Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | UNIVERSAL HEALTH REALTY INCOME TRUST | ||
Entity Central Index Key | 0000798783 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 13,757,503 | ||
Entity Public Float | $ 1.1 | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity File Number | 1-9321 | ||
Entity Tax Identification Number | 23-6858580 | ||
Entity Address, Address Line One | Universal Corporate Center | ||
Entity Address, Address Line Two | 367 South Gulph Road | ||
Entity Address, Address Line Three | P.O. Box 61558 | ||
Entity Address, City or Town | King of Prussia | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19406-0958 | ||
City Area Code | 610 | ||
Local Phone Number | 265-0688 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | MD | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Shares of beneficial interest, $0.01 par value | ||
Trading Symbol | UHT | ||
Security Exchange Name | NYSE | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for our 2020 Annual Meeting of Shareholders, which will be filed with the Securities and Exchange Commission within 120 days after December 31, 2019 (incorporated by reference under Part III). |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate Investments: | |||
Buildings and improvements and construction in progress | $ 572,503 | $ 557,650 | |
Accumulated depreciation | (194,888) | [1] | (173,316) |
Real Estate Investment Property, Net, Total | 377,615 | 384,334 | |
Land | 54,892 | 53,396 | |
Net Real Estate Investments | 432,507 | 437,730 | |
Investments in limited liability companies ("LLCs") | 6,918 | 5,019 | |
Other Assets: | |||
Cash and cash equivalents | 6,110 | 5,036 | |
Lease and other receivables from UHS | 2,963 | 2,739 | |
Lease receivable - other | 7,640 | 7,469 | |
Intangible assets (net of accumulated amortization of $26.5 million and $27.6 million, respectively) | 14,553 | 17,407 | |
Right-of-use land assets, net | 8,944 | ||
Deferred charges and other assets, net | 9,154 | 8,356 | |
Total Assets | 488,789 | 483,756 | |
Liabilities: | |||
Line of credit borrowings | 212,950 | 196,400 | |
Mortgage notes payable, non-recourse to us, net | 60,744 | [2] | 64,881 |
Accrued interest | 374 | 450 | |
Accrued expenses and other liabilities | 12,888 | 11,765 | |
Ground lease liabilities, net | 8,944 | ||
Tenant reserves, deposits and deferred and prepaid rents | 11,155 | 11,650 | |
Total Liabilities | 307,055 | 285,146 | |
Equity: | |||
Preferred shares of beneficial interest, $.01 par value; 5,000,000 shares authorized; none issued and outstanding | |||
Common shares, $.01 par value; 95,000,000 shares authorized; issued and outstanding: 2019 - 13,757,498; 2018 - 13,746,803 | 138 | 137 | |
Capital in excess of par value | 266,723 | 266,031 | |
Cumulative net income | 661,280 | 642,316 | |
Cumulative dividends | (747,417) | (710,006) | |
Accumulated other comprehensive income | 1,010 | 132 | |
Total Equity | 181,734 | 198,610 | |
Total Liabilities and Equity | $ 488,789 | $ 483,756 | |
[1] | The aggregate cost for federal income tax purposes is $606 million (unaudited) with a net book value of $382 million (unaudited). | ||
[2] | All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 26.5 | $ 27.6 |
Preferred shares of beneficial interest, par value | $ 0.01 | $ 0.01 |
Preferred shares of beneficial interest, shares authorized | 5,000,000 | 5,000,000 |
Preferred shares of beneficial interest, issued | 0 | 0 |
Preferred shares of beneficial interest, outstanding | 0 | 0 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 95,000,000 | 95,000,000 |
Common shares, issued | 13,757,498 | 13,746,803 |
Common shares, outstanding | 13,757,498 | 13,746,803 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues: | ||||
Revenues, Total | $ 77,163 | $ 76,210 | $ 72,348 | |
Expenses: | ||||
Depreciation and amortization | 25,870 | 24,976 | 25,116 | |
Other operating expenses | 21,569 | 20,723 | 19,511 | |
Transaction costs | 107 | |||
Hurricane related expenses | 4,967 | |||
Hurricane insurance recoveries | (4,967) | |||
Costs and Expenses, Total | 51,413 | 49,505 | 48,311 | |
Income before equity in income of unconsolidated limited liability companies ("LLCs"), interest expense, hurricane insurance recovery proceeds and gains on sales | 25,750 | 26,705 | 24,037 | |
Equity in income of unconsolidated LLCs | [1] | 1,796 | 1,771 | 2,416 |
Hurricane insurance recovery proceeds in excess of damaged property write-downs | 4,535 | 2,033 | ||
Hurricane business interruption insurance recovery proceeds | 1,162 | |||
Gains on sales of real estate assets | 1,951 | |||
Gain on Arlington transaction | 27,196 | |||
Interest expense, net | (10,533) | (9,977) | (10,063) | |
Net income | $ 18,964 | $ 24,196 | $ 45,619 | |
Basic earnings per share | $ 1.38 | $ 1.76 | $ 3.35 | |
Diluted earnings per share | $ 1.38 | $ 1.76 | $ 3.35 | |
Weighted average number of shares outstanding - Basic | 13,732 | 13,722 | 13,625 | |
Weighted average number of share equivalents | 20 | |||
Weighted average number of shares and equivalents outstanding - Diluted | 13,752 | 13,722 | 13,625 | |
Non-Related Parties | ||||
Revenues: | ||||
Lease revenue | $ 52,020 | $ 50,466 | $ 48,642 | |
Other | ||||
Revenues: | ||||
Other revenue | 1,181 | 2,745 | 891 | |
Management Service | ||||
Expenses: | ||||
Advisory fees to UHS | 3,974 | 3,806 | 3,577 | |
UHS Facilities | ||||
Revenues: | ||||
Lease revenue | [2] | 23,095 | 22,661 | 22,611 |
UHS Facilities | Other | ||||
Revenues: | ||||
Other revenue | $ 867 | $ 338 | $ 204 | |
[1] | Our share of net income during 2017 includes approximately $284,000, of interest income earned by us on an advance made to Arlington Medical Properties, LLC. | |||
[2] | Includes bonus rental on UHS hospital facilities of $5,551, $4,988 and $4,917 for the years ended December 31, 2019, 2018 and 2017, respectively. |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
UHS Hospital Facilities | |||
Bonus rental | $ 5,551 | $ 4,988 | $ 4,917 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 18,964 | $ 24,196 | $ 45,619 |
Other comprehensive income/(loss): | |||
Unrealized derivative gain/(loss) on cash flow hedges | 878 | (12) | 39 |
Total other comprehensive income/(loss): | 878 | (12) | 39 |
Total comprehensive income | $ 19,842 | $ 24,184 | $ 45,658 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Capital in excess of par value | Cumulative net income | Cumulative dividends | Accumulated other comprehensive income/(loss) |
Balance at Dec. 31, 2016 | $ 191,277 | $ 136 | $ 255,656 | $ 572,501 | $ (637,121) | $ 105 |
Balance, Shares at Dec. 31, 2016 | 13,599 | |||||
Shares of Beneficial Interest: | ||||||
Issued | 9,142 | $ 1 | 9,141 | |||
Issued (in shares) | 136 | |||||
Restricted stock-based compensation expense | 538 | 538 | ||||
Dividends ($2.72/share) in 2019, ($2.68/share) in 2018 and ($2.64/share) in 2017 | (36,054) | (36,054) | ||||
Comprehensive income: | ||||||
Net income | 45,619 | 45,619 | ||||
Unrealized gain/(loss) on interest rate cap | 39 | 39 | ||||
Subtotal - comprehensive income | 45,658 | 45,619 | 39 | |||
Balance at Dec. 31, 2017 | 210,561 | $ 137 | 265,335 | 618,120 | (673,175) | 144 |
Balance, Shares at Dec. 31, 2017 | 13,735 | |||||
Shares of Beneficial Interest: | ||||||
Issued | 125 | 125 | ||||
Issued (in shares) | 12 | |||||
Restricted stock-based compensation expense | 571 | 571 | ||||
Dividends ($2.72/share) in 2019, ($2.68/share) in 2018 and ($2.64/share) in 2017 | (36,831) | (36,831) | ||||
Comprehensive income: | ||||||
Net income | 24,196 | 24,196 | ||||
Unrealized gain/(loss) on interest rate cap | (12) | (12) | ||||
Subtotal - comprehensive income | 24,184 | 24,196 | (12) | |||
Balance at Dec. 31, 2018 | 198,610 | $ 137 | 266,031 | 642,316 | (710,006) | 132 |
Balance, Shares at Dec. 31, 2018 | 13,747 | |||||
Shares of Beneficial Interest: | ||||||
Issued | 212 | $ 1 | 211 | |||
Issued (in shares) | 13 | |||||
Repurchased | (221) | (221) | ||||
Repurchased (in shares) | (3) | |||||
Restricted stock-based compensation expense | 702 | 702 | ||||
Dividends ($2.72/share) in 2019, ($2.68/share) in 2018 and ($2.64/share) in 2017 | (37,411) | (37,411) | ||||
Comprehensive income: | ||||||
Net income | 18,964 | 18,964 | ||||
Unrealized gain/(loss) on interest rate cap | 878 | 878 | ||||
Subtotal - comprehensive income | 19,842 | 18,964 | 878 | |||
Balance at Dec. 31, 2019 | $ 181,734 | $ 138 | $ 266,723 | $ 661,280 | $ (747,417) | $ 1,010 |
Balance, Shares at Dec. 31, 2019 | 13,757 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Dividend, per share | $ 2.72 | $ 2.68 | $ 2.64 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 18,964 | $ 24,196 | $ 45,619 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 25,670 | 24,763 | 25,091 |
Amortization of debt premium | (53) | (50) | (139) |
Stock-based compensation expense | 702 | 571 | 538 |
Hurricane related expenses | 4,967 | ||
Hurricane insurance recoveries | (4,967) | ||
Hurricane insurance recovery proceeds in excess of damaged property write-downs | (4,535) | (2,033) | |
Gains on sales of real estate assets | (1,951) | ||
Gain on Arlington transaction | (27,196) | ||
Changes in assets and liabilities: | |||
Lease receivables | (395) | (1,106) | (1,490) |
Accrued expenses and other liabilities | 478 | (823) | 441 |
Tenant reserves, deposits and deferred and prepaid rents | (549) | 1,219 | 4,989 |
Accrued interest | (76) | (90) | (86) |
Leasing costs paid | (1,084) | (1,383) | (769) |
Other, net | 946 | 166 | 1,040 |
Net cash provided by operating activities | 42,652 | 42,928 | 46,005 |
Cash flows from investing activities: | |||
Investments in LLCs | (2,133) | (820) | (532) |
Repayments of advances made to LLCs | 216 | ||
Cash distributions in excess of income from LLCs | 318 | 834 | 1,187 |
Additions to real estate investments, net | (12,320) | (8,263) | (15,313) |
Cash proceeds received from sales of real estate assets, net | 2,768 | 65,220 | |
Hurricane insurance recoveries for damaged real estate property | 4,967 | ||
Hurricane insurance recovery proceeds in excess of damaged property write-downs | 4,535 | 2,033 | |
Hurricane remediation payments | (192) | (1,387) | |
Net cash paid for acquisition of properties | (5,105) | (4,053) | (9,040) |
Cash paid to acquire minority interests in majority-owned LLCs | (7,890) | ||
Net cash (used in)/provided by investing activities | (16,472) | (7,959) | 39,461 |
Cash flows from financing activities: | |||
Net borrowings on line of credit | 16,550 | 15,350 | |
Net repayments on line of credit | (20,450) | ||
Proceeds from mortgage notes payable | 13,000 | 22,600 | |
Repayments of mortgage notes payable | (4,201) | (23,397) | (61,021) |
Financing costs paid | (35) | (1,671) | (446) |
Repurchase of common shares | (221) | ||
Dividends paid | (37,411) | (36,831) | (36,054) |
Issuance of shares of beneficial interest, net | 212 | 229 | 9,362 |
Net cash used in financing activities | (25,106) | (33,320) | (86,009) |
Increase/(decrease) in cash and cash equivalents | 1,074 | 1,649 | (543) |
Cash and cash equivalents, beginning of year | 5,036 | 3,387 | 3,930 |
Cash and cash equivalents, end of year | 6,110 | 5,036 | 3,387 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 10,025 | 9,469 | 9,692 |
Invoices accrued for construction and improvements | $ 1,485 | $ 924 | $ 546 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | (1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Universal Health Realty Income Trust and subsidiaries (the “Trust”) is organized as a Maryland real estate investment trust. We invest in healthcare and human service related facilities currently including acute care hospitals, behavioral health care hospitals, specialty hospitals, free-standing emergency departments, childcare centers and medical/office buildings. As of February 26, 2020, we have seventy-one real estate investments located in twenty states consisting of: • seven • four • fifty-six • four Our future results of operations could be unfavorably impacted by government regulations and deterioration in general economic conditions which could result in increases in the number of people unemployed and/or uninsured. Should that occur, it may result in decreased occupancy rates at our medical office buildings as well as a reduction in the revenues earned by the operators of our hospital facilities which would unfavorably impact our future bonus rentals (on the three Universal Health Services, Inc. hospital facilities) and may potentially have a negative impact on the future lease renewal terms and the underlying value of the hospital properties. Management is unable to predict the effect, if any, that these factors may have on the operating results of our lessees or on their ability to meet their obligations under the terms of their leases with us. Management’s estimate of future cash flows from our leased properties could be materially affected in the near term, if certain of the leases are not renewed or renewed with less favorable terms at the end of their lease terms. Purchase Accounting for Acquisition of Investments in Real Estate Purchase accounting is applied to the assets and liabilities related to all real estate investments acquired from third parties. In accordance with current accounting guidance, we account for our property acquisitions as acquisitions of assets, which requires the capitalization of acquisition costs to the underlying assets and prohibits the recognition of goodwill or bargain purchase gains. The fair value of the real estate acquired is allocated to the acquired tangible assets, consisting primarily of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, and acquired ground leases, based in each case on their fair values. Loan premiums, in the case of above market rate assumed loans, or loan discounts, in the case of below market assumed loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. The fair values of the tangible assets of an acquired property are determined based on comparable land sales for land and replacement costs adjusted for physical and market obsolescence for the improvements. The fair values of the tangible assets of an acquired property are also determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, building and tenant improvements based on management’s determination of the relative fair values of these assets. Management determines the as-if-vacant fair value of a property based on assumptions that a market participant would use, which is similar to methods used by independent appraisers. In addition, there is intangible value related to having tenants leasing space in the purchased property, which is referred to as in-place lease value. Such value results primarily from the buyer of a leased property avoiding the costs associated with leasing the property and also avoiding rent losses and unreimbursed operating expenses during the hypothetical lease-up period. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases including leasing commissions, tenant improvements, legal and other related costs. The value of in-place leases are amortized to amortization expense in the consolidated statements of income over the remaining initial terms of the respective leases. In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) estimated fair market lease rates from the perspective of a market participant for the corresponding in-place leases, measured, for above-market leases, over a period equal to the remaining non-cancelable term of the lease and, for below-market leases, over a period equal to the initial term plus any below market fixed rate renewal periods. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining non-cancelable terms of the respective leases. The capitalized below-market lease values, also referred to as acquired lease obligations, are amortized as an increase to rental income over the initial terms of the respective leases. At December 31, 2019, our net intangible assets total $14.6 million (net of $26.5 million accumulated amortization) and primarily consist of the value of in-place leases. At December 31, 2019, our net intangible value of in-place leases total $12.8 million (net of $25.9 million of accumulated amortization) and will be amortized over the remaining lease terms (aggregate weighted average of 4.2 years at December 31, 2019) and are expected to result in estimated aggregate amortization expense of, $2.9 million, $2.5 million, $1.8 million, $1.5 million and $4.1 million for 2020, 2021, 2022, 2023 and 2024 and thereafter, respectively. Amortization expense on intangible values of in place leases was $3.3 million for the year ended December 31, 2019, $3.8 million for the year ended December 31, 2018 and $4.9 million for the year ended December 31, 2017. The remaining amount of our net intangible assets primarily consists of above-market leases. At December 31, 2019, our net intangible value of above-market leases total $1.5 million (net of $575,000 of accumulated amortization) and will be amortized over the remaining lease terms (aggregate weighted average of approximately 7.3 years at December 31, 2019) and are expected to result in estimated aggregate amortization offset to rental revenue of approximately $210,000 for each of 2020 and 2021, $206,000 in 2022, $203,000 in 2023 and $710,000 in 2024 and thereafter. Amortization offset to rental revenue on intangible values of above-market leases was $189,000, $176,000 and $173,000 for the years ended December 31, 2019, 2018 and 2017, respectively. Depreciation is computed using the straight-line method over the estimated useful lives of the buildings and capital improvements. The estimated original useful lives of our buildings ranges from 25-45 years and the estimated original useful lives of capital improvements ranges from 3-35 years. On a consolidated basis, depreciation expense was $21.8 million for the year ended December 31, 2019, $20.5 million for the year ended December 31, 2018 and $19.7 million for the year ended December 31, 2017. Cash and Cash Equivalents We consider all highly liquid investment instruments with original maturities of three months or less to be cash equivalents. Asset Impairment We review each of our properties for indicators that its carrying amount may not be recoverable. Examples of such indicators may include a significant decrease in the market price of the property, a change in the expected holding period for the property, a significant adverse change in how the property is being used or expected to be used based on the underwriting at the time of acquisition, an accumulation of costs significantly in excess of the amount originally expected for the acquisition or development of the property, or a history of operating or cash flow losses of the property. When such impairment indicators exist, we review an estimate of the future undiscounted net cash flows (excluding interest charges) expected to result from the real estate investment’s use and eventual disposition and compare that estimate to the carrying value of the property. We consider factors such as future operating income, trends and prospects, as well as the effects of leasing demand, competition and other factors. If our future undiscounted net cash flow evaluation indicates that we are unable to recover the carrying value of a real estate investment, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods. Since cash flows on properties considered to be long-lived assets to be held and used are considered on an undiscounted basis to determine whether the carrying value of a property is recoverable, our strategy of holding properties over the long-term directly decreases the likelihood of their carrying values not being recoverable and therefore requiring the recording of an impairment loss. If our strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized and such loss could be material. If we determine that the asset fails the recoverability test, the affected assets must be reduced to their fair value. We generally estimate the fair value of rental properties utilizing a discounted cash flow analysis that includes projections of future revenues, expenses and capital improvement costs that a market participant would use based on the highest and best use of the asset, which is similar to the income approach that is commonly utilized by appraisers. In certain cases, we may supplement this analysis by obtaining outside broker opinions of value or third party appraisals. In considering whether to classify a property as held for sale, we consider factors such as whether management has committed to a plan to sell the property, the property is available for immediate sale in its present condition for a price that is reasonable in relation to its current value, the sale of the property is probable, and actions required for management to complete the plan indicate that it is unlikely that any significant changes will made to the plan. If all the criteria are met, we classify the property as held for sale. Upon being classified as held for sale, depreciation and amortization related to the property ceases and it is recorded at the lower of its carrying amount or fair value less cost to sell. The assets and related liabilities of the property are classified separately on the consolidated balance sheets for the most recent reporting period. Only those assets held for sale that constitute a strategic shift or that will have a major effect on our operations are classified as discontinued operations. Investments in Limited Liability Companies (“LLCs”) In accordance with U.S. GAAP and guidance relating to accounting for investments and real estate ventures, we account for our unconsolidated investments in LLCs/LPs, which we do not control, using the equity method of accounting. The third-party members in these investments have equal voting rights with regards to issues such as, but not limited to: (i) divestiture of property; (ii) annual budget approval, and; (iii) financing commitments. These investments, which represent 33% to 95% non-controlling ownership interests, are recorded initially at our cost and subsequently adjusted for our net equity in the net income, cash contributions to, and distributions from, the investments. Pursuant to certain agreements, allocations of sales proceeds and profits and losses of some of the LLC investments may be allocated disproportionately as compared to ownership interests after specified preferred return rate thresholds have been satisfied. Distributions received from equity method investees in the consolidated statements of cash flows are classified based on the nature of the distribution. Returns on investments are presented net of equity in income from unconsolidated investments as cash flows from operating activities. Returns of investment are classified as cash flows from investing activities. At December 31, 2019, we have non-controlling equity investments or commitments in five jointly-owned LLCs/LPs which own MOBs (including one currently under construction which is scheduled to be completed in late 2020). As of December 31, 2019, we accounted for these LLCs/LPs on an unconsolidated basis pursuant to the equity method since they are not variable interest entities which we are the primary beneficiary nor do we have a controlling voting interest. The majority of these entities are joint-ventures between us and non-related parties that hold minority ownership interests in the entities. Each entity is generally self-sustained from a cash flow perspective and generates sufficient cash flow to meet its operating cash flow requirements and service the third-party debt (if applicable) that is non-recourse to us. Although there is typically no ongoing financial support required from us to these entities since they are cash-flow sufficient, we may, from time to time, provide funding for certain purposes such as, but not limited to, significant capital expenditures, leasehold improvements and debt financing. Although we are not obligated to do so, if approved by us at our sole discretion, additional cash fundings are typically advanced as equity or member loans. These entities maintain property insurance on the properties. An other than temporary impairment of an investment in an unconsolidated LLC is recognized when the carrying value of the investment is not considered recoverable based on evaluation of the severity and duration of the decline in value, including projected declines in cash flow. To the extent impairment has occurred, the excess carrying value of the asset over its estimated fair value is charged to income. Federal Income Taxes No provision has been made for federal income tax purposes since we qualify as a real estate investment trust under Sections 856 to 860 of the Internal Revenue Code of 1986, and intend to continue to remain so qualified. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our annual REIT taxable income to shareholders. As a REIT, we generally will not be subject to federal, state or local income tax on income that we distribute as dividends to our shareholders. We are subject to a federal excise tax computed on a calendar year basis. The excise tax equals 4% of the amount by which 85% of our ordinary income plus 95% of any capital gain income for the calendar year exceeds cash distributions during the calendar year, as defined. No provision for excise tax has been reflected in the financial statements as no tax was due. Earnings and profits, which determine the taxability of dividends to shareholders, will differ from net income reported for financial reporting purposes due to the differences for federal tax purposes in the cost basis of assets and in the estimated useful lives used to compute depreciation and the recording of provision for impairment losses. The aggregate gross cost basis and net book value of the properties for federal income tax purposes are approximately $606 million (unaudited) and $382 million (unaudited), respectively, at December 31, 2019. The aggregate cost basis and net book value of the properties for federal income tax purposes were approximately $593 million (unaudited) and $384 million (unaudited), respectively, at December 31, 2018. Stock-Based Compensation We expense the grant-date fair value of restricted stock awards over the vesting period. We recognize the grant-date fair value of equity-based compensation and account for these transactions using the fair-value based method. The expense associated with share-based compensation arrangements is a non-cash charge. In the Consolidated Statements of Cash Flows, stock-based compensation expense is an adjustment to reconcile net income to cash provided by operating activities. Fair Value Fair value is a market-based measurement, not an entity-specific measurement and determined based upon the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, accounting requirements establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Level 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). In instances when it is necessary to establish the fair value of our real estate investments and investments in LLCs we use unobservable inputs which are typically based on our own assumptions. The fair value of our real estate investments, components of real estate investments and debt assumed in conjunction with acquisition and impairment activity, are considered to be Level 3 valuations as they are primarily based upon an income capitalization approach. Significant inputs into the models used to determine fair value of real estate investments and components of real estate investments include future cash flow projections, holding period, terminal capitalization rate and discount rates. Additionally the fair value of land takes into consideration comparable sales, as adjusted for site specific factors. The fair value of real estate investments is based upon significant judgments made by management, and accordingly, we typically obtain assistance from third party valuation specialists. Significant inputs into the models used to determine the fair value of assumed mortgages included the outstanding balance, term, stated interest rate and current market rate of the mortgage. The carrying amounts reported in the balance sheet for cash, receivables, and short-term borrowings approximate their fair values due to the short-term nature of these instruments. Accordingly, these items are excluded from the fair value disclosures included elsewhere in these notes to the consolidated financial statements. Concentration of Revenues The rental revenue earned pursuant to the lease on McAllen Medical Center, which is leased to a related party (see Note 2), generated approximately 10% during 2019, 9% during 2018 and 10% during 2017, of our consolidated revenues. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results could differ from those estimates. New Accounting Standards Except as noted below there were no new accounting pronouncements that impacted, or are expected to impact us. In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The guidance amended the existing accounting standards, including the requirement that lessees recognize right-of-use assets and lease liabilities for leases with terms greater than twelve months on their consolidated balance sheet. It also requires disclosures designed to give financial statement users information regarding amount, timing, and uncertainty of cash flows arising from leases. The FASB issued ASU 2018-11, "Leases (Topic 842) Targeted Improvements" in July 2018, which provides lessors with a practical expedient, by class of underlying assets, to not separate non-lease components from the related lease components, and, instead, to account for those components as a single lease component, if certain criteria are met. We adopted Topic 842 on January 1, 2019, the date it became effective for public companies, and applied the new leasing standard to leases in place as of the effective date using the modified retrospective transition method. W e applied Topic 842 to all leases as of January 1, 2019 with comparative periods continuing to be reported under Topic 840. we are the lessee with various third parties, including subsidiaries of UHS, at fourteen of our consolidated properties on the consolidated balance sheet. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses," which introduced new guidance for an approach based on expected losses to estimate credit losses on certain types of financial instruments. Instruments in scope include loans, held-to-maturity debt securities, and net investments in leases as well as reinsurance and trade receivables. In November 2018, the FASB issued ASU 2018-19, which clarifies that operating lease receivables are outside the scope of the new standard. The standard will be effective for us in fiscal years beginning after December 15, 2019. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" and subsequent related updates. The amendments in this update expand and refine hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The ASU amends the presentation and disclosure requirements and changes how entities assess effectiveness. The ASU eliminates the requirement to separately measure and report hedge ineffectiveness and requires all items that affect earnings be presented in the same income statement line as the hedged items. The amendments in this guidance permit the use of the Overnight Index Swap rate based on Secured Overnight Financing Rate (SOFR) as a U.S. benchmark interest rate for hedge accounting purposes to facilitate the LIBOR to SOFR transition. This guidance was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and we adopted effective January 1, 2019. The amended presentation and disclosure guidance was required only prospectively. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Relationship with UHS and Relat
