALUE | $ 11,000,000 | |
Effective interest rate | 3.64% | |
Collateral | MOB | |
Investment in collateral | $ 0 | |
Mortgage notes payable carrying amount | $ 0 | 11,600,000 |
Principal and interest amortization period | 10 years | |
Mortgage Notes | Mortgage Notes 3.64% | Financial Services | ||
Debt Instrument [Line Items] | ||
Unencumbered gross investment | $ 20,600,000 | |
Mortgage Notes | Mortgage Notes 3.86% | Life Insurance Co. | ||
Debt Instrument [Line Items] | ||
FACE VALUE | $ 12,300,000 | |
Effective interest rate | 3.86% | |
Collateral | MOB | |
Investment in collateral | $ 25,900,000 | |
Mortgage notes payable carrying amount | 10,000,000 | 10,300,000 |
Unaccreted discount | $ 200,000 | |
Principal and interest amortization period | 7 years | |
Mortgage Notes | Mortgage Notes 4.84% | Life Insurance Co. | ||
Debt Instrument [Line Items] | ||
FACE VALUE | $ 9,000,000 | |
Effective interest rate | 4.84% | |
Collateral | MOB,OFC | |
Investment in collateral | $ 24,500,000 | |
Mortgage notes payable carrying amount | 6,800,000 | 7,100,000 |
Unamortized premium | 100,000 | |
Mortgage Notes | Mortgage Notes 4.13% | Life Insurance Co. | ||
Debt Instrument [Line Items] | ||
FACE VALUE | $ 13,300,000 | |
Effective interest rate | 4.13% | |
Collateral | MOB | |
Investment in collateral | $ 22,500,000 | |
Mortgage notes payable carrying amount | 11,700,000 | 12,000,000 |
Unamortized premium | $ 800,000 | |
Principal and interest amortization period | 10 years | |
Mortgage Notes | Mortgage Notes 3.96% | Life Insurance Co. | ||
Debt Instrument [Line Items] | ||
FACE VALUE | $ 6,800,000 | |
Effective interest rate | 3.96% | |
Collateral | MOB | |
Investment in collateral | $ 14,700,000 | |
Mortgage notes payable carrying amount | 5,800,000 | 6,000,000 |
Unamortized premium | $ 200,000 | |
Principal and interest amortization period | 7 years | |
Mortgage Notes | Mortgage Notes 4.32% | Life Insurance Co. | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable carrying amount | 7,800,000 | |
Mortgage Notes | Mortgage Notes 4.32% | Financial Services | ||
Debt Instrument [Line Items] | ||
FACE VALUE | $ 9,700,000 | |
Effective interest rate | 4.32% | |
Collateral | MOB | |
Investment in collateral | $ 16,600,000 | |
Mortgage notes payable carrying amount | 7,500,000 | |
Unamortized premium | $ 100,000 | |
Principal and interest amortization period | 10 years | |
Mortgage Notes | Mortgage Notes 3.43% | Life Insurance Co. | ||
Debt Instrument [Line Items] | ||
FACE VALUE | $ 16,500,000 | |
Effective interest rate | 3.43% | |
Collateral | MOB,OFC | |
Investment in collateral | $ 39,100,000 | |
Mortgage notes payable carrying amount | 16,200,000 | 16,700,000 |
Unamortized premium | $ 700,000 | |
Principal and interest amortization period | 7 years | |
Mortgage Notes | Mortgage Notes 3.71% | Financial Services | ||
Debt Instrument [Line Items] | ||
FACE VALUE | $ 11,500,000 | |
Effective interest rate | 3.71% | |
Collateral | MOB | |
Investment in collateral | $ 40,500,000 | |
Mortgage notes payable carrying amount | $ 8,300,000 | 8,700,000 |
Principal and interest amortization period | 10 years | |
Mortgage Notes | Mortgage Notes 4.08% | Life Insurance Co. | ||
Debt Instrument [Line Items] | ||
FACE VALUE | $ 19,200,000 | |
Effective interest rate | 4.08% | |
Collateral | MOB | |
Investment in collateral | $ 44,500,000 | |
Mortgage notes payable carrying amount | $ 17,900,000 | $ 18,400,000 |
Principal and interest amortization period | 10 years | |
Mortgage Notes | Mortgage Notes 4.84% | Life Insurance Co. | ||
Debt Instrument [Line Items] | ||
Principal and interest amortization period | 10 years |
Notes and Bonds Payable - Futur
Notes and Bonds Payable - Future Maturities (Details) $ in Thousands | Dec. 31, 2022 USD ($) mortage_note_payable | Dec. 31, 2021 USD ($) |
Long Term Debt Maturities [Line Items] | ||
Number of outstanding mortgage notes | mortage_note_payable | 6 | |
Excluded debt issuance costs | $ 6,000 | |
Future contractual maturities of the Company's notes and bonds payable | ||
Debt issuance costs | (5,977) | $ (1,813) |
Notes and bonds payable | 5,351,827 | $ 1,801,325 |
2023 | ||
Future contractual maturities of the Company's notes and bonds payable | ||
PRINCIPAL MATURITIES | 368,880 | |
Net Accretion/Amortization | (38,805) | |
Debt issuance costs | (3,258) | |
Notes and bonds payable | $ 326,817 | |
% | 6.10% | |
2024 | ||
Future contractual maturities of the Company's notes and bonds payable | ||
PRINCIPAL MATURITIES | $ 225,352 | |
Net Accretion/Amortization | (40,922) | |
Debt issuance costs | (2,211) | |
Notes and bonds payable | $ 182,219 | |
% | 3.40% | |
2025 | ||
Future contractual maturities of the Company's notes and bonds payable | ||
PRINCIPAL MATURITIES | $ 951,250 | |
Net Accretion/Amortization | (43,193) | |
Debt issuance costs | (1,851) | |
Notes and bonds payable | $ 906,206 | |
% | 16.90% | |
2026 | ||
Future contractual maturities of the Company's notes and bonds payable | ||
PRINCIPAL MATURITIES | $ 773,640 | |
Net Accretion/Amortization | (41,798) | |
Debt issuance costs | (1,636) | |
Notes and bonds payable | $ 730,206 | |
% | 13.60% | |
2027 | ||
Future contractual maturities of the Company's notes and bonds payable | ||
PRINCIPAL MATURITIES | $ 700,000 | |
Net Accretion/Amortization | (36,192) | |
Debt issuance costs | (1,518) | |
Notes and bonds payable | $ 662,290 | |
% | 12.40% | |
2028 and thereafter | ||
Future contractual maturities of the Company's notes and bonds payable | ||
PRINCIPAL MATURITIES | $ 2,649,500 | |
Net Accretion/Amortization | (103,561) | |
Debt issuance costs | (1,850) | |
Notes and bonds payable | $ 2,544,089 | |
% | 47.60% | |
Net of Unsecured Credit Facility | ||
Future contractual maturities of the Company's notes and bonds payable | ||
PRINCIPAL MATURITIES | $ 5,668,622 | |
Net Accretion/Amortization | (304,471) | |
Debt issuance costs | (12,324) | |
Notes and bonds payable | $ 5,351,827 | |
% | 100% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Cash Flow Hedges of Interest Rate Risk (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Thousands | Feb. 16, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 1,150,000 | ||
Derivative, Fixed Interest Rate | 2.63% | ||
Interest Rate Swap, Expiring January31, 2023 | |||
Derivative [Line Items] | |||
Derivative notional amount | 300,000 | ||
Derivative, Fixed Interest Rate | 1.42% | ||
Interest Rate Swap, Expiring January 15, 2024 | |||
Derivative [Line Items] | |||
Derivative notional amount | 200,000 | ||
Derivative, Fixed Interest Rate | 1.21% | ||
Interest Rate Swap, Expiring May 1, 2026 | |||
Derivative [Line Items] | |||
Derivative notional amount | 100,000 | ||
Derivative, Fixed Interest Rate | 2.15% | ||
Interest Rate Swap, Expiring December 1, 2026 | |||
Derivative [Line Items] | |||
Derivative notional amount | 150,000 | ||
Derivative, Fixed Interest Rate | 3.84% | ||
Interest Rate Swap, Expiring June 1, 2027 | |||
Derivative [Line Items] | |||
Derivative notional amount | 150,000 | ||
Derivative, Fixed Interest Rate | 4.13% | ||
Interest Rate Swap, Expiring December 1, 2027 | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 250,000 | ||
Derivative, Fixed Interest Rate | 3.79% | ||
Interest Rate Swap, Expiring December 1, 2027 | Subsequent Event | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 50,000 | ||
Derivative, Fixed Interest Rate | 4.16% |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) derivative | |
Derivative [Line Items] | |||
Amount of loss recognized in OCI on derivatives | $ (10,630) | ||
Treasury Rate Locks | |||
Derivative [Line Items] | |||
Number of interest rate derivatives | derivative | 2 | ||
Amount of loss recognized in OCI on derivatives | 0 | $ 0 | $ 4,267 |
Term of senior notes | 10 years | ||
Treasury Lock 1 | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 75,000 | ||
Treasury Lock 2 | |||
Derivative [Line Items] | |||
Derivative notional amount | 40,000 | ||
Interest rate swaps 2017 | |||
Derivative [Line Items] | |||
Amount of loss recognized in OCI on derivatives | (302) | ||
Interest rate swaps 2018 | |||
Derivative [Line Items] | |||
Amount of loss recognized in OCI on derivatives | (616) | ||
Interest rate swaps 2019 | |||
Derivative [Line Items] | |||
Amount of loss recognized in OCI on derivatives | (12,964) | ||
Interest Rate Swap | |||
Derivative [Line Items] | |||
Amount of loss recognized in OCI on derivatives | (10,630) | $ (3,379) | $ 10,862 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 1,150,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ (4,269) | |
GROSS AMOUNTS of recognized assets | 14,512 | |
Interest rate swaps 2017 | Designated as Hedging Instrument | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ (420) | |
Interest rate swaps 2018 | Designated as Hedging Instrument | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | (976) | |
Interest rate swaps 2019 | Designated as Hedging Instrument | Goodwill | ||
Derivatives, Fair Value [Line Items] | ||
GROSS AMOUNTS of recognized assets | 13,603 | |
Interest rate swaps 2019 | Designated as Hedging Instrument | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | (4,521) | |
Interest rate swaps 2022 | Designated as Hedging Instrument | Goodwill | ||
Derivatives, Fair Value [Line Items] | ||
GROSS AMOUNTS of recognized assets | 909 | |
Interest rate swaps 2022 | Designated as Hedging Instrument | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | (4,269) | 0 |
Interest Rate Swap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 10,243 | $ (5,917) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effect of Cash Flow Hedging on AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Gains (losses) arising during the period on interest rate swaps and treasury rate locks | $ 10,630 | ||
Reclassification adjustments for losses included in net income (interest expense) | (1,527) | $ (4,472) | $ (3,472) |
Interest rate swaps 2017 | |||
Derivative [Line Items] | |||
Gains (losses) arising during the period on interest rate swaps and treasury rate locks | 302 | ||
Interest rate swaps 2018 | |||
Derivative [Line Items] | |||
Gains (losses) arising during the period on interest rate swaps and treasury rate locks | 616 | ||
Interest rate swaps 2019 | |||
Derivative [Line Items] | |||
Gains (losses) arising during the period on interest rate swaps and treasury rate locks | 12,964 | ||
Interest rate swaps 2022 | |||
Derivative [Line Items] | |||
Gains (losses) arising during the period on interest rate swaps and treasury rate locks | (3,252) | ||
Settled treasury hedges | |||
Derivative [Line Items] | |||
Gains (losses) arising during the period on interest rate swaps and treasury rate locks | 0 | 0 | $ (4,267) |
Settled interest rate swaps | |||
Derivative [Line Items] | |||
Gains (losses) arising during the period on interest rate swaps and treasury rate locks | 0 | ||
Interest Expense | |||
Derivative [Line Items] | |||
Reclassification adjustments for losses included in net income (interest expense) | 1,527 | 4,472 | |
Interest Expense | Interest rate swaps 2017 | |||
Derivative [Line Items] | |||
Reclassification adjustments for losses included in net income (interest expense) | 118 | 527 | |
Interest Expense | Interest rate swaps 2018 | |||
Derivative [Line Items] | |||
Reclassification adjustments for losses included in net income (interest expense) | 361 | 1,194 | |
Interest Expense | Interest rate swaps 2019 | |||
Derivative [Line Items] | |||
Reclassification adjustments for losses included in net income (interest expense) | 563 | 2,157 | |
Interest Expense | Interest rate swaps 2022 | |||
Derivative [Line Items] | |||
Reclassification adjustments for losses included in net income (interest expense) | (109) | 0 | |
Interest Expense | Settled treasury hedges | |||
Derivative [Line Items] | |||
Reclassification adjustments for losses included in net income (interest expense) | 426 | 426 | |
Interest Expense | Settled interest rate swaps | |||
Derivative [Line Items] | |||
Reclassification adjustments for losses included in net income (interest expense) | $ 168 | $ 168 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Offsetting Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Offsetting Derivative Liabilities [Abstract] | ||
GROSS AMOUNTS of recognized liabilities | $ (4,269) | |
GROSS AMOUNTS OFFSET in the Consolidated Balance Sheets | 0 | |
NET AMOUNTS OF ASSETS presented in the Consolidated Balance Sheets | (4,269) | $ (5,917) |
FINANCIAL INSTRUMENTS | 4,269 | |
CASH COLLATERAL | 0 | |
NET AMOUNT | 0 | |
Offsetting Derivative Assets [Abstract] | ||
GROSS AMOUNTS of recognized assets | 14,512 | |
GROSS AMOUNTS OFFSET in the Consolidated Balance Sheets | 0 | |
NET AMOUNTS OF ASSETS presented in the Consolidated Balance Sheets | 14,512 | $ 0 |
FINANCIAL INSTRUMENTS | (4,269) | |
CASH COLLATERAL | 0 | |
NET AMOUNT | $ 10,243 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Narrative (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Reclassified from accumulated other comprehensive loss | $ 10.3 |
Fair value of derivatives in a net liability position | 2.1 |
Assets needed if immediate settlement is required, aggregate fair value | $ 2.1 |
Stockholders' Equity - Common s
Stockholders' Equity - Common shares (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of the beginning and ending common stock outstanding | |||
Balance, beginning of year (in shares) | 150,457,000 | ||
Balance, end of year (in shares) | 380,590,000 | 150,457,000 | |
Common Stock | |||
Reconciliation of the beginning and ending common stock outstanding | |||
Balance, beginning of year (in shares) | 150,457,433 | 139,487,375 | 134,706,154 |
Issuance of common stock (in shares) | 229,618,304 | 10,899,301 | 4,637,445 |
Non-vested stock-based awards, net of withheld shares and forfeitures (in shares) | 514,157 | 70,757 | 143,776 |
Balance, end of year (in shares) | 380,589,894 | 150,457,433 | 139,487,375 |
Stockholders' Equity - Equity O
Stockholders' Equity - Equity Offering Programs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Net proceeds | $ 22,902,000 | $ 331,119,000 | $ 142,000,000 |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Equity offering program of common stock | $ 750,000,000 | ||
At the Market Equity Offering Program | |||
Class of Stock [Line Items] | |||
Weighted average sale price per share (in dollars per share) | $ 31.73 | $ 31.09 | |
Shares priced | 0 | 9,763,680 | |
Shares settled | 727,400 | 10,859,539 | |
Shares remaining to be settled | 0 | 727,400 | |
Net proceeds | $ 22,300,000 | $ 330,300,000 |
Stockholders' Equity (Stock Tra
Stockholders' Equity (Stock Transactions - Narrative) (Details) - USD ($) | 12 Months Ended | ||
Feb. 24, 2023 | Dec. 31, 2022 | Aug. 02, 2022 | |
Class of Stock [Line Items] | |||
Dividends per share to common stockholders, paid per quarter (in USD per share) | $ 0.31 | ||
Stock repurchase, amount authorized | $ 500,000,000 | ||
Subsequent Event | |||
Class of Stock [Line Items] | |||
Dividends per share to common stockholders, declared (in USD per share) | $ 0.31 | ||
Dividend Declared | |||
Class of Stock [Line Items] | |||
Dividends per share to common stockholders, declared (in USD per share) | $ 1.24 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) derivative | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amount of loss recognized in OCI on derivatives | $ (10,630) | ||
Period of impact on net income | 10 years | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Net current-period other comprehensive income | 12,157 | $ 7,851 | $ (11,657) |
Settled treasury hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Number of interest rate derivatives | derivative | 2 | ||
Amount of loss recognized in OCI on derivatives | 0 | 0 | $ 4,267 |
Forward Starting Swaps | Reclassification out of Accumulated Other Comprehensive Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (9,981) | (17,832) | |
Other comprehensive loss before reclassifications | 1,531 | 4,472 | |
Amounts reclassified from accumulated other comprehensive income | 10,590 | 3,379 | |
Net current-period other comprehensive income | 12,121 | 7,851 | |
Balance, end of period | $ 2,140 | $ (9,981) | $ (17,832) |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest Expense | $ 146,691 | $ 53,124 | $ 56,174 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,531 | ||
Amounts reclassified from accumulated other comprehensive income (loss) related to settled interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest Expense | 594 | ||
Amounts reclassified from accumulated other comprehensive income (loss) related to current interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest Expense | $ 937 |
Stock and Other Incentive Pla_3
Stock and Other Incentive Plans - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
Feb. 22, 2027 USD ($) | Jan. 04, 2027 USD ($) | Feb. 22, 2026 USD ($) | Jan. 04, 2026 USD ($) | Jan. 03, 2026 USD ($) | Dec. 12, 2025 USD ($) | Feb. 22, 2025 USD ($) | Jan. 04, 2025 USD ($) | Jan. 03, 2025 USD ($) | Dec. 12, 2024 USD ($) | Feb. 22, 2024 USD ($) | Jan. 04, 2024 USD ($) | Jan. 03, 2024 USD ($) | Dec. 12, 2023 USD ($) | Feb. 22, 2023 USD ($) | Jan. 04, 2023 USD ($) shares | Jan. 03, 2023 USD ($) | Dec. 12, 2022 USD ($) shares | Aug. 02, 2022 USD ($) director shares | May 13, 2022 USD ($) director shares | Feb. 22, 2022 USD ($) shares | Jan. 03, 2022 USD ($) shares | Jan. 31, 2022 $ / shares | Mar. 31, 2022 USD ($) shares | Mar. 31, 2021 | Dec. 31, 2022 USD ($) employee $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2016 award | May 31, 2015 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Shares issued under the plan (in shares) | shares | 19,679 | |||||||||||||||||||||||||||||
Vested grant date fair value (in dollars per share) | $ / shares | $ 33.04 | |||||||||||||||||||||||||||||
Value of performance based awards released | $ 0.6 | |||||||||||||||||||||||||||||
Number of executive officers granted awards (in shares) | shares | 19,204 | |||||||||||||||||||||||||||||
401(k) Plan [Abstract] | ||||||||||||||||||||||||||||||
Percentage of matching contribution | 3% | |||||||||||||||||||||||||||||
Value of matching contribution | $ 1.2 | $ 0.7 | $ 0.6 | |||||||||||||||||||||||||||
At the Market Equity Offering Program | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Percentage of RSUnits | 43% | |||||||||||||||||||||||||||||
Market Condition 1 | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Granted, fair value | $ / shares | $ 30.56 | |||||||||||||||||||||||||||||
Market Condition 2 | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Granted, fair value | $ / shares | $ 41.30 | |||||||||||||||||||||||||||||
Performance Conditions | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Percentage of RSUnits | 57% | |||||||||||||||||||||||||||||
Vested grant date fair value (in dollars per share) | $ / shares | $ 31.68 | |||||||||||||||||||||||||||||
Deferral Option One | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Employer matching contribution, percent | 30% | |||||||||||||||||||||||||||||
Deferral Option Two | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Employer matching contribution, percent | 50% | |||||||||||||||||||||||||||||
Deferral Option Three | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Employer matching contribution, percent | 100% | |||||||||||||||||||||||||||||
Performance Shares | Weighted Average | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 5 years | |||||||||||||||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||||||||||||||
401(k) Plan [Abstract] | ||||||||||||||||||||||||||||||
Cash received from employees upon exercising options | $ 0.4 | 0.8 | 0.7 | |||||||||||||||||||||||||||
Employee Stock Purchase Plan | General and Administrative Expense | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Accelerated stock compensation expense | $ 0.4 | $ 0.4 | $ 0.3 | |||||||||||||||||||||||||||
Legacy HR Incentive Plan | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Authorization of common shares to issue (in shares) | shares | 3,500,000 | |||||||||||||||||||||||||||||
Common shares issued, net of forfeitures (in shares) | shares | 2,386,822 | |||||||||||||||||||||||||||||
Legacy HR Incentive Plan | Restricted Stock | Minimum | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 3 years | |||||||||||||||||||||||||||||
Legacy HR Incentive Plan | Restricted Stock | Maximum | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 8 years | |||||||||||||||||||||||||||||
Stock Incentive Plan | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Common shares issued, net of forfeitures (in shares) | shares | 3,417,696 | |||||||||||||||||||||||||||||
Granted in period (in shares) | shares | 657,475 | 203,701 | 197,999 | |||||||||||||||||||||||||||
Vested grant date fair value (in dollars per share) | $ / shares | $ 31.52 | $ 28.38 | $ 23.82 | |||||||||||||||||||||||||||
Stock Incentive Plan | Executive Officer | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Accelerated stock compensation expense | $ 0.8 | $ 0.7 | $ 0.8 | |||||||||||||||||||||||||||
Number of one-time non-vested share grants | award | 3 | |||||||||||||||||||||||||||||
Stock Incentive Plan | Director | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 1 year | |||||||||||||||||||||||||||||
Accelerated stock compensation expense | 1.5 | 1.2 | 1 | |||||||||||||||||||||||||||
Stock Incentive Plan | Restricted Stock | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Accelerated stock compensation expense | $ 13.9 | $ 10.4 | $ 9.7 | |||||||||||||||||||||||||||
Withheld of common stock (in shares) | shares | 137,892 | 129,987 | 54,223 | |||||||||||||||||||||||||||
Weighted average remaining contractual terms | 4 years 3 months 18 days | |||||||||||||||||||||||||||||
Stock Incentive Plan | Performance Shares | Minimum | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 1 year | |||||||||||||||||||||||||||||
Stock Incentive Plan | Performance Shares | Maximum | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 8 years | |||||||||||||||||||||||||||||
Stock Incentive Plan | Performance Shares | Officer | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Accelerated stock compensation expense | $ 0.9 | $ 1 | $ 1.1 | |||||||||||||||||||||||||||
Stock Incentive Plan | Restricted Stock and Performance Based Awards | Minimum | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 1 year | |||||||||||||||||||||||||||||
Stock Incentive Plan | Restricted Stock and Performance Based Awards | Maximum | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 8 years | |||||||||||||||||||||||||||||
Stock Incentive Plan | Employee Stock Purchase Plan | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Granted in period (in shares) | shares | 5,806 | |||||||||||||||||||||||||||||
Number of employees | employee | 3 | |||||||||||||||||||||||||||||
Executive Incentive Plan | Restricted Stock | Subsequent Event | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 5 years | |||||||||||||||||||||||||||||
Executive Incentive Plan | Performance Shares | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 3 years | 5 years | 5 years | |||||||||||||||||||||||||||
Accelerated stock compensation expense | $ 1.6 | $ 9.8 | 6.6 | 5.9 | ||||||||||||||||||||||||||
Granted in period | $ 2.7 | $ 3.9 | $ 7.9 | |||||||||||||||||||||||||||
Shares issued under the plan (in shares) | shares | 140,809 | 126,930 | 249,689 | |||||||||||||||||||||||||||
Executive Incentive Plan | Performance Shares | Subsequent Event | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 5 years | |||||||||||||||||||||||||||||
Granted in period | $ 4.1 | |||||||||||||||||||||||||||||
Shares issued under the plan (in shares) | shares | 205,264 | |||||||||||||||||||||||||||||
Executive Incentive Plan | Performance Shares | Forecast | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Accelerated stock compensation expense | $ 0.1 | $ 0.8 | $ 0.8 | $ 0.8 | $ 0.9 | $ 0.8 | $ 0.8 | $ 1.6 | $ 0.9 | $ 0.8 | $ 0.8 | $ 1.6 | $ 0.9 | $ 0.8 | $ 1.6 | |||||||||||||||
Executive Incentive Plan | Performance Shares | Forecast | Subsequent Event | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Accelerated stock compensation expense | $ 0.8 | |||||||||||||||||||||||||||||
Executive Incentive Plan | Operating Partnership Performance Units | Subsequent Event | Share-Based Payment Arrangement, Nonemployee | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 5 years | |||||||||||||||||||||||||||||
Performance period | 3 years | |||||||||||||||||||||||||||||
Granted in period (in shares) | shares | 627,547 | |||||||||||||||||||||||||||||
Executive Incentive Plan | Operating Partnership Performance Units | Subsequent Event | Share-based Payment Arrangement, Tranche Two | Share-Based Payment Arrangement, Nonemployee | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting percentage | 50% | |||||||||||||||||||||||||||||
Executive Incentive Plan | Operating Partnership Performance Units | Subsequent Event | Share-Based Payment Arrangement, Tranche Three | Share-Based Payment Arrangement, Nonemployee | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting percentage | 50% | |||||||||||||||||||||||||||||
Executive Incentive Plan | Non Vested Stock Award | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 1 year | |||||||||||||||||||||||||||||
Granted in period | $ 1.8 | $ 0.8 | ||||||||||||||||||||||||||||
Granted in period (in shares) | shares | 70,816 | 26,840 | ||||||||||||||||||||||||||||
Executive Incentive Plan | Non Vested Stock Award | Minimum | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 1 year | |||||||||||||||||||||||||||||
Executive Incentive Plan | Non Vested Stock Award | Maximum | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 3 years | |||||||||||||||||||||||||||||
Executive Incentive Plan | Non Vested Stock Award | Director | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Number of directors | director | 12 | 8 | ||||||||||||||||||||||||||||
Executive Incentive Plan | Restricted Stock Units (RSUs) | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Accelerated stock compensation expense | $ 1.9 | |||||||||||||||||||||||||||||
Granted in period | $ 9.7 | |||||||||||||||||||||||||||||
Shares issued under the plan (in shares) | shares | 294,932 | |||||||||||||||||||||||||||||
Performance period | 3 years | |||||||||||||||||||||||||||||
Executive Incentive Plan | Restricted Stock Units (RSUs) | Subsequent Event | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 5 years | |||||||||||||||||||||||||||||
Accelerated stock compensation expense | $ 1.9 | |||||||||||||||||||||||||||||
Shares issued under the plan (in shares) | shares | 165,174 | |||||||||||||||||||||||||||||
Executive Incentive Plan | Restricted Stock Units (RSUs) | Subsequent Event | Share-based Payment Arrangement, Tranche Two | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting percentage | 50% | |||||||||||||||||||||||||||||
Executive Incentive Plan | Restricted Stock Units (RSUs) | Subsequent Event | Share-Based Payment Arrangement, Tranche Three | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting percentage | 50% | |||||||||||||||||||||||||||||
Executive Incentive Plan | Restricted Stock Units (RSUs) | Forecast | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Accelerated stock compensation expense | $ 1.9 | $ 1.9 | $ 1.9 | |||||||||||||||||||||||||||
Salary Deferral Plan | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Accelerated stock compensation expense | $ 0.9 | $ 0.9 | $ 0.9 | |||||||||||||||||||||||||||
Shares issued under the plan (in shares) | shares | 17,381 | 21,396 | 17,570 | |||||||||||||||||||||||||||
Maximum salary deferral for officers under the plan, percent | 50% | |||||||||||||||||||||||||||||
Salary Deferral Plan | Deferral Option One | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 3 years | |||||||||||||||||||||||||||||
Salary Deferral Plan | Deferral Option Two | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 5 years | |||||||||||||||||||||||||||||
Salary Deferral Plan | Deferral Option Three | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||
Award vesting period | 8 years |
Stock and Other Incentive Pla_4
Stock and Other Incentive Plans - Amortization of Compensation for Nonvested Shares (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Share-Based Payment Arrangement [Abstract] | |
2023 | $ 12 |
2024 | 10 |
2025 | 8.3 |
2026 | 5.5 |
2027 | 0.4 |
2028 and thereafter | 0.1 |
Total | $ 36.3 |
Stock and Other Incentive Pla_5
Stock and Other Incentive Plans - Black-Scholes Options Pricing Model (Details) - $ / shares | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock | ||||
Fair value of options issued based on weighted-average assumptions | ||||
Risk-free interest rates | 1.02% | |||
Expected life (in years) | 3 years | |||
Expected volatility | 30% | |||
Stock price (per share) | $ 31.68 | |||
Employee Stock Purchase Plan | ||||
Fair value of options issued based on weighted-average assumptions | ||||
Risk-free interest rates | 0.73% | 0.13% | 1.58% | |
Expected dividend yields | 3.97% | 4.11% | 3.69% | |
Expected life (in years) | 1 year 5 months 8 days | 1 year 5 months 4 days | 1 year 5 months 4 days | |
Expected volatility | 49% | 48.20% | 28.60% | |
Expected forfeiture rates | 85% | 85% | 85% |
Stock and Other Incentive Pla_6
Stock and Other Incentive Plans - 2015 Incentive Plan and related information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted-average grant date fair value of: | ||||
Share-based awards vested during the years (in dollars per share) | $ 33.04 | |||
Stock Incentive Plan | ||||
Summary of the activity under the incentive plans | ||||
Share-based awards, beginning of year (in shares) | 1,562,028 | 1,562,028 | 1,766,061 | 1,754,066 |
Granted (in shares) | 657,475 | 203,701 | 197,999 | |
Vested (in shares) | (418,949) | (404,777) | (186,004) | |
Forfeited (in shares) | (5,426) | (2,957) | 0 | |
Share-based awards, end of year (in shares) | 1,795,128 | 1,562,028 | 1,766,061 | |
Weighted-average grant date fair value of: | ||||
Share-based awards, beginning of year (in dollars per share) | $ 31.10 | $ 31.10 | $ 30.51 | $ 29.82 |
Share-based awards granted during the year (in dollars per share) | 28.11 | 30.86 | 30.33 | |
Share-based awards vested during the years (in dollars per share) | 31.52 | 28.38 | 23.82 | |
Share-based awards forfeitures during the year (in dollars per share) | 31.48 | 33.04 | 0 | |
Share-based awards, end of year (in dollars per share) | $ 29.91 | $ 31.10 | $ 30.51 | |
Grant date fair value of shares granted during the year | $ 18,480 | $ 6,286 | $ 6,006 |
Stock and Other Incentive Pla_7
Stock and Other Incentive Plans - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Options Outstanding: | |||
Options outstanding, beginning of year (in shares) | 348,514 | 341,647 | 332,659 |
Granted (in shares) | 255,960 | 253,200 | 212,716 |
Exercised (in shares) | (20,246) | (30,281) | (21,713) |
Forfeited (in shares) | (102,619) | (71,630) | (42,221) |
Expired (in shares) | (140,633) | (144,422) | (139,794) |
Outstanding, end of period (in shares) | 340,976 | 348,514 | 341,647 |
Weighted-average exercise price: | |||
Options outstanding, beginning of year (in dollars per share) | $ 25.38 | $ 24.70 | $ 25.59 |
Options granted during the year (in dollars per share) | 26.89 | 25.16 | 28.36 |
Options exercised during the year (in dollars per share) | 20.97 | 25.03 | 24.10 |
Options forfeited during the year (in dollars per share) | 21.88 | 25.45 | 25.29 |
Options expired during the year (in dollars per share) | 23.36 | 24.17 | 23.74 |
Options outstanding, end of year (in dollars per share) | 16.38 | 25.38 | 24.70 |
Weighted-average fair value of options granted during the year (calculated as of the grant date) (in dollars per share) | $ 9.91 | $ 9.05 | $ 8.06 |
Intrinsic value of options exercised during the year | $ 75 | $ 165 | $ 101 |
Intrinsic value of options outstanding (calculated as of December 31) | $ 985 | $ 1,997 | $ 1,673 |
Exercise prices of options outstanding (calculated as of December 31) (in dollars per share) | $ 16.38 | $ 25.91 | $ 24.70 |
Weighted-average contractual life of outstanding options (calculated as of December 31, in years) | 9 months 18 days | 9 months 18 days | 9 months 18 days |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Dilutive effect of forward equity (in shares) | 0 | 0 | 6,283 |
Proceeds from issuance of common stock, adjusted for costs to borrow | $ 23.1 | ||
Weighted-average incremental shares of common stock excluded from the computation (in shares) | 1,682 | ||
At the Market Equity Offering Program | |||
Class of Stock [Line Items] | |||
Dilutive effect of forward equity (in shares) | 700,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Common Shares | |||
Weighted average common shares outstanding (in shares) | 254,296,810 | 144,411,835 | 135,666,503 |
Non-vested shares (in shares) | (1,940,607) | (1,774,669) | (1,736,358) |
Weighted average common shares outstanding - Basic (in shares) | 252,356,203 | 142,637,166 | 133,930,145 |
Dilutive effect of forward equity (in shares) | 0 | 0 | 6,283 |
Dilutive effect of OP Units (in shares) | 1,451,599 | 0 | 0 |
Dilutive effect of employee stock purchase plan (in shares) | 65,519 | 73,062 | 70,512 |
Weighted average common shares outstanding - diluted (in shares) | 253,873,321 | 142,710,228 | 134,006,940 |
Net income attributable to common stockholders | $ 40,897 | $ 66,659 | $ 72,195 |
Dividends paid on nonvested share-based awards | (2,437) | (2,154) | (2,083) |
Net income applicable to common stockholders - basic | 38,460 | 64,505 | 70,112 |
Net income attributable to OP Units | 81 | 0 | 0 |
Net income applicable to common stockholders - diluted | $ 38,541 | $ 64,505 | $ 70,112 |
Basic earnings per common share - net income (in dollars per share) | $ 0.15 | $ 0.45 | $ 0.52 |
Diluted earnings per common share- net income (in dollars per share) | $ 0.15 | $ 0.45 | $ 0.52 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) property | |
Property, Plant and Equipment [Line Items] | ||
Construction activity and development properties | $ 60.8 | |
Number of land parcels held for development | property | 20 | 7 |
Investment in land held for development | $ 74.3 | $ 24.8 |
Letter of Credit | ||
Property, Plant and Equipment [Line Items] | ||
Deposits | 32.1 | |
First and Second Generation Leases | Tenant Improvement Allowances | ||
Property, Plant and Equipment [Line Items] | ||
Anticipated amount of investment | $ 195.1 |
Other Data - Narrative (Details
Other Data - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax Credit Carryforward [Line Items] | |||
Condition to qualify as REIT as defined under the internal revenue code | Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its taxable income to its stockholders. | ||
Number of preferred shares outstanding (in shares) | 0 | 0 | |
Dividends distributed to preferred shares | $ 0 | ||
Legacy HR | |||
Tax Credit Carryforward [Line Items] | |||
Estimated aggregate total cost of total assets for federal income tax purposes | $ 13,000,000,000 | $ 5,000,000,000 | $ 4,700,000,000 |
Legacy HTA | |||
Tax Credit Carryforward [Line Items] | |||
Estimated aggregate total cost of total assets for federal income tax purposes | $ 8,200,000,000 | $ 7,900,000,000 |
Other Data - Characterization o
Other Data - Characterization of Distributions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax Treatment of Dividends Pre-Merger Healthcare Trust of America | |||
Characterization of distributions on common stock | |||
Ordinary income (in dollars per share) | $ 0.5862 | $ 0.7920 | $ 0.6976 |
Return of capital (in dollars per share) | 4.0162 | 0.4930 | 0.5582 |
Capital gain (in dollars per share) | 1.2216 | 0 | 0.0092 |
Common stock distributions (in dollars per share) | 5.8240 | 1.2850 | 1.2650 |
Tax Treatment of Dividends Pre-Merger Healthcare Realty | |||
Characterization of distributions on common stock | |||
Ordinary income (in dollars per share) | 0.2655 | 0.7500 | 0.7738 |
Return of capital (in dollars per share) | 0.5555 | 0.3600 | 0.1084 |
Capital gain (in dollars per share) | 0 | 0.0964 | 0.3178 |
Common stock distributions (in dollars per share) | 0.8210 | 1.2064 | 1.2000 |
Tax Treatment of Dividends Post-Merger Healthcare Realty | |||
Characterization of distributions on common stock | |||
Ordinary income (in dollars per share) | 0.0422 | 0 | 0 |
Return of capital (in dollars per share) | 0.2889 | 0 | 0 |
Capital gain (in dollars per share) | 0.0879 | 0 | 0 |
Common stock distributions (in dollars per share) | $ 0.4190 | $ 0 | $ 0 |
Other Data - State Income Taxes
Other Data - State Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
State income tax expense | |||
Texas gross margins tax | $ 1,693 | $ 564 | $ 546 |
Other | 151 | 8 | 8 |
Total state income tax expense | 1,844 | 572 | 554 |
State income tax payments, net of refunds and collections | $ 1,834 | $ 560 | $ 557 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
CARRYING VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bonds payable | $ 5,351.8 | $ 1,801.3 |
Real estate notes receivable | 99.6 | 0 |
FAIR VALUE | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bonds payable | 5,149.6 | 1,797.4 |
Real estate notes receivable | $ 99.6 | $ 0 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Accounts receivable allowance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 654 | $ 604 | $ 418 |
Charged/(Credited) to costs and expenses, additions and deductions | 3,306 | 72 | 207 |
Charged to other accounts, additions and deductions | 0 | 0 | 0 |
Uncollectible accounts written-off | 6 | 22 | 21 |
Balance at end of period | $ 3,954 | $ 654 | $ 604 |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation (Details) $ in Thousands | Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) property | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) |
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 688 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
Gross real estate asset, Total | $ 14,076,475 | $ 5,104,942 | $ 4,670,226 | $ 4,359,993 |
Accumulated depreciation | $ 1,645,271 | $ 1,338,743 | $ 1,249,679 | $ 1,121,102 |
Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 688 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 1,398,017 | |||
COST CAPITALIZED subsequent to acquisition | 41,628 | |||
TOTAL | 1,439,645 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 11,471,695 | |||
COST CAPITALIZED subsequent to acquisition | 834,463 | |||
TOTAL | 12,306,158 | |||
PERSONAL PROPERTY | 6,369 | |||
Gross real estate asset, Total | 13,752,172 | |||
Accumulated depreciation | 1,638,800 | |||
Encumbrances | $ 84,697 | |||
Land held for develop. | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 0 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 74,265 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 74,265 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 0 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 0 | |||
PERSONAL PROPERTY | 0 | |||
Gross real estate asset, Total | 74,265 | |||
Accumulated depreciation | 1,183 | |||
Encumbrances | $ 0 | |||
Construction in progress | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 0 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 0 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 0 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 35,560 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 35,560 | |||
PERSONAL PROPERTY | 0 | |||
Gross real estate asset, Total | 35,560 | |||
Accumulated depreciation | 0 | |||
Encumbrances | $ 0 | |||
Corporate Property | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 0 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 1,853 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 1,853 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 1,787 | |||
COST CAPITALIZED subsequent to acquisition | 1,240 | |||
TOTAL | 3,027 | |||
PERSONAL PROPERTY | 5,538 | |||
Gross real estate asset, Total | 10,418 | |||
Accumulated depreciation | 5,288 | |||
Encumbrances | $ 0 | |||
Financing lease right-of-use assets | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 0 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 0 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 0 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 0 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 0 | |||
PERSONAL PROPERTY | 0 | |||
Gross real estate asset, Total | 83,824 | |||
Accumulated depreciation | 0 | |||
Encumbrances | $ 0 | |||
Investment in financing receivables, net | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 0 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 0 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 0 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 0 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 0 | |||
PERSONAL PROPERTY | 0 | |||
Gross real estate asset, Total | 120,236 | |||
Accumulated depreciation | 0 | |||
Encumbrances | $ 0 | |||
Total properties | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 688 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 1,474,135 | |||
COST CAPITALIZED subsequent to acquisition | 41,628 | |||
TOTAL | 1,515,763 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 11,509,042 | |||
COST CAPITALIZED subsequent to acquisition | 835,703 | |||
TOTAL | 12,344,745 | |||
PERSONAL PROPERTY | 11,907 | |||
Gross real estate asset, Total | 14,076,475 | |||
Accumulated depreciation | 1,645,271 | |||
Encumbrances | $ 84,697 | |||
Seattle, WA | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 45 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 95,647 | |||
COST CAPITALIZED subsequent to acquisition | 1,063 | |||
TOTAL | 96,710 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 1,081,969 | |||
COST CAPITALIZED subsequent to acquisition | 129,495 | |||
TOTAL | 1,211,464 | |||
PERSONAL PROPERTY | 551 | |||
Gross real estate asset, Total | 1,308,725 | |||
Accumulated depreciation | 202,031 | |||
Encumbrances | $ 0 | |||
Dallas, TX | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 29 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 59,412 | |||
COST CAPITALIZED subsequent to acquisition | 4,883 | |||
TOTAL | 64,295 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 558,280 | |||
COST CAPITALIZED subsequent to acquisition | 78,330 | |||
TOTAL | 636,610 | |||
PERSONAL PROPERTY | 726 | |||
Gross real estate asset, Total | 701,631 | |||
Accumulated depreciation | 164,423 | |||
Encumbrances | $ 0 | |||
Los Angeles, CA | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 23 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 95,360 | |||
COST CAPITALIZED subsequent to acquisition | 3,164 | |||
TOTAL | 98,524 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 436,629 | |||
COST CAPITALIZED subsequent to acquisition | 55,941 | |||
TOTAL | 492,570 | |||
PERSONAL PROPERTY | 453 | |||
Gross real estate asset, Total | 591,547 | |||
Accumulated depreciation | 129,663 | |||
Encumbrances | $ 38,373 | |||
Charlotte, NC | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 18 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 128,904 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 128,904 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 456,963 | |||
COST CAPITALIZED subsequent to acquisition | 2,173 | |||
TOTAL | 459,136 | |||
PERSONAL PROPERTY | 0 | |||
Gross real estate asset, Total | 588,040 | |||
Accumulated depreciation | 13,513 | |||
Encumbrances | $ 0 | |||
Atlanta, GA | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 32 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 35,366 | |||
COST CAPITALIZED subsequent to acquisition | 36 | |||
TOTAL | 35,402 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 454,299 | |||
COST CAPITALIZED subsequent to acquisition | 25,616 | |||
TOTAL | 479,915 | |||
PERSONAL PROPERTY | 105 | |||
Gross real estate asset, Total | 515,422 | |||
Accumulated depreciation | 95,363 | |||
Encumbrances | $ 0 | |||
Houston, TX | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 34 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 82,539 | |||
COST CAPITALIZED subsequent to acquisition | 2,850 | |||
TOTAL | 85,389 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 669,553 | |||
COST CAPITALIZED subsequent to acquisition | 27,966 | |||
TOTAL | 697,519 | |||
PERSONAL PROPERTY | 57 | |||
Gross real estate asset, Total | 782,965 | |||
Accumulated depreciation | 63,486 | |||
Encumbrances | $ 0 | |||
Houston, TX | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 23 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 72,304 | |||
COST CAPITALIZED subsequent to acquisition | 60 | |||
TOTAL | 72,364 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 429,781 | |||
COST CAPITALIZED subsequent to acquisition | 17,413 | |||
TOTAL | 447,194 | |||
PERSONAL PROPERTY | 105 | |||
Gross real estate asset, Total | 519,663 | |||
Accumulated depreciation | 52,920 | |||
Encumbrances | $ 0 | |||
Washington, D.C. | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 28 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 45,220 | |||
COST CAPITALIZED subsequent to acquisition | 4,159 | |||
TOTAL | 49,379 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 463,963 | |||
COST CAPITALIZED subsequent to acquisition | 9,519 | |||
TOTAL | 473,482 | |||
PERSONAL PROPERTY | 95 | |||
Gross real estate asset, Total | 522,956 | |||
Accumulated depreciation | 63,773 | |||
Encumbrances | $ 15,778 | |||
Nashville, TN | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 20 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 30,790 | |||
COST CAPITALIZED subsequent to acquisition | 743 | |||
TOTAL | 31,533 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 419,354 | |||
COST CAPITALIZED subsequent to acquisition | (5,061) | |||
TOTAL | 414,293 | |||
PERSONAL PROPERTY | 33 | |||
Gross real estate asset, Total | 445,859 | |||
Accumulated depreciation | 18,991 | |||
Encumbrances | $ 0 | |||
Memphis, TN | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 33 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 70,478 | |||
COST CAPITALIZED subsequent to acquisition | 6,220 | |||
TOTAL | 76,698 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 491,881 | |||
COST CAPITALIZED subsequent to acquisition | 51,208 | |||
TOTAL | 543,089 | |||
PERSONAL PROPERTY | 609 | |||
Gross real estate asset, Total | 620,396 | |||
Accumulated depreciation | 65,123 | |||
Encumbrances | $ 6,818 | |||
Indianapolis, IN | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 27 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 52,954 | |||
COST CAPITALIZED subsequent to acquisition | 3,666 | |||
TOTAL | 56,620 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 394,574 | |||
COST CAPITALIZED subsequent to acquisition | 6,231 | |||
TOTAL | 400,805 | |||
PERSONAL PROPERTY | 9 | |||
Gross real estate asset, Total | 457,434 | |||
Accumulated depreciation | 15,566 | |||
Encumbrances | $ 0 | |||
HAWAII | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 35 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 20,257 | |||
COST CAPITALIZED subsequent to acquisition | 5 | |||
TOTAL | 20,262 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 448,657 | |||
COST CAPITALIZED subsequent to acquisition | 18,836 | |||
TOTAL | 467,493 | |||
PERSONAL PROPERTY | 425 | |||
Gross real estate asset, Total | 488,180 | |||
Accumulated depreciation | 30,281 | |||
Encumbrances | $ 0 | |||
Chicago, IL | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 7 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 32,374 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 32,374 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 271,285 | |||
COST CAPITALIZED subsequent to acquisition | 15,995 | |||
TOTAL | 287,280 | |||
PERSONAL PROPERTY | 81 | |||
Gross real estate asset, Total | 319,735 | |||
Accumulated depreciation | 28,243 | |||
Encumbrances | $ 0 | |||
San Francisco, CA 4 | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 36 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 52,180 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 52,180 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 292,372 | |||
COST CAPITALIZED subsequent to acquisition | 5,437 | |||
TOTAL | 297,809 | |||
PERSONAL PROPERTY | 13 | |||
Gross real estate asset, Total | 350,002 | |||
Accumulated depreciation | 19,705 | |||
Encumbrances | $ 0 | |||
Hartford, CT | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 30 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 43,326 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 43,326 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 234,702 | |||
COST CAPITALIZED subsequent to acquisition | 1,150 | |||
TOTAL | 235,852 | |||
PERSONAL PROPERTY | 0 | |||
Gross real estate asset, Total | 279,178 | |||
Accumulated depreciation | 8,015 | |||
Encumbrances | $ 0 | |||
Nashville, TN | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 12 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 41,291 | |||
COST CAPITALIZED subsequent to acquisition | 2,057 | |||
TOTAL | 43,348 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 272,122 | |||
COST CAPITALIZED subsequent to acquisition | 84,395 | |||
TOTAL | 356,517 | |||
PERSONAL PROPERTY | 1,424 | |||
Gross real estate asset, Total | 401,289 | |||
Accumulated depreciation | 92,720 | |||
Encumbrances | $ 0 | |||
New York, NY | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 14 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 64,402 | |||
COST CAPITALIZED subsequent to acquisition | 0 | |||
TOTAL | 64,402 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 192,029 | |||
COST CAPITALIZED subsequent to acquisition | 2,220 | |||
TOTAL | 194,249 | |||
PERSONAL PROPERTY | 0 | |||
Gross real estate asset, Total | 258,651 | |||
Accumulated depreciation | 4,771 | |||
Encumbrances | $ 0 | |||
Colorado Springs, CO | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 13 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 25,718 | |||
COST CAPITALIZED subsequent to acquisition | 1,346 | |||
TOTAL | 27,064 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 261,585 | |||
COST CAPITALIZED subsequent to acquisition | 28,675 | |||
TOTAL | 290,260 | |||
PERSONAL PROPERTY | 142 | |||
Gross real estate asset, Total | 317,466 | |||
Accumulated depreciation | 40,363 | |||
Encumbrances | $ 0 | |||
San Antonio, TX | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 3 | |||
San Antonio, TX | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 8 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 20,698 | |||
COST CAPITALIZED subsequent to acquisition | 10 | |||
TOTAL | 20,708 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 198,719 | |||
COST CAPITALIZED subsequent to acquisition | 3,556 | |||
TOTAL | 202,275 | |||
PERSONAL PROPERTY | 1 | |||
Gross real estate asset, Total | 222,984 | |||
Accumulated depreciation | 11,654 | |||
Encumbrances | $ 0 | |||
Chicago, IL | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 11 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 12,811 | |||
COST CAPITALIZED subsequent to acquisition | 1,090 | |||
TOTAL | 13,901 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 118,426 | |||
COST CAPITALIZED subsequent to acquisition | 70,325 | |||
TOTAL | 188,751 | |||
PERSONAL PROPERTY | 317 | |||
Gross real estate asset, Total | 202,969 | |||
Accumulated depreciation | 60,624 | |||
Encumbrances | $ 0 | |||
Other (51 markets) | Real estate acquired | ||||
Summary of real estate properties | ||||
NUMBER OF PROPERTIES | property | 210 | |||
LAND 1 | ||||
INITIAL INVESTMENT | $ 315,986 | |||
COST CAPITALIZED subsequent to acquisition | 10,276 | |||
TOTAL | 326,262 | |||
BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1 | ||||
INITIAL INVESTMENT | 3,324,552 | |||
COST CAPITALIZED subsequent to acquisition | 205,043 | |||
TOTAL | 3,529,595 | |||
PERSONAL PROPERTY | 1,223 | |||
Gross real estate asset, Total | 3,857,080 | |||
Accumulated depreciation | 457,572 | |||
Encumbrances | $ 23,728 |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Federal income tax purposes | $ 13,000,000 | |
Issuance costs | 5,977 | $ 1,813 |
Mortgage Notes Payable | Mortgage Notes | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Unamortized premium | 486 | 1,720 |
Unaccreted discount | 38 | 83 |
Issuance costs | $ 323 | $ 651 |
Minimum | Buildings and improvements | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Asset estimated useful life | 3 years | |
Minimum | Lease intangibles | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Asset estimated useful life | 1 year 2 months 12 days | |
Minimum | Personal Property | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Asset estimated useful life | 3 years | |
Minimum | Land improvements | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Asset estimated useful life | 2 years | |
Maximum | Buildings and improvements | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Asset estimated useful life | 49 years | |
Maximum | Lease intangibles | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Asset estimated useful life | 99 years | |
Maximum | Personal Property | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Asset estimated useful life | 20 years | |
Maximum | Land improvements | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Asset estimated useful life | 39 years | |
Asset Held-for-sale | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Number of real estate assets held for sale | property | 1 | |
Amount of assets held for sale | $ 18,900 |
Schedule III - Real Estate an_4
Schedule III - Real Estate and Accumulated Depreciation - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Beginning Balance, Total Property | $ 5,104,942 | $ 4,670,226 | $ 4,359,993 |
Retirement/dispositions | |||
Ending Balance, Total Property | 14,076,475 | 5,104,942 | 4,670,226 |
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||
Beginning Balance, Accumulated Depreciation | 1,338,743 | 1,249,679 | 1,121,102 |
Retirement/dispositions | |||
Ending Balance, Accumulated Depreciation | 1,645,271 | 1,338,743 | 1,249,679 |
Real estate acquired | |||
Additions during the period | |||
Total Property | 9,780,070 | 374,912 | 430,205 |
Retirement/dispositions | |||
TOTAL PROPERTY | (1,098,702) | (247,880) | (222,680) |
Ending Balance, Total Property | 13,752,172 | ||
Additions during the period | |||
ACCUMULATED DEPRECIATION | 241,285 | 7,668 | 8,313 |
Retirement/dispositions | |||
Accumulated Depreciation | (140,696) | (110,479) | (58,654) |
Ending Balance, Accumulated Depreciation | 1,638,800 | ||
Other improvements | |||
Additions during the period | |||
Total Property | 219,783 | 103,035 | 80,462 |
Additions during the period | |||
ACCUMULATED DEPRECIATION | 205,703 | 191,875 | 178,636 |
Land held for development | |||
Additions during the period | |||
Total Property | 49,416 | 2,021 | 2,579 |
Additions during the period | |||
ACCUMULATED DEPRECIATION | 0 | 0 | 282 |
Construction in progress | |||
Additions during the period | |||
Total Property | 31,586 | 3,974 | 0 |
Retirement/dispositions | |||
Ending Balance, Total Property | 35,560 | ||
Additions during the period | |||
ACCUMULATED DEPRECIATION | 0 | 0 | |
Retirement/dispositions | |||
Ending Balance, Accumulated Depreciation | 0 | ||
Investment in financing receivables, net | |||
Additions during the period | |||
Total Property | 186,745 | 0 | |
Total Property Reclassified | (66,509) | ||
Additions during the period | |||
ACCUMULATED DEPRECIATION | 0 | 0 | 0 |
Financing lease right-of-use assets | |||
Additions during the period | |||
Total Property | 52,249 | 11,909 | 19,667 |
Retirement/dispositions | |||
Ending Balance, Total Property | 83,824 | ||
Additions during the period | |||
ACCUMULATED DEPRECIATION | 0 | 0 | 0 |
Retirement/dispositions | |||
Ending Balance, Accumulated Depreciation | 0 | ||
Corporate Properties | |||
Additions during the period | |||
Total Property | 3,640 | 0 | 0 |
Additions during the period | |||
ACCUMULATED DEPRECIATION | $ 236 | $ 0 | $ 0 |
Schedule IV - Mortgage Loans _2
Schedule IV - Mortgage Loans on Real Estate Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Prior Liens | $ 0 | ||
Face Amount | 104,331 | ||
Carrying Amount | 100,085 | ||
Accrued interest receivable | 758 | ||
Deferred fee | (1,200) | ||
Carrying Amount, Net | 99,643 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 0 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance as of the beginning of the year | 0 | $ 0 | $ 0 |
Additions: | |||
Fair value real estate notes assumed | 74,819 | 0 | 0 |
New real estate notes | 23,325 | 0 | 0 |
Capitalized interest | 1,499 | 0 | 0 |
Accretion of fees and other items | 0 | 0 | 0 |
Deductions: | |||
Collection of real estate loans | 0 | 0 | 0 |
Deferred fees and other items | 0 | 0 | 0 |
Balance as of the end of the year | $ 99,643 | $ 0 | $ 0 |
Texas | Medical Real Estate, Maturing in December 2023 | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 7% | ||
Prior Liens | $ 0 | ||
Face Amount | 31,150 | ||
Carrying Amount | 30,552 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | ||
Texas | Property 1 | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 8% | ||
Prior Liens | $ 0 | ||
Face Amount | 54,119 | ||
Carrying Amount | 51,052 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | ||
Florida | Medical Real Estate Maturing in February 2026 | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 6% | ||
Prior Liens | $ 0 | ||
Face Amount | 13,062 | ||
Carrying Amount | 12,988 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 0 | ||
Construction loan, maximum | $ 65,000 | ||
North Carolina | Property 2 | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 8% | ||
Prior Liens | $ 0 | ||
Face Amount | 6,000 | ||
Carrying Amount | 5,493 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 |