Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 09, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Annual Report | true | ||
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 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 | $ 851.6 | ||
Entity Common Stock, Shares Outstanding | 26,024,900 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to its 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Report. The Registrant expects to file its Definitive Proxy Statement with the Securities and Exchange Commission within 120 days after December 31, 2022. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001631569 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | BDO USA, LLP |
Auditor Location | Nashville, Tennessee |
Auditor Firm ID | 243 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Real estate properties | ||
Land and land improvements | $ 117,657 | $ 97,397 |
Buildings, improvements, and lease intangibles | 825,257 | 736,465 |
Personal property | 253 | 223 |
Total real estate properties | 943,167 | 834,085 |
Less accumulated depreciation | (165,341) | (133,056) |
Total real estate properties, net | 777,826 | 701,029 |
Cash and cash equivalents | 11,233 | 2,351 |
Restricted cash | 835 | 516 |
Other assets, net | 86,531 | 50,337 |
Total assets | 876,425 | 754,233 |
Liabilities | ||
Debt, net | 352,997 | 265,625 |
Accounts payable and accrued liabilities | 11,377 | 7,845 |
Other liabilities, net | 15,237 | 18,651 |
Total liabilities | 379,611 | 292,121 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value; 50,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 450,000 shares authorized; 25,897 and 24,983 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | 259 | 250 |
Additional paid-in capital | 625,136 | 595,624 |
Cumulative net income | 81,142 | 59,123 |
Accumulated other comprehensive income (loss) | 22,667 | (4,980) |
Cumulative dividends | (232,390) | (187,905) |
Total stockholders’ equity | 496,814 | 462,112 |
Total liabilities and stockholders' equity | $ 876,425 | $ 754,233 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 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, 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) | 25,897,000 | 24,983,000 |
Common Stock, shares outstanding (in shares) | 25,897,000 | 24,983,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES | |||
Rental income | $ 94,103 | $ 87,661 | $ 73,925 |
Other operating interest | 3,576 | 2,918 | 1,759 |
Total revenue | 97,679 | 90,579 | 75,684 |
EXPENSES | |||
Property operating | 16,636 | 15,158 | 13,614 |
General and administrative | 14,837 | 12,113 | 8,768 |
Depreciation and amortization | 32,339 | 30,401 | 25,378 |
Total expenses | 63,812 | 57,672 | 47,760 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND OTHER ITEMS | 33,867 | 32,907 | 27,924 |
Gain (loss) on sales of real estate | 0 | 237 | (313) |
Interest expense | (11,873) | (10,542) | (8,620) |
Deferred income tax expense | (41) | (167) | (80) |
Interest and other income, net | 66 | 57 | 166 |
INCOME FROM CONTINUING OPERATIONS | 22,019 | 22,492 | 19,077 |
NET INCOME | $ 22,019 | $ 22,492 | $ 19,077 |
INCOME PER COMMON SHARE | |||
Net income per common share – Basic (in dollars per share) | $ 0.81 | $ 0.87 | $ 0.80 |
Net income per common share – Diluted (in dollars per share) | $ 0.81 | $ 0.87 | $ 0.80 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC (in shares) | 23,631 | 23,263 | 21,576 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED (in shares) | 23,631 | 23,263 | 21,576 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 22,019 | $ 22,492 | $ 19,077 |
Other comprehensive income (loss): | |||
Increase (decrease) in fair value of cash flow hedges | 27,380 | 2,410 | (9,945) |
Reclassification of amounts recognized as interest expense | 267 | 4,456 | 2,907 |
Total other comprehensive income (loss) | 27,647 | 6,866 | (7,038) |
COMPREHENSIVE INCOME | $ 49,666 | $ 29,358 | $ 12,039 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid in Capital | Cumulative Net Income | Accumulated Other Comprehensive Income (Loss) | Cumulative Dividends |
Beginning Balance (in shares) at Dec. 31, 2019 | 0 | 21,411 | |||||
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 offering costs (in shares) | 2,207 | 2,207 | |||||
Issuance of common stock, net of issuance costs | $ 97,764 | $ 22 | 97,742 | ||||
Stock-based compensation (in shares) | 270 | ||||||
Stock-based compensation | 4,736 | $ 3 | 4,733 | ||||
Increase (decrease) in fair value of cash flow hedges | (9,945) | (9,945) | |||||
Reclassification for amounts recognized as interest expense | 2,907 | 2,907 | |||||
Net income | 19,077 | 19,077 | |||||
Dividends to common stockholders | (38,034) | (38,034) | |||||
Ending Balance (in shares) at Dec. 31, 2020 | 0 | 23,888 | |||||
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 offering costs (in shares) | 823 | 823 | |||||
Issuance of common stock, net of issuance costs | $ 38,080 | $ 8 | 38,072 | ||||
Stock-based compensation (in shares) | 272 | ||||||
Stock-based compensation | 7,164 | $ 3 | 7,161 | ||||
Increase (decrease) in fair value of cash flow hedges | 2,410 | 2,410 | |||||
Reclassification for amounts recognized as interest expense | 4,456 | 4,456 | |||||
Net income | 22,492 | 22,492 | |||||
Dividends to common stockholders | (42,406) | (42,406) | |||||
Ending Balance (in shares) at Dec. 31, 2021 | 0 | 24,983 | |||||
Ending Balance at Dec. 31, 2021 | $ 462,112 | $ 0 | $ 250 | 595,624 | 59,123 | (4,980) | (187,905) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock, net of offering costs (in shares) | 600 | 600 | |||||
Issuance of common stock, net of issuance costs | $ 20,106 | $ 6 | 20,100 | ||||
Stock-based compensation (in shares) | 314 | ||||||
Stock-based compensation | 9,415 | $ 3 | 9,412 | ||||
Increase (decrease) in fair value of cash flow hedges | 27,380 | 27,380 | |||||
Reclassification for amounts recognized as interest expense | 267 | 267 | |||||
Net income | 22,019 | 22,019 | |||||
Dividends to common stockholders | (44,485) | (44,485) | |||||
Ending Balance (in shares) at Dec. 31, 2022 | 0 | 25,897 | |||||
Ending Balance at Dec. 31, 2022 | $ 496,814 | $ 0 | $ 259 | $ 625,136 | $ 81,142 | $ 22,667 | $ (232,390) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends to common stockholders, per share (in dollars per share) | $ 1.765000 | $ 1.725 | $ 1.685000 |
Cumulative Dividends | |||
Dividends to common stockholders, per share (in dollars per share) | $ 1.765 | $ 1.725 | $ 1.685 |
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 | $ 22,019 | $ 22,492 | $ 19,077 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 32,339 | 30,401 | 25,378 |
Other amortization | 853 | 824 | 136 |
Stock-based compensation | 9,415 | 7,164 | 4,736 |
Straight-line rent receivables | (3,444) | (3,569) | (3,211) |
(Gain) loss on sales of real estate property | 0 | (237) | 313 |
Deferred income tax expense | 41 | 167 | 80 |
Changes in operating assets and liabilities: | |||
Other assets | (1,783) | (1,285) | 517 |
Accounts payable and accrued liabilities | 1,419 | (438) | 1,015 |
Other liabilities | (579) | 829 | 329 |
Net cash provided by operating activities | 60,280 | 56,348 | 48,370 |
INVESTING ACTIVITIES | |||
Acquisitions of real estate | (96,691) | (88,099) | (126,818) |
Proceeds from the sales of real estate | 0 | 1,263 | 248 |
Acquisition and funding of notes receivable | (9,705) | (14,350) | (1,750) |
Proceeds from repayments on notes receivable | 3,000 | 3,978 | 10,253 |
Capital expenditures on existing real estate properties | (10,376) | (7,219) | (6,995) |
Net cash used in investing activities | (113,772) | (104,427) | (125,062) |
FINANCING ACTIVITIES | |||
Net (repayments) borrowings on revolving credit facility | (12,000) | (21,000) | |
Net (repayments) borrowings on revolving credit facility | 18,000 | ||
Term loan borrowings | 150,000 | 125,000 | 0 |
Term loan repayments | (50,000) | (50,000) | 0 |
Mortgage note repayments | (130) | (104) | (108) |
Dividends paid | (44,485) | (42,406) | (38,034) |
Proceeds from issuance of common stock | 20,544 | 38,426 | 97,972 |
Equity issuance costs | (392) | (216) | (269) |
Debt issuance costs | (844) | (1,646) | 0 |
Net cash provided by financing activities | 62,693 | 48,054 | 77,561 |
Increase (decrease) in cash, cash equivalents and restricted cash | 9,201 | (25) | 869 |
Cash, cash equivalents and restricted cash, beginning of period | 2,867 | 2,892 | 2,023 |
Cash, cash equivalents and restricted cash, end of period | 12,068 | 2,867 | 2,892 |
Supplemental Cash Flow Information: | |||
Interest paid | 11,237 | 9,972 | 8,125 |
Invoices accrued for construction, tenant improvement and other capitalized costs | 4,359 | 2,382 | 890 |
Reclassification between accounts and notes receivable | 0 | 0 | 13 |
Reclassification of registration statement costs incurred in prior year to equity issuance costs | 362 | 346 | 225 |
Increase (decrease) in fair value of cash flow hedges | 27,380 | 2,410 | (9,945) |
Interest accrued to notes receivable | 0 | 0 | 15 |
Capitalized interest | $ 672 | $ 279 | $ 111 |
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 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 December 31, 2022, we had investments of approximately $946.2 million in 174 real estate properties (including a portion of one property accounted for as a sales-type lease with a gross amount totaling approximately $3.0 million). The properties are located in 34 states, totaling approximately 3.8 million square feet in the aggregate and were approximately 91.7% leased at December 31, 2022 with a weighted average remaining lease term of approximately 7.6 years. Any references to square footage, property count, or occupancy percentages, and any amounts derived from these values in these notes to the consolidated financial statements are unaudited. Principles of Consolidation Our Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries, and may also include joint ventures, partnerships and variable interest entities, or VIEs, where the Company controls the operating activities. Management must make judgments regarding the Company's level of influence or control over an entity and whether or not the Company is the primary beneficiary of a VIE. Consideration of various factors include, but is not limited to, the Company's ability to direct the activities that most significantly impact the entity's governing body, the size and seniority of the Company's investment, and the Company's ability to replace the manager and/or liquidate the entity. Management's ability to correctly assess its influence or control over an entity when determining the primary beneficiary of a VIE affects the presentation of these entities in the Company's Consolidated Financial Statements. If it is determined that the Company is the primary beneficiary of a VIE, the Company's Consolidated Financial Statements would consolidate the VIE rather than the Company's pro rata results of its variable interest in the VIE. Untimely or inaccurate financial information provided to the Company or deficiencies in the VIE's internal control over financial reporting could impact the Company's Consolidated Financial Statements and its own internal control over financial reporting. See Note 10 – Other Assets, net regarding VIEs identified by the Company related to its notes receivable. All material intercompany accounts, transactions, and balances have been eliminated in the presentation of the Company's Consolidated Financial Statements. Use of Estimates in the Consolidated Financial Statements Preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying notes, including, among others, estimates related to impairment assessments, purchase price allocations, and valuation of financial instruments. Actual results may materially differ from those estimates. Segment Reporting The Company acquires and owns, or finances, healthcare-related real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers. 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 segment. 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 reported within the Company's Consolidated Balance Sheets and Consolidated Statements of Cash Flows: December 31, (Dollars in thousands) 2022 2021 Cash and cash equivalents $ 11,233 $ 2,351 Restricted cash 835 516 Cash, cash equivalents and restricted cash $ 12,068 $ 2,867 Real Estate Properties Real estate property acquisitions are accounted for as a business combination or an asset acquisition. An acquisition accounted for as a business combination is recorded at fair value and related closing costs are expensed as incurred. An acquisition accounted for as an asset acquisition is recorded at its purchase price, inclusive of acquisition costs, which is allocated among the acquired assets and assumed liabilities based upon their relative fair values at the date of acquisition. The Company expects that substantially all of its acquisitions will be accounted for as asset acquisitions. The allocation of real estate property acquisitions may include land and land improvements, building and building improvements, and identified intangible assets and liabilities (consisting of above- and below-market leases, in-place leases, and tenant relationships) based on the evaluation of information and estimates available at that date, and we allocate the purchase price based on these assessments. We make estimates of the acquisition date fair value of the tangible and intangible assets and acquired liabilities using information obtained from multiple sources as a result of pre-acquisition due diligence, tax records, and other sources, including third-party valuations. Based on these estimates, we recognize the acquired assets and liabilities at their relative fair values for asset acquisitions. The fair value of tangible property assets acquired considers the value of the property as if vacant determined by a combination of comparable sales, replacement cost, income valuation approach and other relevant data. The determination of fair value involves the use of significant judgment and estimation. We value land based on various inputs, which may include internal analysis of recently acquired properties, existing comparable properties within our portfolio, or third party appraisals or valuations based on comparable sales. In recognizing identified intangible assets and liabilities of an acquired property, the value of above- or below-market leases is estimated based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between contractual amounts to be received pursuant to the leases and an estimate of market lease rates measured over the remaining term of the lease. In the case of a below-market lease, renewal options associated with that lease are evaluated to determine if the intangible should include those periods. The capitalized above-market or below-market lease intangibles are amortized as a reduction from or an addition to rental income over the estimated remaining term of the respective leases. In determining the value of in-place leases and tenant improvements, current market conditions and costs to execute similar leases to arrive at an estimate of the carrying costs during the expected lease-up period from vacant to existing occupancy are considered. Estimated carrying costs include real estate taxes, insurance, other property operating expenses, estimates of lost rental revenue during the expected lease-up periods, and costs to execute similar leases, including leasing commissions. The values assigned to in-place leases and tenant relationships are amortized over the estimated remaining term of the lease. If a lease terminates prior to its scheduled expiration, all unamortized costs related to that lease are written off. The Company may capitalize 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 revolving credit facility debt. Long-lived Asset Impairments 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 under-performance 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 operators. In addition, the Company’s review for possible impairment may include those assets subject to purchase options and those impacted by casualties, such as tornadoes and hurricanes. A long-lived asset is impaired when 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. In determining these cash flows, the Company estimates market rent, capitalization rates, expected holding periods, and other relevant inputs. 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. No impairments on long-lived assets were recorded during the years ended December 31, 2022, 2021 or 2020. Assets Held for Sale The Company may sell properties from time to time for various reasons, including the exercise of purchase options by our tenants. The Company classifies long-lived assets as held for sale once certain criteria have been met. The Company classifies a real estate property, or portfolio, as held for sale when: (i) management has approved the disposal, (ii) the property is available for sale in its present condition, (iii) an active program to locate a buyer has been initiated, (iv) it is probable that the property will be disposed of within one year, (v) the property is being marketed at a reasonable price relative to its fair value, and (vi) it is unlikely that the disposal plan will significantly change or be withdrawn. Following the classification of a property as “held for sale,” no further depreciation or amortization is recorded on the assets and the assets are recorded at the lower of carrying value or fair market value, less cost to sell. The Company did not have any properties classified as held for sale at December 31, 2022 or 2021. 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. Our interest rate swaps are valued in the market using discounted cash flow techniques. These techniques incorporate Level 1 and 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. Lease Accounting As a lessor, we make a determination with respect to each of our leases whether they should be accounted for as sales-type, direct-financing, or operating lease. Additionally, for each of our real estate transactions involving the leaseback of the related property to the seller or affiliates of the seller, we determine whether these transactions qualify as sale and leaseback transactions under the accounting guidance in Accounting Standards Codification ("ASC") 842, Leases . For these transactions, we consider various inputs and assumptions including, but not necessarily limited to, lease terms, renewal options, discount rates, and other rights and provisions in the purchase and sale agreement, lease and other documentation to determine whether control has been transferred to the Company or remains with the lessee. A transaction involving a sale leaseback will be treated as a purchase of a real estate property if it is considered to transfer control of the underlying asset from the lessee to the Company. Criteria in determining the lease classification includes estimates and assumptions regarding the fair value of the leased facilities, minimum lease payments, effective cost of funds, the economic useful life of the facilities, the existence of a purchase option, and certain other terms in the lease agreements, as well as the amounts we expect to derive from the underlying property at the end of each lease which equals our purchase price. The lease accounting guidance requires that a sale leaseback with an option to purchase the property from the landlord at the tenant's option be accounted for as a financing or sales-type lease. We expect that most of our leases will be accounted for as operating leases. The Company has a portion of one property accounted for as a sales-type lease at December 31, 2022 included in other assets. Payments received under operating leases are accounted for in the Consolidated Statements of Income as rental income for actual cash rent collected plus or minus straight-line adjustments, such as lease escalators. The Company has elected not to separate lease and nonlease components, such as common area maintenance, unless certain conditions are not met. As such, tenant reimbursements are combined with rental income on the Consolidated Statements of Income. The Company is the lessee under four non-prepaid ground leases accounted for as operating leases and two non-prepaid ground lease accounted for as a financing lease. The Company has elected not to separate lease and nonlease components, such as common area maintenance, unless certain conditions are not met. Discount rates are determined using Company specific incremental borrowing rates, which represent the rate of interest that it would pay to borrow on a fully collateralized basis over a similar term. Right-of-use lease assets are included in other assets, net other liabilities, net Company's Consolidated Balance Sheets. Revenue Recognition The primary source of revenue for the Company is generated through its leasing arrangements with its tenants which is accounted for under ASC Topic 842, or through notes with its borrowers which is covered under ASC 310. The Company's rental income and interest income are recognized based on contractual arrangements with its tenants and borrowers. From the inception of a lease, if collection of substantially all of the lease payments is probable for a tenant, then rental income is recognized as earned over the life of the lease agreement on a straight-line basis. Recognizing rental revenue on a straight-line basis for leases may result in recognizing revenue in amounts more or less than amounts currently due from tenants. If management determines that collection of substantially all of a lease’s payments is not probable, it will revert to recognizing such lease payments at the lesser of cash collected, lease income reflected on a straight-line basis, or another systematic basis plus variable rent when it becomes accruable and will reverse any recorded receivables related to that lease. In the event that management subsequently determines collection of substantially all of that lease’s receivable is probable, management will reinstate and record all such receivables for the lease in accordance with the lease terms. The Company maintains a general allowance for its lease receivables that the Company has determined are probable of collection. The Company recognizes operating expense recoveries in the period that applicable expenses are incurred. Other variable payments, such as late fees and sales tax are recognized based on the contractual terms of its leases. Income received but not yet earned is deferred until such time it is earned. Prepaid rent is included in other liabilities on the Consolidated Balance Sheets. Allowance for Credit Losses Upon adoption of ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments on January 1, 2020, the Company uses an expected credit loss ("CECL") model in evaluating the collectability of its notes receivable and other financial instruments from time to time. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events and current conditions. Under the CECL model, the Company will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument and is required to record a credit loss expense (or reversal) in each reporting period. The Company evaluates factors such as its historical credit loss experience with the borrower or similar financial assets, current economic conditions, current and expected future financial condition of the borrower as well as payment history of the borrower, along with other relevant factors for each borrower or similar instruments. At December 31, 2022 and 2021, the Company did not have any material expected credit losses and, therefore, did not record any credit losses. Stock-Based Compensation The Company's 2014 Incentive Plan, as amended (the "2014 Incentive Plan") is intended to attract and retain qualified persons upon whom, in large measure, our sustained progress, growth and profitability depend, to motivate the participants to achieve long-term company goals and to more closely align the participants’ interests with those of our other stockholders by providing them with a proprietary interest in our growth and performance. The three distinct programs under the 2014 Incentive Plan are the Second Amended and Restated Alignment of Interest Program, the Second Amended and Restated Executive Officer Incentive Program and the Amended and Restated Non-Executive Officer Incentive Program. Our executive officers, officers, employees, consultants and non-employee directors are eligible to participate in the 2014 Incentive Plan. The 2014 Incentive Plan increases, on an annual basis, the number of shares of common stock available for issuance to an amount equal to 7% of the total number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding year. The 2014 Incentive Plan is administered by the Company’s compensation committee, which interprets the 2014 Incentive Plan and has broad discretion to select the eligible persons to whom awards will be granted, as well as the type, size and terms and conditions of each award, including the number of shares subject to awards and the expiration date of, and the vesting schedule or other restrictions (including, without limitation, restrictive covenants) applicable to, awards. The Company recognizes share-based payments to its directors and employees in its Consolidated Statements of Income on a straight-line basis over the shorter of the requisite service period, retirement eligibility date, or other period as deemed appropriate based on the fair value of the award on the grant date. In the event of a forfeiture, the previously recognized expense would be reversed. Intangible Assets 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 generally comprised of in-place and above-market lease intangible assets and below-market lease intangible liabilities, as well as deferred financing costs. In-place lease intangible assets are amortized to depreciation expense on a straight-line basis over the applicable lives of the leases. Above- and below-market lease intangibles are amortized to rental income on a straight-line basis over the applicable lives of the leases. Deferred financing costs are amortized to interest expense over the term of the related credit facility or other debt instrument using the straight-line method, which approximates amortization under the effective interest method. 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 two subsidiaries have also elected for those subsidiaries to be treated as taxable REIT subsidiaries ("TRSs"), which are 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 TRSs 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. See further discussion in Note 15 – Other Data. The Company classifies interest and penalties related to uncertain tax positions, if any, in the Consolidated Statements of Income as a component of general and administrative expenses. No such amounts were recognized during 2022, 2021 or 2020. The Company is subject to audit by the Internal Revenue Service and by state taxing authorities for the years ended December 31, 2021, 2020, and 2019. Sales and Use Taxes The Company must pay sales and use taxes to certain state tax authorities based on rental income collected from tenants in properties located in those states. The Company is generally reimbursed for those taxes by those tenants. The Company accounts for the payments to the taxing authority and subsequent reimbursement from the tenant on a net basis, included in rental income on the Company’s Consolidated Statements of Income. Concentration of Credit Risks Our credit risks primarily relate to cash and cash equivalents, mortgage notes, if any, other notes receivable and our interest rate swaps, which are discussed below. Cash and cash equivalents are primarily held in bank accounts and overnight investments. We maintain our bank deposit accounts with large financial institutions in amounts that often exceed federally-insured limits. We have not experienced any losses in such accounts. Derivative Financial Instruments In the normal course of business, we are subject to risk from adverse fluctuations in interest rates. We have chosen to manage this risk through the use of derivative financial instruments, primarily with interest rate swaps. Counterparties to these contracts are major financial institutions. We are exposed to credit loss in the event of nonperformance by these counterparties. We do not use derivative instruments for trading or speculative purposes. Our objective in managing exposure to market risk is to limit the impact on cash flows relating to interest payments on the Company's variable rate debt. To qualify for hedge accounting, our interest rate swaps must effectively reduce the risk exposure that they are designed to hedge. In addition, at inception of a qualifying cash flow hedging relationship, the underlying transaction or transactions must be, and are expected to remain, probable of occurring in accordance with our related assertions. All of our hedges are cash flow hedges and are recognized at their fair value in the Consolidated Balance Sheets. Changes in the fair value of the derivatives are recognized in accumulated other comprehensive loss. Earnings per Share Basic earnings per common share is computed by dividing net income by the weighted average common shares outstanding less issued and outstanding non-vested shares of common stock. Diluted earnings per common share is calculated by including the effect of dilutive securities. |
Real Estate Investments
Real Estate Investments | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Real Estate Investments | REAL ESTATE INVESTMENTS As of December 31, 2022, we had gross real estate investments of approximately $946.2 million in 174 real estate properties (including a portion of one property accounted for as a financing lease with a gross amount totaling approximately $3.0 million, included in other assets on the Consolidated Balance Sheets). The Company's real estate 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 75 $ 343,508 Inpatient Rehabilitation Facilities 7 151,234 Acute Inpatient Behavioral 5 130,410 Specialty Centers 37 119,504 Physician Clinics 30 86,451 Surgical Centers and Hospitals 10 55,746 Behavioral Specialty Facilities 9 44,393 Long-term Acute Care Hospitals 1 14,937 Total 174 $ 946,183 State # of Properties Gross Investment Texas 15 $ 138,657 Illinois 16 121,393 Ohio 24 105,384 Florida 22 93,443 All Others 97 487,306 Total 174 $ 946,183 Primary Tenant # of Properties Gross Investment Everest Rehabilitation 4 $ 80,658 US Healthvest 3 77,964 All Others 167 787,561 Total 174 $ 946,183 Depreciation and amortization expense was $32.3 million, $30.4 million and $25.4 million, respectively, for the years ended December 31, 2022, 2021 and 2020, which is included on the Company's Consolidated Statements of Income. Depreciation and amortization is recognized on a straight-line basis over the estimated useful lives of the ass ets. The estimated useful lives of our real estate properties at December 31, 2022 are as follows: Land improvements 2 - 20 years Buildings 7 - 50 years Building improvements 3 - 39.8 years Tenant improvements 1.8 - 15.1 years Lease intangibles 1.3 - 13.7 years Personal property 3 -10 years |
Real Estate Leases
Real Estate Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Real Estate Leases | REAL ESTATE LEASES Lessor Accounting The 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 taxes (including property taxes), insurance, maintenance and other operating costs associated with the leased property. The real estate properties were 91.7% leased at December 31, 2022 with a weighted average remaining lease term of approximately 7.6 years. Future Minimum Lease Payments Future minimum lease payments under the non-cancelable operating leases due the Company for the years ending December 31, as of December 31, 2022, are as follows (in thousands): 2023 $ 87,196 2024 82,225 2025 76,255 2026 68,583 2027 63,253 2028 and thereafter 361,797 $ 739,309 Customer Concentrations The Company's real estate portfolio is leased to a diverse tenant base. See Note 2 – Real Estate Investments. For the years ended December 31, 2022, 2021 and 2020, the Company had no customers that accounted for more than 10% of its consolidated revenues. Geographic Concentrations The Company's portfolio was located in 34 states at December 31, 2022. For the year ended December 31, 2022, 42.0% of our consolidated rental income was derived from properties located in Texas (16.4%), Ohio (12.9%), and Illinois (12.7%). For the year ended December 31, 2021, 29.5% of our consolidated rental income was derived from properties located in Texas (16.1%) and Illinois (13.4%). For the year ended December 31, 2020, 29.6% of our consolidated rental income was derived from properties located in Texas (15.9%) and Illinois (13.7%). Purchase Option Provisions Certain of the Company's leases provide the lessee with a purchase option or a right of first refusal to purchase the leased property. The purchase option provisions generally allow the lessee to purchase the leased property at fair value or at an amount greater than the Company's gross investment in the leased property at the time of the purchase. Since the Company's initial public offering, two of the Company's tenants have exercised their purchase option. These two properties were sold in 2018 and 2021. The Company had approximately $28.1 million in five real estate properties as of December 31, 2022 that were subject to exercisable purchase options. Straight-line rental income Rental income is recognized as earned over the life of the lease agreement on a straight-line basis when collection of rental payments over the term of the lease is probable. Straight-line rent included in rental income was approximately $3.4 million, $3.6 million, and $3.2 million, respectively, for the years ended December 31, 2022, 2021 and 2020. Prepaid rent Income received but not yet earned is deferred until such time it is earned. Prepaid rent, included in other liabilities on the Consolidated Balance Sheets, was approximately $3.9 million and $3.8 million, respectively, at December 31, 2022 and 2021. Sales-type lease The Company has a portion of one property accounted for as a sales-type lease with a gross amount totaling approximately $3.0 million included in other assets, net 2023 $ 336 2024 346 2025 356 2026 367 2027 378 2028 and thereafter 5,210 Total undiscounted lease receivable 6,993 Discount (3,958) Lease receivable $ 3,035 During the year ending December 31, 2022, the Company recognized interest income of approximately $0.3 million related to this lease which is included in other operating interest on the Company's Consolidated Statement of Income. Lessee Accounting At December 31, 2022, the Company was obligated, as the lessee, under four non-prepaid ground leases accounted for as operating leases with expiration dates through 2076, including renewal options, and two non-prepaid ground lease accounted for as a financing lease with an expiration date through 2109, including renewal options. Any rental increases related to the Company's ground leases are generally either stated or based on the Consumer Price Index. The Company's future lease payments under these non-prepaid ground leases were as follows (in thousands): Operating Financing 2023 $ 42 $ 141 2024 43 154 2025 44 154 2026 44 154 2027 45 154 2028 and thereafter 1,148 6,956 Total undiscounted lease payments 1,366 7,713 Discount (580) (4,434) Lease liabilities $ 786 $ 3,279 The following table discloses other information regarding the ground leases. Year Ended December 31, 2022 2021 Operating leases: Weighted-average remaining lease term in years (including renewal options) 36.3 37.0 Weighted-average discount rate 4.0 % 4.0 % Financing leases: Weighted-average remaining lease term in years (including renewal options) 40.8 37.0 Weighted-average discount rate 4.2 % 4.1 % |
Real Estate Acquisitions and Di
Real Estate Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Real Estate Acquisitions and Dispositions | REAL ESTATE ACQUISITIONS AND DISPOSITIONS 2022 Real Estate Acquisitions During the year ended December 31, 2022, the Company acquired 18 real estate properties as detailed in the table below. Upon acquisition, the properties were 98.9% leased in the aggregate with lease expirations through 2037. Amounts recorded in revenues and net income for these properties were approximately $3.2 million and $1.9 million, respectively, and transaction costs totaling approximately $1.4 million were ca pitalized for the year ended December 31, 2022 relating to these property acquisitions. Location Property Type (1) Date Acquired Purchase Price Cash Consideration Real Estate Other (2) Square Footage (000's) (000's) (000's) (000's) (Unaudited) Toledo, OH MOB 03/09/22 $ 2,606 $ 2,621 $ 2,735 $ (114) 17,465 Fremont, NE MOB 03/09/22 3,232 3,224 3,443 (219) 12,850 Cincinnati, OH IRF 05/12/22 23,500 22,826 23,558 (732) 37,720 Marne, MI BSF 09/01/22 13,238 12,986 13,415 (429) 96,886 Des Moines, IA PC 09/20/22 4,272 4,313 3,818 495 17,318 Brook Park, OH MOB 11/21/22 2,200 2,187 2,256 (69) 16,802 Rockville, MD MOB 12/12/22 13,937 14,180 14,133 47 94,491 Cape Coral, FL SC 12/13/22 4,635 4,683 4,563 120 12,130 Cape Coral, FL MOB 12/13/22 400 410 394 16 2,023 Cape Coral, FL MOB 12/13/22 990 998 1,039 (41) 6,379 Fort Myers, FL MOB 12/13/22 6,520 6,583 6,143 440 22,104 Fort Myers, FL MOB 12/13/22 3,325 3,360 3,246 114 16,000 Fort Myers, FL SC 12/13/22 4,510 4,556 4,578 (22) 10,832 Fort Myers, FL SC 12/13/22 4,265 4,308 4,142 166 9,376 Fort Myers, FL MOB 12/13/22 133 139 141 (2) 1,201 Show Low, AZ MOB 12/23/22 840 841 844 (3) 4,437 Show Low, AZ MOB 12/23/22 4,122 4,105 4,170 (65) 22,410 Show Low, AZ MOB 12/23/22 4,347 4,371 4,111 260 22,400 $ 97,072 $ 96,691 $ 96,729 $ (38) 422,824 (1) PC - Physician Clinic; BSF - Behavioral Specialty Facility; IRF - Inpatient Rehabilitation Facility; MOB - Medical Office Building; SC - Specialty Center (2) Includes items including, but not limited to, other assets, above and below market intangibles, liabilities assumed, and security deposits. The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the property acquisitions for the year ended December 31, 2022. Estimated Fair Value Weighted Average (In thousands) (In years) Land and land improvements $ 19,405 10.1 Building and building improvements 68,268 34.5 Intangibles: At-market lease intangibles 9,056 6.6 Above-market lease intangibles 1,977 6.3 Below-market lease intangibles (649) 5.3 Total intangibles 10,384 Accounts receivable and other assets acquired 800 Accounts payable, accrued liabilities and other liabilities acquired (2,015) Financing right-of-use lease asset acquired 728 Financing lease liability acquired (308) Prorated rent, interest and operating expense reimbursement amounts collected (571) Total cash consideration $ 96,691 2021 Real Estate Acquisitions During the year ended December 31, 2021, the Company acquired 13 real estate properties as detailed in the table below. Upon acquisition, the properties were 98.3% leased in the aggregate with lease expirations through 2036. Amounts recorded in revenues and net income for these properties were appr oximately $7.3 million and $3.7 million, respectively, and transaction costs totaling approximately $0.8 million were ca pitalized for the year ended December 31, 2021 relating to these property acquisitions. Location Property Type (1) Date Acquired Purchase Price Cash Consideration Real Estate Other (2) Square Footage (000's) (000's) (000's) (000's) (Unaudited) 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 3,164 (22) 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 Cincinnati, OH MOB 04/14/21 4,167 3,494 4,336 (842) 43,599 Pittsburgh, PA MOB 06/10/21 5,347 5,420 6,556 (1,136) 34,077 Houston, TX MOB 07/21/21 3,737 3,732 3,755 (23) 14,360 Belcamp, MD MOB 08/31/21 5,538 5,568 5,698 (130) 23,388 Marion, OH MOB 10/15/21 3,506 3,517 3,497 20 27,246 Columbus, OH MOB 12/17/21 2,613 2,653 2,673 (20) 16,751 Lancaster, CA MOB 12/17/21 3,676 3,708 3,723 (15) 10,646 $ 88,364 $ 88,099 $ 90,305 $ (2,206) 329,219 (1) PC - Physician Clinic; BSF - Behavioral Specialty Facility; IRF - Inpatient Rehabilitation Facility; MOB - Medical Office Building (2) Includes items including, but not limited to, other assets, liabilities assumed, and security deposits. The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the property acquisitions for the year ended December 31, 2021. Estimated Fair Value Weighted Average (In thousands) (In years) Land and land improvements $ 13,142 11.9 Building and building improvements 69,143 40.3 Intangibles: At-market lease intangibles 8,100 4.1 Above-market lease intangibles 149 4.9 Below-market lease intangibles (172) 4.5 Total intangibles 8,077 Accounts receivable and other assets acquired 52 Accounts payable, accrued liabilities and other liabilities acquired (982) Financing right-of-use lease asset acquired 1,898 Financing lease liability acquired (2,971) Prorated rent, interest and operating expense reimbursement amounts collected (260) Total cash consideration $ 88,099 2021 Real Estate Disposition During the fourth quarter of 2021, the Company disposed of a 30,000 square foot medical office building in Alabama, received net proceeds of approximately $1.3 million, and recognized a gain of approximately $0.2 million. The Company disposed of the property pursuant to the tenant's exercise of its purchase option on the property. |
Debt, net
Debt, net | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt, net | DEBT, NET The table below details the Company's debt, net as of December 31, 2022 and December 31, 2021. Balance as of December 31, (Dollars in thousands) 2022 2021 Maturity Dates Credit Facility: Revolving Credit Facility $ — $ 12,000 3/26 A-2 Term Loan, net — 49,813 n/a A-3 Term Loan, net 74,609 74,487 3/26 A-4 Term Loan, net 124,409 124,296 3/28 A-5 Term Loan, net 149,059 — 3/30 Mortgage Note Payable 4,920 5,029 5/24 $ 352,997 $ 265,625 Credit Facility On December 14, 2022, Community Healthcare Trust Incorporated, as borrower, entered into a first amendment (the "First Amendment") to the third amended and restated credit agreement (the "Credit Facility") by and among Community Healthcare Trust Incorporated, as borrower, the several banks and financial institutions party thereto as lenders, and Truist Bank, as administrative agent. The Credit Facility allows the Company to borrow, through an accordion feature, up to $700.0 million, including the ability to add and fund incremental term loans. The First Amendment amended the Credit Facility to, among other things, (i) establish a new seven-year and three-month term loan facility in the aggregate principal amount of $150.0 million (the "A-5 Term Loan"), which matures on March 14, 2030 and (ii) replace LIBOR as a benchmark interest rate for loans under the Credit Facility with SOFR. The proceeds from the A-5 Term Loan were used to repay the seven-year term loan facility in the aggregate principal amount of $50.0 million (the "A-2 Term Loan") which was set to mature on March 29, 2024, and to repay $85.0 million aggregate principal amount of loans outstanding under the Revolving Credit Facility, with the balance of the proceeds to be used to fund acquisitions. The Credit Facility provides for a $150.0 million Revolving Credit Facility and $350.0 million in term loans (the "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 $75.0 million (the "A-3 Term Loan"), which matures on March 29, 2026, a 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, and the A-5 Term Loan in the aggregate principal amount of $150.0 million. Loans under the Credit Facility are interest only with principal amounts due as of each facility's applicable maturity date. Amounts outstanding under the Revolving Credit Facility bore annual interest at a floating rate that were 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. Under the First Amendment, amounts outstanding under the Revolving Credit Facility will bear interest at a floating rate based on the Company's option, on either: (i) adjusted term SOFR or adjusted daily simple SOFR 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 no amounts outstanding under the Revolving Credit Facility with a borrowing capacity remaining of approximately $150.0 million at December 31, 2022. Amounts outstanding under the Term Loans bore 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 0.45% to 1.30%, in each case, depending upon the Company’s leverage ratio. Under the First Amendment, amounts outstanding under the Term Loans will bear interest at a floating rate that is based, at the Company's option, on either (i) adjusted term SOFR or adjusted daily SOFR plus 1.65% to 2.30%, plus a simple SOFR adjustment equal to 0.10% per annum, or (ii) a base rate plus 0.65% 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 and in January 2023 transitioned the interest rate swaps from LIBOR to SOFR rates. See Note 6 – Derivative Financial Instruments for more details on the interest rate swaps. At December 31, 2022, the Company had $350.0 million outstanding under the Term Loans which had a fixed weighted average interest rate under the swaps of approximately 4.27%. 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 December 31, 2022. Mortgage Note Payable |
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 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 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-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 December 31, 2022, the Company had seventeen outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk for notional amounts totaling $350.0 million, including two forward-starting interest rate swaps for notional amounts totaling $50.0 million, which will not become effective until March 29, 2024. 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 Consolidated Balance Sheets as of December 31, 2022 and 2021. Asset Derivatives Fair Value Liability Derivatives Fair Value (in thousands) 2022 2021 Balance Sheet Classification 2022 2021 Balance Sheet Classification Interest rate swaps $ 22,667 $ 343 Other assets, net $ — $ 5,324 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 income (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 $9.1 million will be reclassified from AOCI as a decrease to interest expense. Tabular Disclosure of the Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive 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 years ended December 31, 2022 and 2021. For the Year Ended December 31, (Dollars in thousands) 2022 2021 Amount of unrealized gain recognized in OCI on derivative $ 27,380 $ 2,410 Amount of loss reclassified from AOCI into interest expense $ 267 $ 4,456 Total interest expense presented in the Consolidated Statements of Income in which the effects of the cash flow hedges are recorded $ 11,873 $ 10,542 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 December 31, 2022 and December 31, 2021. 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 Consolidated Balance Sheets. Offsetting of Derivative Assets (as of December 31, 2022) Gross Amounts Not Offset in the Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ 22,667 $ — $ 22,667 $ — $ — $ 22,667 Offsetting of Derivative Liabilities (as of December 31, 2022) Gross Amounts Not Offset in the Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ — $ — $ — $ — $ — $ — Offsetting of Derivative Assets (as of December 31, 2021) Gross Amounts Not Offset in the Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ 343 $ — $ 343 $ (247) $ — $ 96 Offsetting of Derivative Liabilities (as of December 31, 2021) Gross Amounts Not Offset in the Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ (5,324) $ — $ (5,324) $ 247 $ — $ (5,077) Credit-risk-related Contingent Feature s As of December 31, 2022, the Company did not have any derivatives in a net liability position. As of December 31, 2022, the Company had not posted any collateral related to these agreements and was not in breach of any agreement provisions. If the Company terminated these interest rate swaps or breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY Common Stock The following table provides a reconciliation of the beginning and ending common stock balances for the years ended December 31, 2022, 2021 and 2020: For the Year Ended December 31, (Amounts in thousands) 2022 2021 2020 Balance, beginning of period 24,983 23,888 21,411 Issuance of common stock 600 823 2,207 Restricted stock issued 318 273 270 Restricted stock forfeited (4) (1) — Balance, end of period 25,897 24,983 23,888 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, Fifth Third Securities, Inc., Janney Montgomery Scott LLC, and Robert W. Baird & Co. Incorporated, as Sales Agents (each, an “Agent”, and, 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 $500.0 million, exclusive of shares of Common Stock sold under its prior agreements with our Agents. 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 years ended December 31, 2022, 2021, and 2020 is detailed in the table below. As of December 31, 2022, the Company had approximately $479.0 million remaining that may be issued under the ATM Program. For the Year Ended December 31, (Shares in thousands, except per share amounts) 2022 2021 2020 Shares issued 600 823 2,207 Net proceeds received (in millions) $20.5 $38.4 $98.0 Average gross sales price per share $34.94 $47.68 $45.29 Automatic Shelf Registration Statement On November 2, 2022, the Company filed an automatic shelf registration statement on Form S-3 with the SEC. The registration statement is for an indeterminate number of securities and is effective for three years. Under this registration statement, the Company has the capacity to offer and sell from time to time various types of securities, including common stock, preferred stock, depository shares, rights, debt securities, warrants and units. Dividends Declared During 2022, the Company declared and paid dividends totaling $1.765 per common share as shown in the table below. Declaration Date Record Date Date Paid Amount Per Share February 10, 2022 February 22, 2022 March 1, 2022 $0.4375 April 28, 2022 May 13, 2022 May 27, 2022 $0.4400 July 28, 2022 August 12, 2022 August 26, 2022 $0.4425 October 27, 2022 November 10, 2022 November 25, 2022 $0.4450 During 2021, the Company declared and paid dividends totaling $1.725 per common share as shown in the table below. Declaration Date Record Date Date Paid Amount Per Share February 11, 2021 February 25, 2021 March 5, 2021 $0.4275 April 29, 2021 May 14, 2021 May 28, 2021 $0.4300 July 29, 2021 August 13, 2021 August 27, 2021 $0.4325 October 28, 2021 November 12, 2021 November 26, 2021 $0.4350 |
Income Per Common Share
Income Per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | INCOME PER COMMON SHARE The following table sets forth the computation of basic and diluted income per common share. Year Ended December 31, (Dollars and shares in thousands, except per share data) 2022 2021 2020 Net income $ 22,019 $ 22,492 $ 19,077 Participating securities' share in earnings (2,847) (2,314) (1,842) Net income, less participating securities' share in earnings $ 19,172 $ 20,178 $ 17,235 Weighted Average Common Shares Outstanding Weighted average common shares outstanding 25,218 24,583 22,647 Unvested restricted shares (1,587) (1,320) (1,071) Weighted average common shares outstanding–Basic 23,631 23,263 21,576 Weighted average common shares–Basic 23,631 23,263 21,576 Dilutive potential common shares — — — Weighted average common shares outstanding –Diluted 23,631 23,263 21,576 Basic Income per Common Share $ 0.81 $ 0.87 $ 0.80 Diluted Income per Common Share $ 0.81 $ 0.87 $ 0.80 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plans | STOCK INCENTIVE PLANS 2014 Incentive Plan The 2014 Incentive Plan authorizes the Company to award shares equal to 7% of the total number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding year, or 1,748,775 shares of common stock (the "Plan Pool"), for 2022, to its employees and directors. The 2014 Incentive Plan will continue until terminated by the Company's Board of Directors or March 31, 2024. As of December 31, 2022, the Company had issued a total of 1,280,548 restricted shares under the Incentive Pool for compensation-related awards to its employees and directors, with 468,227 authorized shares remaining which had not been issued. Shares issued under the 2014 Incentive Plan are generally subject to long-term, fixed vesting periods of 3 to 8 years. If an employee or director voluntarily terminates his or her relationship with the Company or is terminated for cause before the end of the vesting period, the shares are forfeited, at no cost to the Company. Once the shares have been granted, the recipient of the shares has the right to receive dividends and the right to vote the shares. Alignment of Interest Program The Second Amended and Restated Alignment of Interest Program (the “Alignment of Interest Program”) authorizes the Company to issue 1,000,000 shares of the Company’s common stock to its employees and directors in lieu of the employee's or director's cash compensation (the "Program Pool"), at their election. As of December 31, 2022, the Company had issued a total of 526,574 restricted shares under the Program Pool in lieu of cash compensation to its employees and directors, with 473,426 authorized shares remaining which had not been issued. The Company's Alignment of Interest Program is designed to provide the Company's employees and directors with an incentive to remain with the Company and to incentivize long-term growth and profitability. Under the Alignment of Interest Program, employees may elect to defer up to 100% of their base salary and other compensation and directors may elect to defer up to 100% of their director fees, subject to the 2014 Incentive Plan's long-term, fixed vesting periods. The number of shares granted will be increased through a Company match depending on the length of the vesting period selected by the employee or director. Employees may select vesting periods of 3 years, 5 years, or 8 years, with a 30%, 50%, and 100% Company match, respectively. Directors may select vesting periods of 1 year, 2 years, or 3 years, with a 20%, 40%, or 60% Company match, respectively. Officer Incentive Programs The Company has a Second Amended and Restated Executive Officer Incentive Program and an Amended and Restated Non-Executive Officer Incentive Program (the "Officer Incentive Programs") under the Incentive Plan which are designed to provide incentives to the Company's officers that are designed to reward its officers for individual, as well as Company performance in the form of cash or restricted stock. Company performance will be based on performance targets, which may include targets such as funds from operations ("FFO"), dividend payout percentages, as well as the Company's relative total stockholder return performance over three-year and five-year periods, measured against the Company's peer group, as determined by the Company's Board of Directors each year. The officers may elect, in the year prior to an award, to receive awards under the Officer Incentive Programs in cash or restricted stock, as allowed within the applicable Officer Incentive Programs, as well as a vesting period as discussed under the Alignment of Interest Program above. Shares of common stock issued under the Officer Incentive Programs are issued under either the Plan Pool or Program Pool. Summary A summary of the activity under the Incentive Plan and related information for the years ended December 31, 2022, 2021, and 2020 is included in the table below. Year Ended December 31, (dollars in thousands, except per share amounts) 2022 2021 2020 Stock-based awards, beginning of year 1,416 1,164 910 Stock in lieu of compensation 116 96 92 Stock awards 202 177 178 Total Granted 318 273 270 Vested (22) (20) (16) Forfeited (4) (1) — Stock-based awards, end of year 1,708 1,416 1,164 Weighted average grant date fair value, per share, of: Stock-based awards, beginning of year $ 33.89 $ 31.04 $ 26.75 Stock-based awards granted during the year $ 41.45 $ 48.48 $ 45.83 Stock-based awards vested during the year $ 23.54 $ 26.52 $ 25.13 Stock-based awards forfeited during the year $ 41.87 $ 49.81 $ — Stock-based awards, end of year $ 37.43 $ 33.89 $ 31.04 Grant date fair value of shares granted during the year $ 13,232 $ 13,251 $ 12,398 The Company had nonvested stock-based compensation that had not yet been recognized of approximately $33.7 million and $30.2 million, respectively, at December 31, 2022 and 2021. The vesting periods for the non-vested shares granted during 2022 ranged from 3 to 8 years with a weighted-average amortization period remaining as of December 31, 2022 of approxi mately 7.0 years. Co mpensation expense recognized during the years ended December 31, 2022, 2021, and 2020 from the amortization of the value of shares over the vesting period was approximately $9.4 million, $7.2 million and $4.8 million, respectively, which are included in general and administrative expenses on the consolidated statements of income. 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 3.5% of each eligible employee’s salary, subject to certain limitations. The Company’s matching contributions were approximately $0.1 million for each of the years ended December 31, 2022, 2021 and 2020. |
Other Assets, net
Other Assets, net | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets, net | OTHER ASSETS, NET Other assets on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021 are detailed in the table below. December 31, (Dollars in thousands) 2022 2021 Notes receivable $ 32,705 $ 26,000 Accounts and interest receivables 2,679 2,116 Straight-line rent receivables 15,429 11,968 Prepaid assets 980 701 Deferred financing costs, net 683 896 Leasing commissions, net 1,848 1,239 Deferred tax assets, net 306 348 Fair value of interest rate swaps 22,667 343 Above-market lease intangible assets, net 2,399 611 Sales-type lease receivable 3,035 3,031 Financing right-of-use asset 2,545 1,870 Operating lease right-of-use assets 759 788 Other 496 426 $ 86,531 $ 50,337 The Company's notes receivable include the following notes receivable. Interest on these notes is included in Other operating interest on the Company's Consolidated Statements of Income. • At December 31, 2022, notes receivable included a term loan with an original balance of $15.0 million, 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, which had a carrying value of $9.0 million at December 31, 2022, is being repaid in equal monthly installments of $250,000 through the maturity date of December 31, 2025 and bears interest at 9% per annum. • At December 31, 2022, notes receivable also included a $17.0 million term loan and a $5.0 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, 2024. The term loan facility matures on December 31, 2032. The revolving credit facility bears interest at 9% per annum and matures on December 31, 2025. In addition, the Company has committed to fund, at the Company’s discretion, additional amounts, up to $5.0 million with interest at 9% per annum on any amount funded, that may be used by the borrower to pay existing liabilities of co-borrowers. The term loan, the revolving credit facility and the additional commitment all include 3% non-cash interest that is due and payable upon the earlier of the repayment or maturity of each note. • At December 31, 2022, notes receivable also included a revolving credit facility with a tenant with a maximum commitment of $2.5 million. The amount drawn on the note was $1.7 million at December 31, 2022. The revolving credit facility bears interest at 9% per annum and matures on April 1, 2027. The revolving credit facility includes 3% non-cash interest that is due and payable upon the earlier of the repayment or maturity of the note. 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 December 31, 2022 are summarized in the table below. Classification Carrying Amount (in thousands) Maximum Exposure to Loss (in thousands) Note receivable (term loan) $9,000 $9,000 Note receivable (term loan) $17,000 $17,000 Note receivable (revolving credit facility) $5,000 $5,000 Note receivable (revolving credit facility) $1,705 $1,705 |
Other Liabilities, net
Other Liabilities, net | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities, net | OTHER LIABILITIES, NET Other liabilities on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021 are detailed in the table below. December 31, (Dollars in thousands) 2022 2021 Prepaid rent $ 3,853 $ 3,791 Security deposits 5,766 4,640 Below-market lease intangibles, net 1,075 616 Fair value of interest rate swaps — 5,324 Financing lease liability 3,279 2,973 Operating lease liability 786 795 Other 478 512 $ 15,237 $ 18,651 |
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 deferred financing costs and various real estate acquisition lease intangibles included in its Consolidated Balance Sheets as of December 31, 2022 and 2021 as detailed in the table below. The Company did not have any indefinite lived intangible assets or liabilities as of December 31, 2022 and 2021. Gross Balance at Accumulated Amortization at December 31, Weighted (Dollars in thousands) 2022 2021 2022 2021 Remaining Balance Sheet Classification Deferred financing costs-Revolving Credit Facility $ 3,042 $ 3,042 $ 2,359 $ 2,146 3.3 Other assets, net Deferred financing costs-Term Loans 2,551 2,377 627 972 5.9 Debt, net Deferred financing costs-Mortgage Note Payable 108 108 81 61 1.3 Debt, net Above-market lease intangibles 2,938 960 539 349 5.8 Other assets, net Below-market lease intangibles (2,779) (2,129) (1,703) (1,513) 5.5 Other liabilities, net At-market lease intangibles 93,618 84,562 66,320 57,841 4.5 Real estate properties Total intangibles $ 99,478 $ 88,920 $ 68,223 $ 59,856 4.8 For the years ended December 31, 2022, 2021 and 2020, the Company recognized approximately $9.0 million, $9.4 million, and $8.1 million, respectively, of net intangible amortization expense. Expected future amortization, net, for the next five years of the Company's intangible assets and liabilities, in place as of December 31, 2022 are included in the table below. (in thousands) Amortization, net 2023 $ 9,030 2024 $ 7,547 2025 $ 5,394 2026 $ 3,191 2027 $ 1,899 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Tenant Improvements The Company may provide tenant improvement allowances in new or renewal leases for the purpose of refurbishing or renovating tenant space. The Company may also assume tenant improvement obligations included in leases acquired in its real estate acquisitions. As of December 31, 2022 and 2021, the Company had approximately $12.0 million and $10.4 million, respectively, in commitments for tenant improvements. Five of these projects totaling $2.9 million, represent redevelopment projects of the buildings into different healthcare uses backed by long term leases. Capital Improvements The Company has entered into contracts with various vendors for various capital improvement projects related to its portfolio. As of December 31, 2022 and 2021, the Company had commitments of approximately $4.2 million and $0.9 million, respectively, in commitments for capital improvement projects. Legal Proceedings The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company's Consolidated Financial Statements. |
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 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 which are based on an assumed market rate of interest 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. The fair value estimates were determined using Level 2 inputs. Derivative financial instruments (Interest Rate Swaps) - 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 mortgage note and notes receivable and interest rate swaps at December 31, 2022 and 2021 using Level 2 inputs. December 31, 2022 December 31, 2021 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Notes receivable $ 32,705 $ 32,716 $ 26,000 $ 25,869 Interest rate swap asset $ 22,667 $ 22,667 $ 343 $ 343 Interest rate swap liability $ — $ — $ 5,324 $ 5,324 Mortgage note payable $ 4,947 $ 4,761 $ 5,076 $ 5,129 |
Other Data
Other Data | 12 Months Ended |
Dec. 31, 2022 | |
Other Data [Abstract] | |
Other Data | OTHER DATA Taxable Income The Company has elected to be taxed as a REIT, as defined under the 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. The Company has also elected that two of its subsidiaries be treated as a TRS, which are subject to federal and state income taxes. All entities other than the TRS subsidiaries are collectively referred to as "the REIT" within this Note 15 – Other Data. The REIT 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 for the REIT has been made in the accompanying Consolidated Financial Statements; however, the Company may record income tax expense or benefit for its TRSs to the extent applicable. If the REIT 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 REIT continues to qualify 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. Income tax expense and state income tax payments, net of refunds, are as follows for the years ended December 31, 2022, 2021, and 2020. Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Current $ 97 $ 129 $ 99 Deferred 41 167 80 Total income tax expense $ 138 $ 296 $ 179 Income tax payments, net of refunds $ 120 $ 109 $ 78 Income tax expense primarily relates to permanent differences between federal, state and local taxable income resulting from certain state and local jurisdictions wholly or partially disallowing the deduction for dividends paid allowed at the federal level and temporary differences resulting from the bases of assets and liabilities of the Company's TRSs for financial reporting purposes and the bases of those assets and liabilities for income tax purposes. The tax effect of temporary differences included in the net deferred tax assets at December 31, 2022 and 2021 are as follows: December 31, (Dollars in thousands) 2022 2021 Deferred tax assets (liabilities): Net operating losses $ 1,349 $ 1,311 Deferred stock-based compensation 7,008 4,749 Valuation allowance (1,406) (1,338) Other, net (6,645) (4,374) Total net deferred tax assets $ 306 $ 348 We believe that it is more likely than not that the benefit from the net operating losses and certain other deductible temporary differences will not be fully realized. In recognition of this assessment, we have provided a valuation allowance of $1.4 million and $1.3 million, respectively, on the deferred tax assets related to these deductions at December 31, 2022 and 2021. If our assumptions change and we determine that it is more likely than not that we will be able to realize these deductions, the tax benefits related to any reversal of the valuation allowance on deferred tax assets as of December 31, 2022, will be accounted for as a reduction of income tax expense. On a tax-basis, the Company’s gross real estate assets totaled approximately $936.4 million and $830.5 million, respectively, as of December 31, 2022 and 2021 (both unaudited). The following table reconciles the Company’s net income to taxable income for the years ended December 31, 2022, 2021 and 2020. Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Net income $ 22,019 $ 22,492 $ 19,077 Reconciling items to taxable income: Depreciation and amortization 11,493 11,121 9,191 Gain on sale of real estate — 36 1 Impairment — — (5,000) Straight-line rent (3,265) (3,522) (3,415) Receivable allowance — (25) (257) Stock-based compensation 5,681 3,872 2,280 Deferred rent 61 1,196 565 Deferred income taxes 41 166 80 Other (17) (68) (81) 13,994 12,776 3,364 Taxable income (1) $ 36,013 $ 35,268 $ 22,441 Dividends paid (2) $ 41,642 $ 40,092 $ 36,192 __________ (1) Before REIT dividends paid deduction. (2) Net of dividends paid on restricted stock included as a reconciling item. Characterization of Distributions (unaudited) Earnings and profits (as defined under the 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. Distributions in excess of earnings and profits generally constitute a return of capital. The following table shows the characterization of the distributions on the Company's common stock for the years ended December 31, 2022, 2021 and 2020. No preferred shares have been issued by the Company and no dividends have been paid to date relating to preferred shares. 2022 2021 2020 Per Share % Per Share % Per Share % Common stock: Ordinary income $ 1.575094 89.2 % $ 1.537982 89.2 % $ 1.297410 77.0 % Return of capital $ 0.189906 10.8 % $ 0.175047 10.1 % $ 0.387590 23.0 % Capital gain $ — — % $ 0.011971 0.7 % $ — — % Common stock distributions $ 1.765000 100.0 % $ 1.725000 100.0 % $ 1.685000 100.0 % |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Dividend Declared On February 9, 2023, the Company’s Board of Directors declared a quarterly common stock dividend in the amount of $0.4475 per share. The dividend is payable on March 1, 2023 to stockholders of record on February 21, 2023. Restricted Stock Issuances On January 16, 2023, pursuant to the 2014 Incentive Plan and the Alignment of Interest Program, the Company granted 122,782 shares of restricted common stock to its employees, in lieu of salary, that will cliff vest between 3 and 8 years. Of the shares granted, 61,414 shares of restricted stock were granted in lieu of compensation from the Program Pool and 61,368 shares of restricted stock were awards granted from the Plan Pool. Also, on January 16, 2023, pursuant to the 2014 Incentive Plan and the Non-Executive Officer Incentive Program, the Company granted 5,689 shares of restricted stock to certain employees that will cliff vest in 5 years. Subsequent Acquisitions Subsequent to December 31, 2022, the Company acquired three real estate properties totaling approximately 99,000 square feet for an aggregate purchase price of approximately $12.5 million. Upon acquisition, the properties were 100.0% leased with lease expirations through 2029. |
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] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts for the years ended December 31, 2022, 2021 and 2020 (Dollars in thousands) Additions Description Balance at Charged to Charged to Uncollectible Balance at 2022 Accounts receivable allowance $ 75 $ 9 $ — $ (9) $ 75 2021 Accounts receivable allowance $ 100 $ (25) $ — $ — $ 75 2020 Accounts receivable allowance $ 357 $ (156) $ — $ (101) $ 100 |
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] | |
Schedule III - Real Estate and Accumulated Depreciation | Schedule III - Real Estate and Accumulated Depreciation at December 31, 2022 (Dollars in thousands) Land and Land Improvements Buildings, Improvements, and Lease Intangibles Property Type Number State Initial Costs Total Initial Costs Total Personal Total Accumulated Encumbrances (Principal balance) Date Original Medical office buildings 75 AL, AZ, CA, CO, CT, FL, GA, IA, IL, KS, KY, LA, MD, MI, MS, NE, NJ, NV, NY, OH, PA, SC, TN, TX, VA $ 52,249 $ 2,096 $ 54,345 $ 256,688 $ 29,503 $ 286,191 $ — $ 340,536 $ 79,176 $ — 2015 - 2022 1880 - 2015 Acute inpatient behavioral 5 IL, MA, WA, WV 10,720 — 10,720 119,414 275 119,689 — 130,409 13,043 4,947 2016 - 2020 1920 - 2017 Inpatient rehabilitation facilities 7 AR, OK, TX 15,910 — 15,910 135,324 — 135,324 — 151,234 8,555 — 2019 - 2022 2012 - 2022 Specialty centers 37 AL, CA, CO, FL, GA, IL, MA, MD, NC, NV, OH, OK, PA, RI, TN, VA, WV 14,546 118 14,664 103,078 2,234 105,312 — 119,976 21,894 — 2015 - 2022 1956 - 2018 Physician clinics 30 CA, CT, FL, IA, IL, KS, OH, PA, RI, TX, VA, WI 12,062 402 12,464 71,721 2,266 73,987 — 86,451 20,259 — 2015 - 2022 1912 - 2020 Surgical centers and hospitals 10 AZ, IL, LA, MI, OH, PA, TX 4,317 58 4,375 47,206 4,165 51,371 — 55,746 14,353 — 2015 - 2018 1970 - 2004 Behavioral specialty facilities 9 IN, MI, MS, OH 4,717 26 4,743 39,629 21 39,650 — 44,393 3,515 — 2015 - 2022 1961 - 2020 Long-term acute care hospitals 1 IN 523 — 523 14,405 9 14,414 — 14,937 3,808 — 2017 1978 Total Real Estate 174 115,044 2,700 117,744 787,465 38,473 825,938 — 943,682 164,603 4,947 Sales-type lease — (87) — (87) (3,401) — (3,401) — (3,488) — — Corporate property — — — — 2,011 709 2,720 253 2,973 738 — Total Properties 174 $ 114,957 $ 2,700 $ 117,657 $ 786,075 $ 39,182 $ 825,257 $ 253 $ 943,167 $ 165,341 $ 4,947 (1) Total properties as of December 31, 2022 have an estimated aggregate total c ost of $936.4 million (unaudited ) for federal income tax purposes. (2) Depreciation is provided for on a straight-line basis on land improvements over 2 years to 20 years, buildings over 7 years to 50 years, building improvements over 3 years to 39.8 years, tenant improvements over 1.8 years to 15.1 years, lease intangibles over 1.3 years to 13.7 years, and personal property over 3 years to 10 years. (3) A reconciliation of Total Property and Accumulated Depreciation for the years ended December 31, 2022, 2021, and 2020 is provided below. Year Ended Year Ended Year Ended (Dollars in thousands) Total Property Accumulated Total Property Accumulated Total Property Accumulated Beginning Balance $ 834,085 $ 133,056 $ 735,359 $ 102,899 $ 602,852 $ 77,523 Acquisitions 96,729 1,034 90,385 2,740 128,677 2,419 Other improvements 12,353 31,251 9,520 27,636 7,891 22,969 Retirements/dispositions: Real estate — — (1,179) (219) (573) (12) Sales-type lease — — — — (3,488) — Ending Balance $ 943,167 $ 165,341 $ 834,085 $ 133,056 $ 735,359 $ 102,899 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries, and may also include joint ventures, partnerships and variable interest entities, or VIEs, where the Company controls the operating activities. Management must make judgments regarding the Company's level of influence or control over an entity and whether or not the Company is the primary beneficiary of a VIE. Consideration of various factors include, but is not limited to, the Company's ability to direct the activities that most significantly impact the entity's governing body, the size and seniority of the Company's investment, and the Company's ability to replace the manager and/or liquidate the entity. Management's ability to correctly assess its influence or control over an entity when determining the primary beneficiary of a VIE affects the presentation of these entities in the Company's Consolidated Financial Statements. If it is determined that the Company is the primary beneficiary of a VIE, the Company's Consolidated Financial Statements would consolidate the VIE rather than the Company's pro rata results of its variable interest in the VIE. Untimely or inaccurate financial information provided to the Company or deficiencies in the VIE's internal control over financial reporting could impact the Company's Consolidated Financial Statements and its own internal control over financial reporting. See Note 10 – Other Assets, net regarding VIEs identified by the Company related to its notes receivable. |
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 GAAP requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying notes, including, among others, estimates related to impairment assessments, purchase price allocations, and valuation of financial instruments. Actual results may materially differ from those estimates. |
Segment Reporting | Segment Reporting The Company acquires and owns, or finances, healthcare-related real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers. 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 segment. |
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. |
Real Estate Properties | Real Estate Properties Real estate property acquisitions are accounted for as a business combination or an asset acquisition. An acquisition accounted for as a business combination is recorded at fair value and related closing costs are expensed as incurred. An acquisition accounted for as an asset acquisition is recorded at its purchase price, inclusive of acquisition costs, which is allocated among the acquired assets and assumed liabilities based upon their relative fair values at the date of acquisition. The Company expects that substantially all of its acquisitions will be accounted for as asset acquisitions. The allocation of real estate property acquisitions may include land and land improvements, building and building improvements, and identified intangible assets and liabilities (consisting of above- and below-market leases, in-place leases, and tenant relationships) based on the evaluation of information and estimates available at that date, and we allocate the purchase price based on these assessments. We make estimates of the acquisition date fair value of the tangible and intangible assets and acquired liabilities using information obtained from multiple sources as a result of pre-acquisition due diligence, tax records, and other sources, including third-party valuations. Based on these estimates, we recognize the acquired assets and liabilities at their relative fair values for asset acquisitions. The fair value of tangible property assets acquired considers the value of the property as if vacant determined by a combination of comparable sales, replacement cost, income valuation approach and other relevant data. The determination of fair value involves the use of significant judgment and estimation. We value land based on various inputs, which may include internal analysis of recently acquired properties, existing comparable properties within our portfolio, or third party appraisals or valuations based on comparable sales. In recognizing identified intangible assets and liabilities of an acquired property, the value of above- or below-market leases is estimated based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between contractual amounts to be received pursuant to the leases and an estimate of market lease rates measured over the remaining term of the lease. In the case of a below-market lease, renewal options associated with that lease are evaluated to determine if the intangible should include those periods. The capitalized above-market or below-market lease intangibles are amortized as a reduction from or an addition to rental income over the estimated remaining term of the respective leases. In determining the value of in-place leases and tenant improvements, current market conditions and costs to execute similar leases to arrive at an estimate of the carrying costs during the expected lease-up period from vacant to existing occupancy are considered. Estimated carrying costs include real estate taxes, insurance, other property operating expenses, estimates of lost rental revenue during the expected lease-up periods, and costs to execute similar leases, including leasing commissions. The values assigned to in-place leases and tenant relationships are amortized over the estimated remaining term of the lease. If a lease terminates prior to its scheduled expiration, all unamortized costs related to that lease are written off. |
Long-lived Asset Impairments | Long-lived Asset ImpairmentsThe 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 under-performance 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 operators. In addition, the Company’s review for possible impairment may include those assets subject to purchase options and those impacted by casualties, such as tornadoes and hurricanes. A long-lived asset is impaired when 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. In determining these cash flows, the Company estimates market rent, capitalization rates, expected holding periods, and other relevant inputs. 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. |
Assets Held for Sale | Assets Held for Sale The Company may sell properties from time to time for various reasons, including the exercise of purchase options by our tenants. The Company classifies long-lived assets as held for sale once certain criteria have been met. The Company classifies a real estate property, or portfolio, as held for sale when: (i) management has approved the disposal, (ii) the property is available for sale in its present condition, (iii) an active program to locate a buyer has been initiated, (iv) it is probable that the property will be disposed of within one year, (v) the property is being marketed at a reasonable price relative to its fair value, and (vi) it is unlikely that the disposal plan will significantly change or be withdrawn. Following the classification of a property as “held for sale,” no further depreciation or amortization is recorded on the assets and the assets are recorded at the lower of carrying value or fair market value, less cost to sell. The Company did not have any properties classified as held for sale at December 31, 2022 or 2021. |
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. Our interest rate swaps are valued in the market using discounted cash flow techniques. These techniques incorporate Level 1 and 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 |
Lease Accounting | Lease Accounting As a lessor, we make a determination with respect to each of our leases whether they should be accounted for as sales-type, direct-financing, or operating lease. Additionally, for each of our real estate transactions involving the leaseback of the related property to the seller or affiliates of the seller, we determine whether these transactions qualify as sale and leaseback transactions under the accounting guidance in Accounting Standards Codification ("ASC") 842, Leases . For these transactions, we consider various inputs and assumptions including, but not necessarily limited to, lease terms, renewal options, discount rates, and other rights and provisions in the purchase and sale agreement, lease and other documentation to determine whether control has been transferred to the Company or remains with the lessee. A transaction involving a sale leaseback will be treated as a purchase of a real estate property if it is considered to transfer control of the underlying asset from the lessee to the Company. Criteria in determining the lease classification includes estimates and assumptions regarding the fair value of the leased facilities, minimum lease payments, effective cost of funds, the economic useful life of the facilities, the existence of a purchase option, and certain other terms in the lease agreements, as well as the amounts we expect to derive from the underlying property at the end of each lease which equals our purchase price. The lease accounting guidance requires that a sale leaseback with an option to purchase the property from the landlord at the tenant's option be accounted for as a financing or sales-type lease. We expect that most of our leases will be accounted for as operating leases. The Company has a portion of one property accounted for as a sales-type lease at December 31, 2022 included in other assets. Payments received under operating leases are accounted for in the Consolidated Statements of Income as rental income for actual cash rent collected plus or minus straight-line adjustments, such as lease escalators. The Company has elected not to separate lease and nonlease components, such as common area maintenance, unless certain conditions are not met. As such, tenant reimbursements are combined with rental income on the Consolidated Statements of Income. The Company is the lessee under four non-prepaid ground leases accounted for as operating leases and two non-prepaid ground lease accounted for as a financing lease. The Company has elected not to separate lease and nonlease components, such as common area maintenance, unless certain conditions are not met. Discount rates are determined using Company specific incremental borrowing rates, which represent the rate of interest that it would pay to borrow on a fully collateralized basis over a similar term. Right-of-use lease assets are included in other assets, net other liabilities, net Company's Consolidated Balance Sheets. |
Revenue Recognition | Revenue Recognition The primary source of revenue for the Company is generated through its leasing arrangements with its tenants which is accounted for under ASC Topic 842, or through notes with its borrowers which is covered under ASC 310. The Company's rental income and interest income are recognized based on contractual arrangements with its tenants and borrowers. From the inception of a lease, if collection of substantially all of the lease payments is probable for a tenant, then rental income is recognized as earned over the life of the lease agreement on a straight-line basis. Recognizing rental revenue on a straight-line basis for leases may result in recognizing revenue in amounts more or less than amounts currently due from tenants. If management determines that collection of substantially all of a lease’s payments is not probable, it will revert to recognizing such lease payments at the lesser of cash collected, lease income reflected on a straight-line basis, or another systematic basis plus variable rent when it becomes accruable and will reverse any recorded receivables related to that lease. In the event that management subsequently determines collection of substantially all of that lease’s receivable is probable, management will reinstate and record all such receivables for the lease in accordance with the lease terms. The Company maintains a general allowance for its lease receivables that the Company has determined are probable of collection. The Company recognizes operating expense recoveries in the period that applicable expenses are incurred. Other variable payments, such as late fees and sales tax are recognized based on the contractual terms of its leases. Income |
Allowance for Credit Losses | Allowance for Credit LossesUpon adoption of ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments on January 1, 2020, the Company uses an expected credit loss ("CECL") model in evaluating the collectability of its notes receivable and other financial instruments from time to time. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events and current conditions. Under the CECL model, the Company will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument and is required to record a credit loss expense (or reversal) in each reporting period. The Company evaluates factors such as its historical credit loss experience with the borrower or similar financial assets, current economic conditions, current and expected future financial condition of the borrower as well as payment history of the borrower, along with other relevant factors for each borrower or similar instruments. At December 31, 2022 and 2021, the Company did not have any material expected credit losses and, therefore, did not record any credit losses. |
Stock-Based Compensation | Stock-Based Compensation The Company's 2014 Incentive Plan, as amended (the "2014 Incentive Plan") is intended to attract and retain qualified persons upon whom, in large measure, our sustained progress, growth and profitability depend, to motivate the participants to achieve long-term company goals and to more closely align the participants’ interests with those of our other stockholders by providing them with a proprietary interest in our growth and performance. The three distinct programs under the 2014 Incentive Plan are the Second Amended and Restated Alignment of Interest Program, the Second Amended and Restated Executive Officer Incentive Program and the Amended and Restated Non-Executive Officer Incentive Program. Our executive officers, officers, employees, consultants and non-employee directors are eligible to participate in the 2014 Incentive Plan. The 2014 Incentive Plan increases, on an annual basis, the number of shares of common stock available for issuance to an amount equal to 7% of the total number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding year. The 2014 Incentive Plan is administered by the Company’s compensation committee, which interprets the 2014 Incentive Plan and has broad discretion to select the eligible persons to whom awards will be granted, as well as the type, size and terms and conditions of each award, including the number of shares subject to awards and the expiration date of, and the vesting schedule or other restrictions (including, without limitation, restrictive covenants) applicable to, awards. The Company recognizes share-based payments to its directors and employees in its Consolidated Statements of Income on a straight-line basis over the shorter of the requisite service period, retirement eligibility date, or other period as deemed appropriate based on the fair value of the award on the grant date. In the event of a forfeiture, the previously recognized expense would be reversed. |
Intangible Assets | Intangible AssetsIntangible 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 generally comprised of in-place and above-market lease intangible assets and below-market lease intangible liabilities, as well as deferred financing costs. In-place lease intangible assets are amortized to depreciation expense on a straight-line basis over the applicable lives of the leases. Above- and below-market lease intangibles are amortized to rental income on a straight-line basis over the applicable lives of the leases. Deferred financing costs are amortized to interest expense over the term of the related credit facility or other debt instrument using the straight-line method, which approximates amortization under the effective interest method. |
Income Taxes/Sales and Use Taxes | 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 two subsidiaries have also elected for those subsidiaries to be treated as taxable REIT subsidiaries ("TRSs"), which are 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 TRSs 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. See further discussion in Note 15 – Other Data. The Company classifies interest and penalties related to uncertain tax positions, if any, in the Consolidated Statements of Income as a component of general and administrative expenses. No such amounts were recognized during 2022, 2021 or 2020. The Company is subject to audit by the Internal Revenue Service and by state taxing authorities for the years ended December 31, 2021, 2020, and 2019. Sales and Use Taxes The Company must pay sales and use taxes to certain state tax authorities based on rental income collected from tenants in properties located in those states. The Company is generally reimbursed for those taxes by those tenants. The Company accounts for the payments to the taxing authority and subsequent reimbursement from the tenant on a net basis, included in rental income on the Company’s Consolidated Statements of Income. |
Concentration of Credit Risks | Concentration of Credit RisksOur credit risks primarily relate to cash and cash equivalents, mortgage notes, if any, other notes receivable and our interest rate swaps, which are discussed below. Cash and cash equivalents are primarily held in bank accounts and overnight investments. We maintain our bank deposit accounts with large financial institutions in amounts that often exceed federally-insured limits. We have not experienced any losses in such accounts. |
Derivative Financial Instruments | Derivative Financial InstrumentsIn the normal course of business, we are subject to risk from adverse fluctuations in interest rates. We have chosen to manage this risk through the use of derivative financial instruments, primarily with interest rate swaps. Counterparties to these contracts are major financial institutions. We are exposed to credit loss in the event of nonperformance by these counterparties. We do not use derivative instruments for trading or speculative purposes. Our objective in managing exposure to market risk is to limit the impact on cash flows relating to interest payments on the Company's variable rate debt. To qualify for hedge accounting, our interest rate swaps must effectively reduce the risk exposure that they are designed to hedge. In addition, at inception of a qualifying cash flow hedging relationship, the underlying transaction or transactions must be, and are expected to remain, probable of occurring in accordance with our related assertions. All of our hedges are cash flow hedges and are recognized at their fair value in the Consolidated Balance Sheets. Changes in the fair value of the derivatives are recognized in accumulated other comprehensive loss. |
Earnings per Share | Earnings per Share Basic earnings per common share is computed by dividing net income by the weighted average common shares outstanding less issued and outstanding non-vested shares of common stock. Diluted earnings per common share is calculated by including the effect of dilutive securities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Restricted cash and equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Company's Consolidated Balance Sheets and Consolidated Statements of Cash Flows: December 31, (Dollars in thousands) 2022 2021 Cash and cash equivalents $ 11,233 $ 2,351 Restricted cash 835 516 Cash, cash equivalents and restricted cash $ 12,068 $ 2,867 |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Company's Consolidated Balance Sheets and Consolidated Statements of Cash Flows: December 31, (Dollars in thousands) 2022 2021 Cash and cash equivalents $ 11,233 $ 2,351 Restricted cash 835 516 Cash, cash equivalents and restricted cash $ 12,068 $ 2,867 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of real estate property investments | The Company's real estate 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 75 $ 343,508 Inpatient Rehabilitation Facilities 7 151,234 Acute Inpatient Behavioral 5 130,410 Specialty Centers 37 119,504 Physician Clinics 30 86,451 Surgical Centers and Hospitals 10 55,746 Behavioral Specialty Facilities 9 44,393 Long-term Acute Care Hospitals 1 14,937 Total 174 $ 946,183 State # of Properties Gross Investment Texas 15 $ 138,657 Illinois 16 121,393 Ohio 24 105,384 Florida 22 93,443 All Others 97 487,306 Total 174 $ 946,183 Primary Tenant # of Properties Gross Investment Everest Rehabilitation 4 $ 80,658 US Healthvest 3 77,964 All Others 167 787,561 Total 174 $ 946,183 |
Schedule of property and equipment estimated useful lives | The estimated useful lives of our real estate properties at December 31, 2022 are as follows: Land improvements 2 - 20 years Buildings 7 - 50 years Building improvements 3 - 39.8 years Tenant improvements 1.8 - 15.1 years Lease intangibles 1.3 - 13.7 years Personal property 3 -10 years |
Real Estate Leases (Tables)
Real Estate Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of future minimum lease payments for operating leases | Future minimum lease payments under the non-cancelable operating leases due the Company for the years ending December 31, as of December 31, 2022, are as follows (in thousands): 2023 $ 87,196 2024 82,225 2025 76,255 2026 68,583 2027 63,253 2028 and thereafter 361,797 $ 739,309 |
Schedule of operating lease payments | The Company's future lease payments under these non-prepaid ground leases were as follows (in thousands): Operating Financing 2023 $ 42 $ 141 2024 43 154 2025 44 154 2026 44 154 2027 45 154 2028 and thereafter 1,148 6,956 Total undiscounted lease payments 1,366 7,713 Discount (580) (4,434) Lease liabilities $ 786 $ 3,279 |
Schedule of finance lease payments | The Company's future lease payments under these non-prepaid ground leases were as follows (in thousands): Operating Financing 2023 $ 42 $ 141 2024 43 154 2025 44 154 2026 44 154 2027 45 154 2028 and thereafter 1,148 6,956 Total undiscounted lease payments 1,366 7,713 Discount (580) (4,434) Lease liabilities $ 786 $ 3,279 |
Sales-type Maturity | Future lease payments due to the Company under this lease for the years ending December 31, as of December 31, 2022, are as follows (in thousands): 2023 $ 336 2024 346 2025 356 2026 367 2027 378 2028 and thereafter 5,210 Total undiscounted lease receivable 6,993 Discount (3,958) Lease receivable $ 3,035 |
Ground leases | The following table discloses other information regarding the ground leases. Year Ended December 31, 2022 2021 Operating leases: Weighted-average remaining lease term in years (including renewal options) 36.3 37.0 Weighted-average discount rate 4.0 % 4.0 % Financing leases: Weighted-average remaining lease term in years (including renewal options) 40.8 37.0 Weighted-average discount rate 4.2 % 4.1 % |
Real Estate Acquisitions and _2
Real Estate Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of acquisitions | Location Property Type (1) Date Acquired Purchase Price Cash Consideration Real Estate Other (2) Square Footage (000's) (000's) (000's) (000's) (Unaudited) Toledo, OH MOB 03/09/22 $ 2,606 $ 2,621 $ 2,735 $ (114) 17,465 Fremont, NE MOB 03/09/22 3,232 3,224 3,443 (219) 12,850 Cincinnati, OH IRF 05/12/22 23,500 22,826 23,558 (732) 37,720 Marne, MI BSF 09/01/22 13,238 12,986 13,415 (429) 96,886 Des Moines, IA PC 09/20/22 4,272 4,313 3,818 495 17,318 Brook Park, OH MOB 11/21/22 2,200 2,187 2,256 (69) 16,802 Rockville, MD MOB 12/12/22 13,937 14,180 14,133 47 94,491 Cape Coral, FL SC 12/13/22 4,635 4,683 4,563 120 12,130 Cape Coral, FL MOB 12/13/22 400 410 394 16 2,023 Cape Coral, FL MOB 12/13/22 990 998 1,039 (41) 6,379 Fort Myers, FL MOB 12/13/22 6,520 6,583 6,143 440 22,104 Fort Myers, FL MOB 12/13/22 3,325 3,360 3,246 114 16,000 Fort Myers, FL SC 12/13/22 4,510 4,556 4,578 (22) 10,832 Fort Myers, FL SC 12/13/22 4,265 4,308 4,142 166 9,376 Fort Myers, FL MOB 12/13/22 133 139 141 (2) 1,201 Show Low, AZ MOB 12/23/22 840 841 844 (3) 4,437 Show Low, AZ MOB 12/23/22 4,122 4,105 4,170 (65) 22,410 Show Low, AZ MOB 12/23/22 4,347 4,371 4,111 260 22,400 $ 97,072 $ 96,691 $ 96,729 $ (38) 422,824 (1) PC - Physician Clinic; BSF - Behavioral Specialty Facility; IRF - Inpatient Rehabilitation Facility; MOB - Medical Office Building; SC - Specialty Center (2) Includes items including, but not limited to, other assets, above and below market intangibles, liabilities assumed, and security deposits. Location Property Type (1) Date Acquired Purchase Price Cash Consideration Real Estate Other (2) Square Footage (000's) (000's) (000's) (000's) (Unaudited) 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 3,164 (22) 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 Cincinnati, OH MOB 04/14/21 4,167 3,494 4,336 (842) 43,599 Pittsburgh, PA MOB 06/10/21 5,347 5,420 6,556 (1,136) 34,077 Houston, TX MOB 07/21/21 3,737 3,732 3,755 (23) 14,360 Belcamp, MD MOB 08/31/21 5,538 5,568 5,698 (130) 23,388 Marion, OH MOB 10/15/21 3,506 3,517 3,497 20 27,246 Columbus, OH MOB 12/17/21 2,613 2,653 2,673 (20) 16,751 Lancaster, CA MOB 12/17/21 3,676 3,708 3,723 (15) 10,646 $ 88,364 $ 88,099 $ 90,305 $ (2,206) 329,219 (1) PC - Physician Clinic; BSF - Behavioral Specialty Facility; IRF - Inpatient Rehabilitation Facility; MOB - Medical Office Building (2) Includes items including, but not limited to, other assets, liabilities assumed, and security deposits. |
Schedule of assets acquired and liabilities assumed | The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the property acquisitions for the year ended December 31, 2022. Estimated Fair Value Weighted Average (In thousands) (In years) Land and land improvements $ 19,405 10.1 Building and building improvements 68,268 34.5 Intangibles: At-market lease intangibles 9,056 6.6 Above-market lease intangibles 1,977 6.3 Below-market lease intangibles (649) 5.3 Total intangibles 10,384 Accounts receivable and other assets acquired 800 Accounts payable, accrued liabilities and other liabilities acquired (2,015) Financing right-of-use lease asset acquired 728 Financing lease liability acquired (308) Prorated rent, interest and operating expense reimbursement amounts collected (571) Total cash consideration $ 96,691 The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the property acquisitions for the year ended December 31, 2021. Estimated Fair Value Weighted Average (In thousands) (In years) Land and land improvements $ 13,142 11.9 Building and building improvements 69,143 40.3 Intangibles: At-market lease intangibles 8,100 4.1 Above-market lease intangibles 149 4.9 Below-market lease intangibles (172) 4.5 Total intangibles 8,077 Accounts receivable and other assets acquired 52 Accounts payable, accrued liabilities and other liabilities acquired (982) Financing right-of-use lease asset acquired 1,898 Financing lease liability acquired (2,971) Prorated rent, interest and operating expense reimbursement amounts collected (260) Total cash consideration $ 88,099 |
Debt, net (Tables)
Debt, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The table below details the Company's debt, net as of December 31, 2022 and December 31, 2021. Balance as of December 31, (Dollars in thousands) 2022 2021 Maturity Dates Credit Facility: Revolving Credit Facility $ — $ 12,000 3/26 A-2 Term Loan, net — 49,813 n/a A-3 Term Loan, net 74,609 74,487 3/26 A-4 Term Loan, net 124,409 124,296 3/28 A-5 Term Loan, net 149,059 — 3/30 Mortgage Note Payable 4,920 5,029 5/24 $ 352,997 $ 265,625 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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. Asset Derivatives Fair Value Liability Derivatives Fair Value (in thousands) 2022 2021 Balance Sheet Classification 2022 2021 Balance Sheet Classification Interest rate swaps $ 22,667 $ 343 Other assets, net $ — $ 5,324 Other liabilities, net Offsetting of Derivative Assets (as of December 31, 2022) Gross Amounts Not Offset in the Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ 22,667 $ — $ 22,667 $ — $ — $ 22,667 Offsetting of Derivative Liabilities (as of December 31, 2022) Gross Amounts Not Offset in the Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ — $ — $ — $ — $ — $ — Offsetting of Derivative Assets (as of December 31, 2021) Gross Amounts Not Offset in the Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ 343 $ — $ 343 $ (247) $ — $ 96 Offsetting of Derivative Liabilities (as of December 31, 2021) Gross Amounts Not Offset in the Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives $ (5,324) $ — $ (5,324) $ 247 $ — $ (5,077) |
Derivative instruments, 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 years ended December 31, 2022 and 2021. For the Year Ended December 31, (Dollars in thousands) 2022 2021 Amount of unrealized gain recognized in OCI on derivative $ 27,380 $ 2,410 Amount of loss reclassified from AOCI into interest expense $ 267 $ 4,456 Total interest expense presented in the Consolidated Statements of Income in which the effects of the cash flow hedges are recorded $ 11,873 $ 10,542 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of reconciliation of common stock | The following table provides a reconciliation of the beginning and ending common stock balances for the years ended December 31, 2022, 2021 and 2020: For the Year Ended December 31, (Amounts in thousands) 2022 2021 2020 Balance, beginning of period 24,983 23,888 21,411 Issuance of common stock 600 823 2,207 Restricted stock issued 318 273 270 Restricted stock forfeited (4) (1) — Balance, end of period 25,897 24,983 23,888 |
Schedule of ATM Program | As of December 31, 2022, the Company had approximately $479.0 million remaining that may be issued under the ATM Program. For the Year Ended December 31, (Shares in thousands, except per share amounts) 2022 2021 2020 Shares issued 600 823 2,207 Net proceeds received (in millions) $20.5 $38.4 $98.0 Average gross sales price per share $34.94 $47.68 $45.29 |
Schedule of dividends declared and paid | During 2022, the Company declared and paid dividends totaling $1.765 per common share as shown in the table below. Declaration Date Record Date Date Paid Amount Per Share February 10, 2022 February 22, 2022 March 1, 2022 $0.4375 April 28, 2022 May 13, 2022 May 27, 2022 $0.4400 July 28, 2022 August 12, 2022 August 26, 2022 $0.4425 October 27, 2022 November 10, 2022 November 25, 2022 $0.4450 During 2021, the Company declared and paid dividends totaling $1.725 per common share as shown in the table below. Declaration Date Record Date Date Paid Amount Per Share February 11, 2021 February 25, 2021 March 5, 2021 $0.4275 April 29, 2021 May 14, 2021 May 28, 2021 $0.4300 July 29, 2021 August 13, 2021 August 27, 2021 $0.4325 October 28, 2021 November 12, 2021 November 26, 2021 $0.4350 |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the computation of basic and diluted income per common share. Year Ended December 31, (Dollars and shares in thousands, except per share data) 2022 2021 2020 Net income $ 22,019 $ 22,492 $ 19,077 Participating securities' share in earnings (2,847) (2,314) (1,842) Net income, less participating securities' share in earnings $ 19,172 $ 20,178 $ 17,235 Weighted Average Common Shares Outstanding Weighted average common shares outstanding 25,218 24,583 22,647 Unvested restricted shares (1,587) (1,320) (1,071) Weighted average common shares outstanding–Basic 23,631 23,263 21,576 Weighted average common shares–Basic 23,631 23,263 21,576 Dilutive potential common shares — — — Weighted average common shares outstanding –Diluted 23,631 23,263 21,576 Basic Income per Common Share $ 0.81 $ 0.87 $ 0.80 Diluted Income per Common Share $ 0.81 $ 0.87 $ 0.80 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Nonvested restricted stock shares activity | A summary of the activity under the Incentive Plan and related information for the years ended December 31, 2022, 2021, and 2020 is included in the table below. Year Ended December 31, (dollars in thousands, except per share amounts) 2022 2021 2020 Stock-based awards, beginning of year 1,416 1,164 910 Stock in lieu of compensation 116 96 92 Stock awards 202 177 178 Total Granted 318 273 270 Vested (22) (20) (16) Forfeited (4) (1) — Stock-based awards, end of year 1,708 1,416 1,164 Weighted average grant date fair value, per share, of: Stock-based awards, beginning of year $ 33.89 $ 31.04 $ 26.75 Stock-based awards granted during the year $ 41.45 $ 48.48 $ 45.83 Stock-based awards vested during the year $ 23.54 $ 26.52 $ 25.13 Stock-based awards forfeited during the year $ 41.87 $ 49.81 $ — Stock-based awards, end of year $ 37.43 $ 33.89 $ 31.04 Grant date fair value of shares granted during the year $ 13,232 $ 13,251 $ 12,398 |
Other Assets, net (Tables)
Other Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Other assets on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021 are detailed in the table below. December 31, (Dollars in thousands) 2022 2021 Notes receivable $ 32,705 $ 26,000 Accounts and interest receivables 2,679 2,116 Straight-line rent receivables 15,429 11,968 Prepaid assets 980 701 Deferred financing costs, net 683 896 Leasing commissions, net 1,848 1,239 Deferred tax assets, net 306 348 Fair value of interest rate swaps 22,667 343 Above-market lease intangible assets, net 2,399 611 Sales-type lease receivable 3,035 3,031 Financing right-of-use asset 2,545 1,870 Operating lease right-of-use assets 759 788 Other 496 426 $ 86,531 $ 50,337 |
Schedule of VIEs | The VIEs that we have identified at December 31, 2022 are summarized in the table below. Classification Carrying Amount (in thousands) Maximum Exposure to Loss (in thousands) Note receivable (term loan) $9,000 $9,000 Note receivable (term loan) $17,000 $17,000 Note receivable (revolving credit facility) $5,000 $5,000 Note receivable (revolving credit facility) $1,705 $1,705 |
Other Liabilities, net (Tables)
Other Liabilities, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other liabilities | Other liabilities on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021 are detailed in the table below. December 31, (Dollars in thousands) 2022 2021 Prepaid rent $ 3,853 $ 3,791 Security deposits 5,766 4,640 Below-market lease intangibles, net 1,075 616 Fair value of interest rate swaps — 5,324 Financing lease liability 3,279 2,973 Operating lease liability 786 795 Other 478 512 $ 15,237 $ 18,651 |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of deferred financings costs and various real estate acquisition lease intangibles | The Company has deferred financing costs and various real estate acquisition lease intangibles included in its Consolidated Balance Sheets as of December 31, 2022 and 2021 as detailed in the table below. The Company did not have any indefinite lived intangible assets or liabilities as of December 31, 2022 and 2021. Gross Balance at Accumulated Amortization at December 31, Weighted (Dollars in thousands) 2022 2021 2022 2021 Remaining Balance Sheet Classification Deferred financing costs-Revolving Credit Facility $ 3,042 $ 3,042 $ 2,359 $ 2,146 3.3 Other assets, net Deferred financing costs-Term Loans 2,551 2,377 627 972 5.9 Debt, net Deferred financing costs-Mortgage Note Payable 108 108 81 61 1.3 Debt, net Above-market lease intangibles 2,938 960 539 349 5.8 Other assets, net Below-market lease intangibles (2,779) (2,129) (1,703) (1,513) 5.5 Other liabilities, net At-market lease intangibles 93,618 84,562 66,320 57,841 4.5 Real estate properties Total intangibles $ 99,478 $ 88,920 $ 68,223 $ 59,856 4.8 |
Schedule of expected future amortization expense, net | Expected future amortization, net, for the next five years of the Company's intangible assets and liabilities, in place as of December 31, 2022 are included in the table below. (in thousands) Amortization, net 2023 $ 9,030 2024 $ 7,547 2025 $ 5,394 2026 $ 3,191 2027 $ 1,899 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by balance sheet grouping | The table below details the fair values and carrying values for our mortgage note and notes receivable and interest rate swaps at December 31, 2022 and 2021 using Level 2 inputs. December 31, 2022 December 31, 2021 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Notes receivable $ 32,705 $ 32,716 $ 26,000 $ 25,869 Interest rate swap asset $ 22,667 $ 22,667 $ 343 $ 343 Interest rate swap liability $ — $ — $ 5,324 $ 5,324 Mortgage note payable $ 4,947 $ 4,761 $ 5,076 $ 5,129 |
Other Data (Tables)
Other Data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Data [Abstract] | |
Provision for income taxes | Income tax expense and state income tax payments, net of refunds, are as follows for the years ended December 31, 2022, 2021, and 2020. Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Current $ 97 $ 129 $ 99 Deferred 41 167 80 Total income tax expense $ 138 $ 296 $ 179 Income tax payments, net of refunds $ 120 $ 109 $ 78 |
Schedule of deferred tax assets and liabilities | The tax effect of temporary differences included in the net deferred tax assets at December 31, 2022 and 2021 are as follows: December 31, (Dollars in thousands) 2022 2021 Deferred tax assets (liabilities): Net operating losses $ 1,349 $ 1,311 Deferred stock-based compensation 7,008 4,749 Valuation allowance (1,406) (1,338) Other, net (6,645) (4,374) Total net deferred tax assets $ 306 $ 348 |
Reconciliation of consolidated net income to taxable income | The following table reconciles the Company’s net income to taxable income for the years ended December 31, 2022, 2021 and 2020. Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Net income $ 22,019 $ 22,492 $ 19,077 Reconciling items to taxable income: Depreciation and amortization 11,493 11,121 9,191 Gain on sale of real estate — 36 1 Impairment — — (5,000) Straight-line rent (3,265) (3,522) (3,415) Receivable allowance — (25) (257) Stock-based compensation 5,681 3,872 2,280 Deferred rent 61 1,196 565 Deferred income taxes 41 166 80 Other (17) (68) (81) 13,994 12,776 3,364 Taxable income (1) $ 36,013 $ 35,268 $ 22,441 Dividends paid (2) $ 41,642 $ 40,092 $ 36,192 __________ (1) Before REIT dividends paid deduction. (2) Net of dividends paid on restricted stock included as a reconciling item. |
Characterization of common stock distributions | The following table shows the characterization of the distributions on the Company's common stock for the years ended December 31, 2022, 2021 and 2020. No preferred shares have been issued by the Company and no dividends have been paid to date relating to preferred shares. 2022 2021 2020 Per Share % Per Share % Per Share % Common stock: Ordinary income $ 1.575094 89.2 % $ 1.537982 89.2 % $ 1.297410 77.0 % Return of capital $ 0.189906 10.8 % $ 0.175047 10.1 % $ 0.387590 23.0 % Capital gain $ — — % $ 0.011971 0.7 % $ — — % Common stock distributions $ 1.765000 100.0 % $ 1.725000 100.0 % $ 1.685000 100.0 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Business Overview (Details) $ in Thousands, ft² in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) ft² state real_estate_property | Dec. 31, 2021 USD ($) | |
Accounting Policies [Abstract] | ||
Total real estate properties | $ | $ 946,183 | |
Number of real estate properties | real_estate_property | 174 | |
Number of properties held for investment in financing lease | real_estate_property | 1 | |
Lease receivable | $ | $ 3,035 | $ 3,031 |
Number of states in which real estate investments are in | state | 34 | |
Area of real estate property (in square feet) | ft² | 3.8 | |
Percentage leased | 91.70% | |
Remaining lease term | 7 years 7 months 6 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Segment Reporting/Long-lived Asset Impairments (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) reporting_unit | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounting Policies [Abstract] | |||
Number of reporting units | reporting_unit | 1 | ||
Asset impairment charges | $ | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 11,233 | $ 2,351 | ||
Restricted cash | 835 | 516 | ||
Cash, cash equivalents and restricted cash | $ 12,068 | $ 2,867 | $ 2,892 | $ 2,023 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Lease Accounting/Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) lease real_estate_property | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounting Policies [Abstract] | |||
Number of finance lease property | real_estate_property | 1 | ||
Number of operating leases | 4 | ||
Number of finance leases | 2 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets, net | Other assets, net | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities, net | Other liabilities, net | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities, net | Other liabilities, net | |
Interest and penalties related to uncertain tax positions | $ | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Share-Based Compensation (Details) - 2014 Incentive Plan | 12 Months Ended |
Dec. 31, 2022 program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of programs under plan | 3 |
Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized, percentage of common stock outstanding | 7% |
Real Estate Investments - Addit
Real Estate Investments - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) real_estate_property | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Real Estate [Abstract] | |||
Total real estate properties | $ 946,183 | ||
Number of real estate properties | real_estate_property | 174 | ||
Number of properties held for investment in financing lease | real_estate_property | 1 | ||
Lease receivable | $ 3,035 | $ 3,031 | |
Depreciation and amortization | $ 32,339 | $ 30,401 | $ 25,378 |
Real Estate Investments - Sched
Real Estate Investments - Schedule of Real Estate Property Investments (Details) $ in Thousands | Dec. 31, 2022 USD ($) real_estate_property |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 174 |
Total real estate properties | $ | $ 946,183 |
Everest Rehabilitation | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 4 |
Total real estate properties | $ | $ 80,658 |
US Healthvest | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 3 |
Total real estate properties | $ | $ 77,964 |
All Others | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 167 |
Total real estate properties | $ | $ 787,561 |
Texas | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 15 |
Total real estate properties | $ | $ 138,657 |
Illinois | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 16 |
Total real estate properties | $ | $ 121,393 |
Ohio | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 24 |
Total real estate properties | $ | $ 105,384 |
Florida | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 22 |
Total real estate properties | $ | $ 93,443 |
All Others | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 97 |
Total real estate properties | $ | $ 487,306 |
Medical office buildings | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 75 |
Total real estate properties | $ | $ 343,508 |
Inpatient Rehabilitation Facilities | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 7 |
Total real estate properties | $ | $ 151,234 |
Acute Inpatient Behavioral | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 5 |
Total real estate properties | $ | $ 130,410 |
Specialty Centers | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 37 |
Total real estate properties | $ | $ 119,504 |
Physician Clinics | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 30 |
Total real estate properties | $ | $ 86,451 |
Surgical centers and hospitals | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 10 |
Total real estate properties | $ | $ 55,746 |
Behavioral specialty facilities | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | real_estate_property | 9 |
Total real estate properties | $ | $ 44,393 |
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 Investments - Sch_2
Real Estate Investments - Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 2 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 20 years |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 7 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 50 years |
Building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 39 years 9 months 18 days |
Tenant improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 1 year 9 months 18 days |
Tenant improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 15 years 1 month 6 days |
Lease intangibles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 1 year 3 months 18 days |
Lease intangibles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 13 years 8 months 12 days |
Personal property | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Life used for depreciation | 3 years |
Personal property | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 10 years |
Life used for depreciation | 10 years |
Real Estate Leases - Future Min
Real Estate Leases - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 87,196 |
2024 | 82,225 |
2025 | 76,255 |
2026 | 68,583 |
2027 | 63,253 |
2028 and thereafter | 361,797 |
Lease payments | $ 739,309 |
Real Estate Leases - Additional
Real Estate Leases - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) real_estate_property lease | Dec. 31, 2021 USD ($) tenant | Dec. 31, 2020 USD ($) | |
Concentration Risk [Line Items] | |||
Percentage leased | 91.70% | ||
Remaining lease term | 7 years 7 months 6 days | ||
Number of tenants exercising a purchase option | tenant | 2 | ||
Real estate investment property, net | $ | $ 777,826 | $ 701,029 | |
Number of real estate properties | real_estate_property | 174 | ||
Straight line rent | $ | $ 3,400 | 3,600 | $ 3,200 |
Number of properties held for investment in financing lease | real_estate_property | 1 | ||
Lease liabilities | $ | $ 3,279 | $ 2,973 | |
Interest income | $ | $ 300 | ||
Number of operating leases | lease | 4 | ||
Number of finance leases | lease | 2 | ||
Texas | |||
Concentration Risk [Line Items] | |||
Number of real estate properties | real_estate_property | 15 | ||
Ohio | |||
Concentration Risk [Line Items] | |||
Number of real estate properties | real_estate_property | 24 | ||
Illinois | |||
Concentration Risk [Line Items] | |||
Number of real estate properties | real_estate_property | 16 | ||
Geographic Concentration Risk | Revenue | United States | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 42% | 29.50% | 29.60% |
Geographic Concentration Risk | Revenue | Texas | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.40% | 16.10% | 15.90% |
Geographic Concentration Risk | Revenue | Ohio | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.90% | ||
Geographic Concentration Risk | Revenue | Illinois | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.70% | 13.40% | 13.70% |
Five Real Estate Properties | |||
Concentration Risk [Line Items] | |||
Real estate investment property, net | $ | $ 28,100 | ||
Number of real estate properties | real_estate_property | 5 | ||
Other liabilities, net | |||
Concentration Risk [Line Items] | |||
Deferred revenue | $ | $ 3,900 | $ 3,800 |
Real Estate Leases - Future Lea
Real Estate Leases - Future Lease Payments Under Non-prepaid Ground Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating | ||
2023 | $ 42 | |
2024 | 43 | |
2025 | 44 | |
2026 | 44 | |
2027 | 45 | |
2028 and thereafter | 1,148 | |
Total undiscounted lease payments | 1,366 | |
Discount | (580) | |
Operating lease liability | 786 | $ 795 |
Financing | ||
2023 | 141 | |
2024 | 154 | |
2025 | 154 | |
2026 | 154 | |
2027 | 154 | |
2028 and thereafter | 6,956 | |
Total undiscounted lease payments | 7,713 | |
Discount | (4,434) | |
Lease liabilities | $ 3,279 | $ 2,973 |
Real Estate Leases - Lease Rece
Real Estate Leases - Lease Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 336 | |
2024 | 346 | |
2025 | 356 | |
2026 | 367 | |
2027 | 378 | |
2028 and thereafter | 5,210 | |
Total undiscounted lease receivable | 6,993 | |
Discount | (3,958) | |
Lease receivable | $ 3,035 | $ 3,031 |
Real Estate Leases - Ground Lea
Real Estate Leases - Ground Leases (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
Weighted-average remaining lease term in years (including renewal options) | 36 years 3 months 18 days | 37 years |
Weighted-average discount rate | 4% | 4% |
Financing leases: | ||
Weighted-average remaining lease term in years (including renewal options) | 40 years 9 months 18 days | 37 years |
Weighted-average discount rate | 4.20% | 4.10% |
Real Estate Acquisitions and _3
Real Estate Acquisitions and Dispositions - Additional Information (Details) ft² in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 USD ($) ft² | Dec. 31, 2022 USD ($) ft² real_estate_property | Dec. 31, 2021 USD ($) hospital | |
2021 Real Estate Disposition | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (loss) on sales of real estate | $ 0.2 | ||
Medical office buildings | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Area of property sold | ft² | 30 | 30 | |
Disposal consideration | $ 1.3 | $ 1.3 | |
Acquisitions of Properties During 2022 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of real estate properties acquired | real_estate_property | 18 | ||
Percentage of properties that were leased at acquisition | 98.90% | ||
Pro forma information, revenue of acquiree since acquisition date, actual | $ 3.2 | ||
Pro forma information, earnings or loss of acquiree since acquisition date, actual | 1.9 | ||
Transaction costs | $ 1.4 | ||
Acquisition of Properties During 2021 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of real estate properties acquired | hospital | 13 | ||
Percentage of properties that were leased at acquisition | 98.30% | ||
Pro forma information, revenue of acquiree since acquisition date, actual | $ 7.3 | ||
Pro forma information, earnings or loss of acquiree since acquisition date, actual | 3.7 | ||
Transaction costs | $ 0.8 |
Real Estate Acquisitions and _4
Real Estate Acquisitions and Dispositions - Real Estate Acquisitions (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) ft² | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Square Footage (in square feet) | ft² | 3,800,000 | |
Acquisitions of Properties During 2022 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 97,072 | |
Cash Consideration | 96,691 | |
Real Estate | 96,729 | |
Other | $ (38) | |
Square Footage (in square feet) | ft² | 422,824 | |
Acquisitions of Properties During 2022 | Toledo, OH | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 2,606 | |
Cash Consideration | 2,621 | |
Real Estate | 2,735 | |
Other | $ (114) | |
Square Footage (in square feet) | ft² | 17,465 | |
Acquisitions of Properties During 2022 | Fremont, NE | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 3,232 | |
Cash Consideration | 3,224 | |
Real Estate | 3,443 | |
Other | $ (219) | |
Square Footage (in square feet) | ft² | 12,850 | |
Acquisitions of Properties During 2022 | Cincinnati, OH | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 23,500 | |
Cash Consideration | 22,826 | |
Real Estate | 23,558 | |
Other | $ (732) | |
Square Footage (in square feet) | ft² | 37,720 | |
Acquisitions of Properties During 2022 | Marne, MI | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 13,238 | |
Cash Consideration | 12,986 | |
Real Estate | 13,415 | |
Other | $ (429) | |
Square Footage (in square feet) | ft² | 96,886 | |
Acquisitions of Properties During 2022 | Des Moines, IA | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 4,272 | |
Cash Consideration | 4,313 | |
Real Estate | 3,818 | |
Other | $ 495 | |
Square Footage (in square feet) | ft² | 17,318 | |
Acquisitions of Properties During 2022 | Brook Park, OH | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 2,200 | |
Cash Consideration | 2,187 | |
Real Estate | 2,256 | |
Other | $ (69) | |
Square Footage (in square feet) | ft² | 16,802 | |
Acquisitions of Properties During 2022 | Rockville, MD | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 13,937 | |
Cash Consideration | 14,180 | |
Real Estate | 14,133 | |
Other | $ 47 | |
Square Footage (in square feet) | ft² | 94,491 | |
Acquisitions of Properties During 2022 | Cape Coral, FL | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 4,635 | |
Cash Consideration | 4,683 | |
Real Estate | 4,563 | |
Other | $ 120 | |
Square Footage (in square feet) | ft² | 12,130 | |
Acquisitions of Properties During 2022 | Cape Coral, FL | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 400 | |
Cash Consideration | 410 | |
Real Estate | 394 | |
Other | $ 16 | |
Square Footage (in square feet) | ft² | 2,023 | |
Acquisitions of Properties During 2022 | Cape Coral, FL | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 990 | |
Cash Consideration | 998 | |
Real Estate | 1,039 | |
Other | $ (41) | |
Square Footage (in square feet) | ft² | 6,379 | |
Acquisitions of Properties During 2022 | Fort Myers, FL | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 6,520 | |
Cash Consideration | 6,583 | |
Real Estate | 6,143 | |
Other | $ 440 | |
Square Footage (in square feet) | ft² | 22,104 | |
Acquisitions of Properties During 2022 | Fort Myers, FL | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 3,325 | |
Cash Consideration | 3,360 | |
Real Estate | 3,246 | |
Other | $ 114 | |
Square Footage (in square feet) | ft² | 16,000 | |
Acquisitions of Properties During 2022 | Fort Myers, FL | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 4,510 | |
Cash Consideration | 4,556 | |
Real Estate | 4,578 | |
Other | $ (22) | |
Square Footage (in square feet) | ft² | 10,832 | |
Acquisitions of Properties During 2022 | Fort Myers, FL | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 4,265 | |
Cash Consideration | 4,308 | |
Real Estate | 4,142 | |
Other | $ 166 | |
Square Footage (in square feet) | ft² | 9,376 | |
Acquisitions of Properties During 2022 | Fort Myers, FL | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 133 | |
Cash Consideration | 139 | |
Real Estate | 141 | |
Other | $ (2) | |
Square Footage (in square feet) | ft² | 1,201 | |
Acquisitions of Properties During 2022 | Show Low, AZ | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 840 | |
Cash Consideration | 841 | |
Real Estate | 844 | |
Other | $ (3) | |
Square Footage (in square feet) | ft² | 4,437 | |
Acquisitions of Properties During 2022 | Show Low, AZ | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 4,122 | |
Cash Consideration | 4,105 | |
Real Estate | 4,170 | |
Other | $ (65) | |
Square Footage (in square feet) | ft² | 22,410 | |
Acquisitions of Properties During 2022 | Show Low, AZ | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 4,347 | |
Cash Consideration | 4,371 | |
Real Estate | 4,111 | |
Other | $ 260 | |
Square Footage (in square feet) | ft² | 22,400 | |
Acquisition of Properties During 2021 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 88,364 | |
Cash Consideration | 88,099 | |
Real Estate | 90,305 | |
Other | $ (2,206) | |
Square Footage (in square feet) | ft² | 329,219 | |
Acquisition of Properties During 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 2021 | Cincinnati, OH | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 4,167 | |
Cash Consideration | 3,494 | |
Real Estate | 4,336 | |
Other | $ (842) | |
Square Footage (in square feet) | ft² | 43,599 | |
Acquisition of Properties During 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 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 | 3,164 | |
Other | $ (22) | |
Square Footage (in square feet) | ft² | 15,820 | |
Acquisition of Properties During 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 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 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 | |
Acquisition of Properties During 2021 | Pittsburgh, PA | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 5,347 | |
Cash Consideration | 5,420 | |
Real Estate | 6,556 | |
Other | $ (1,136) | |
Square Footage (in square feet) | ft² | 34,077 | |
Acquisition of Properties During 2021 | Houston, TX | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 3,737 | |
Cash Consideration | 3,732 | |
Real Estate | 3,755 | |
Other | $ (23) | |
Square Footage (in square feet) | ft² | 14,360 | |
Acquisition of Properties During 2021 | Belcamp, MD | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 5,538 | |
Cash Consideration | 5,568 | |
Real Estate | 5,698 | |
Other | $ (130) | |
Square Footage (in square feet) | ft² | 23,388 | |
Acquisition of Properties During 2021 | Marion, OH | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 3,506 | |
Cash Consideration | 3,517 | |
Real Estate | 3,497 | |
Other | $ 20 | |
Square Footage (in square feet) | ft² | 27,246 | |
Acquisition of Properties During 2021 | Columbus, OH | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 2,613 | |
Cash Consideration | 2,653 | |
Real Estate | 2,673 | |
Other | $ (20) | |
Square Footage (in square feet) | ft² | 16,751 | |
Acquisition of Properties During 2021 | Lancaster, CA | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase Price | $ 3,676 | |
Cash Consideration | 3,708 | |
Real Estate | 3,723 | |
Other | $ (15) | |
Square Footage (in square feet) | ft² | 10,646 |
Real Estate Acquisitions and _5
Real Estate Acquisitions and Dispositions - Assets Acquired and Liabilities Assumed (Details) - Series of Individually Immaterial Business Acquisitions - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||
Land and land improvements | $ 19,405 | $ 13,142 |
Building and building improvements | 68,268 | 69,143 |
Intangibles: | ||
Below-market lease intangibles | $ (649) | $ (172) |
Below-market lease intangibles, useful life (in years) | 5 years 3 months 18 days | 4 years 6 months |
Total intangibles | $ 10,384 | $ 8,077 |
Accounts receivable and other assets acquired | 800 | 52 |
Accounts payable, accrued liabilities and other liabilities acquired | (2,015) | (982) |
Financing right-of-use lease asset acquired | 728 | 1,898 |
Financing lease liability acquired | (308) | (2,971) |
Prorated rent, interest and operating expense reimbursement amounts collected | (571) | (260) |
Total cash consideration | 96,691 | 88,099 |
At-market lease intangibles | ||
Intangibles: | ||
Lease intangibles | $ 9,056 | $ 8,100 |
Intangibles useful life (in years) | 6 years 7 months 6 days | 4 years 1 month 6 days |
Above-market lease intangibles | ||
Intangibles: | ||
Lease intangibles | $ 1,977 | $ 149 |
Intangibles useful life (in years) | 6 years 3 months 18 days | 4 years 10 months 24 days |
Land and Land Improvements | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||
Estimated useful life (in years) | 10 years 1 month 6 days | 11 years 10 months 24 days |
Building and Improvements | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||
Estimated useful life (in years) | 34 years 6 months | 40 years 3 months 18 days |
Debt, net - Schedule of Debt (D
Debt, net - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt, net | $ 352,997 | $ 265,625 |
Term Loan | Third Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 350,000 | |
Mortgage Note Payable | ||
Debt Instrument [Line Items] | ||
Debt, net | 4,920 | 5,029 |
Revolving Credit Facility | Line of Credit | Third Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 0 | 12,000 |
A-2 Term Loan, net | Term Loan | Third Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 0 | 49,813 |
A-3 Term Loan, net | Term Loan | Third Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 74,609 | 74,487 |
A-4 Term Loan, net | Term Loan | Third Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 124,409 | 124,296 |
A-5 Term Loan, net | Term Loan | Third Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | $ 149,059 | $ 0 |
Debt, net - Narrative (Details)
Debt, net - Narrative (Details) | Dec. 14, 2022 USD ($) option | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2018 USD ($) |
Line of Credit Facility [Line Items] | ||||
Amount outstanding | $ 352,997,000 | $ 265,625,000 | ||
Carrying value of property | 777,826,000 | 701,029,000 | ||
Mortgage Note Payable | ||||
Line of Credit Facility [Line Items] | ||||
Face amount | $ 5,400,000 | |||
Amount outstanding | $ 4,920,000 | 5,029,000 | ||
Fixed interest rate | 4.98% | |||
Repayment year one | $ 100,000 | |||
Repayment year two | 4,800,000 | |||
Unamortized loan costs | 27,000 | 47,000 | ||
Mortgage Note Payable | Buildings | ||||
Line of Credit Facility [Line Items] | ||||
Carrying value of property | 6,500,000 | |||
Third Amended and Restated Credit Facility | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | $ 350,000,000 | |||
Weighted average interest rate percentage | 4.27% | |||
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 | 0.45% | |||
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 | |||
Repayment of debt amount | $ 85,000,000 | |||
Number of options to extend | option | 1 | |||
Length of extension | 12 months | |||
Amount outstanding | $ 0 | 12,000,000 | ||
Remaining borrowing capacity | 150,000,000 | |||
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 | Credit Facility, Accordion Feature | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 700,000,000 | |||
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 | 124,409,000 | 124,296,000 | ||
Third Amended and Restated Credit Facility | A-3 Term Loan, net | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Face amount | $ 75,000,000 | |||
Amount outstanding | 74,609,000 | 74,487,000 | ||
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 | 0 | 49,813,000 | ||
Third Amended and Restated Credit Facility | A-5 Term Loan, net | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Debt term | 7 years 3 months | |||
Face amount | $ 150,000,000 | |||
Amount outstanding | $ 149,059,000 | $ 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% | |||
Third Amended and Restated Credit Facility | Term Loan | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 350,000,000 | |||
Third Amended And Restated Credit Facility, First Amendment | Base Rate | Minimum | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 0.65% | |||
Third Amended And Restated Credit Facility, First Amendment | Base Rate | Maximum | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 1.30% | |||
Third Amended And Restated Credit Facility, First Amendment | SOFR | Minimum | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 1.65% | |||
Third Amended And Restated Credit Facility, First Amendment | SOFR | Maximum | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 2.30% | |||
Third Amended And Restated Credit Facility, First Amendment | Simple SOFR | Maximum | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 0.10% | |||
Third Amended And Restated Credit Facility, First Amendment | 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, First Amendment | 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, First Amendment | Revolving Credit Facility | SOFR | Minimum | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 1.25% | |||
Third Amended And Restated Credit Facility, First Amendment | Revolving Credit Facility | SOFR | Maximum | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate percentage | 1.90% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) derivative_instrument | |
Derivative [Line Items] | |
Cash flow hedges reclassified to interest expense | $ 9,100,000 |
Cash Flow Hedging | Interest Rate Contract | |
Derivative [Line Items] | |
Number outstanding interest rate derivatives | derivative_instrument | 17 |
Notional amount | $ 350,000,000 |
Cash Flow Hedging | Interest rate swaps | |
Derivative [Line Items] | |
Number outstanding interest rate derivatives | derivative_instrument | 2 |
Notional amount | $ 50,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Fair value of interest rate swaps | $ 22,667 | $ 343 |
Interest rate swap liability | $ 0 | $ 5,324 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities, net | Other liabilities, net |
Cash Flow Hedging | Interest rate swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of interest rate swaps | $ 22,667 | $ 343 |
Interest rate swap liability | $ 0 | $ 5,324 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Cash Flow Hedging (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense |
Interest Rate Contract | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of unrealized gain recognized in OCI on derivative | $ 27,380 | $ 2,410 |
Total interest expense presented in the Consolidated Statements of Income in which the effects of the cash flow hedges are recorded | 11,873 | 10,542 |
Interest Rate Contract | Cash Flow Hedging | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of loss reclassified from AOCI into interest expense | $ 267 | $ 4,456 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Offsetting of Derivative Assets and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | $ 22,667 | $ 343 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets in the Consolidated Balance Sheets | 22,667 | 343 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 0 | (247) |
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 | 22,667 | 96 |
Derivative Liability [Abstract] | ||
Gross Amounts of Recognized Liabilities | 0 | (5,324) |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities in the Consolidated Balance Sheets | 0 | (5,324) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 0 | 247 |
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 | $ 0 | $ (5,077) |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Common Stock (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance, beginning of period (in shares) | 24,983 | 23,888 | 21,411 |
Issuance of common stock (in shares) | 600 | 823 | 2,207 |
Restricted stock issued (in shares) | 318 | 273 | 270 |
Restricted stock forfeited (in shares) | (4) | (1) | 0 |
Balance, end of period (in shares) | 25,897 | 24,983 | 23,888 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - Common Stock - At The Market Offering Program $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Class of Stock [Line Items] | |
Value of shares authorized | $ 500 |
Sale Of Stock, Shares Available For Future Issuance, Value | $ 479 |
Stockholders' Equity - ATM Prog
Stockholders' Equity - ATM Program (Details) - Common Stock - At The Market Offering Program - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Sale of stock, number of shares issued in transaction (in shares) | 600 | 823 | 2,207 |
Net proceeds received | $ 20.5 | $ 38.4 | $ 98 |
Average gross sales price per share (in dollars per share) | $ 34.94 | $ 47.68 | $ 45.29 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared (Details) - $ / shares | 12 Months Ended | ||||||||||
Nov. 25, 2022 | Aug. 26, 2022 | May 27, 2022 | Mar. 01, 2022 | Nov. 26, 2021 | Aug. 27, 2021 | May 28, 2021 | Mar. 05, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||||||||||
Dividends paid per common share (in dollars per share) | $ 0.4450 | $ 0.4425 | $ 0.4400 | $ 0.4375 | $ 0.4350 | $ 0.4325 | $ 0.4300 | $ 0.4275 | $ 1.765000 | $ 1.725 | $ 1.685000 |
Income Per Common Share (Detail
Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income | $ 22,019 | $ 22,492 | $ 19,077 |
Participating securities' share in earnings | (2,847) | (2,314) | (1,842) |
Net income, less participating securities' share in earnings | $ 19,172 | $ 20,178 | $ 17,235 |
Weighted Average Common Shares Outstanding | |||
Weighted average common shares outstanding (in shares) | 25,218 | 24,583 | 22,647 |
Unvested restricted stock (in shares) | (1,587) | (1,320) | (1,071) |
Weighted average common shares outstanding–Basic (in shares) | 23,631 | 23,263 | 21,576 |
Weighted average common shares–Basic (in shares) | 23,631 | 23,263 | 21,576 |
Dilutive potential common shares (in shares) | 0 | 0 | 0 |
Weighted average common shares outstanding –Diluted (in shares) | 23,631 | 23,263 | 21,576 |
Basic income per common share (in dollars per share) | $ 0.81 | $ 0.87 | $ 0.80 |
Diluted income per common share (in dollars per share) | $ 0.81 | $ 0.87 | $ 0.80 |
Stock Incentive Plans - 2014 In
Stock Incentive Plans - 2014 Incentive Plan/Officer Incentive Program (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
2014 Incentive Plan | Restricted Common Stock | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
2014 Incentive Plan | Restricted Common Stock | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 8 years |
2014 Incentive Plan | Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized, percentage of common stock outstanding | 7% |
Shares authorized to be issued (in shares) | 1,748,775 |
Number of shares issued (in shares) | 1,280,548 |
Numbers of shares remaining under plan (in shares) | 468,227 |
Officer Incentive Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Stockholder return performance period 1 | 3 years |
Total Stockholder return performance period 2 | 5 years |
Stock Incentive Plans - Alignme
Stock Incentive Plans - Alignment of Interest Program (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
2014 Incentive Plan | Restricted Common Stock | Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of base salary deferred | 100% |
2014 Incentive Plan | Restricted Common Stock | Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of director fees deferred | 100% |
2014 Incentive Plan | Period 1 | Restricted Common Stock | Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Company match vesting percentage | 30% |
2014 Incentive Plan | Period 1 | Restricted Common Stock | Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Company match vesting percentage | 20% |
2014 Incentive Plan | Period 2 | Restricted Common Stock | Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 5 years |
Company match vesting percentage | 50% |
2014 Incentive Plan | Period 2 | Restricted Common Stock | Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 2 years |
Company match vesting percentage | 40% |
2014 Incentive Plan | Period 3 | Restricted Common Stock | Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 8 years |
Company match vesting percentage | 100% |
2014 Incentive Plan | Period 3 | Restricted Common Stock | Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Company match vesting percentage | 60% |
Common Stock | 2014 Incentive Plan, Restated Alignment Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized to be issued (in shares) | 1,000,000 |
Number of shares issued (in shares) | 526,574 |
Numbers of shares remaining under plan (in shares) | 473,426 |
Common Stock | 2014 Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized to be issued (in shares) | 1,748,775 |
Number of shares issued (in shares) | 1,280,548 |
Numbers of shares remaining under plan (in shares) | 468,227 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Activity Under Incentive Plan (Details) - 2014 Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Common Stock | |||
Stock-based awards: | |||
Stock-based awards, beginning of year (in shares) | 1,416,000 | 1,164,000 | 910,000 |
Granted (in shares) | 318,000 | 273,000 | 270,000 |
Vested (in shares) | (22,000) | (20,000) | (16,000) |
Forfeited (in shares) | (4,000) | (1,000) | 0 |
Stock-based awards, end of year (in shares) | 1,708,000 | 1,416,000 | 1,164,000 |
Weighted average grant date fair value, per share, of: | |||
Stock-based awards, beginning of year (in dollars per share) | $ 33.89 | $ 31.04 | $ 26.75 |
Stock-based awards granted during the year (in dollars per share) | 41.45 | 48.48 | 45.83 |
Stock-based awards vested during the year (in dollars per share) | 23.54 | 26.52 | 25.13 |
Stock-based awards forfeited during the year (in dollars per share) | 41.87 | 49.81 | 0 |
Stock-based awards, end of year (in dollars per share) | $ 37.43 | $ 33.89 | $ 31.04 |
Grant date fair value of shares granted during the year | $ 13,232 | $ 13,251 | $ 12,398 |
Stock in lieu of compensation | |||
Stock-based awards: | |||
Granted (in shares) | 116,000 | 96,000 | 92,000 |
Stock awards | |||
Stock-based awards: | |||
Granted (in shares) | 202,000 | 177,000 | 178,000 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Adjustments to additional paid in capital, share-based compensation and exercise of stock options | $ 33.7 | $ 30.2 | |
Matching contribution, percent | 3.50% | ||
Matching contributions | $ 0.1 | 0.1 | $ 0.1 |
2014 Incentive Plan | Restricted Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining contractual terms | 7 years | ||
Compensation expense | $ 9.4 | $ 7.2 | $ 4.8 |
2014 Incentive Plan | Restricted Common Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
2014 Incentive Plan | Restricted Common Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 8 years |
Other Assets, net - Schedule of
Other Assets, net - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Notes receivable | $ 32,705 | $ 26,000 |
Accounts and interest receivables | 2,679 | 2,116 |
Straight-line rent receivables | 15,429 | 11,968 |
Prepaid assets | 980 | 701 |
Deferred financing costs, net | 683 | 896 |
Leasing commissions, net | 1,848 | 1,239 |
Deferred tax assets, net | 306 | 348 |
Fair value of interest rate swaps | 22,667 | 343 |
Above-market lease intangible assets, net | 2,399 | 611 |
Sales-type lease receivable | $ 3,035 | $ 3,031 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Financing right-of-use asset | $ 2,545 | $ 1,870 |
Operating lease right-of-use assets | 759 | 788 |
Other | 496 | 426 |
Other assets, net | $ 86,531 | $ 50,337 |
Other Assets, net - Narrative (
Other Assets, net - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) hospital | Dec. 31, 2021 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Notes receivable | $ 32,705,000 | $ 26,000,000 |
Notes Receivable | ||
Finite-Lived Intangible Assets [Line Items] | ||
Note receivable interest rate | 9% | |
Additional funding | $ 5,000,000 | |
Non-cash interest rate | 3% | |
Notes Receivable | Revolving Credit Facility | ||
Finite-Lived Intangible Assets [Line Items] | ||
Note receivable interest rate | 9% | |
Notes Receivable | Note Receivable 1 | ||
Finite-Lived Intangible Assets [Line Items] | ||
Notes receivable | $ 9,000,000 | |
Payment received | $ 250,000 | |
Note receivable interest rate | 9% | |
Note Receivable 1 | Variable Interest Entity, Not Primary Beneficiary | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | $ 15,000,000 | |
Notes receivable | 9,000,000 | |
Note Receivable 2 | Variable Interest Entity, Not Primary Beneficiary | ||
Finite-Lived Intangible Assets [Line Items] | ||
Notes receivable | 17,000,000 | |
Note Receivable 3 | Variable Interest Entity, Not Primary Beneficiary | ||
Finite-Lived Intangible Assets [Line Items] | ||
Notes receivable | 5,000,000 | |
Note Receivable 4 | Variable Interest Entity, Not Primary Beneficiary | ||
Finite-Lived Intangible Assets [Line Items] | ||
Notes receivable | 1,705,000 | |
Line Of Credit Receivable | Variable Interest Entity, Not Primary Beneficiary | ||
Finite-Lived Intangible Assets [Line Items] | ||
Notes receivable | $ 2,500,000 | |
Long-term Acute Care Hospitals (LTACH) | Note Receivable 1 | ||
Finite-Lived Intangible Assets [Line Items] | ||
Number of properties used to secure notes by borrower | hospital | 7 | |
Inpatient Rehabilitation Facilities (IRF) | Note Receivable 1 | ||
Finite-Lived Intangible Assets [Line Items] | ||
Number of properties used to secure notes by borrower | hospital | 1 | |
Geriatric Behavioral Hospital | ||
Finite-Lived Intangible Assets [Line Items] | ||
Number of properties used to secure notes by borrower | hospital | 6 |
Other Assets, net - VIEs (Detai
Other Assets, net - VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Notes receivable | $ 32,705 | $ 26,000 |
Variable Interest Entity, Not Primary Beneficiary | Note Receivable 1 | ||
Variable Interest Entity [Line Items] | ||
Notes receivable | 9,000 | |
Maximum Exposure to Loss | 9,000 | |
Variable Interest Entity, Not Primary Beneficiary | Note Receivable 2 | ||
Variable Interest Entity [Line Items] | ||
Notes receivable | 17,000 | |
Maximum Exposure to Loss | 17,000 | |
Variable Interest Entity, Not Primary Beneficiary | Note Receivable 3 | ||
Variable Interest Entity [Line Items] | ||
Notes receivable | 5,000 | |
Maximum Exposure to Loss | 5,000 | |
Variable Interest Entity, Not Primary Beneficiary | Note Receivable 4 | ||
Variable Interest Entity [Line Items] | ||
Notes receivable | 1,705 | |
Maximum Exposure to Loss | $ 1,705 |
Other Liabilities, net (Details
Other Liabilities, net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Prepaid rent | $ 3,853 | $ 3,791 |
Security deposits | 5,766 | 4,640 |
Below-market lease intangibles, net | 1,075 | 616 |
Fair value of interest rate swaps | $ 0 | $ 5,324 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities, net | Other liabilities, net |
Financing lease liability | $ 3,279 | $ 2,973 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities, net | Other liabilities, net |
Operating lease liability | $ 786 | $ 795 |
Other | 478 | 512 |
Other liabilities, net | $ 15,237 | $ 18,651 |
Intangible Assets and Liabili_3
Intangible Assets and Liabilities - Deferred Costs and Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Deferred financing costs and lease intangibles, Gross | $ 99,478 | $ 88,920 |
Deferred financing costs and lease intangibles, Accumulated Amortization | $ 68,223 | 59,856 |
Deferred financing costs and lease intangibles, Weighted Average Remaining Life | 4 years 9 months 18 days | |
Other assets, net | Above-market lease intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived lease intangibles, Gross | $ 2,938 | 960 |
Finite lived lease intangibles, Accumulated Amortization | $ 539 | 349 |
Finite lived lease intangibles, Weighted Average Remaining Life | 5 years 9 months 18 days | |
Other liabilities, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Below market lease intangibles, Gross | $ (2,779) | (2,129) |
Below market lease intangibles, Accumulated Amortization | $ (1,703) | (1,513) |
Below market lease intangibles, Weighted Average Remaining Life | 5 years 6 months | |
Real estate properties | At-market lease intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived lease intangibles, Gross | $ 93,618 | 84,562 |
Finite lived lease intangibles, Accumulated Amortization | $ 66,320 | 57,841 |
Finite lived lease intangibles, Weighted Average Remaining Life | 4 years 6 months | |
Line of Credit | Other assets, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred financing costs, Gross | $ 3,042 | 3,042 |
Deferred financing costs, Accumulated Amortization | $ 2,359 | 2,146 |
Deferred financing costs, Weighted Average Remaining Life | 3 years 3 months 18 days | |
Term Loan | Debt, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred financing costs, Gross | $ 2,551 | 2,377 |
Deferred financing costs, Accumulated Amortization | $ 627 | 972 |
Deferred financing costs, Weighted Average Remaining Life | 5 years 10 months 24 days | |
Mortgage Note Payable | Debt, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred financing costs, Gross | $ 108 | 108 |
Deferred financing costs, Accumulated Amortization | $ 81 | $ 61 |
Deferred financing costs, Weighted Average Remaining Life | 1 year 3 months 18 days |
Intangible Assets and Liabili_4
Intangible Assets and Liabilities - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible amortization expense | $ 9,000 | $ 9,400 | $ 8,100 |
2023 | 9,030 | ||
2024 | 7,547 | ||
2025 | 5,394 | ||
2026 | 3,191 | ||
2027 | $ 1,899 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) project | Dec. 31, 2021 USD ($) | |
Tenant Improvements Allowances | ||
Other Commitments [Line Items] | ||
Commitment | $ 12 | $ 10.4 |
Capital Improvements | ||
Other Commitments [Line Items] | ||
Commitment | 4.2 | $ 0.9 |
Redevelopment Projects | ||
Other Commitments [Line Items] | ||
Commitment | $ 2.9 | |
Number of projects | project | 5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable | $ 32,705 | $ 26,000 |
Fair value of interest rate swaps | 22,667 | 343 |
Interest rate swap liability | 0 | 5,324 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable | 32,705 | 26,000 |
Mortgage note payable | 4,947 | 5,076 |
Carrying Value | Interest Rate Swap | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of interest rate swaps | 22,667 | 343 |
Interest rate swap liability | 0 | 5,324 |
Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable | 32,716 | 25,869 |
Mortgage note payable | 4,761 | 5,129 |
Fair Value | Interest Rate Swap | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of interest rate swaps | 22,667 | 343 |
Interest rate swap liability | $ 0 | $ 5,324 |
Other Data - Narrative (Details
Other Data - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other Data [Abstract] | ||
Valuation allowance | $ 1,406,000 | $ 1,338,000 |
Gross real estate assets | $ 936,400,000 | $ 830,500,000 |
Preferred shares issued (in shares) | 0 | 0 |
Preferred shares dividends | $ 0 |
Other Data - Provision for Inco
Other Data - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Data [Abstract] | |||
Current | $ 97 | $ 129 | $ 99 |
Deferred | 41 | 167 | 80 |
Total income tax expense | 138 | 296 | 179 |
Income tax payments, net of refunds | $ 120 | $ 109 | $ 78 |
Other Data - Deferred Tax Asset
Other Data - Deferred Tax Asset And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Data [Abstract] | ||
Net operating losses | $ 1,349 | $ 1,311 |
Deferred stock-based compensation | 7,008 | 4,749 |
Valuation allowance | (1,406) | (1,338) |
Other, net | (6,645) | (4,374) |
Total net deferred tax assets | $ 306 | $ 348 |
Other Data - Net Income Reconci
Other Data - Net Income Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Data [Abstract] | |||
Net income | $ 22,019 | $ 22,492 | $ 19,077 |
Depreciation and amortization | 11,493 | 11,121 | 9,191 |
Gain on sale of real estate | 0 | 36 | 1 |
Impairment of note receivable | 0 | 0 | (5,000) |
Straight-line rent | (3,265) | (3,522) | (3,415) |
Receivable allowance | 0 | (25) | (257) |
Stock-based compensation | 5,681 | 3,872 | 2,280 |
Deferred rent | 61 | 1,196 | 565 |
Deferred income taxes | 41 | 166 | 80 |
Other | (17) | (68) | (81) |
Total reconciling items to taxable income | 13,994 | 12,776 | 3,364 |
Taxable income | 36,013 | 35,268 | 22,441 |
Dividends paid | $ 41,642 | $ 40,092 | $ 36,192 |
Other Data - Common Stock Distr
Other Data - Common Stock Distribution (Details) - $ / shares | 12 Months Ended | ||||||||||
Nov. 25, 2022 | Aug. 26, 2022 | May 27, 2022 | Mar. 01, 2022 | Nov. 26, 2021 | Aug. 27, 2021 | May 28, 2021 | Mar. 05, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Per Share | |||||||||||
Ordinary income (in dollars per share) | $ 1.575094 | $ 1.537982 | $ 1.297410 | ||||||||
Return of capital (in dollars per share) | 0.189906 | 0.175047 | 0.387590 | ||||||||
Capital gain (in dollars per share) | 0 | 0.011971 | 0 | ||||||||
Common stock distributions (in dollars per share) | $ 0.4450 | $ 0.4425 | $ 0.4400 | $ 0.4375 | $ 0.4350 | $ 0.4325 | $ 0.4300 | $ 0.4275 | $ 1.765000 | $ 1.725 | $ 1.685000 |
Percentage | |||||||||||
Ordinary income | 89.20% | 89.20% | 77% | ||||||||
Return of capital | 10.80% | 10.10% | 23% | ||||||||
Capital gain | 0% | 0.70% | 0% | ||||||||
Common stock distributions | 100% | 100% | 100% |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, ft² in Thousands, $ in Millions | 2 Months Ended | |||
Feb. 09, 2023 $ / shares | Jan. 16, 2023 shares | Feb. 14, 2023 USD ($) ft² real_estate_property | Dec. 31, 2022 ft² | |
Subsequent Event [Line Items] | ||||
Area of real estate property (in square feet) | ft² | 3,800 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Dividend declared (in dollars per share) | $ / shares | $ 0.4475 | |||
Number of real estate properties acquired | real_estate_property | 3 | |||
Area of real estate property (in square feet) | ft² | 99 | |||
Purchase Price | $ | $ 12.5 | |||
Percentage of properties that were leased at acquisition | 100% | |||
Restricted Common Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Restricted common stock granted (in shares) | 122,782 | |||
Restricted Common Stock | Subsequent Event | Minimum | ||||
Subsequent Event [Line Items] | ||||
Vesting period | 3 years | |||
Restricted Common Stock | Subsequent Event | Maximum | ||||
Subsequent Event [Line Items] | ||||
Vesting period | 8 years | |||
Restricted Common Stock | Non-Executive Officer | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Restricted common stock granted (in shares) | 5,689 | |||
Vesting period | 5 years | |||
Stock in lieu of compensation | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Restricted common stock granted (in shares) | 61,414 | |||
Stock awards | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Restricted common stock granted (in shares) | 61,368 |
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 | $ 75 | $ 100 | $ 357 |
Charged to Costs and Expenses | 9 | (25) | (156) |
Charged to Other Accounts | 0 | 0 | 0 |
Uncollectible Accounts Written-off | (9) | 0 | (101) |
Balance at End of Period | $ 75 | $ 75 | $ 100 |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation - Real Estate Properties (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) real_estate_property hospital | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | real_estate_property | 174 | |||
Land and Land Improvements | ||||
Initial Investment | $ 114,957 | |||
Costs Capitalized Subsequent to Acquisition | 2,700 | |||
Total | 117,657 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 786,075 | |||
Costs Capitalized Subsequent to Acquisition | 39,182 | |||
Total | 825,257 | |||
Personal Property | 253 | $ 223 | ||
Total Property | 943,167 | 834,085 | $ 735,359 | $ 602,852 |
Accumulated depreciation | 165,341 | 133,056 | $ 102,899 | $ 77,523 |
Encumbrances (Principal balance) | 4,947 | |||
Total real estate properties for federal income tax purposes | $ 936,400 | $ 830,500 | ||
Land improvements | Minimum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 2 years | |||
Land improvements | Maximum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 20 years | |||
Buildings | Minimum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 7 years | |||
Buildings | Maximum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 50 years | |||
Building improvements | Minimum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 3 years | |||
Building improvements | Maximum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 39 years 9 months 18 days | |||
Tenant improvements | Minimum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 1 year 9 months 18 days | |||
Tenant improvements | Maximum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 15 years 1 month 6 days | |||
Lease intangibles | Minimum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 1 year 3 months 18 days | |||
Lease intangibles | Maximum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 13 years 8 months 12 days | |||
Personal property | Minimum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 3 years | |||
Life used for depreciation | 3 years | |||
Personal property | Maximum | ||||
Buildings, Improvements, and Lease Intangibles | ||||
Property, Plant and Equipment, Useful Life (in years) | 10 years | |||
Life used for depreciation | 10 years | |||
Medical office buildings | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | real_estate_property | 75 | |||
Land and Land Improvements | ||||
Initial Investment | $ 52,249 | |||
Costs Capitalized Subsequent to Acquisition | 2,096 | |||
Total | 54,345 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 256,688 | |||
Costs Capitalized Subsequent to Acquisition | 29,503 | |||
Total | 286,191 | |||
Personal Property | 0 | |||
Total Property | 340,536 | |||
Accumulated depreciation | 79,176 | |||
Encumbrances (Principal balance) | $ 0 | |||
Physician Clinics (PC) | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | real_estate_property | 30 | |||
Land and Land Improvements | ||||
Initial Investment | $ 12,062 | |||
Costs Capitalized Subsequent to Acquisition | 402 | |||
Total | 12,464 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 71,721 | |||
Costs Capitalized Subsequent to Acquisition | 2,266 | |||
Total | 73,987 | |||
Personal Property | 0 | |||
Total Property | 86,451 | |||
Accumulated depreciation | 20,259 | |||
Encumbrances (Principal balance) | $ 0 | |||
Surgical centers and hospitals | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | real_estate_property | 10 | |||
Land and Land Improvements | ||||
Initial Investment | $ 4,317 | |||
Costs Capitalized Subsequent to Acquisition | 58 | |||
Total | 4,375 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 47,206 | |||
Costs Capitalized Subsequent to Acquisition | 4,165 | |||
Total | 51,371 | |||
Personal Property | 0 | |||
Total Property | 55,746 | |||
Accumulated depreciation | 14,353 | |||
Encumbrances (Principal balance) | $ 0 | |||
Specialty Centers | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | real_estate_property | 37 | |||
Land and Land Improvements | ||||
Initial Investment | $ 14,546 | |||
Costs Capitalized Subsequent to Acquisition | 118 | |||
Total | 14,664 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 103,078 | |||
Costs Capitalized Subsequent to Acquisition | 2,234 | |||
Total | 105,312 | |||
Personal Property | 0 | |||
Total Property | 119,976 | |||
Accumulated depreciation | 21,894 | |||
Encumbrances (Principal balance) | $ 0 | |||
Acute Inpatient Behavioral | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | real_estate_property | 5 | |||
Land and Land Improvements | ||||
Initial Investment | $ 10,720 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Total | 10,720 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 119,414 | |||
Costs Capitalized Subsequent to Acquisition | 275 | |||
Total | 119,689 | |||
Personal Property | 0 | |||
Total Property | 130,409 | |||
Accumulated depreciation | 13,043 | |||
Encumbrances (Principal balance) | $ 4,947 | |||
Behavioral specialty facilities | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | real_estate_property | 9 | |||
Land and Land Improvements | ||||
Initial Investment | $ 4,717 | |||
Costs Capitalized Subsequent to Acquisition | 26 | |||
Total | 4,743 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 39,629 | |||
Costs Capitalized Subsequent to Acquisition | 21 | |||
Total | 39,650 | |||
Personal Property | 0 | |||
Total Property | 44,393 | |||
Accumulated depreciation | 3,515 | |||
Encumbrances (Principal balance) | $ 0 | |||
Inpatient Rehabilitation Facilities (IRF) | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | real_estate_property | 7 | |||
Land and Land Improvements | ||||
Initial Investment | $ 15,910 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Total | 15,910 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 135,324 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Total | 135,324 | |||
Personal Property | 0 | |||
Total Property | 151,234 | |||
Accumulated depreciation | 8,555 | |||
Encumbrances (Principal balance) | $ 0 | |||
Long-term Acute Care Hospitals (LTACH) | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | real_estate_property | 1 | |||
Land and Land Improvements | ||||
Initial Investment | $ 523 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Total | 523 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 14,405 | |||
Costs Capitalized Subsequent to Acquisition | 9 | |||
Total | 14,414 | |||
Personal Property | 0 | |||
Total Property | 14,937 | |||
Accumulated depreciation | 3,808 | |||
Encumbrances (Principal balance) | $ 0 | |||
Total Real Estate | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | real_estate_property | 174 | |||
Land and Land Improvements | ||||
Initial Investment | $ 115,044 | |||
Costs Capitalized Subsequent to Acquisition | 2,700 | |||
Total | 117,744 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 787,465 | |||
Costs Capitalized Subsequent to Acquisition | 38,473 | |||
Total | 825,938 | |||
Personal Property | 0 | |||
Total Property | 943,682 | |||
Accumulated depreciation | 164,603 | |||
Encumbrances (Principal balance) | $ 4,947 | |||
Sales-type lease | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | hospital | 0 | |||
Land and Land Improvements | ||||
Initial Investment | $ 87 | |||
Total | 87 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 3,401 | |||
Total | 3,401 | |||
Total Property | $ 3,488 | |||
Corporate property | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | hospital | 0 | |||
Land and Land Improvements | ||||
Initial Investment | $ 0 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Total | 0 | |||
Buildings, Improvements, and Lease Intangibles | ||||
Initial Investment | 2,011 | |||
Costs Capitalized Subsequent to Acquisition | 709 | |||
Total | 2,720 | |||
Personal Property | 253 | |||
Total Property | 2,973 | |||
Accumulated depreciation | 738 | |||
Encumbrances (Principal balance) | $ 0 |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation - Reconciliation of Real Estate Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total Property | |||
Beginning Balance | $ 834,085 | $ 735,359 | $ 602,852 |
Acquisitions | 96,729 | 90,385 | 128,677 |
Other improvements | 12,353 | 9,520 | 7,891 |
Retirements/dispositions: | |||
Real estate | 0 | (1,179) | (573) |
Sales-type lease | 0 | 0 | (3,488) |
Ending Balance | 943,167 | 834,085 | 735,359 |
Accumulated Depreciation | |||
Beginning Balance | 133,056 | 102,899 | 77,523 |
Acquisitions | 1,034 | 2,740 | 2,419 |
Other improvements | 31,251 | 27,636 | 22,969 |
Retirements/dispositions: | |||
Real estate | 0 | (219) | (12) |
Sales-type lease | 0 | 0 | 0 |
Ending Balance | $ 165,341 | $ 133,056 | $ 102,899 |