Relationship with UHS and Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Relationship with UHS and Related Party Transactions | (2) RELATIONSHIP WITH UHS AND RELATED PARTY TRANSACTIONS Leases: We commenced operations in 1986 by purchasing properties from certain subsidiaries of UHS and immediately leasing the properties back to the respective subsidiaries. Most of the leases were entered into at the time we commenced operations and provided for initial terms of 13 to 15 years with up to six additional 5-year renewal terms. The current base rentals and lease and renewal terms for each of the three hospital facilities leased to subsidiaries of UHS are provided below. The base rents are paid monthly and each lease also provides for additional or bonus rents which are computed and paid on a quarterly basis based upon a computation that compares current quarter revenue to a corresponding quarter in the base year. The three hospital leases with subsidiaries of UHS are unconditionally guaranteed by UHS and are cross-defaulted with one another. The combined revenues generated from the leases on the UHS hospital facilities accounted for approximately 23% of our consolidated revenue for the five years ended December 31, 2019 (approximately 22%, 21% and 22% for the years ended December 31, 2019, 2018 and 2017 respectively). In addition, we have seventeen MOBs, or free-standing emergency departments (“FEDs”), that are either wholly or jointly-owned by us (excluding properties under construction), that include tenants which are subsidiaries of UHS. The aggregate revenues generated from UHS-related tenants comprised approximately 32% of our consolidated revenue for the five years ended December 31, 2019 (approximately 31%, 30% and 32% for the years ended December 31, 2019, 2018 and 2017, respectively). Pursuant to the Master Lease Document by and among us and certain subsidiaries of UHS, dated December 24, 1986 (the “Master Lease”), which governs the leases of all hospital properties with subsidiaries of UHS, UHS has the option to renew the leases at the lease terms described below by providing notice to us at least 90 days prior to the termination of the then current term. UHS also has the right to purchase the respective leased facilities at the end of the lease terms or any renewal terms at the appraised fair market value. In addition, the Master Lease, as amended during 2006, includes a change of control provision whereby UHS has the right, upon one month’s notice should a change of control of the Trust occur, to purchase any or all of the three leased hospital properties listed below at their appraised fair market value. Additionally, UHS has rights of first refusal to: (i) purchase the respective leased facilities during and for 180 days after the lease terms at the same price, terms and conditions of any third-party offer, or; (ii) renew the lease on the respective leased facility at the end of, and for 180 days after, the lease term at the same terms and conditions pursuant to any third-party offer. The table below details the existing lease terms and renewal options for our three Annual Minimum Rent End of Lease Term Renewal Term (years) McAllen Medical Center $ 5,485,000 December, 2026 5 (a) Wellington Regional Medical Center $ 3,030,000 December, 2021 10 (b) Southwest Healthcare System, Inland Valley Campus $ 2,648,000 December, 2021 10 (b) (a) UHS has one (b) UHS has two Management cannot predict whether the leases with subsidiaries of UHS, which have renewal options at existing lease rates or fair market value lease rates, or any of our other leases, will be renewed at the end of their lease term. If the leases are not renewed at their current rates or the fair market value lease rates, we would be required to find other operators for those facilities and/or enter into leases on terms potentially less favorable to us than the current leases. In addition, if subsidiaries of UHS exercise their options to purchase the respective leased hospital or FED facilities upon expiration of the lease terms, our future revenues could decrease if we were unable to earn a favorable rate of return on the sale proceeds received, as compared to the rental revenue currently earned pursuant to these leases. We are the lessee on eleven ground leases with subsidiaries of UHS (for consolidated and unconsolidated investments). The remaining lease terms on the ground leases with subsidiaries of UHS range from approximately 30 years to approximately 79 years. The annual aggregate lease payments on these properties are approximately $480,000 for the year ended 2019 and $483,000 for each of the years ended 2020, 2021, 2022 and 2023, and an aggregate of $27.7 million thereafter. See Note 4 for further disclosure around our adoption of the new lease standard. In late July, 2019 and September, 2019 we entered into two separate agreements which are each related to wholly-owned subsidiaries of UHS in connection with properties under construction located in Clive, Iowa and Denison, Texas. Please see additional disclosure in Note 3. Officers and Employees: Our officers are all employees of a wholly-owned subsidiary of UHS and although as of December 31, 2019 we had no salaried employees, our officers do typically receive annual stock-based compensation awards in the form of restricted stock. In special circumstances, if warranted and deemed appropriate by the Compensation Committee of the Board of Trustees, our officers may also receive one-time compensation awards in the form of restricted stock and/or cash bonuses. Advisory Agreement: UHS of Delaware, Inc. (the “Advisor”), a wholly-owned subsidiary of UHS, serves as Advisor to us under an advisory agreement dated December 24, 1986, and as amended and restated as of January 1, 2019 (the “Advisory Agreement”). Pursuant to the Advisory Agreement, the Advisor is obligated to present an investment program to us, to use its best efforts to obtain investments suitable for such program (although it is not obligated to present any particular investment opportunity to us), to provide administrative services to us and to conduct our day-to-day affairs. All transactions between us and UHS must be approved by the Trustees who are unaffiliated with UHS (the “Independent Trustees”). In performing its services under the Advisory Agreement, the Advisor may utilize independent professional services, including accounting, legal, tax and other services, for which the Advisor is reimbursed directly by us. The Advisory Agreement may be terminated for any reason upon sixty days written notice by us or the Advisor. The Advisory Agreement expires on December 31 of each year; however, it is renewable by us, subject to a determination by the Independent Trustees, that the Advisor’s performance has been satisfactory. Pursuant to the terms of the original advisory agreement, which was in effect from inception through December 31, 2018, in addition to the advisory fee as discussed below, the Advisor was entitled to an annual incentive fee equal to 20% of the amount by which cash available for distribution to shareholders for each year, as defined in the agreement, exceeded 15% of our equity as shown on our consolidated balance sheet, determined in accordance with generally accepted accounting principles without reduction for return of capital dividends. Cash available for distribution to shareholders was defined as net cash flow from operations less deductions for, among other things, amounts required to discharge our debt and liabilities and reserves for replacement and capital improvements to our properties and investments. Since the incentive fee requirements were not achieved at any time from our inception through December 31, 2018, no incentive fees were paid during that time. Given that the incentive fee requirements ha d never been achieved, and were deemed unlikely to be achieved in the future, the amended and restated advisory agreement that became effective on January 1, 2019, among other things, eliminated the incentive fee provision . Our advisory fee for 2019, 2018 and 2017 was computed at 0.70% of our average invested real estate assets, as derived from our consolidated balance sheet. Based upon a review of our advisory fee and other general and administrative expenses, as compared to an industry peer group, the advisory fee computation remained unchanged for 2020, as compared to the last three years. The average real estate assets for advisory fee calculation purposes exclude certain items from our consolidated balance sheet such as, among other things, accumulated depreciation, cash and cash equivalents, lease receivables, deferred charges and other assets. The advisory fee is payable quarterly, subject to adjustment at year-end based upon our audited financial statements. Advisory fees incurred and paid (or payable) to UHS amounted to $4.0 million during 2019, $3.8 million during 2018 and $3.6 million during 2017 and were based upon average invested real estate assets of $568 million, $544 million and $511 million during 2019, 2018 and 2017, respectively. Share Ownership: SEC reporting requirements of UHS: UHS is subject to the reporting requirements of the Securities and Exchange Commission (“SEC”) and is required to file annual reports containing audited financial information and quarterly reports containing unaudited financial information. Since the aggregate revenues generated from UHS-related tenants comprised approximately 32% of our consolidated revenue for the five years ended December 31, 2019 (approximately 31%, 30% and 32% for the years ended December 31, 2019, 2018 and 2017, respectively), and since a subsidiary of UHS is our Advisor, you are encouraged to obtain the publicly available filings for Universal Health Services, Inc. from the SEC’s website. These filings are the sole responsibility of UHS and are not incorporated by reference herein. |
New Construction, Acquisitions,
New Construction, Acquisitions, Dispositions and Property Exchange Transaction | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
New Construction, Acquisitions, Dispositions and Property Exchange Transaction | (3) NEW CONSTRUCTION, ACQUISITIONS, DISPOSITIONS AND PROPERTY EXCHANGE TRANSACTION 2019: New Construction: In September, 2019, we entered into an agreement whereby we will own a 95% non-controlling ownership interest in Grayson Properties II L.P., which will develop, construct, own and operate the Texoma Medical Plaza II, an MOB located in Denison, Texas. This MOB, which is scheduled to be completed in late 2020, will be located on the campus of Texoma Medical Center, a hospital that is owned and operated by a wholly-owned subsidiary of UHS. A 10-year master flex lease has been executed with the wholly-owned subsidiary of UHS for approximately 50% of the rentable square feet of the MOB. The master flex lease commitment is subject to reduction upon the execution of third-party leases on up to the initial 50% of the rentable square footage of the property. The master flex lease provides for a commencement date effective with the completion of the building and issuance of a certificate of occupancy. We have committed to invest up to $17.9 million in equity or member loans on the development and construction of this MOB, which may be reduced if a third-party construction loan is placed on the property, and have invested approximately $2.5 million as of December 31, 2019 (including accrued costs at December 31, 2019). We account for this LP on an unconsolidated basis pursuant to the equity method since it is not a variable interest entity and we do not have a controlling voting interest. In late July, 2019, Des Moines Medical Properties, LLC, a wholly-owned subsidiary of ours, entered into an agreement to build and lease a newly constructed behavioral health care hospital located in Clive, Iowa. The lease on this facility, which is triple net and has an initial term of 20 years with five 10-year renewal options, was executed with Clive Behavioral Health, LLC, a joint venture between UHS and Catholic Health Initiatives - Iowa, Corp. (d/b/a Mercy One Des Moines Medical Center). Construction of this hospital, for which we have engaged a wholly-owned subsidiary of UHS to act as project manager for an aggregate fee of approximately $750,000, is expected to be completed in late 2020. The hospital lease will commence upon issuance of the certificate of occupancy. The approximate cost of the project is estimated to be $37.5 million and the initial annual rent is estimated to be approximately $2.7 million. We have invested approximately $6.9 million for land and the development and construction costs of this hospital as of December 31, 2019 (including accrued costs at December 31, 2019). Acquisition: In late November, 2019, we acquired the Bellin Health Family Medicine Center located in Escanaba, Michigan for a purchase price of approximately $5.1 million. The building is 100% leased under the terms of a triple net lease with a remaining initial lease term of approximately eight years at the time of purchase, with four, five-year Disposition s : In December, 2019, we sold the Kings Crossing II medical office building, located in Kingwood, Texas for a sale price of approximately $2.5 million, net of closing costs. This divestiture resulted in a gain of approximately $1.7 million which is included in our consolidated statement of income for the year ended December 31, 2019. During the first quarter of 2019, we sold a parcel of land located at one of our buildings for approximately $250,000. This divestiture generated approximately $250,000 of cash proceeds to us, net of closing costs, and resulted in a gain of approximately $250,000 which is included in our consolidated statement of income for the year ended December 31, 2019. 2018: Acquisition: During 2018, we acquired the Beaumont Medical Sleep Center Building located in Southfield, Michigan for a purchase price of approximately $4.1 million. This building is 100% leased under the terms of a triple net lease with a remaining initial lease term of approximately 9.5 years at the time or purchase, with two, five year renewal options. Disposition: There were no dispositions during 2018. 2017: Acquisitions: During 2017, we paid approximately $9.0 million to: • purchase the Las Palmas Del Sol Emergency Center – West, an FED located in El Paso, Texas for a purchase price of approximately $4.2 million (including approximately $60,000 of transaction costs). This FED is 100% leased under the terms of a ten year triple net lease that had a remaining lease term of approximately 9 years at the time of purchase, with two, five year renewal option • purchase the Health Center at Hamburg located in Hamburg, Pennsylvania for a purchase price of approximately $4.8 million (including approximately $96,000 of transactions costs). This medical office building is 100% leased under the terms of a fifteen year triple net lease and had a remaining lease term of approximately 8.5 years at the time of purchase, with two, five year renewal options. The aggregate purchase price for these acquisitions was allocated to the assets acquired and liabilities assumed consisting of tangible property and intangible assets and liabilities, based on the fair values estimated at the acquisition dates. The intangible assets consist of the value of the in-place leases at the properties at the time of acquisition, and the intangible liabilities consist of the value of a below-market lease at the time of acquisition. The value of the in-place leases of each property will be amortized over the remaining term of the respective lease at the time of acquisition (aggregate weighted average of 6.4 years at December 31, 2019). Land $1,496 Buildings and improvements 8,434 Intangible assets 1,598 Below-market lease intangibles (2,488) Net cash paid $9,040 Disposition: During March, 2017, Arlington Medical Properties, LLC, a formerly jointly-owned limited liability company in which we held an 85% noncontrolling ownership interest, sold the real estate assets of St. Mary’s Professional Office Building (“St. Mary’s”) as part of a series of planned tax deferred like-kind exchange transactions pursuant to Section 1031 of the Internal Revenue Code, as discussed below. St. Mary’s is a multi-tenant medical office building located in Reno, Nevada. A third party member owned the remaining 15% of Arlington Medical Properties LLC, which we acquired prior to the divestiture of St. Mary’s for a purchase price of $7.9 million. The divestiture of St. Mary’s generated an aggregate of approximately $57.3 million of net cash proceeds to us (approximately $11.3 million of which was held as restricted cash by a qualified 1031 exchange intermediary until the third quarter of 2017). These proceeds, which were net of closing costs and the purchase price paid for the minority member’s ownership interest in the LLC, include repayment to us of a $21.4 million member loan. Our results of operations for the year ended December 31, 2017 include a net gain of $27.2 million (net of related transaction costs) recorded in connection with this transaction. Summary of Like-Kind Exchange Transactions Pursuant to Section 1031 of the IRS Code: During 2017, as part of a series of planned tax deferred like-kind exchange transactions pursuant to Section 1031 of the Internal Revenue Code in connection with the divestiture of St. Mary’s, we acquired an MOB and an FED during 2017 (Health Center at Hamburg located in Pennsylvania and Las Palmas Del Sol Emergency Center located in Texas, as discussed above). These acquisitions were planned and executed in accordance with the provisions of Section 1031 of the Internal Revenue Code. Therefore, we believe they qualify as tax deferred like-kind exchange transactions in connection with the divestiture of St. Mary’s in March, 2017. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | (4) LEASES As Lessor: We lease our operating properties to customers under agreements that are classified as operating leases. We recognize the total minimum lease payments provided for under the leases on a straight-line basis over the lease term. Generally, under the terms of our leases, the majority of our rental expenses, including common area maintenance, real estate taxes and insurance, are recovered from our customers. We record amounts reimbursed by customers in the period that the applicable expenses are incurred, which is generally ratably throughout the term of the lease. have elected the package of practical expedients that allows lessors to not separate lease and non-lease components by class of underlying asset. This practical expedient allowed us to not separate expenses reimbursed by our customers (“tenant reimbursements”) from the associated rental revenue if certain criteria were met. We assessed these criteria and concluded that the timing and pattern of transfer for rental revenue and the associated tenant reimbursements are the same, and as our leases qualify as operating leases, we accounted for and presented rental revenue and tenant reimbursements as a single component under Lease revenue in our consolidated statements of income for the twelve months ended Dec ember 3 1 , 2019. As a result of our adoption of this practical expedient, we presented $ 16.7 million of base rental revenue for UHS facilities, $ 5.0 million of bonus rental revenue for UHS facilities and $ 935,000 of tenant reimbursement revenue for UHS facilities as a single component (“Lease revenue – UHS facilities”) in the consolidated statements of income for the t welve months ended Dec ember 3 1 , 2018 to conform to the 2019 new presentation. Additionally , we presented $ 41.3 million of base rental revenues from non-related parties and $ 9.2 million of tenant reimbursements from non-related parties as a single component (“Lease revenue – Non-related parties”) in the consolidated statements of income for the t welve months ended December 31 , 2018 to conform to the 2019 new presentation. We presented $ million of base rental revenue for UHS facilities, $ 4.9 million of bonus rental revenue for UHS facilities and $ of tenant reimbursement revenue for UHS facilities as a single component (“Lease revenue – UHS facilities”) in the consolidated statements of income for the twelve months ended December 31, 201 7 to conform to the 2019 new presentation. Additionally, we presented $ million of base rental revenues from non-related parties and $ 8.3 million of tenant reimbursements from non-related parties as a single component (“Lease revenue – Non-related parties”) in the consolidated statements of income for the twelve months ended December 31, 201 7 to conform to the 2019 new presentation. Minimum future base rents from non-cancelable leases related to properties included in our financial statements on a consolidated basis, excluding increases resulting from changes in the consumer price index, bonus rents and the impact of straight line rent adjustments, are as follows (amounts in thousands): For the year ended December 31, December 31, 2019 2020 $ 57,102 2021 50,580 2022 35,030 2023 28,899 2024 23,147 Thereafter 55,482 Total minimum base rents $ 250,240 For the year ended December 31, December 31, 2018 2019 $ 56,494 2020 50,291 2021 45,357 2022 30,089 2023 24,972 Thereafter 67,288 Total minimum base rents $ 274,491 Some of the leases contain gross terms where operating expenses are included in the base rent amounts. Other leases contain net terms where the operating expenses are assessed separately from the base rentals. The table above contains a mixture of both gross and net leases, and does not include any separately calculated operating expense reimbursements. Under the terms of the hospital leases, the lessees are required to pay all operating costs of the properties including property insurance and real estate taxes. Tenants of the medical office buildings generally are required to pay their pro-rata share of the property’s operating costs. ASU 2016-02 requires that lessors expense certain initial direct costs, which were capitalized under the previous leasing standard, as incurred. Upon adoption, only the incremental costs of signing a lease will be capitalizable, which was consistent to our historical practice. As Lessee: We are the lessee with various third parties, including subsidiaries of UHS, in connection with ground leases for land at fourteen of our consolidated properties. Our right-of-use land assets represent our right to use the land for the lease term and our lease liabilities represent our obligation to make lease payments arising from the leases. Right-of-use assets and lease liabilities were recognized upon adoption of Topic 842 based on the present value of lease payments over the lease term. We utilized our estimated incremental borrowing rate, which was derived from information available as of January 1, 2019, in determining the present value of lease payments. A right-of-use asset and lease liability are not recognized for leases with an initial term of 12 months or less, as these short-term leases are accounted for similar to previous guidance for operating leases. We do not currently have any ground leases with an initial term of 12 months or less. As of December 31, 2019, our consolidated balance sheet includes right-of-use land assets of approximately $ 8.9 million and ground lease liabilities of approximately $ 8.9 million. The components of lease expense payments were as follows (in thousands): Year ended December 31, 2019 Operating lease cost $ 480 Total lease cost $ 480 During the year ended December 31, 2019, the cash paid for amounts included in the measurement of lease liabilities related to our operating leases was approximately $480,000, which is included as an operating cash outflow within the consolidated statement of cash flows and included in other operating expenses within the consolidated statements of income. As of and during the year ended December 31, 2019, we did not enter into any lease agreements for our consolidated properties set to commence in the future and there were no newly leased assets for which a right-of-use asset was recorded in exchange for a new lease liability. Supplemental balance sheet information related to leases was as follows (in thousands): December 31, 2019 Operating Leases Right-of-use land assets-operating leases $ 8,944 Total lease liabilities $ 8,944 Weighted Average remaining lease term, years Operating leases 58.3 Weighted Average discount rate Operating leases 5.07 % As of December 31, 2019, we are the lessee with various third parties, including subsidiaries of UHS, in connection with ground leases for land at fourteen of our consolidated properties. Total consolidated amounts expensed relating to the applicable leases in 2019, 2018 and 2017 was approximately $480,000, $474,000 and $460,000, respectively. The following table summarizes fixed, future minimum rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liabilities for our operating leases in which we are the lessee. We do not include renewal options in the lease term for calculating the lease liability unless we are reasonably certain we will exercise the option. Maturities of lease liabilities are as follows (amounts in thousands): Year ending: 2020 $ 480 2021 480 2022 480 2023 480 2024 480 Later years 25,442 Total undiscounted lease payments $ 27,842 Less imputed interest 18,898 Total $ 8,944 |
Debt and Financial Instruments
Debt and Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Financial Instruments | (5) DEBT AND FINANCIAL INSTRUMENTS Debt: Management routinely monitors and analyzes the Trust’s capital structure in an effort to maintain the targeted balance among capital resources including the level of borrowings pursuant to our $300 million revolving credit facility, the level of borrowings pursuant to non-recourse mortgage debt secured by the real property of our properties and our level of equity including consideration of additional equity issuances. This ongoing analysis considers factors such as the current debt market and interest rate environment, the current/projected occupancy and financial performance of our properties, the current loan-to-value ratio of our properties, the Trust’s current stock price, the capital resources required for anticipated acquisitions and the expected capital to be generated by anticipated divestitures. This analysis, together with consideration of the Trust’s current balance of revolving credit agreement borrowings, non-recourse mortgage borrowings and equity, assists management in deciding which capital resource to utilize when events such as refinancing of specific debt components occur or additional funds are required to finance the Trust’s growth. On March 27, 2018, we entered into a revolving credit agreement (“Credit Agreement”) which, among other things, increased our borrowing capacity by $50 million to $300 million and extended the maturity date from our previously existing facility. The replacement Credit Agreement, which is scheduled to mature in March, 2022, includes a $40 million sublimit for letters of credit and a $30 million sub limit for swingline/short-term loans. The Credit Agreement also provides for options to extend the maturity date for two additional six month periods. Additionally, the Credit Agreement includes an option to increase the total facility borrowing capacity up to an additional $50 million, subject to lender agreement. Borrowings under the Credit Agreement are guaranteed by certain subsidiaries of the Trust. In addition, borrowings under the Credit Agreement are secured by first priority security interests in and liens on all equity interests in certain of the Trust’s wholly-owned subsidiaries. Borrowings made pursuant to the Credit Agreement will bear interest, at our option, at one, two, three, or six month LIBOR plus an applicable margin ranging from 1.10% to 1.35% or at the Base Rate plus an applicable margin ranging from 0.10% to 0.35%. The Credit Agreement defines “Base Rate” as the greater of: (a) the administrative agent’s prime rate; (b) the federal funds effective rate plus 1/2 At December 31, 2019, we had $213.0 million of outstanding borrowings outstanding against our revolving credit agreement and $87.0 million of available borrowing capacity. The carrying amount and fair value of borrowings outstanding pursuant to the Credit Agreement was $213.0 million at December 31, 2019. There are no compensating balance requirements. The average amount outstanding under our Credit Agreement during the years ended December 31, 2019, 2018 and 2017 was $198.3 million, $191.4 million and $182.4 million, respectively, with corresponding effective interest rates of 3.7%, 3.5% and 2.8%, respectively, including commitment fees. The Credit Agreement contains customary affirmative and negative covenants, including limitations on certain indebtedness, liens, acquisitions and other investments, fundamental changes, asset dispositions and dividends and other distributions. The Credit Agreement also contains restrictive covenants regarding the Trust’s ratio of total debt to total assets, the fixed charge coverage ratio, the ratio of total secured debt to total asset value, the ratio of total unsecured debt to total unencumbered asset value, and minimum tangible net worth, as well as customary events of default, the occurrence of which may trigger an acceleration of amounts outstanding under the Credit Agreement. We are in compliance with all of the covenants at December 31, 2019 and 2018. We also believe that we would remain in compliance if the full amount of our commitment was borrowed. The following table includes a summary of the required compliance ratios at December 31, 2019 and 2018, giving effect to the covenants contained in the Credit Agreements in effect on the respective dates (dollar amounts in thousands): December 31, 2019 December 31, 2018 Covenant UHT Covenant UHT Tangible net worth $ 125,000 $ 167,181 $ 125,000 $ 181,203 Total leverage < 60 % 42.3 % < 60 % 41.3 % Secured leverage < 30 % 9.1 % < 30 % 9.8 % Unencumbered leverage < 60 % 38.5 % < 60 % 37.6 % Fixed charge coverage > 1.50x 4.0x > 1.50x 4.3x As indicated on the following table, we have various mortgages, all of which are non-recourse to us and are not cross-collateralized, included on our consolidated balance sheet as of December 31, 2019 and 2018 (amounts in thousands): As of 12/31/2019 As of 12/31/2018 Facility Name Interest Rate Maturity Date Outstanding Balance (in thousands)(a.) Outstanding Balance (in thousands) Corpus Christi, TX, fixed rate mortgage loan (b.) 6.50 % July, 2019 $ - $ 2,519 700 Shadow Lane and Goldring MOBs fixed rate mortgage loan 4.54 % June, 2022 5,654 5,861 BRB Medical Office Building fixed rate mortgage loan 4.27 % December, 2022 5,721 5,928 Desert Valley Medical Center fixed rate mortgage loan 3.62 % January, 2023 4,661 4,806 2704 North Tenaya Way fixed rate mortgage loan 4.95 % November, 2023 6,727 6,871 Summerlin Hospital Medical Office Building III fixed rate mortgage loan 4.03 % April, 2024 13,196 13,198 Tuscan Professional Building fixed rate mortgage loan 5.56 % June, 2025 3,492 4,020 Phoenix Children’s East Valley Care Center fixed rate mortgage loan 3.95 % January, 2030 8,961 9,194 Rosenberg Children's Medical Plaza fixed rate mortgage loan 4.42 % September, 2033 12,732 12,948 Total, excluding net debt premium and net financing fees 61,144 65,345 Less net financing fees (594 ) (711 ) Plus net debt premium 194 247 Total mortgage notes payable, non-recourse to us, net $ 60,744 $ 64,881 (a.) All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. (b.) On April 2, 2019, the $2.5 million fixed rate mortgage loan on Corpus Christi, TX, was fully repaid utilizing borrowings under our Credit Agreement. The mortgages are secured by the real property of the buildings as well as property leases and rents. The mortgages outstanding as of December 31, 2019 had a combined carrying value of approximately $61.1 million and a combined fair value of approximately $63.1 million. At December 31, 2018, we had various mortgages, all of which were non-recourse to us, included in our consolidated balance sheet. The combined outstanding balance of these various mortgages was $65.3 million and these mortgages had a combined fair value of approximately $64.9 million. The fair value of our debt was computed based upon quotes received from financial institutions. We consider these to be “level 2” in the fair value hierarchy as outlined in the authoritative guidance for disclosure in connection with debt instruments. Changes in market rates on our fixed rate debt impacts the fair value of debt, but it has no impact on interest incurred or cash flow. As of December 31, 2019, our aggregate consolidated scheduled debt repayments (including mortgages) are as follows (amounts in thousands): 2020 $ 1,913 2021 2,081 2022 (a.) 225,147 2023 11,892 2024 13,550 Later 19,511 Total $ 274,094 (a.) Includes assumed repayment of $213.0 million of outstanding borrowings under the terms of our $300 million revolving credit agreement scheduled to mature in March, 2022. Financial Instruments: During the third quarter of 2019, we entered into an rate swaps at fair value on a recurring basis. The fair value of our interest rate swaps is based on quotes from third parties. We consider those inputs to be “level 2” in the fair value hierarchy as outlined in the authoritative guidance for disclosures in connection with derivative instruments and hedging activities. At December 31, 2019, the fair value of our interest rate swap was a net asset of $ 1.0 million which is included in other assets on the accompanying balance sheet. From inception of the swap agreement through December 31, 2019 we received or accrued approximately $ in payments made to us by the counterparty pursuant to the terms of the swap. Interest rate swaps designated as c ash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either an asset or a liability, with a corresponding amount recorded in accumulated other comprehensive income (“AOCI”) within shareholders’ equity. Amounts are classified from AOCI to the income statement in the period or periods the hedged transaction affects earnings. In January, 2020, we entered into an During the second quarter of 2016, we entered into an March 2019 During the third quarter of 2016, we entered into an March, 2019 |
Dividends and Equity Issuance P
Dividends and Equity Issuance Program | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Dividends and Equity Issuance Program | (6) DIVIDENDS AND EQUITY ISSUANCE PROGRAM Dividends: During each of the last three years, dividends were declared and paid by us as follows: • 2019: $2.72 per share of which $2.48 per share was ordinary income and $.24 per share was total capital gain (there was no Unrecaptured Section 1250 gain in 2019). • 2018: $2.68 per share of which $2.35 per share was ordinary income and $.33 per share was total capital gain (total capital gain amount includes Unrecaptured Section 1250 gain of $.30 per share). • 2017: $2.64 per share of which $1.47 per share was ordinary income and $1.17 per share was total capital gain (total capital gain amount includes Unrecaptured Section 1250 gain of $.453 per share) Equity Issuance Program: Previously, we maintained an at-the-market equity issuance program (“ATM”) pursuant to the terms of which we could sell, from time-to-time, common shares of our beneficial interest up to an aggregate sales price of approximately $23.3 million to or through Merrill Lynch, Pierce, Fenner and Smith, Incorporated (“Merrill Lynch”), as sales agent and/or principal. The common shares were offered pursuant to the Registration Statement filed with the Securities and Exchange Commission, which became effective during the fourth quarter of 2015. During the third quarter of 2017, we met our aggregate sales threshold of $23.3 million pursuant to this program and no shares were issued pursuant to the ATM in 2018 or 2019. Pursuant to the ATM Program, during the twelve months ended December 31, 2017, there were 127,499 shares issued at an average price of $74.71 per share which generated approximately $9.1 million of net cash proceeds (net of approximately $400,000, consisting of compensation of $238,000 to Merrill Lynch, as well as $162,000 of other various fees and expenses). |
Incentive Plans
Incentive Plans | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Incentive Plans | (7) INCENTIVE PLANS During 2007, our Board of Trustees and shareholders approved the Universal Health Realty Income Trust 2007 Restricted Stock Plan which was amended and restated in 2016 (the “2007 Plan”). An aggregate of 125,000 shares were authorized for issuance under this plan and a total of 106,275 shares, net of cancellations, have been issued pursuant to the terms of this plan, 84,715 of which have vested as of December 31, 201 9 . At December 31, 201 9 there are shares remaining for issuance under the terms of the 2007 Plan. During 2019, there were 10,980 restricted Shares of Beneficial Interest, net of cancellations, issued to the Trustees, officers and other personnel of the Trust pursuant to the 2007 Plan at a weighted average grant price of $84.24 per share ($924,955 in the aggregate). These restricted shares are scheduled to vest in June of 2021 (the second anniversary of the date of grant). During 2018, there were 10,580 restricted Shares of Beneficial Interest, net of cancellations, issued to the Trustees, officers and other personnel of the Trust pursuant to the 2007 Plan at a weighted average grant price of $61.77 per share ($653,526 in the aggregate). These restricted shares are scheduled to vest in June of 2020 (the second anniversary of the date of grant). During 2017, there were 8,405 restricted Shares of Beneficial Interest, net of cancellations, issued to the Trustees, officers and other personnel of the Trust pursuant to the 2007 Plan at a weighted average grant price of $73.46 per share ($617,431 in the aggregate). These restricted shares vested in June of 2019 (the second anniversary of the date of grant). We expense the grant-date fair value restricted stock awards under the straight-line method over the stated vesting period of the award. In connection with these grants, we recorded compensation expense of approximately $702,000, $575,000 and $538,000 during 2019, 2018 and 2017, respectively. The remaining expense associated with these grants is approximately $815,000 and will be recorded over the remaining weighted average vesting period for outstanding restricted Shares of Beneficial Interest of approximately one year at December 31, 2019. There were no stock options outstanding or exercised during 2019, 2018 or 2017. |
Summarized Financial Informatio
Summarized Financial Information of Equity Affiliates | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summarized Financial Information of Equity Affiliates | (8) SUMMARIZED FINANCIAL INFORMATION OF EQUITY AFFILIATES In accordance with U. S. GAAP and guidance relating to accounting for investments and real estate ventures, we account for our unconsolidated investments in LLCs/LPs which we do not control using the equity method of accounting. The third-party members in these investments have equal voting rights with regards to issues such as, but not limited to: (i) divestiture of property; (ii) annual budget approval, and; (iii) financing commitments. These investments, which represent 33% to 95% non-controlling ownership interests, are recorded initially at our cost and subsequently adjusted for our net equity in the net income, cash contributions to, and distributions from, the investments. Pursuant to certain agreements, allocations of sales proceeds and profits and losses of some of the LLC investments may be allocated disproportionately as compared to ownership interests after specified preferred return rate thresholds have been satisfied. Distributions received from equity method investees in the consolidated statements of cash flows are classified based on the nature of the distribution. Returns on investments are presented net of equity in income from unconsolidated investments as cash flows from operating activities. Returns of investment are classified as cash flows from investing activities. At December 31, 2019, we have non-controlling equity investments or commitments in five jointly-owned LLCs/LPs which own MOBs (including one currently under construction which is scheduled to be completed in late 2020). As of December 31, 2019, we accounted for these LLCs/LPs on an unconsolidated basis pursuant to the equity method since they are not variable interest entities which we are the primary beneficiary nor do we have a controlling voting interest. The majority of these entities are joint-ventures between us and non-related parties that hold minority ownership interests in the entities. Each entity is generally self-sustained from a cash flow perspective and generates sufficient cash flow to meet its operating cash flow requirements and service the third-party debt (if applicable) that is non-recourse to us. Although there is typically no ongoing financial support required from us to these entities since they are cash-flow sufficient, we may, from time to time, provide funding for certain purposes such as, but not limited to, significant capital expenditures, leasehold improvements and debt financing. Although we are not obligated to do so, if approved by us at our sole discretion, additional cash fundings are typically advanced as equity or member loans. These entities maintain property insurance on the properties. During March, 2017, Arlington Medical Properties, LLC, a formerly jointly-owned limited liability company in which we held an 85% noncontrolling ownership interest, sold the real estate assets of St. Mary’s Professional Office Building (“St. Mary’s”) as part of a series of planned tax deferred like-kind exchange transactions pursuant to Section 1031 of the Internal Revenue Code. A third party member owned the remaining 15% of Arlington Medical Properties LLC, which we acquired prior to the divestiture of St. Mary’s. The following property table represents the five LLCs or LPs in which we own a non-controlling interest (including one that owns an MOB that is currently under construction and is scheduled to be completed in late 2020) and were accounted for under the equity method as of December 31, 2019: Name of LLC/LP Ownership Property Owned by LLC/LP Suburban Properties 33 % St. Matthews Medical Plaza II Brunswick Associates (a.)(e.) 74 % Mid Coast Hospital MOB Grayson Properties (b.)(f.) 95 % Texoma Medical Plaza FTX MOB Phase II (c.) 95 % Forney Medical Plaza II Grayson Properties II (d.)(f.) 95 % Texoma Medical Plaza II (a.) This LLC has a third-party term loan of $8.1 million, which is non-recourse to us, outstanding as of December 31, 2019. (b.) This building is on the campus of a UHS hospital and has tenants that include subsidiaries of UHS. This LP has a third-party term loan, which is non-recourse to us, of $13.7 million, outstanding as of December 31, 2019. (c.) We have committed to invest up to $2.5 million in equity and debt financing, of which $2.1 million has been funded as of December 31, 2019. This LP has a third-party term loan, which is non-recourse to us, of $4.9 million, outstanding as of December 31, 2019. (d.) This MOB, currently under construction, will be located in Denison, Texas on the campus of a hospital owned and operated by a wholly-owned subsidiary of UHS. We have committed to invest up to $17.9 million in equity and debt financing, which may be reduced if a third-party construction loan is obtained on the property. We have incurred approximately $2.5 million of costs as of December 31, 2019 in connection with this property and our related commitment. The LP will develop, construct, own and operate the Texoma Medical Plaza II which is expected to open in late 2020. ( e .) We are the lessee with a third party on a ground lease for land. (f .) We are the lessee, or have committed to a lease, with a UHS-related party for the land related to this property. Below are the combined statements of income for the four LLCs/LPs (excluding one that owns an MOB that is currently under construction) accounted for under the equity method at December 31, 2019, 2018 and 2017. The 2017 amounts include the financial results of Arlington Medical Properties, LLC, through the March 13, 2017 divestiture date. For the Year Ended December 31, 2019 2018 2017 (amounts in thousands) Revenues $ 10,063 $ 9,592 $ 10,673 Operating expenses 4,046 3,557 3,883 Depreciation and amortization 1,758 1,772 1,988 Interest, net 1,295 1,311 1,570 Net income $ 2,964 $ 2,952 $ 3,232 Our share of net income (a.) $ 1,796 $ 1,771 $ 2,416 (a.) Our share of net income during 2017 includes approximately $284,000, of interest income earned by us on an advance made to Arlington Medical Properties, LLC. This advance was repaid to us effective with the previously mentioned Arlington Medical Properties, LLC transaction during March, 2017. Below are the combined balance sheets for the five above-mentioned LLCs/LPs (including one LP that currently owns an MOB under construction) that were accounted for under the equity method as of December 31, 2019 and 2018: December 31, 2019 2018 (amounts in thousands) Net property, including construction in progress $ 33,207 $ 31,818 Other assets (a.) 7,452 3,251 Total assets $ 40,659 $ 35,069 Other liabilities (a.) $ 6,785 $ 2,717 Mortgage notes payable, non-recourse to us 26,650 27,256 Equity 7,224 5,096 Total liabilities and equity $ 40,659 $ 35,069 Investments in LLCs before amounts included in accrued expenses and other liabilities $ 6,918 $ 5,019 Amounts included in accrued expenses and other liabilities (1,856 ) (2,258 ) Our share of equity in LLCs, net $ 5,062 $ 2,761 (a.) Other assets and other liabilities as of December 31, 2019 include approximately $3.7 million of right-of-use land assets and right-of-use land liabilities, respectively, related to ground leases whereby the LLC/LP is the lessee, with third parties, including subsidiaries of UHS. As of December 31, 2019, aggregate principal amounts due on mortgage notes payable by unconsolidated LLCs, which are accounted for under the equity method and are non-recourse to us, are as follows (amounts in thousands): 2020 $ 5,422 2021 13,569 2022 216 2023 224 2024 7,219 2025 and thereafter — Total $ 26,650 Mortgage Loan Balance (a.) Name of LLC/LP 12/31/2019 12/31/2018 Maturity Date FTX MOB Phase II (5.00% fixed rate mortgage loan) $ 4,926 $ 5,067 October, Grayson Properties (5.034% fixed rate mortgage loan) 13,658 13,929 September, 2021 Brunswick Associates (3.64% fixed rate mortgage loan) 8,066 8,260 December, 2024 $ 26,650 $ 27,256 (a.) All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. Pursuant to the operating and/or partnership agreements of the five LLCs/LPs in which we continue to hold non-controlling ownership interests, the third-party member and the Trust, at any time, potentially subject to certain conditions, have the right to make an offer (“Offering Member”) to the other member(s) (“Non-Offering Member”) in which it either agrees to: (i) sell the entire ownership interest of the Offering Member to the Non-Offering Member (“Offer to Sell”) at a price as determined by the Offering Member (“Transfer Price”), or; (ii) purchase the entire ownership interest of the Non-Offering Member (“Offer to Purchase”) at the equivalent proportionate Transfer Price. The Non-Offering Member has 60 to 90 days to either: (i) purchase the entire ownership interest of the Offering Member at the Transfer Price, or; (ii) sell its entire ownership interest to the Offering Member at the equivalent proportionate Transfer Price. The closing of the transfer must occur within 60 to 90 days of the acceptance by the Non-Offering Member. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | (9) SEGMENT REPORTING Our primary business is investing in and leasing healthcare and human service facilities through direct ownership or through joint ventures, which aggregate into a single reportable segment. We actively manage our portfolio of healthcare and human service facilities and may from time to time make decisions to sell lower performing properties not meeting our long-term investment objectives. The proceeds of sales are typically reinvested in new developments or acquisitions, which we believe will meet our planned rate of return. It is our intent that all healthcare and human service facilities will be owned or developed for investment purposes. Our revenue and net income are generated from the operation of our investment portfolio. Our portfolio is located throughout the United States, however, we do not distinguish or group our operations on a geographical basis for purposes of allocating resources or measuring performance. We review operating and financial data for each property on an individual basis; therefore, we define an operating segment as our individual properties. Individual properties have been aggregated into one reportable segment based upon their similarities with regard to both the nature and economics of the facilities, tenants and operational processes, as well as long-term average financial performance. No individual property meets the requirements necessary to be considered its own reportable segment. |
Impact of Hurricane Harvey
Impact of Hurricane Harvey | 12 Months Ended |
Dec. 31, 2019 | |
Extraordinary And Unusual Items [Abstract] | |
Impact of Hurricane Harvey | (10) IMPACT OF HURRICANE HARVEY In late August, 2017, five of our medical office buildings located in the Houston, Texas area incurred extensive water damage as a result of Hurricane Harvey. Until various times during the second quarter of 2018, these properties were temporarily closed and non-operational as we continued to reconstruct and restore them to operational condition. As of June 30, 2018, reconstruction on all of the occupied space in these properties had been completed and operations resumed. During 2018, pursuant to the terms of a global settlement with our commercial property insurance carrier, we received $5.5 million of additional insurance recovery proceeds bringing the aggregate hurricane-related insurance recoveries to $12.5 million. The aggregate insurance proceeds recoveries, which are net of applicable deductibles, covered substantially all of the costs incurred related to the remediation, repair and reconstruction of each of these properties, as well as business interruption recoveries for the lost income related to each of these properties during the period they were non-operational. Included in our financial results for the year ended December 31, 2018 are approximately $1.2 million of business interruption insurance recovery proceeds, covering the period of late August, 2017 through June 30, 2018, approximately $500,000 of which related to 2017. These business interruption insurance recovery proceeds are included in net cash provided by operating activities in our Consolidated Statement of Cash Flows for the year ended December 31, 2018. Additionally, the year ended December 31, 2018 included approximately $4.5 million of hurricane insurance recoveries in excess of property damage write-downs, which are included in net cash provided by investing activities in our Consolidated Statement of Cash Flows for the year ended December 31, 2018. Included in our financial results for the year ended December 31, 2017 are hurricane related expenses of approximately $5.0 million consisting of $3.6 million related to property damage and $1.4 million related to remediation and demolition expenses. Also included in our financial results for the twelve-month period ended December 31, 2017 are aggregate hurricane related insurance recoveries of approximately $7.0 million, consisting of $5.0 million related to recovery of hurricane related expenses and $2.0 million related to recovery proceeds in excess of the damaged property write-downs. |
Quarterly Results
Quarterly Results | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results | (11) QUARTERLY RESULTS (unaudited) 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total (amounts in thousands, except per share amounts) Revenues $ 19,112 $ 19,326 $ 19,866 $ 18,859 $ 77,163 Net income before gains on sales $ 3,962 $ 4,261 $ 4,653 $ 4,137 $ 17,013 Gains on sales of real estate assets $ 250 $ — $ — $ 1,701 $ 1,951 Net income $ 4,212 $ 4,261 $ 4,653 $ 5,838 $ 18,964 Total basic earnings per share $ 0.31 $ 0.31 $ 0.34 $ 0.43 $ 1.38 Total diluted earnings per share $ 0.31 $ 0.31 $ 0.34 $ 0.42 $ 1.38 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total (amounts in thousands, except per share amounts) Revenues $ 18,539 $ 20,111 $ 18,828 $ 18,732 $ 76,210 Net income before excess insurance recovery proceeds $ 4,101 $ 5,611 $ 4,374 $ 4,413 $ 18,499 Hurricane insurance recovery proceeds in excess of damaged property write-downs $ 4,535 $ — $ — $ — $ 4,535 Hurricane business interruption insurance recovery proceeds $ 968 $ 194 $ — $ — $ 1,162 Net income $ 9,604 $ 5,805 $ 4,374 $ 4,413 $ 24,196 Total basic earnings per share $ 0.70 $ 0.42 $ 0.32 $ 0.32 $ 1.76 Total diluted earnings per share $ 0.70 $ 0.42 $ 0.32 $ 0.32 $ 1.76 |
Real Estate and Accumulated Dep
Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate And Accumulated Depreciation Disclosure [Abstract] | |
Real Estate and Accumulated Depreciation | Schedule III Universal Health Realty Income Trust Real Estate and Accumulated Depreciation — December 31, 2019 (amounts in thousands) Gross amount at Date of which carried Completion of Initial Cost at end of period Accumulated Construction, Description Encumbrance (c.) Land Building & Improv. Adjustments to Basis (a.) Land Building & Improvements CIP Total Depreciation as of Dec. 31, 2019 Acquisition or Significant improvement Date Acquired Average Depreciable Life Inland Valley Regional Medical Center Wildomar, California — $ 2,050 $ 10,701 $ 14,596 $ 2,050 $ 25,297 $ 27,347 $ 14,728 2007 1986 43 Years McAllen Medical Center McAllen, Texas — 4,720 31,442 10,189 6,281 40,070 46,351 29,111 1994 1986 42 Years Wellington Regional Medical Center West Palm Beach, Florida — 1,190 14,652 17,370 1,663 31,549 33,212 21,637 2006 1986 42 Years Evansville Rehabilitation Hospital Evansville, Indiana — 500 6,945 1,062 500 8,007 8,507 6,084 1993 1989 40 Years Kindred Chicago Central Hospital Central Chicago, Illinois — 158 6,404 1,838 158 8,242 8,400 8,242 1993 1986 25 Years Family Doctor’s Medical Office Building Shreveport, Louisiana — 54 1,526 494 54 2,020 2,074 1,140 1991 1995 45 Years Professional Buildings at King’s Crossing Kingwood, Texas (d.) — 439 1,837 (388 ) 439 1,449 33 1,921 187 1995 1995 45 Years Chesterbrook Academy Audubon, Pennsylvania — 307 996 — 307 996 1,303 520 1996 1996 45 Years Chesterbrook Academy New Britain, Pennsylvania — 250 744 — 250 744 994 394 1991 1996 45 Years Chesterbrook Academy Uwchlan, Pennsylvania — 180 815 — 180 815 995 428 1992 1996 45 Years Chesterbrook Academy Newtown, Pennsylvania — 195 749 — 195 749 944 396 1992 1996 45 Years The Southern Crescent Center I (b.) — 1,130 5,092 (2,246 ) 1,130 2,846 3,976 2,557 1994 1996 45 Years The Southern Crescent Center II (b.) Riverdale, Georgia — — — 5,264 806 4,458 5,264 2,953 2000 1998 35 Years The Cypresswood Professional Center Spring, Texas (e.) — 573 3,842 (2,667 ) 573 1,175 81 1,829 127 1997 1997 35 Years 701 South Tonopah Building Las Vegas, Nevada (f.) — — 1,579 68 — 1,647 1,647 1,302 1999 1999 25 Years Danbury Medical Plaza Danbury, Connecticut — 1,151 5,176 1,087 1,151 6,263 13 7,427 4,020 2000 2000 30 Years Corpus Christi Corpus Christi, Texas — 1,104 5,508 — 1,104 5,508 6,612 1,872 2008 2008 35 Years Apache Junction Medical Plaza Apache Junction, AZ — 240 3,590 1,295 240 4,885 5,125 1,945 2004 2004 30 Years Auburn Medical Office Building II Auburn, WA (g.) — — 10,200 176 — 10,376 10,376 2,740 2009 2009 36 Years BRB Medical Office Building Kingwood, Texas 5,721 430 8,970 84 430 9,054 9,484 2,361 2010 2010 37 Years Centennial Hills Medical Office Building Las Vegas, NV (f.) — — 19,890 2,539 — 22,429 64 22,493 6,461 2006 2006 34 Years Desert Springs Medical Plaza Las Vegas, NV — 1,200 9,560 1,897 1,200 11,457 78 12,735 3,709 1998 1998 30 Years 700 Shadow Lane & Goldring MOBs Las Vegas, NV 5,654 400 11,300 4,949 400 16,249 106 16,755 5,154 2003 2003 30 Years Spring Valley Hospital MOB I Las Vegas, NV (f.) — — 9,500 1,533 — 11,033 5 11,038 3,238 2004 2004 35 Years Schedule III Universal Health Realty Income Trust Real Estate and Accumulated Depreciation — December 31, 2019 (continued) (amounts in thousands) Gross amount at Date of which carried Completion of Initial Cost at end of period Accumulated Construction, Description Encumbrance (c.) Land Building & Improv. Adjustments to Basis (a.) Land Building & Improvements CIP Total Depreciation as of Dec. 31, 2019 Acquisition or Significant improvement Date Acquired Average Depreciable Life Spring Valley Hospital MOB II Las Vegas, NV (f.) — — 9,800 510 — 10,310 43 10,353 3,123 2006 2006 34 Years Summerlin Hospital MOB I Las Vegas, NV — 460 15,440 1,945 460 17,385 18 17,863 5,695 1999 1999 30 Years Summerlin Hospital MOB II Las Vegas, NV — 370 16,830 1,587 370 18,417 26 18,813 5,895 2000 2000 30 Years Summerlin Hospital MOB III Las Vegas, NV (f.) 13,197 — 14,900 2,238 — 17,138 37 17,175 4,404 2009 2009 36 Years Emory at Dunwoody Building Dunwoody, GA — 782 3,455 — 782 3,455 4,237 1,051 2011 2011 35 Years Forney Medical Plaza Forney, TX — 910 11,960 91 910 12,051 12,961 3,817 2011 2011 35 Years Lake Pointe Medical Arts Building Rowlett, TX — 1,100 9,000 289 1,100 9,289 10,389 2,643 2011 2011 35 Years Tuscan Professional Building Irving, TX 3,492 1,100 12,525 1,648 1,100 14,173 15,273 4,049 2011 2011 35 Years Peace Health Medical Clinic Bellingham, WA — 1,900 24,910 921 1,900 25,831 27,731 6,579 2012 2012 35 Years Northwest Texas Professional Office Tower Amarillo, TX (f.) — — 7,180 57 — 7,237 646 7,883 1,705 2012 2012 35 Years Ward Eagle Office Village Farmington Hills, MI — 220 3,220 90 220 3,310 3,530 762 2013 2013 35 Years 5004 Poole Road MOB Denison, TX — 96 529 — 96 529 625 117 2013 2013 35 Years Desert Valley Medical Center Phoenix, AZ 4,661 2,280 4,624 1,033 2,280 5,657 25 7,962 1,339 1996 1996 30 Years Hanover Emergency Center Mechanicsville, VA — 1,300 6,224 — 1,300 6,224 7,524 1,117 2014 2014 35 Years Haas Medical Office Park Ottumwa, IA (g.) — — 3,571 — — 3,571 3,571 583 2015 2015 35 Years South Texas ER at Mission Mission, TX — 1,441 4,696 — 1,441 4,696 6,137 774 2015 2015 35 Years North Valley Medical Plaza Phoenix, AZ — 930 6,929 2,250 930 9,179 9 10,118 1,947 2010 2010 30 Years Northwest Medical Center at Sugar Creek Bentonville, AR — 1,100 2,870 — 1,100 2,870 3,970 575 2014 2014 35 Years The Children’s Clinic at Springdale Springdale, AR — 610 1,570 — 610 1,570 2,180 314 2014 2014 35 Years Rosenberg Children’s Medical Plaza Phoenix, AZ (g.) 12,732 — 23,302 142 — 23,444 23,444 4,256 2001 2001 35 Years Phoenix Children’s East Valley Care Center Phoenix, AZ 8,960 1,050 10,900 — 1,050 10,900 11,950 1,982 2006 2006 35 Years Palmdale Medical Plaza Palmdale, CA (f.) — — 10,555 1,846 — 12,401 38 12,439 2,569 2008 2008 34 Years Piedmont-Roswell Physician Center Sandy Springs, GA — 2,338 2,128 — 2,338 2,128 4,466 428 2015 2015 30 Years Piedmont-Vinings Physician Center Vinings, GA — 1,348 2,418 — 1,348 2,418 3,766 470 2015 2015 30 Years Santa Fe Professional Plaza Scottsdale, AZ — 1,090 1,960 502 1,090 2,462 6 3,558 621 1999 1999 30 Years Sierra San Antonio Medical Plaza Fontana, CA (g.) — — 11,538 870 — 12,408 3 12,411 2,647 2006 2006 30 Years Vista Medical Terrace & Sparks MOB Sparks, NV (f.) — — 9,276 1,717 — 10,993 10,993 2,870 2008 2008 30 Years South Texas ER at Weslaco Weslaco ,TX — 1,749 4,879 — 1,749 4,879 6,628 813 2015 2015 35 Years Chandler Corporate Center III Chandler, AZ — 2,328 14,131 — 2,328 14,131 16,459 2,420 2016 2016 35 Years Frederick Crestwood MOB Frederick, MD — 2,265 18,731 — 2,265 18,731 20,996 2,386 2016 2016 35 Years Madison Professional Office Building Madison, AL — 2,296 6,411 — 2,296 6,411 8,707 988 2016 2016 35 Years Tenaya Medical Office Building Las Vegas, NV 6,727 3,032 10,602 — 3,032 10,602 13,634 1,246 2016 2016 35 Years Henderson Medical Plaza Henderson, NV (f.) — — 10,718 7,170 — 17,888 341 18,229 2,421 2017 2017 35 Years Hamburg Medical Building Hamburg, PA — 696 3,406 — 696 3,406 4,102 338 2017 2017 35 Years Las Palmas Del Sol Emergency Center - West El Paso, TX — 801 5,029 — 801 5,029 5,830 433 2017 2017 35 Years Beaumont Medical Sleep Center Building Southfield, MI — 254 2,968 — 254 2,968 3,222 187 2018 2018 35 Years Clive Behavioral Health Clive, IA — 1,330 — — 1,330 — 5,616 6,946 0 2020 2019 35 Years Bellin Health Family Medical Center Escanaba, MI — 604 3,906 — 605 3,906 0 4,511 18 2019 2019 35 Years TOTALS (h.) $ 61,144 $ 52,051 $ 484,109 $ 84,046 $ 54,892 $ 565,315 $ 7,188 $ 627,395 $ 194,888 a. Consists of costs subsequent to acquisition that were capitalized, divested or written down in connection with asset impairments and hurricane related damage. b. During 2008, a $4.6 million provision for asset impairment was recorded in connection with the real estate assets of Southern Crescent Center I & Southern Crescent Center II. c. Consists of outstanding balances as of December 31, 2019 on third-party debt that is non-recourse to us. d. Carrying value of depreciable assets were written down to zero as a result of substantial damage from Hurricane Harvey during the third quarter of 2017. e. Carrying value of depreciable assets were written down as a result of substantial damage from Hurricane Harvey during the third quarter of 2017. f. At December 31, 2019, we are the lessee with a UHS-related party on a ground lease for land. g. At December 31, 2019, we are the lessee with a third party on a ground lease for land. h. The aggregate cost for federal income tax purposes is $606 million (unaudited) with a net book value of $382 million (unaudited). UNIVERSAL HEALTH REALTY INCOME TRUST NOTES TO SCHEDULE III DECEMBER 31, 2019 (amounts in thousands) (1) RECONCILIATION OF REAL ESTATE PROPERTIES The following table reconciles the Real Estate Properties from January 1, 2017 to December 31, 2019: 2019 2018 2017 Balance at January 1, $ 611,046 $ 599,776 $ 585,828 Additions (a.) 12,882 8,641 12,492 Acquisitions 4,510 3,222 9,931 Disposals/Divestitures (b.) (1,043 ) (593 ) (8,475 ) Balance at December 31, $ 627,395 $ 611,046 $ 599,776 (2) RECONCILIATION OF ACCUMULATED DEPRECIATION The following table reconciles the Accumulated Depreciation from January 1, 2017 to December 31, 2019: 2019 2018 2017 Balance at January 1, $ 173,316 $ 153,379 $ 138,588 Disposals/Divestitures (b.) (220 ) (593 ) (4,896 ) Depreciation expense 21,792 20,530 19,687 Balance at December 31, $ 194,888 $ 173,316 $ 153,379 (a.) Included in the additions for 2019 are approximately $5.6 million related to the new behavioral health hospital construction project, located in Clive, Iowa. Included in the additions during 2018, and 2017, were approximately $313,000 and $3.0 million, respectively, related to Henderson Medical Plaza, which was completed and opened during 2017. Additionally, 2018 includes approximately $2.7 million of hurricane-related reconstruction costs. (b.) 2019 includes the sale of the Kings Crossing II medical office building, as well as the sale of a parcel of land located at one of our buildings. 2017 includes property damage write-downs resulting from substantial damage from Hurricane Harvey during the third quarter of 2017, as discussed in Note 10 to the consolidated financial statements. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Universal Health Realty Income Trust and subsidiaries (the “Trust”) is organized as a Maryland real estate investment trust. We invest in healthcare and human service related facilities currently including acute care hospitals, behavioral health care hospitals, specialty hospitals, free-standing emergency departments, childcare centers and medical/office buildings. As of February 26, 2020, we have seventy-one real estate investments located in twenty states consisting of: • seven • four • fifty-six • four Our future results of operations could be unfavorably impacted by government regulations and deterioration in general economic conditions which could result in increases in the number of people unemployed and/or uninsured. Should that occur, it may result in decreased occupancy rates at our medical office buildings as well as a reduction in the revenues earned by the operators of our hospital facilities which would unfavorably impact our future bonus rentals (on the three Universal Health Services, Inc. hospital facilities) and may potentially have a negative impact on the future lease renewal terms and the underlying value of the hospital properties. Management is unable to predict the effect, if any, that these factors may have on the operating results of our lessees or on their ability to meet their obligations under the terms of their leases with us. Management’s estimate of future cash flows from our leased properties could be materially affected in the near term, if certain of the leases are not renewed or renewed with less favorable terms at the end of their lease terms. |
Purchase Accounting for Acquisition of Investments in Real Estate | Purchase Accounting for Acquisition of Investments in Real Estate Purchase accounting is applied to the assets and liabilities related to all real estate investments acquired from third parties. In accordance with current accounting guidance, we account for our property acquisitions as acquisitions of assets, which requires the capitalization of acquisition costs to the underlying assets and prohibits the recognition of goodwill or bargain purchase gains. The fair value of the real estate acquired is allocated to the acquired tangible assets, consisting primarily of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, and acquired ground leases, based in each case on their fair values. Loan premiums, in the case of above market rate assumed loans, or loan discounts, in the case of below market assumed loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. The fair values of the tangible assets of an acquired property are determined based on comparable land sales for land and replacement costs adjusted for physical and market obsolescence for the improvements. The fair values of the tangible assets of an acquired property are also determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, building and tenant improvements based on management’s determination of the relative fair values of these assets. Management determines the as-if-vacant fair value of a property based on assumptions that a market participant would use, which is similar to methods used by independent appraisers. In addition, there is intangible value related to having tenants leasing space in the purchased property, which is referred to as in-place lease value. Such value results primarily from the buyer of a leased property avoiding the costs associated with leasing the property and also avoiding rent losses and unreimbursed operating expenses during the hypothetical lease-up period. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases including leasing commissions, tenant improvements, legal and other related costs. The value of in-place leases are amortized to amortization expense in the consolidated statements of income over the remaining initial terms of the respective leases. In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) estimated fair market lease rates from the perspective of a market participant for the corresponding in-place leases, measured, for above-market leases, over a period equal to the remaining non-cancelable term of the lease and, for below-market leases, over a period equal to the initial term plus any below market fixed rate renewal periods. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining non-cancelable terms of the respective leases. The capitalized below-market lease values, also referred to as acquired lease obligations, are amortized as an increase to rental income over the initial terms of the respective leases. At December 31, 2019, our net intangible assets total $14.6 million (net of $26.5 million accumulated amortization) and primarily consist of the value of in-place leases. At December 31, 2019, our net intangible value of in-place leases total $12.8 million (net of $25.9 million of accumulated amortization) and will be amortized over the remaining lease terms (aggregate weighted average of 4.2 years at December 31, 2019) and are expected to result in estimated aggregate amortization expense of, $2.9 million, $2.5 million, $1.8 million, $1.5 million and $4.1 million for 2020, 2021, 2022, 2023 and 2024 and thereafter, respectively. Amortization expense on intangible values of in place leases was $3.3 million for the year ended December 31, 2019, $3.8 million for the year ended December 31, 2018 and $4.9 million for the year ended December 31, 2017. The remaining amount of our net intangible assets primarily consists of above-market leases. At December 31, 2019, our net intangible value of above-market leases total $1.5 million (net of $575,000 of accumulated amortization) and will be amortized over the remaining lease terms (aggregate weighted average of approximately 7.3 years at December 31, 2019) and are expected to result in estimated aggregate amortization offset to rental revenue of approximately $210,000 for each of 2020 and 2021, $206,000 in 2022, $203,000 in 2023 and $710,000 in 2024 and thereafter. Amortization offset to rental revenue on intangible values of above-market leases was $189,000, $176,000 and $173,000 for the years ended December 31, 2019, 2018 and 2017, respectively. Depreciation is computed using the straight-line method over the estimated useful lives of the buildings and capital improvements. The estimated original useful lives of our buildings ranges from 25-45 years and the estimated original useful lives of capital improvements ranges from 3-35 years. On a consolidated basis, depreciation expense was $21.8 million for the year ended December 31, 2019, $20.5 million for the year ended December 31, 2018 and $19.7 million for the year ended December 31, 2017. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investment instruments with original maturities of three months or less to be cash equivalents. |
Asset Impairment | Asset Impairment We review each of our properties for indicators that its carrying amount may not be recoverable. Examples of such indicators may include a significant decrease in the market price of the property, a change in the expected holding period for the property, a significant adverse change in how the property is being used or expected to be used based on the underwriting at the time of acquisition, an accumulation of costs significantly in excess of the amount originally expected for the acquisition or development of the property, or a history of operating or cash flow losses of the property. When such impairment indicators exist, we review an estimate of the future undiscounted net cash flows (excluding interest charges) expected to result from the real estate investment’s use and eventual disposition and compare that estimate to the carrying value of the property. We consider factors such as future operating income, trends and prospects, as well as the effects of leasing demand, competition and other factors. If our future undiscounted net cash flow evaluation indicates that we are unable to recover the carrying value of a real estate investment, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods. Since cash flows on properties considered to be long-lived assets to be held and used are considered on an undiscounted basis to determine whether the carrying value of a property is recoverable, our strategy of holding properties over the long-term directly decreases the likelihood of their carrying values not being recoverable and therefore requiring the recording of an impairment loss. If our strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized and such loss could be material. If we determine that the asset fails the recoverability test, the affected assets must be reduced to their fair value. We generally estimate the fair value of rental properties utilizing a discounted cash flow analysis that includes projections of future revenues, expenses and capital improvement costs that a market participant would use based on the highest and best use of the asset, which is similar to the income approach that is commonly utilized by appraisers. In certain cases, we may supplement this analysis by obtaining outside broker opinions of value or third party appraisals. In considering whether to classify a property as held for sale, we consider factors such as whether management has committed to a plan to sell the property, the property is available for immediate sale in its present condition for a price that is reasonable in relation to its current value, the sale of the property is probable, and actions required for management to complete the plan indicate that it is unlikely that any significant changes will made to the plan. If all the criteria are met, we classify the property as held for sale. Upon being classified as held for sale, depreciation and amortization related to the property ceases and it is recorded at the lower of its carrying amount or fair value less cost to sell. The assets and related liabilities of the property are classified separately on the consolidated balance sheets for the most recent reporting period. Only those assets held for sale that constitute a strategic shift or that will have a major effect on our operations are classified as discontinued operations. |
Investments in Limited Liability Companies ("LLCs") | Investments in Limited Liability Companies (“LLCs”) In accordance with U.S. GAAP and guidance relating to accounting for investments and real estate ventures, we account for our unconsolidated investments in LLCs/LPs, which we do not control, using the equity method of accounting. The third-party members in these investments have equal voting rights with regards to issues such as, but not limited to: (i) divestiture of property; (ii) annual budget approval, and; (iii) financing commitments. These investments, which represent 33% to 95% non-controlling ownership interests, are recorded initially at our cost and subsequently adjusted for our net equity in the net income, cash contributions to, and distributions from, the investments. Pursuant to certain agreements, allocations of sales proceeds and profits and losses of some of the LLC investments may be allocated disproportionately as compared to ownership interests after specified preferred return rate thresholds have been satisfied. Distributions received from equity method investees in the consolidated statements of cash flows are classified based on the nature of the distribution. Returns on investments are presented net of equity in income from unconsolidated investments as cash flows from operating activities. Returns of investment are classified as cash flows from investing activities. At December 31, 2019, we have non-controlling equity investments or commitments in five jointly-owned LLCs/LPs which own MOBs (including one currently under construction which is scheduled to be completed in late 2020). As of December 31, 2019, we accounted for these LLCs/LPs on an unconsolidated basis pursuant to the equity method since they are not variable interest entities which we are the primary beneficiary nor do we have a controlling voting interest. The majority of these entities are joint-ventures between us and non-related parties that hold minority ownership interests in the entities. Each entity is generally self-sustained from a cash flow perspective and generates sufficient cash flow to meet its operating cash flow requirements and service the third-party debt (if applicable) that is non-recourse to us. Although there is typically no ongoing financial support required from us to these entities since they are cash-flow sufficient, we may, from time to time, provide funding for certain purposes such as, but not limited to, significant capital expenditures, leasehold improvements and debt financing. Although we are not obligated to do so, if approved by us at our sole discretion, additional cash fundings are typically advanced as equity or member loans. These entities maintain property insurance on the properties. An other than temporary impairment of an investment in an unconsolidated LLC is recognized when the carrying value of the investment is not considered recoverable based on evaluation of the severity and duration of the decline in value, including projected declines in cash flow. To the extent impairment has occurred, the excess carrying value of the asset over its estimated fair value is charged to income. |
Federal Income Taxes | Federal Income Taxes No provision has been made for federal income tax purposes since we qualify as a real estate investment trust under Sections 856 to 860 of the Internal Revenue Code of 1986, and intend to continue to remain so qualified. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our annual REIT taxable income to shareholders. As a REIT, we generally will not be subject to federal, state or local income tax on income that we distribute as dividends to our shareholders. We are subject to a federal excise tax computed on a calendar year basis. The excise tax equals 4% of the amount by which 85% of our ordinary income plus 95% of any capital gain income for the calendar year exceeds cash distributions during the calendar year, as defined. No provision for excise tax has been reflected in the financial statements as no tax was due. Earnings and profits, which determine the taxability of dividends to shareholders, will differ from net income reported for financial reporting purposes due to the differences for federal tax purposes in the cost basis of assets and in the estimated useful lives used to compute depreciation and the recording of provision for impairment losses. The aggregate gross cost basis and net book value of the properties for federal income tax purposes are approximately $606 million (unaudited) and $382 million (unaudited), respectively, at December 31, 2019. The aggregate cost basis and net book value of the properties for federal income tax purposes were approximately $593 million (unaudited) and $384 million (unaudited), respectively, at December 31, 2018. |
Stock-Based Compensation | Stock-Based Compensation We expense the grant-date fair value of restricted stock awards over the vesting period. We recognize the grant-date fair value of equity-based compensation and account for these transactions using the fair-value based method. The expense associated with share-based compensation arrangements is a non-cash charge. In the Consolidated Statements of Cash Flows, stock-based compensation expense is an adjustment to reconcile net income to cash provided by operating activities. |
Fair Value | Fair Value Fair value is a market-based measurement, not an entity-specific measurement and determined based upon the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, accounting requirements establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Level 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). In instances when it is necessary to establish the fair value of our real estate investments and investments in LLCs we use unobservable inputs which are typically based on our own assumptions. The fair value of our real estate investments, components of real estate investments and debt assumed in conjunction with acquisition and impairment activity, are considered to be Level 3 valuations as they are primarily based upon an income capitalization approach. Significant inputs into the models used to determine fair value of real estate investments and components of real estate investments include future cash flow projections, holding period, terminal capitalization rate and discount rates. Additionally the fair value of land takes into consideration comparable sales, as adjusted for site specific factors. The fair value of real estate investments is based upon significant judgments made by management, and accordingly, we typically obtain assistance from third party valuation specialists. Significant inputs into the models used to determine the fair value of assumed mortgages included the outstanding balance, term, stated interest rate and current market rate of the mortgage. The carrying amounts reported in the balance sheet for cash, receivables, and short-term borrowings approximate their fair values due to the short-term nature of these instruments. Accordingly, these items are excluded from the fair value disclosures included elsewhere in these notes to the consolidated financial statements. |
Concentration of Revenues | Concentration of Revenues The rental revenue earned pursuant to the lease on McAllen Medical Center, which is leased to a related party (see Note 2), generated approximately 10% during 2019, 9% during 2018 and 10% during 2017, of our consolidated revenues. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
New Accounting Standards | New Accounting Standards Except as noted below there were no new accounting pronouncements that impacted, or are expected to impact us. In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The guidance amended the existing accounting standards, including the requirement that lessees recognize right-of-use assets and lease liabilities for leases with terms greater than twelve months on their consolidated balance sheet. It also requires disclosures designed to give financial statement users information regarding amount, timing, and uncertainty of cash flows arising from leases. The FASB issued ASU 2018-11, "Leases (Topic 842) Targeted Improvements" in July 2018, which provides lessors with a practical expedient, by class of underlying assets, to not separate non-lease components from the related lease components, and, instead, to account for those components as a single lease component, if certain criteria are met. We adopted Topic 842 on January 1, 2019, the date it became effective for public companies, and applied the new leasing standard to leases in place as of the effective date using the modified retrospective transition method. W e applied Topic 842 to all leases as of January 1, 2019 with comparative periods continuing to be reported under Topic 840. we are the lessee with various third parties, including subsidiaries of UHS, at fourteen of our consolidated properties on the consolidated balance sheet. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses," which introduced new guidance for an approach based on expected losses to estimate credit losses on certain types of financial instruments. Instruments in scope include loans, held-to-maturity debt securities, and net investments in leases as well as reinsurance and trade receivables. In November 2018, the FASB issued ASU 2018-19, which clarifies that operating lease receivables are outside the scope of the new standard. The standard will be effective for us in fiscal years beginning after December 15, 2019. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" and subsequent related updates. The amendments in this update expand and refine hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The ASU amends the presentation and disclosure requirements and changes how entities assess effectiveness. The ASU eliminates the requirement to separately measure and report hedge ineffectiveness and requires all items that affect earnings be presented in the same income statement line as the hedged items. The amendments in this guidance permit the use of the Overnight Index Swap rate based on Secured Overnight Financing Rate (SOFR) as a U.S. benchmark interest rate for hedge accounting purposes to facilitate the LIBOR to SOFR transition. This guidance was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and we adopted effective January 1, 2019. The amended presentation and disclosure guidance was required only prospectively. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Relationship with UHS and Rel_2
Relationship with UHS and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities | The table below details the existing lease terms and renewal options for our three Annual Minimum Rent End of Lease Term Renewal Term (years) McAllen Medical Center $ 5,485,000 December, 2026 5 (a) Wellington Regional Medical Center $ 3,030,000 December, 2021 10 (b) Southwest Healthcare System, Inland Valley Campus $ 2,648,000 December, 2021 10 (b) (a) UHS has one (b) UHS has two |
New Construction, Acquisition_2
New Construction, Acquisitions, Dispositions and Property Exchange Transaction (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
2017 Acquisitions | |
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | The aggregate purchase price for these acquisitions was allocated to the assets acquired and liabilities assumed consisting of tangible property and intangible assets and liabilities, based on the fair values estimated at the acquisition dates. Land $1,496 Buildings and improvements 8,434 Intangible assets 1,598 Below-market lease intangibles (2,488) Net cash paid $9,040 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Minimum Future Base Rents from Non-Cancelable Leases (Topic 842) | Minimum future base rents from non-cancelable leases related to properties included in our financial statements on a consolidated basis, excluding increases resulting from changes in the consumer price index, bonus rents and the impact of straight line rent adjustments, are as follows (amounts in thousands): For the year ended December 31, December 31, 2019 2020 $ 57,102 2021 50,580 2022 35,030 2023 28,899 2024 23,147 Thereafter 55,482 Total minimum base rents $ 250,240 |
Schedule of Minimum Future Base Rents from Non-Cancelable Leases (Topic 840) | For the year ended December 31, December 31, 2018 2019 $ 56,494 2020 50,291 2021 45,357 2022 30,089 2023 24,972 Thereafter 67,288 Total minimum base rents $ 274,491 |
Components of Lease Expense Payments | The components of lease expense payments were as follows (in thousands): Year ended December 31, 2019 Operating lease cost $ 480 Total lease cost $ 480 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows (in thousands): December 31, 2019 Operating Leases Right-of-use land assets-operating leases $ 8,944 Total lease liabilities $ 8,944 Weighted Average remaining lease term, years Operating leases 58.3 Weighted Average discount rate Operating leases 5.07 % |
Schedule of Maturities of lease liabilities | . Maturities of lease liabilities are as follows (amounts in thousands): Year ending: 2020 $ 480 2021 480 2022 480 2023 480 2024 480 Later years 25,442 Total undiscounted lease payments $ 27,842 Less imputed interest 18,898 Total $ 8,944 |
Debt and Financial Instruments
Debt and Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Required Compliance Ratios Giving Effect to New Covenants in Credit Agreements | The following table includes a summary of the required compliance ratios at December 31, 2019 and 2018, giving effect to the covenants contained in the Credit Agreements in effect on the respective dates (dollar amounts in thousands): December 31, 2019 December 31, 2018 Covenant UHT Covenant UHT Tangible net worth $ 125,000 $ 167,181 $ 125,000 $ 181,203 Total leverage < 60 % 42.3 % < 60 % 41.3 % Secured leverage < 30 % 9.1 % < 30 % 9.8 % Unencumbered leverage < 60 % 38.5 % < 60 % 37.6 % Fixed charge coverage > 1.50x 4.0x > 1.50x 4.3x |
Outstanding Mortgages, Excluding Net Debt Premium | As indicated on the following table, we have various mortgages, all of which are non-recourse to us and are not cross-collateralized, included on our consolidated balance sheet as of December 31, 2019 and 2018 (amounts in thousands): As of 12/31/2019 As of 12/31/2018 Facility Name Interest Rate Maturity Date Outstanding Balance (in thousands)(a.) Outstanding Balance (in thousands) Corpus Christi, TX, fixed rate mortgage loan (b.) 6.50 % July, 2019 $ - $ 2,519 700 Shadow Lane and Goldring MOBs fixed rate mortgage loan 4.54 % June, 2022 5,654 5,861 BRB Medical Office Building fixed rate mortgage loan 4.27 % December, 2022 5,721 5,928 Desert Valley Medical Center fixed rate mortgage loan 3.62 % January, 2023 4,661 4,806 2704 North Tenaya Way fixed rate mortgage loan 4.95 % November, 2023 6,727 6,871 Summerlin Hospital Medical Office Building III fixed rate mortgage loan 4.03 % April, 2024 13,196 13,198 Tuscan Professional Building fixed rate mortgage loan 5.56 % June, 2025 3,492 4,020 Phoenix Children’s East Valley Care Center fixed rate mortgage loan 3.95 % January, 2030 8,961 9,194 Rosenberg Children's Medical Plaza fixed rate mortgage loan 4.42 % September, 2033 12,732 12,948 Total, excluding net debt premium and net financing fees 61,144 65,345 Less net financing fees (594 ) (711 ) Plus net debt premium 194 247 Total mortgage notes payable, non-recourse to us, net $ 60,744 $ 64,881 (a.) All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. (b.) On April 2, 2019, the $2.5 million fixed rate mortgage loan on Corpus Christi, TX, was fully repaid utilizing borrowings under our Credit Agreement. |
Aggregate Consolidated Scheduled Debt Repayments | As of December 31, 2019, our aggregate consolidated scheduled debt repayments (including mortgages) are as follows (amounts in thousands): 2020 $ 1,913 2021 2,081 2022 (a.) 225,147 2023 11,892 2024 13,550 Later 19,511 Total $ 274,094 (a.) Includes assumed repayment of $213.0 million of outstanding borrowings under the terms of our $300 million revolving credit agreement scheduled to mature in March, 2022. |
Summarized Financial Informat_2
Summarized Financial Information of Equity Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Limited Liability Companies Accounted for Under Equity Method | The following property table represents the five LLCs or LPs in which we own a non-controlling interest (including one that owns an MOB that is currently under construction and is scheduled to be completed in late 2020) and were accounted for under the equity method as of December 31, 2019: Name of LLC/LP Ownership Property Owned by LLC/LP Suburban Properties 33 % St. Matthews Medical Plaza II Brunswick Associates (a.)(e.) 74 % Mid Coast Hospital MOB Grayson Properties (b.)(f.) 95 % Texoma Medical Plaza FTX MOB Phase II (c.) 95 % Forney Medical Plaza II Grayson Properties II (d.)(f.) 95 % Texoma Medical Plaza II (a.) This LLC has a third-party term loan of $8.1 million, which is non-recourse to us, outstanding as of December 31, 2019. (b.) This building is on the campus of a UHS hospital and has tenants that include subsidiaries of UHS. This LP has a third-party term loan, which is non-recourse to us, of $13.7 million, outstanding as of December 31, 2019. (c.) We have committed to invest up to $2.5 million in equity and debt financing, of which $2.1 million has been funded as of December 31, 2019. This LP has a third-party term loan, which is non-recourse to us, of $4.9 million, outstanding as of December 31, 2019. (d.) This MOB, currently under construction, will be located in Denison, Texas on the campus of a hospital owned and operated by a wholly-owned subsidiary of UHS. We have committed to invest up to $17.9 million in equity and debt financing, which may be reduced if a third-party construction loan is obtained on the property. We have incurred approximately $2.5 million of costs as of December 31, 2019 in connection with this property and our related commitment. The LP will develop, construct, own and operate the Texoma Medical Plaza II which is expected to open in late 2020. ( e .) We are the lessee with a third party on a ground lease for land. (f .) We are the lessee, or have committed to a lease, with a UHS-related party for the land related to this property. |
Combined Statements of Income for LLCs/LPs Accounted Under Equity Method | Below are the combined statements of income for the four LLCs/LPs (excluding one that owns an MOB that is currently under construction) accounted for under the equity method at December 31, 2019, 2018 and 2017. For the Year Ended December 31, 2019 2018 2017 (amounts in thousands) Revenues $ 10,063 $ 9,592 $ 10,673 Operating expenses 4,046 3,557 3,883 Depreciation and amortization 1,758 1,772 1,988 Interest, net 1,295 1,311 1,570 Net income $ 2,964 $ 2,952 $ 3,232 Our share of net income (a.) $ 1,796 $ 1,771 $ 2,416 (a.) