Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37401 | |
Entity Registrant Name | Community Healthcare Trust Inc | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-5212033 | |
Entity Address, Address Line One | 3326 Aspen Grove Drive | |
Entity Address, Address Line Two | Suite 150 | |
Entity Address, City or Town | Franklin | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37067 | |
City Area Code | 615 | |
Local Phone Number | 771-3052 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | CHCT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,417,124 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001631569 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Real estate properties | ||
Land and land improvements | $ 91,428 | $ 83,714 |
Buildings, improvements, and lease intangibles | 705,224 | 651,398 |
Personal property | 218 | 247 |
Total real estate properties | 796,870 | 735,359 |
Less accumulated depreciation | (109,908) | (102,899) |
Total real estate properties, net | 686,962 | 632,460 |
Cash and cash equivalents | 5,605 | 2,483 |
Restricted cash | 398 | 409 |
Other assets, net | 42,346 | 33,050 |
Total assets | 735,311 | 668,402 |
Liabilities | ||
Debt, net | 260,446 | 212,374 |
Accounts payable and accrued liabilities | 6,526 | 5,743 |
Other liabilities, net | 18,253 | 20,369 |
Total liabilities | 285,225 | 238,486 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 450,000,000 shares authorized; 24,417,124 and 23,888,090 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 244 | 239 |
Additional paid-in capital | 571,781 | 550,391 |
Cumulative net income | 41,946 | 36,631 |
Accumulated other comprehensive loss | (8,111) | (11,846) |
Cumulative dividends | (155,774) | (145,499) |
Total stockholders’ equity | 450,086 | 429,916 |
Total liabilities and stockholders' equity | $ 735,311 | $ 668,402 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common Stock, shares issued (in shares) | 24,417,124 | 23,888,090 |
Common Stock, shares outstanding (in shares) | 24,417,124 | 23,888,090 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUES | ||
Rental income | $ 20,780 | $ 17,428 |
Other operating interest | 615 | 508 |
REVENUES | 21,395 | 17,936 |
EXPENSES | ||
Property operating | 3,729 | 3,343 |
General and administrative | 2,859 | 2,192 |
Depreciation and amortization | 7,225 | 6,059 |
EXPENSES | 13,813 | 11,594 |
INCOME FROM OPERATIONS | 7,582 | 6,342 |
Interest expense | (2,229) | (2,249) |
Deferred income tax expense | (39) | 0 |
Interest and other income, net | 1 | 7 |
Net income | $ 5,315 | $ 4,100 |
NET INCOME PER COMMON SHARE: | ||
Net income per common share – Basic (in dollars per share) | $ 0.21 | $ 0.18 |
Net income per common share – Diluted (in dollars per share) | $ 0.21 | $ 0.18 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC (in shares) | 22,809,222 | 20,734,618 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED (in shares) | 22,809,222 | 20,734,618 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 5,315 | $ 4,100 |
Other comprehensive income (loss): | ||
Increase (decrease) in fair value of cash flow hedges | 2,803 | (8,875) |
Reclassification for amounts recognized as interest expense | 932 | 257 |
Total other comprehensive income (loss) | 3,735 | (8,618) |
COMPREHENSIVE INCOME (LOSS) | $ 9,050 | $ (4,518) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid in Capital | Cumulative Net Income | Accumulated Other Comprehensive (Loss) Income | Cumulative Dividends |
Beginning Balance (in shares) at Dec. 31, 2019 | 0 | 21,410,578 | |||||
Beginning Balance at Dec. 31, 2019 | $ 353,411 | $ 0 | $ 214 | $ 447,916 | $ 17,554 | $ (4,808) | $ (107,465) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock, net of issuance costs (in shares) | 610,786 | ||||||
Issuance of common stock, net of issuance costs | 26,902 | $ 6 | 26,896 | ||||
Stock-based compensation (in shares) | 103,905 | ||||||
Stock-based compensation | 1,013 | $ 1 | 1,012 | ||||
Unrecognized gain (Loss) on cash flow hedges | (8,875) | (8,875) | |||||
Reclassification adjustment for losses included in net income (interest expense) | 257 | 257 | |||||
Net income | 4,100 | 4,100 | |||||
Dividends to common stockholders | (9,033) | (9,033) | |||||
Ending Balance (in shares) at Mar. 31, 2020 | 0 | 22,125,269 | |||||
Ending Balance at Mar. 31, 2020 | 367,775 | $ 0 | $ 221 | 475,824 | 21,654 | (13,426) | (116,498) |
Beginning Balance (in shares) at Dec. 31, 2019 | 0 | 21,410,578 | |||||
Beginning Balance at Dec. 31, 2019 | $ 353,411 | $ 0 | $ 214 | 447,916 | 17,554 | (4,808) | (107,465) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock, net of issuance costs (in shares) | 2,206,976 | ||||||
Ending Balance (in shares) at Dec. 31, 2020 | 0 | 23,888,090 | |||||
Ending Balance at Dec. 31, 2020 | $ 429,916 | $ 0 | $ 239 | 550,391 | 36,631 | (11,846) | (145,499) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock, net of issuance costs (in shares) | 435,272 | 435,272 | |||||
Issuance of common stock, net of issuance costs | $ 19,845 | $ 4 | 19,841 | ||||
Stock-based compensation (in shares) | 93,762 | ||||||
Stock-based compensation | 1,550 | $ 1 | 1,549 | ||||
Unrecognized gain (Loss) on cash flow hedges | 2,803 | 2,803 | |||||
Reclassification adjustment for losses included in net income (interest expense) | 932 | 932 | |||||
Net income | 5,315 | 5,315 | |||||
Dividends to common stockholders | (10,275) | (10,275) | |||||
Ending Balance (in shares) at Mar. 31, 2021 | 0 | 24,417,124 | |||||
Ending Balance at Mar. 31, 2021 | $ 450,086 | $ 0 | $ 244 | $ 571,781 | $ 41,946 | $ (8,111) | $ (155,774) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cumulative Dividends | ||
Dividends to common stockholders, per share (in dollars per share) | $ 0.4275 | $ 0.4175 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 5,315 | $ 4,100 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,225 | 6,059 |
Other amortization | 229 | 127 |
Stock-based compensation | 1,550 | 1,013 |
Straight-line rent receivable | (838) | (878) |
Deferred income tax expense | 39 | 0 |
Changes in operating assets and liabilities: | ||
Other assets | (291) | (235) |
Accounts payable and accrued liabilities | (820) | 396 |
Other liabilities | 1,084 | (329) |
Net cash provided by operating activities | 13,493 | 10,253 |
INVESTING ACTIVITIES | ||
Acquisitions of real estate | (60,007) | (36,384) |
Acquisition and funding of notes receivable | (7,110) | (1,750) |
Proceeds from the repayment of notes receivable | 890 | 3,300 |
Capital expenditures on existing real estate properties | (1,045) | (673) |
Net cash used in investing activities | (67,272) | (35,507) |
FINANCING ACTIVITIES | ||
Net (repayments) borrowings on revolving credit facility | (26,000) | |
Net (repayments) borrowings on revolving credit facility | 9,000 | |
Term loan borrowings | 125,000 | 0 |
Term loan repayments | (50,000) | 0 |
Mortgage note repayments | (29) | (27) |
Dividends paid | (10,275) | (9,033) |
Proceeds from issuance of common stock | 19,919 | 26,928 |
Equity issuance costs | (76) | (29) |
Debt issuance costs | (1,649) | 0 |
Net cash provided by financing activities | 56,890 | 26,839 |
Increase in cash and cash equivalents and restricted cash | 3,111 | 1,585 |
Cash and cash equivalents and restricted cash, beginning of period | 2,892 | 2,023 |
Cash and cash equivalents and restricted cash, end of period | 6,003 | 3,608 |
Supplemental Cash Flow Information: | ||
Interest paid | 2,105 | 1,876 |
Invoices accrued for construction, tenant improvement and other capitalized costs | 1,591 | 1,165 |
Reclassification of registration statement costs incurred in prior year to equity issuance costs | 81 | 32 |
Leasing commission accrued | 0 | 125 |
Increase (decrease) in fair value of cash flow hedges | 2,803 | (8,875) |
Income taxes paid | $ 25 | $ 2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business Overview Community Healthcare Trust Incorporated (the ‘‘Company’’, ‘‘we’’, ‘‘our’’) was organized in the State of Maryland on March 28, 2014. The Company is a fully-integrated healthcare real estate company that owns and acquires real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers. As of March 31, 2021, the Company had investments of approximately $801.0 million in 147 real estate properties (including a portion of one property accounted for as a financing lease with a gross amount totaling approximately $3.0 million and one property classified as held for sale with a gross amount totaling approximately $1.1 million). The properties are located in 33 states, totaling approximately 3.2 million square feet in the aggregate and were approximately 89.1% leased at March 31, 2021 with a weighted average remaining lease term of approximat ely 8.3 years. Any references to square footage, property count, or occupancy percentages, and any amounts derived from these values in these notes to the condensed consolidated financial statements, are outside the scope of our independent registered public accounting firm's review. COVID-19 Pandemic The world was, and continues to be, impacted by the novel coronavirus (COVID-19) pandemic. COVID-19 and measures to prevent its spread impacted many healthcare providers, including some of our tenants. During 2020, some of them were not seeing patients, others saw a reduced number of elective procedures and/or patient visits, while others experienced limited impact, or even saw improved cash flows from either increases in census or government funding. As a result of the pandemic, the Company entered into deferral agreements with 18 tenants, with deferrals representing less than one percent of our annualized rent in the aggregate. Amounts due under the deferral agreements were generally repaid during 2020, however, at March 31, 2021, there was approximately $51,000 remaining to be billed and paid during the remainder of 2021. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. This interim financial information should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2021. All material intercompany accounts and transactions have been eliminated. Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may materially differ from those estimates. 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 consists of amounts held by the lender of our mortgage note payable to provide for future real estate tax, insurance expenditures and tenant improvements related to one property. The carrying amount approximates fair value due to the short term maturity of these investments. The following table provides a reconciliation of cash and cash equivalents and restricted cash: Balance as of March 31, (Dollars in thousands) 2021 2020 Cash and cash equivalents $ 5,605 $ 3,326 Restricted cash 398 282 Cash, cash equivalents and restricted cash $ 6,003 $ 3,608 Income Taxes The Company has elected to be taxed as a real estate investment trust ("REIT"), as defined under the Internal Revenue Code of 1986, as amended (the "Code"). The Company and one subsidiary have also elected for that subsidiary to be treated as a taxable REIT subsidiary ("TRS"), which is subject to federal and state income taxes. No provision has been made for federal income taxes for the REIT; however, the Company has recorded income tax expense or benefit for the TRS to the extent applicable. The Company also evaluates the realizability of its deferred tax assets and will record valuation allowances if it is determined that more likely than not the asset will not be recovered. The Company intends at all times to qualify as a REIT under the Code. The Company must distribute at least 90% per annum of its REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with generally accepted accounting principles) and meet other requirements to continue to qualify as a REIT. New Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform |
Real Estate Properties
Real Estate Properties | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Real Estate Properties | Real Estate Properties As of March 31, 2021, we had investments of approximately $801.0 million in 147 real estate properties (including a portion of one property accounted for as a financing lease with a gross amount totaling approximately $3.0 million and one property classified as held for sale with a gross amount totaling approximately $1.1 million). The Company's investments are diversified by property type, geographic location, and tenant as shown in the following tables: Property Type # of Properties Gross Investment Medical Office Building 55 $ 256,204 Acute Inpatient Behavioral 5 130,257 Inpatient Rehabilitation Facilities 6 127,676 Specialty Centers 34 106,054 Physician Clinics 28 80,886 Surgical Centers and Hospitals 10 54,071 Behavioral Specialty Facilities 8 30,945 Long-term Acute Care Hospitals 1 14,937 Total 147 $ 801,030 State # of Properties Gross Investment Texas 14 $ 131,131 Illinois 16 119,233 Florida 14 65,649 Ohio 18 63,188 Massachusetts 2 35,298 All Others (Less than 4%) 83 386,531 Total 147 $ 801,030 Primary Tenant # of Properties Gross Investment US Healthvest 3 $ 77,964 Everest Rehabilitation 3 57,100 Genesis Care 9 38,450 Summit Behavioral Healthcare 1 25,155 All Others 131 602,361 Total 147 $ 801,030 |
Real Estate Leases
Real Estate Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Real Estate Leases | Real Estate LeasesThe Company’s properties are generally leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2039. The Company’s leases generally require the lessee to pay minimum rent, with fixed rent renewal terms or increases based on a Consumer Price Index and may also include additional rent, which may include the reimbursement of taxes (including property taxes), insurance, maintenance and other operating costs associated with the leased property. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. Some leases also allow the lessee to renew or extend their lease term or in some cases terminate their lease, based on conditions provided in the lease. Future minimum lease payments under the non-cancelable operating leases due to the Company for the years ending December 31, as of March 31, 2021, are as follows (in thousands): 2021 (nine months ending December 31) $ 54,162 2022 69,078 2023 64,608 2024 61,072 2025 56,774 2026 and thereafter 365,330 $ 671,024 Straight-line rental income |
Real Estate Acquisitions and Di
Real Estate Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Real Estate Acquisitions and Dispositions | Real Estate Acquisitions and Dispositions 2021 Real Estate Acquisitions During the first quarter of 2021, the Company acquired six real estate properties. Upon acquisition, the properties were 100% leased in the aggregate with lease expirations through 2036. Amounts reflected in revenues and net income for these properties for the three months ended March 31, 2021 were approximately $0.7 million and $0.4 million, respectively, and transaction costs totaling approximately $0.2 million were capitalized relating to these property acquisitions. Concurrent with the acquisitions, the Company entered into a $6.0 million term loan and a revolver loan up to $4.0 million with the tenant on two of these properties. Location Property Type (1) Date Purchase Cash Real Estate Other Square Footage (000's) (000's) (000's) (000's) Brenham, TX PC 01/19/21 $ 5,029 $ 5,034 $ 5,072 $ (38) 37,354 Lexington, VA PC 01/25/21 3,101 3,142 3,151 (9) 15,820 Toledo, OH BSF 02/05/21 4,825 4,893 4,893 — 13,290 Hudson, OH BSF 02/05/21 4,825 4,892 4,892 — 13,290 Oklahoma City, OK IRF 03/01/21 21,000 21,025 21,025 — 39,637 Keller, TX IRF 03/01/21 21,000 21,021 21,021 — 39,761 $ 59,780 $ 60,007 $ 60,054 $ (47) 159,152 (1) PC - Physician Clinic; BSF - Behavioral Specialty Facility; IRF - Inpatient Rehabilitation Facility The following table summarizes the relative fair values of the assets acquired and liabilities assumed in the property acquisitions for the three months ended March 31, 2021. Relative Estimated (in thousands) (in years) Land and land improvements $ 7,813 13.2 Building and building improvements 49,630 46.4 Intangibles: At-market lease intangibles 2,611 4.2 Total intangibles 2,611 Accounts payable, accrued liabilities and other liabilities assumed (12) Prorated rent, interest and operating expense reimbursement amounts collected (35) Total cash consideration $ 60,007 Asset Held for Sale Pursuant to the exercise of a purchase option by a tenant, the Company entered into a sales contract to dispose of a medical office building in Haleyville, Alabama during the first quarter of 2021. Assets held for sale totaling approximately $1.0 million are included in Other assets, net and Liabilities held for sale totaling $35,000 are included in Other liabilities, net on the Condensed Consolidated Balance Sheet as of March 31, 2021. |
Debt, net
Debt, net | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt, net | Debt, net The table below details the Company's debt as of March 31, 2021 and December 31, 2020. Balance as of (Dollars in thousands) March 31, 2021 December 31, 2020 Maturity Dates Revolving Credit Facility $ 7,000 $ 33,000 3/26 A-1 Term Loan, net — 49,908 n/a A-2 Term Loan, net 49,749 49,828 3/24 A-3 Term Loan, net 74,396 74,524 3/26 A-4 Term Loan, net 124,211 — 3/28 Mortgage Note Payable, net 5,090 5,114 5/24 $ 260,446 $ 212,374 On March 19, 2021, Community Healthcare Trust Incorporated, as borrower, entered into a third amended and restated credit agreement (the “Third Amended and Restated Credit Agreement”) with a syndicate of lenders, under which Truist Bank serves as administrative agent. The Third Amended and Restated Credit Agreement amends and restates the Second Amended and Restated Credit Agreement dated as of March 29, 2017, by and among the Company’s operating partnership, Community Healthcare OP, LP, several banks and financial institutions party thereto as lenders (collectively, the “Lenders”), and SunTrust Bank (the predecessor in interest to Truist Bank), as the administrative agent. The Third Amended and Restated Credit Agreement allows the Company to borrow, through the accordion feature, up to $600.0 million, including the ability to add and fund incremental term loans (the “Credit Facility”). The Third Amended and Restated Credit Agreement extended the revolving credit facility (the "Revolving Credit Facility") maturity to March 19, 2026, removed collateral security provisions, repaid the five-year term loan facility in the aggregate principal amount of $50.0 million (the "A-1 Term Loan") which was set to mature on March 29, 2022, entered into a new seven-year term loan facility in the aggregate principal amount of $125.0 million (the "A-4 Term Loan"), which matures on March 19, 2028, provides the Company the ability to apply lower margins to its annual interest rate after it obtains an investment grade rating of BBB-/Baa3 (or the equivalent) from a rating agency; and modified its debt covenants. The Credit Facility, as amended, provides for a $150.0 million Revolving Credit Facility and $250.0 million in term loans (the "Term Loans"). The Credit Facility, through the accordion feature, allows borrowings up to a total of $600.0 million including the ability to add and fund additional term loans. The Revolving Credit Facility matures on March 19, 2026 and includes one 12-month option to extend the maturity date of the Revolving Credit Facility, subject to the satisfaction of certain conditions. The Term Loans include a seven-year term loan facility in the aggregate principal amount of $50.0 million (the "A-2 Term Loan"), which matures on March 29, 2024, a seven-year term loan facility in the aggregate principal amount of $75.0 million (the "A-3 Term Loan"), which matures on March 29, 2026, and the A-4 Term Loan in the aggregate principal amount of $125.0 million, which matures on March 19, 2028. Amounts outstanding under the Revolving Credit Facility, as amended, bear annual interest at a floating rate that is based, at the Company’s option, on either: (i) LIBOR plus 1.25% to 1.90% or (ii) a base rate plus 0.25% to 0.90% in each case, depending upon the Company’s leverage ratio. In addition, the Company is obligated to pay an annual fee equal to 0.20% of the amount of the unused portion of the Revolving Credit Facility if amounts borrowed are greater than 33.3% of the borrowing capacity under the Revolving Credit Facility and 0.25% of the unused portion of the Revolving Credit Facility if amounts borrowed are less than or equal to 33.3% of the borrowing capacity under the Revolving Credit Facility. The Company had $7.0 million outstanding under the Revolving Credit Facility and had a borrowing capacity remaining of $143.0 million at March 31, 2021. Amounts outstanding under the Term Loans, as amended, bear annual interest at a floating rate that is based, at the Company’s option, on either: (i) LIBOR plus 1.45% to 2.30% or (ii) a base rate plus 0.25% to 1.30%, in each case, depending upon the Company’s leverage ratio. The Company has entered into interest rate swaps to fix the interest rates on the Term Loans. See Note 6 for more details on the interest rate swaps. At March 31, 2021, the Company had $250.0 million under the Term Loans which had a fixed weighted average interest rate under the swaps of approximate ly 3.95%. The Company’s ability to borrow under the Credit Facility is subject to its ongoing compliance with a number of customary affirmative and negative covenants, including limitations with respect to liens, indebtedness, distributions, mergers, consolidations, investments, restricted payments and asset sales, as well as financial maintenance covenants. The Company was in compliance with its financial covenants under its Credit Facility as of March 31, 2021. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company may use derivative financial instruments, including interest rate swaps, caps, options, floors and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure as well as to hedge specific anticipated transactions. The Company does not intend to utilize derivatives for speculative or other purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations. 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 these objectives, 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-rate 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. As of March 31, 2021, the Company had fourteen outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk for notional amounts totaling $250.0 million, including four forward-starting interest rate swaps for notional amounts totaling $50.0 million, which will not become effective until March 31, 2022. Tabular Disclosure of Fair Value 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 Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. Asset Derivatives Fair Value at Liability Derivatives Fair Value at (Dollars in thousands) March 31, 2021 December 31, 2020 Balance Sheet Classification March 31, 2021 December 31, 2020 Balance Sheet Classification Interest rate swaps $ 538 $ — Other assets, net $ 8,649 $ 11,846 Other liabilities, net The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive loss ("AOCI") and are subsequently reclassified to interest expense in the period that the hedged forecasted transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s Term Loans. During the next twelve months, the Company estimates that an additional $4.5 million will be reclassified from AOCI as an increase to interest expense. Tabular Disclosure of the Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2021 and 2020. Three Months Ended (Dollars in thousands) 2021 2020 Amount of unrealized gain (loss) recognized in OCI on derivatives $ 2,803 $ (8,875) Amount of loss reclassified from AOCI into interest expense $ 932 $ 257 Total interest expense presented in the Condensed Consolidated Statements of Income in which the effects of the cash flow hedges are recorded $ 2,229 $ 2,249 Tabular Disclosures of Offsetting Derivatives The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of March 31, 2021 and December 31, 2020. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Condensed Consolidated Balance Sheets. Offsetting of Derivative Assets (as of March 31, 2021) Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Assets in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ 538 $ — $ 538 $ (278) $ — $ 260 Offsetting of Derivative Liabilities (as of March 31, 2021) Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ (8,649) $ — $ (8,649) $ 278 $ — $ (8,371) Offsetting of Derivative Assets (as of December 31, 2020) Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Assets in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ — $ — $ — $ — $ — $ — Offsetting of Derivative Liabilities (as of December 31, 2020) Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ (11,846) $ — $ (11,846) $ — $ — $ (11,846) Credit-risk-related Contingent Feature s As of March 31, 2021, 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 $8.6 million. As of March 31, 2021, 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 approximately $8.6 million at March 31, 2021. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock The following table provides a reconciliation of the beginning and ending common stock balances for the three months ended March 31, 2021 and for the year ended December 31, 2020: Three Months Ended Year Ended Balance, beginning of period 23,888,090 21,410,578 Issuance of common stock 435,272 2,206,976 Restricted stock-based awards 93,762 270,536 Balance, end of period 24,417,124 23,888,090 ATM Program The Company has an at-the-market offering program ("ATM Program"), with Piper Sandler & Co., Evercore Group L.L.C., Truist Securities, Inc., Regions Securities LLC, Robert W. Baird & Co. Incorporated, Fifth Third Securities, Inc. and Janney Montgomery Scott LLC., as sales agents (collectively, the “Agents”). Under the ATM Program, the Company may issue and sell shares of its common stock, having an aggregate gross sales price of up to $360.0 million. The shares of common stock may be sold from time to time through or to one or more of the Agents, as may be determined by the Company in its sole discretion, subject to the terms and conditions of the agreement and applicable law. The Company's activity under the ATM Program for the three months ended March 31, 2021 is detailed in the table below. As of March 31, 2021, the Company had approximat ely $119.9 million re maining that may be issued under the ATM Program. Three Months Ended Shares issued 435,272 Net proceeds received (in millions) $ 19.9 Average gross sales price per share $ 46.70 |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share The following table sets forth the computation of basic and diluted net income per common share for the three months ended March 31, 2021 and 2020, respectively. Three Months Ended (In thousands, except per share data) 2021 2020 Net income $ 5,315 $ 4,100 Participating securities' share in earnings (538) (424) Net income, less participating securities' share in earnings $ 4,777 $ 3,676 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 24,053 21,733 Unvested restricted shares (1,244) (998) Weighted average Common Shares outstanding–Basic 22,809 20,735 Dilutive potential common shares — — Weighted average Common Shares outstanding –Diluted 22,809 20,735 Basic Net Income per Common Share $ 0.21 $ 0.18 Diluted Net Income per Common Share $ 0.21 $ 0.18 |
Incentive Plan
Incentive Plan | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Plan | Incentive Plan A summary of the activity under the Company's 2014 Incentive Plan, as amended, for the three months ended March 31, 2021 and 2020 is included in the table below, as well as compensation expense recognized from the amortization of the value of shares over the applicable vesting periods. Three Months Ended (Dollars in thousands) 2021 2020 Stock-based awards, beginning of period 1,164,518 909,892 Stock in lieu of compensation 44,625 50,245 Stock awards 49,137 53,660 Total stock granted 93,762 103,905 Vested shares (100) — Stock-based awards, end of period 1,258,180 1,013,797 Amortization expense $ 1,558 $ 1,019 |
Other Assets, net
Other Assets, net | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets, net | Other Assets, net Other assets, net on the Company's Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 are detailed in the table below. Balance as of (Dollars in thousands) March 31, 2021 December 31, 2020 Notes receivable $ 21,630 $ 15,010 Accounts and interest receivable 1,522 1,675 Straight-line rent receivable 9,461 8,682 Prepaid assets 642 600 Deferred financing costs, net 1,058 479 Leasing commissions, net 1,093 1,134 Deferred tax assets, net 476 515 Fair value of interest rate swaps 538 — Above-market lease intangible assets, net 581 617 Sales-type lease receivable 3,021 3,016 Assets held for sale 1,023 — Operating lease right-of-use assets 821 821 Other 480 501 $ 42,346 $ 33,050 The Company's notes receivable mainly included: • At March 31, 2021 and December 31, 2020, notes receivable included a $14.3 million and $15.0 million, respectively, term loan, secured by all assets and ownership interests in seven long-term acute care hospitals and one inpatient rehabilitation hospital owned by the borrower. The term loan will be repaid in equal monthly installments of $250,000 through the maturity date of December 31, 2025 and bears interest at 9% per annum. • At March 31, 2021, notes receivable included a $6.0 million term loan and $1.1 million drawn at March 31, 2021 of a $4.0 million revolving credit facility, secured by assets and ownership interests of six geriatric behavioral hospitals and affiliated companies all of which are co-borrowers on the loans. The term loan bears interest at 9% per annum, with interest only payments due for the first year and then equal monthly installments of principal payments due beginning March 31, 2022. The term loan facility matures on July 1, 2027. The revolving credit facility bears interest at 9% per annum and matures on December 31, 2025. The Company identified the borrowers of these notes as variable interest entities ("VIEs"), but management determined that the Company was not the primary beneficiary of the VIEs because we lack either directly or through related parties any material impact in the activities that impact the borrowers' economic performance. We are not obligated to provide support beyond our stated commitment to the borrowers, and accordingly our maximum exposure to loss as a result of this relationship is limited to the amount of our outstanding notes receivable. The VIEs that we have identified at March 31, 2021 are summarized in the table below. Classification Carrying Amount (in millions) Maximum Exposure to Loss (in millions) Note receivable $ 14.3 $ 14.3 Note receivable $ 1.1 $ 1.1 Note receivable $ 6.0 $ 6.0 |
Other Liabilities, net
Other Liabilities, net | 3 Months Ended |
Mar. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities, net | Other Liabilities, net Other liabilities, net on the Company's Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 are detailed in the table below. Balance as of (Dollars in thousands) March 31, 2021 December 31, 2020 Deferred rent $ 3,587 $ 2,596 Security deposits 4,208 4,141 Below-market lease intangibles, net 576 613 Fair value of derivatives 8,649 11,846 Lease liability 795 793 Liabilities held for sale 35 — Other 403 380 $ 18,253 $ 20,369 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
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 instruments for which it is practical to estimate the fair value. Cash and cash equivalents and restricted cash - The carrying amount approximates the fair value. Notes receivable - The fair value is estimated using cash flow analyses, based on an assumed market rate of interest or at a rate consistent with the rates on notes carried by the Company and are classified as level 2 in the hierarchy. Borrowings under our Credit Facility - The carrying amount approximates the fair value because the borrowings are based on variable market interest rates. Derivative financial instruments - The fair value is estimated using discounted cash flow techniques. These techniques incorporate primarily level 2 inputs. The market inputs are utilized in the discounted cash flow calculation considering the instrument’s term, notional amount, discount rate and credit risk. Significant inputs to the derivative valuation model for interest rate swaps are observable in active markets and are classified as level 2 in the hierarchy. Mortgage note payable - The fair value is estimated using cash flow analyses which are based on an assumed market rate of interest or at a rate consistent with the rates on mortgage notes assumed by the Company and are classified as level 2 in the hierarchy. The table below details the fair values and carrying values for our notes receivable, interest rate swaps, and mortgage note payable at March 31, 2021 and December 31, 2020, using level 2 inputs. March 31, 2021 December 31, 2020 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Notes receivable $ 21,630 $ 22,063 $ 15,010 $ 15,010 Interest rate swap asset $ 538 $ 538 $ — $ — Interest rate swap liability $ 8,649 $ 8,649 $ 11,846 $ 11,846 Mortgage note payable $ 5,151 $ 5,391 $ 5,180 $ 5,432 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declared On April 29, 2021, the Company’s Board of Directors declared a quarterly common stock dividend in the amount of $0.43 per share. The dividend is payable on May 28, 2021 to stockholders of record on May 14, 2021. Real Estate Acquisitions Subsequent to March 31, 2021 , the Company acquired one property for a purchase price of approximately $4.2 million and cash consideration of approximately $3.5 million. The property was approximately 90.9% leased with lease expirations through 2028. This acquisition was funded with cash on hand . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. This interim financial information should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2021. All material intercompany accounts and transactions have been eliminated. |
Use of Estimates in the Condensed Consolidated Financial Statements | Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may materially differ from those estimates. |
Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted CashCash and cash equivalents includes short-term investments with original maturities of three months or less when purchased. |
Restricted Cash | Restricted cash consists of amounts held by the lender of our mortgage note payable to provide for future real estate tax, insurance expenditures and tenant improvements related to one property. The carrying amount approximates fair value due to the short term maturity of these investments. |
Income Taxes | Income TaxesThe Company has elected to be taxed as a real estate investment trust ("REIT"), as defined under the Internal Revenue Code of 1986, as amended (the "Code"). The Company and one subsidiary have also elected for that subsidiary to be treated as a taxable REIT subsidiary ("TRS"), which is subject to federal and state income taxes. No provision has been made for federal income taxes for the REIT; however, the Company has recorded income tax expense or benefit for the TRS to the extent applicable. The Company also evaluates the realizability of its deferred tax assets and will record valuation allowances if it is determined that more likely than not the asset will not be recovered. The Company intends at all times to qualify as a REIT under the Code. The Company must distribute at least 90% per annum of its REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with generally accepted accounting principles) and meet other requirements to continue to qualify as a REIT. |
New Accounting Pronouncements | New Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Restrictions on cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash: Balance as of March 31, (Dollars in thousands) 2021 2020 Cash and cash equivalents $ 5,605 $ 3,326 Restricted cash 398 282 Cash, cash equivalents and restricted cash $ 6,003 $ 3,608 |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash: Balance as of March 31, (Dollars in thousands) 2021 2020 Cash and cash equivalents $ 5,605 $ 3,326 Restricted cash 398 282 Cash, cash equivalents and restricted cash $ 6,003 $ 3,608 |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Schedule of real estate property investments | The Company's investments are diversified by property type, geographic location, and tenant as shown in the following tables: Property Type # of Properties Gross Investment Medical Office Building 55 $ 256,204 Acute Inpatient Behavioral 5 130,257 Inpatient Rehabilitation Facilities 6 127,676 Specialty Centers 34 106,054 Physician Clinics 28 80,886 Surgical Centers and Hospitals 10 54,071 Behavioral Specialty Facilities 8 30,945 Long-term Acute Care Hospitals 1 14,937 Total 147 $ 801,030 State # of Properties Gross Investment Texas 14 $ 131,131 Illinois 16 119,233 Florida 14 65,649 Ohio 18 63,188 Massachusetts 2 35,298 All Others (Less than 4%) 83 386,531 Total 147 $ 801,030 Primary Tenant # of Properties Gross Investment US Healthvest 3 $ 77,964 Everest Rehabilitation 3 57,100 Genesis Care 9 38,450 Summit Behavioral Healthcare 1 25,155 All Others 131 602,361 Total 147 $ 801,030 |
Real Estate Leases (Tables)
Real Estate Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of future minimum lease payments for operating leases | Future minimum lease payments under the non-cancelable operating leases due to the Company for the years ending December 31, as of March 31, 2021, are as follows (in thousands): 2021 (nine months ending December 31) $ 54,162 2022 69,078 2023 64,608 2024 61,072 2025 56,774 2026 and thereafter 365,330 $ 671,024 |
Real Estate Acquisitions and _2
Real Estate Acquisitions and Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of acquisitions | Location Property Type (1) Date Purchase Cash Real Estate Other Square Footage (000's) (000's) (000's) (000's) Brenham, TX PC 01/19/21 $ 5,029 $ 5,034 $ 5,072 $ (38) 37,354 Lexington, VA PC 01/25/21 3,101 3,142 3,151 (9) 15,820 Toledo, OH BSF 02/05/21 4,825 4,893 4,893 — 13,290 Hudson, OH BSF 02/05/21 4,825 4,892 4,892 — 13,290 Oklahoma City, OK IRF 03/01/21 21,000 21,025 21,025 — 39,637 Keller, TX IRF 03/01/21 21,000 21,021 21,021 — 39,761 $ 59,780 $ 60,007 $ 60,054 $ (47) 159,152 (1) PC - Physician Clinic; BSF - Behavioral Specialty Facility; IRF - Inpatient Rehabilitation Facility |
Schedule of assets acquired and liabilities assumed | The following table summarizes the relative fair values of the assets acquired and liabilities assumed in the property acquisitions for the three months ended March 31, 2021. Relative Estimated (in thousands) (in years) Land and land improvements $ 7,813 13.2 Building and building improvements 49,630 46.4 Intangibles: At-market lease intangibles 2,611 4.2 Total intangibles 2,611 Accounts payable, accrued liabilities and other liabilities assumed (12) Prorated rent, interest and operating expense reimbursement amounts collected (35) Total cash consideration $ 60,007 |
Debt, net (Tables)
Debt, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The table below details the Company's debt as of March 31, 2021 and December 31, 2020. Balance as of (Dollars in thousands) March 31, 2021 December 31, 2020 Maturity Dates Revolving Credit Facility $ 7,000 $ 33,000 3/26 A-1 Term Loan, net — 49,908 n/a A-2 Term Loan, net 49,749 49,828 3/24 A-3 Term Loan, net 74,396 74,524 3/26 A-4 Term Loan, net 124,211 — 3/28 Mortgage Note Payable, net 5,090 5,114 5/24 $ 260,446 $ 212,374 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of derivative instruments on balance sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. Asset Derivatives Fair Value at Liability Derivatives Fair Value at (Dollars in thousands) March 31, 2021 December 31, 2020 Balance Sheet Classification March 31, 2021 December 31, 2020 Balance Sheet Classification Interest rate swaps $ 538 $ — Other assets, net $ 8,649 $ 11,846 Other liabilities, net Offsetting of Derivative Assets (as of March 31, 2021) Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Assets in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ 538 $ — $ 538 $ (278) $ — $ 260 Offsetting of Derivative Liabilities (as of March 31, 2021) Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ (8,649) $ — $ (8,649) $ 278 $ — $ (8,371) Offsetting of Derivative Assets (as of December 31, 2020) Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Assets in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ — $ — $ — $ — $ — $ — Offsetting of Derivative Liabilities (as of December 31, 2020) Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ (11,846) $ — $ (11,846) $ — $ — $ (11,846) |
Schedule of derivative gain (loss) | The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2021 and 2020. Three Months Ended (Dollars in thousands) 2021 2020 Amount of unrealized gain (loss) recognized in OCI on derivatives $ 2,803 $ (8,875) Amount of loss reclassified from AOCI into interest expense $ 932 $ 257 Total interest expense presented in the Condensed Consolidated Statements of Income in which the effects of the cash flow hedges are recorded $ 2,229 $ 2,249 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of reconciliation of common stock | The following table provides a reconciliation of the beginning and ending common stock balances for the three months ended March 31, 2021 and for the year ended December 31, 2020: Three Months Ended Year Ended Balance, beginning of period 23,888,090 21,410,578 Issuance of common stock 435,272 2,206,976 Restricted stock-based awards 93,762 270,536 Balance, end of period 24,417,124 23,888,090 |
Schedule of ATM Program | As of March 31, 2021, the Company had approximat ely $119.9 million re maining that may be issued under the ATM Program. Three Months Ended Shares issued 435,272 Net proceeds received (in millions) $ 19.9 Average gross sales price per share $ 46.70 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the computation of basic and diluted net income per common share for the three months ended March 31, 2021 and 2020, respectively. Three Months Ended (In thousands, except per share data) 2021 2020 Net income $ 5,315 $ 4,100 Participating securities' share in earnings (538) (424) Net income, less participating securities' share in earnings $ 4,777 $ 3,676 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 24,053 21,733 Unvested restricted shares (1,244) (998) Weighted average Common Shares outstanding–Basic 22,809 20,735 Dilutive potential common shares — — Weighted average Common Shares outstanding –Diluted 22,809 20,735 Basic Net Income per Common Share $ 0.21 $ 0.18 Diluted Net Income per Common Share $ 0.21 $ 0.18 |
Incentive Plan (Tables)
Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of nonvested restricted stock activity | A summary of the activity under the Company's 2014 Incentive Plan, as amended, for the three months ended March 31, 2021 and 2020 is included in the table below, as well as compensation expense recognized from the amortization of the value of shares over the applicable vesting periods. Three Months Ended (Dollars in thousands) 2021 2020 Stock-based awards, beginning of period 1,164,518 909,892 Stock in lieu of compensation 44,625 50,245 Stock awards 49,137 53,660 Total stock granted 93,762 103,905 Vested shares (100) — Stock-based awards, end of period 1,258,180 1,013,797 Amortization expense $ 1,558 $ 1,019 |
Other Assets, net (Tables)
Other Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets, net on the Company's Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 are detailed in the table below. Balance as of (Dollars in thousands) March 31, 2021 December 31, 2020 Notes receivable $ 21,630 $ 15,010 Accounts and interest receivable 1,522 1,675 Straight-line rent receivable 9,461 8,682 Prepaid assets 642 600 Deferred financing costs, net 1,058 479 Leasing commissions, net 1,093 1,134 Deferred tax assets, net 476 515 Fair value of interest rate swaps 538 — Above-market lease intangible assets, net 581 617 Sales-type lease receivable 3,021 3,016 Assets held for sale 1,023 — Operating lease right-of-use assets 821 821 Other 480 501 $ 42,346 $ 33,050 |
Schedule of VIEs | The VIEs that we have identified at March 31, 2021 are summarized in the table below. Classification Carrying Amount (in millions) Maximum Exposure to Loss (in millions) Note receivable $ 14.3 $ 14.3 Note receivable $ 1.1 $ 1.1 Note receivable $ 6.0 $ 6.0 |
Other Liabilities, net (Tables)
Other Liabilities, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | Other liabilities, net on the Company's Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 are detailed in the table below. Balance as of (Dollars in thousands) March 31, 2021 December 31, 2020 Deferred rent $ 3,587 $ 2,596 Security deposits 4,208 4,141 Below-market lease intangibles, net 576 613 Fair value of derivatives 8,649 11,846 Lease liability 795 793 Liabilities held for sale 35 — Other 403 380 $ 18,253 $ 20,369 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by balance sheet grouping | The table below details the fair values and carrying values for our notes receivable, interest rate swaps, and mortgage note payable at March 31, 2021 and December 31, 2020, using level 2 inputs. March 31, 2021 December 31, 2020 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Notes receivable $ 21,630 $ 22,063 $ 15,010 $ 15,010 Interest rate swap asset $ 538 $ 538 $ — $ — Interest rate swap liability $ 8,649 $ 8,649 $ 11,846 $ 11,846 Mortgage note payable $ 5,151 $ 5,391 $ 5,180 $ 5,432 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) ft² in Millions | 3 Months Ended | |||
Mar. 31, 2021USD ($)ft²real_estate_propertystate | Dec. 31, 2020USD ($)tenant | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | ||||
Total real estate properties | $ 801,030,000 | |||
Number of real estate properties | real_estate_property | 147 | |||
Number of properties held for investment in financing lease | real_estate_property | 1 | |||
Number of real estate properties held for sale | real_estate_property | 1 | |||
Number of states | state | 33 | |||
Area of real estate property (in square feet) | ft² | 3.2 | |||
Percentage leased | 89.10% | |||
Remaining lease term | 8 years 3 months 18 days | |||
Finance lease liability | $ 3,000,000 | |||
Properties held for sale | 1,100,000 | |||
Cash and cash equivalents | 5,605,000 | $ 2,483,000 | $ 3,326,000 | |
Restricted cash | 398,000 | 409,000 | 282,000 | |
Cash, cash equivalents and restricted cash | 6,003,000 | $ 2,892,000 | $ 3,608,000 | $ 2,023,000 |
COVID-19 | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Number of tenants with deferral agreements | tenant | 18 | |||
Percentage of annualized rent with deferral agreements | 1.00% | |||
Remaining payments | $ 51,000 |
Real Estate Properties - Additi
Real Estate Properties - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)real_estate_property | |
Real Estate [Abstract] | |
Total real estate properties | $ | $ 801,030 |
Number of real estate properties | real_estate_property | 147 |
Number of properties held for investment in financing lease | real_estate_property | 1 |
Finance lease liability | $ | $ 3,000 |
Number of real estate properties held for sale | real_estate_property | 1 |
Properties held for sale | $ | $ 1,100 |
Real Estate Properties - Schedu
Real Estate Properties - Schedule of Real Estate Property Investments (Details) $ in Thousands | Mar. 31, 2021USD ($)real_estate_property |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 147 |
Total real estate properties | $ | $ 801,030 |
US Healthvest | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 3 |
Total real estate properties | $ | $ 77,964 |
Everest Rehabilitation | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 3 |
Total real estate properties | $ | $ 57,100 |
Genesis Care | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 9 |
Total real estate properties | $ | $ 38,450 |
Summit Behavioral Healthcare | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 1 |
Total real estate properties | $ | $ 25,155 |
All Others | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 131 |
Total real estate properties | $ | $ 602,361 |
Texas | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 14 |
Total real estate properties | $ | $ 131,131 |
Illinois | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 16 |
Total real estate properties | $ | $ 119,233 |
Florida | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 14 |
Total real estate properties | $ | $ 65,649 |
Ohio | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 18 |
Total real estate properties | $ | $ 63,188 |
Massachusetts | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 2 |
Total real estate properties | $ | $ 35,298 |
All Others (Less than 4%) | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 83 |
Total real estate properties | $ | $ 386,531 |
Medical Office Building | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 55 |
Total real estate properties | $ | $ 256,204 |
Acute Inpatient Behavioral | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 5 |
Total real estate properties | $ | $ 130,257 |
Inpatient Rehabilitation Facilities | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 6 |
Total real estate properties | $ | $ 127,676 |
Specialty Centers | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 34 |
Total real estate properties | $ | $ 106,054 |
Physician Clinics | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 28 |
Total real estate properties | $ | $ 80,886 |
Surgical Centers and Hospitals | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 10 |
Total real estate properties | $ | $ 54,071 |
Behavioral Specialty Facilities | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 8 |
Total real estate properties | $ | $ 30,945 |
Long-term Acute Care Hospitals | |
Real Estate Properties [Line Items] | |
Number of real estate properties | real_estate_property | 1 |
Total real estate properties | $ | $ 14,937 |
Real Estate Leases (Details)
Real Estate Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
2021 (nine months ending December 31) | $ 54,162 | |
2022 | 69,078 | |
2023 | 64,608 | |
2024 | 61,072 | |
2025 | 56,774 | |
2026 and thereafter | 365,330 | |
Total | 671,024 | |
Straight line rent | $ 838 | $ 878 |
Real Estate Acquisitions and _3
Real Estate Acquisitions and Dispositions - Real Estate Acquisitions (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)real_estate_property | Mar. 19, 2021USD ($) | |
Term Loan | ||
Business Acquisition [Line Items] | ||
Maximum borrowing capacity | $ 600,000,000 | |
Term Loan | Line of Credit | ||
Business Acquisition [Line Items] | ||
Maximum borrowing capacity | $ 6,000,000 | |
Acquisition Of Properties During 1st Quarter 2021 | ||
Business Acquisition [Line Items] | ||
Number of real estate properties acquired | real_estate_property | 6 | |
Percentage of properties that were leased at acquisition | 100.00% | |
Pro forma information, revenue of acquiree since acquisition date, actual | $ 700,000 | |
Pro forma information, earnings or loss of acquiree since acquisition date, actual | 400,000 | |
Transaction costs | $ 200,000 |
Real Estate Acquisitions and _4
Real Estate Acquisitions and Dispositions - Real Estate Acquisitions - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)ft² | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Square footage (in square feet) | ft² | 3,200,000 |
Acquisition Of Properties In 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Purchase Price | $ 59,780 |
Cash Consideration | 60,007 |
Real Estate | 60,054 |
Other | $ (47) |
Square footage (in square feet) | ft² | 159,152 |
Acquisition Of Properties During 1st Quarter 2021 | Brenham, TX | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Purchase Price | $ 5,029 |
Cash Consideration | 5,034 |
Real Estate | 5,072 |
Other | $ (38) |
Square footage (in square feet) | ft² | 37,354 |
Acquisition Of Properties During 1st Quarter 2021 | Lexington, VA | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Purchase Price | $ 3,101 |
Cash Consideration | 3,142 |
Real Estate | 3,151 |
Other | $ (9) |
Square footage (in square feet) | ft² | 15,820 |
Acquisition Of Properties During 1st Quarter 2021 | Toledo, OH | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Purchase Price | $ 4,825 |
Cash Consideration | 4,893 |
Real Estate | 4,893 |
Other | $ 0 |
Square footage (in square feet) | ft² | 13,290 |
Acquisition Of Properties During 1st Quarter 2021 | Hudson, OH | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Purchase Price | $ 4,825 |
Cash Consideration | 4,892 |
Real Estate | 4,892 |
Other | $ 0 |
Square footage (in square feet) | ft² | 13,290 |
Acquisition Of Properties During 1st Quarter 2021 | Oklahoma City, OK | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Purchase Price | $ 21,000 |
Cash Consideration | 21,025 |
Real Estate | 21,025 |
Other | $ 0 |
Square footage (in square feet) | ft² | 39,637 |
Acquisition Of Properties During 1st Quarter 2021 | Keller, TX | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Purchase Price | $ 21,000 |
Cash Consideration | 21,021 |
Real Estate | 21,021 |
Other | $ 0 |
Square footage (in square feet) | ft² | 39,761 |
Real Estate Acquisitions and _5
Real Estate Acquisitions and Dispositions - Assets Acquired and Liabilities Assumed (Details) - Series of Individually Immaterial Asset Acquisitions $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |
Land and land improvements | $ 7,813 |
Building and building improvements | 49,630 |
Total intangibles | 2,611 |
Accounts payable, accrued liabilities and other liabilities assumed | (12) |
Prorated rent, interest and operating expense reimbursement amounts collected | (35) |
Total cash consideration | 60,007 |
At-market lease intangibles | |
Business Acquisition [Line Items] | |
Lease intangibles | $ 2,611 |
Intangibles useful life (in years) | 4 years 2 months 12 days |
Land and land improvements | |
Business Acquisition [Line Items] | |
Useful life (in years) | 13 years 2 months 12 days |
Building and building improvements | |
Business Acquisition [Line Items] | |
Useful life (in years) | 46 years 4 months 24 days |
Real Estate Acquisitions and _6
Real Estate Acquisitions and Dispositions - Asset Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 1,023 | $ 0 |
Liabilities held for sale | 35 | $ 0 |
Medical Office Building | Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | 1,000 | |
Liabilities held for sale | $ 35 |
Debt, net - Schedule of Debt (D
Debt, net - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Debt, net | $ 260,446 | $ 212,374 |
Term Loan | Third Amended And Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 250,000 | |
Mortgage Note Payable, net | ||
Debt Instrument [Line Items] | ||
Debt, net | 5,090 | 5,114 |
Revolving Credit Facility | Line of Credit | Third Amended And Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 7,000 | 33,000 |
A-1 Term Loan, net | Term Loan | Third Amended And Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 0 | 49,908 |
A-2 Term Loan, net | Term Loan | Third Amended And Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 49,749 | 49,828 |
A-3 Term Loan, net | Term Loan | Third Amended And Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 74,396 | 74,524 |
A-4 Term Loan, net | Term Loan | Third Amended And Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | $ 124,211 | $ 0 |
Debt, net - Narrative (Details)
Debt, net - Narrative (Details) | Mar. 19, 2021USD ($) | Mar. 29, 2019USD ($)option | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Line of Credit Facility [Line Items] | ||||
Amount outstanding | $ 260,446,000 | $ 212,374,000 | ||
Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 600,000,000 | |||
Term Loan | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 6,000,000 | |||
Third Amended And Restated Credit Facility | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | $ 250,000,000 | |||
Weighted average interest rate percentage | 3.95% | |||
Third Amended And Restated Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 1.45% | |||
Third Amended And Restated Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 2.30% | |||
Third Amended And Restated Credit Facility | Base Rate | Minimum | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 0.25% | |||
Third Amended And Restated Credit Facility | Base Rate | Maximum | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 1.30% | |||
Third Amended And Restated Credit Facility | Revolving Credit Facility | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 150,000,000 | |||
Number of options to extend | option | 1 | |||
Length of extension | 12 months | |||
Amount outstanding | $ 7,000,000 | 33,000,000 | ||
Remaining borrowing capacity | 143,000,000 | |||
Third Amended And Restated Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 1.25% | |||
Third Amended And Restated Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 1.90% | |||
Third Amended And Restated Credit Facility | Revolving Credit Facility | Base Rate | Minimum | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 0.25% | |||
Third Amended And Restated Credit Facility | Revolving Credit Facility | Base Rate | Maximum | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 0.90% | |||
Third Amended And Restated Credit Facility | Term Loan | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 250,000,000 | |||
Third Amended And Restated Credit Facility | Credit Facility, Accordion Feature | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 600,000,000 | |||
Third Amended And Restated Credit Facility | A-1 Term Loan, net | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Debt term | 5 years | |||
Face amount | $ 50,000,000 | |||
Amount outstanding | 0 | 49,908,000 | ||
Third Amended And Restated Credit Facility | A-2 Term Loan, net | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Debt term | 7 years | |||
Face amount | $ 50,000,000 | |||
Amount outstanding | 49,749,000 | 49,828,000 | ||
Third Amended And Restated Credit Facility | A-3 Term Loan, net | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Debt term | 7 years | |||
Face amount | $ 75,000,000 | |||
Amount outstanding | 74,396,000 | 74,524,000 | ||
Third Amended And Restated Credit Facility | A-4 Term Loan, net | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Debt term | 7 years | |||
Face amount | $ 125,000,000 | |||
Amount outstanding | $ 124,211,000 | $ 0 | ||
Third Amended And Restated Credit Facility | Revolving Credit Facility, Unused Borrowing Capacity Rate 1 | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Unused borrowing commitment fee percentage | 0.20% | |||
Percentage of borrowing capacity outstanding | 33.30% | |||
Third Amended And Restated Credit Facility | Revolving Credit Facility, Unused Borrowing Capacity Rate 2 | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Unused borrowing commitment fee percentage | 0.25% | |||
Percentage of borrowing capacity outstanding | 33.30% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)derivative_instrument | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | ||
Cash flow hedges reclassified to interest expense | $ 4,500,000 | |
Interest rate swap liability | $ 8,649,000 | $ 11,846,000 |
Cash Flow Hedging | Interest Rate Contract | ||
Derivative [Line Items] | ||
Number outstanding interest rate derivatives | derivative_instrument | 14 | |
Notional amount | $ 250,000,000 | |
Cash Flow Hedging | Interest Rate Swap | ||
Derivative [Line Items] | ||
Number outstanding interest rate derivatives | derivative_instrument | 4 | |
Notional amount | $ 50,000,000 | |
Termination value | 8,600,000 | |
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Interest rate swap liability | $ 8,600,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Interest rate swap asset | $ 538 | $ 0 |
Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets | 8,649 | 11,846 |
Cash Flow Hedging | Interest rate swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets | 8,600 | |
Cash Flow Hedging | Interest rate swaps | Designated as Hedging Instrument | Other assets, net | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap asset | 538 | 0 |
Cash Flow Hedging | Interest rate swaps | Designated as Hedging Instrument | Other liabilities, net | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets | $ 8,649 | $ 11,846 |
Derivative Financial Instrume_5
Derivative Financial Instruments- Cash Flow Hedging (Details) - Interest Rate Contract - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of unrealized gain (loss) recognized in OCI on derivatives | $ 2,803 | $ (8,875) |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of loss reclassified from AOCI into interest expense | 932 | 257 |
Total interest expense presented in the Condensed Consolidated Statements of Income in which the effects of the cash flow hedges are recorded | $ 2,229 | $ 2,249 |
Derivative Financial Instrume_6
Derivative Financial Instruments- Offsetting of Derivative Assets and Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | $ 538 | $ 0 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets in the Condensed Consolidated Balance Sheets | 538 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | (278) | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Net Amount | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Received | 260 | 0 |
Derivative Liability [Abstract] | ||
Gross Amounts of Recognized Liabilities | (8,649) | (11,846) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets | (8,649) | (11,846) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 278 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Received | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Net Amount | $ (8,371) | $ (11,846) |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Common Stock (Details) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning of period (in shares) | 23,888,090 | 21,410,578 |
Issuance of common stock (in shares) | 435,272 | 2,206,976 |
Restricted stock-based awards (in shares) | 93,762 | 270,536 |
Balance, end of period (in shares) | 24,417,124 | 23,888,090 |
Stockholders' Equity - Equity O
Stockholders' Equity - Equity Offering (Details) - At The Market Offering Program - Common Stock | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Subsidiary, Sale of Stock [Line Items] | |
Value of shares authorized | $ 360,000,000 |
Remaining availability under ATM program | $ 119,900,000 |
Shares issued (in shares) | shares | 435,272 |
Net proceeds received | $ 19,900,000 |
Average gross sales price per share (in dollars per share) | $ / shares | $ 46.70 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income | $ 5,315 | $ 4,100 |
Participating securities' share in earnings | (538) | (424) |
Net income, less participating securities' share in earnings | $ 4,777 | $ 3,676 |
Weighted average Common Shares outstanding | ||
Weighted average Common Shares outstanding (in shares) | 24,053,000 | 21,733,000 |
Unvested restricted shares (in shares) | (1,244,000) | (998,000) |
Weighted average Common Shares outstanding–Basic (in shares) | 22,809,222 | 20,734,618 |
Dilutive potential common share (in shares) | 0 | 0 |
Weighted average Common Shares outstanding –Diluted (in shares) | 22,809,222 | 20,734,618 |
Basic Net Income per Common Share (in dollars per share) | $ 0.21 | $ 0.18 |
Diluted Net Income per Common Share (in dollars per share) | $ 0.21 | $ 0.18 |
Incentive Plan - Restricted Sto
Incentive Plan - Restricted Stock Activity (Details) - 2014 Incentive Plan - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restricted Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Stock-based awards, beginning of period (in shares) | 1,164,518 | 909,892 |
Granted (in shares) | 93,762 | 103,905 |
Vested (in shares) | (100) | 0 |
Stock-based awards, end of period (in shares) | 1,258,180 | 1,013,797 |
Amortization expense | $ 1,558 | $ 1,019 |
Restricted Common Stock, Stock in Lieu of Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in shares) | 44,625 | 50,245 |
Restricted Common Stock, Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in shares) | 49,137 | 53,660 |
Other Assets, net - Other Asset
Other Assets, net - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Notes receivable | $ 21,630 | $ 15,010 |
Accounts and interest receivable | 1,522 | 1,675 |
Straight-line rent receivable | 9,461 | 8,682 |
Prepaid assets | 642 | 600 |
Deferred financing costs, net | 1,058 | 479 |
Leasing commissions, net | 1,093 | 1,134 |
Deferred tax assets, net | 476 | 515 |
Fair value of interest rate swaps | 538 | 0 |
Above-market lease intangible assets, net | 581 | 617 |
Sales-type lease receivable | 3,021 | 3,016 |
Assets held for sale | 1,023 | 0 |
Operating lease right-of-use assets | 821 | 821 |
Other | 480 | 501 |
Other assets, net | $ 42,346 | $ 33,050 |
Operating lease, right-of-use asset, statement of financial position | Other assets, net | Other assets, net |
Other Assets, net - Narrative (
Other Assets, net - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)hospital | Dec. 31, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 21,630,000 | $ 15,010,000 |
Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Note receivable interest rate | 9.00% | |
Note receivable | Variable Interest Entity, Not Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 6,000,000 | |
Note receivable | Variable Interest Entity, Not Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 1,100,000 | |
Geriatric Behavioral Hospital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of properties used to secure notes by borrower | hospital | 6 | |
Revolving Credit Facility | Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 4,000,000 | |
Note receivable interest rate | 9.00% | |
Note Receivable 1 | Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 14,300,000 | $ 15,000,000 |
Payment received | $ 250,000 | |
Note receivable interest rate | 9.00% | |
Note Receivable 1 | Long-Term Acute Care Hospitals | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of properties used to secure notes by borrower | hospital | 7 | |
Note Receivable 1 | Inpatient Rehabilitation Facilities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of properties used to secure notes by borrower | hospital | 1 |
Other Assets, net - VIEs (Detai
Other Assets, net - VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Carrying Amount | $ 21,630 | $ 15,010 |
Variable Interest Entity, Not Primary Beneficiary | Note receivable | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 14,300 | $ 14,300 |
Maximum Exposure to Loss | 14,300 | |
Variable Interest Entity, Not Primary Beneficiary | Note receivable | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 1,100 | |
Maximum Exposure to Loss | 1,100 | |
Variable Interest Entity, Not Primary Beneficiary | Note receivable | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 6,000 | |
Maximum Exposure to Loss | $ 6,000 |
Other Liabilities, net (Details
Other Liabilities, net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Deferred rent | $ 3,587 | $ 2,596 |
Security deposits | 4,208 | 4,141 |
Below-market lease intangibles, net | 576 | 613 |
Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets | 8,649 | 11,846 |
Lease liability | 795 | 793 |
Liabilities held for sale | 35 | 0 |
Other | 403 | 380 |
Other liabilities, net | $ 18,253 | $ 20,369 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable | $ 21,630 | $ 15,010 |
Interest rate swap asset | 538 | 0 |
Interest rate swap liability | 8,649 | 11,846 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable | 21,630 | 15,010 |
Mortgage note payable | 5,151 | 5,180 |
Carrying Value | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap asset | 538 | 0 |
Interest rate swap liability | 8,649 | 11,846 |
Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable | 22,063 | 15,010 |
Mortgage note payable | 5,391 | 5,432 |
Fair Value | Interest rate swap liability | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap asset | 538 | 0 |
Interest rate swap liability | $ 8,649 | $ 11,846 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Millions | Apr. 29, 2021$ / shares | May 04, 2021USD ($)real_estate_property |
Subsequent Event [Line Items] | ||
Dividend declared (in dollars per share) | $ / shares | $ 0.43 | |
Number of real estate properties acquired | real_estate_property | 1 | |
Purchase Price | $ 4.2 | |
Cash consideration | $ 3.5 | |
Percentage of properties that were leased at acquisition | 90.90% |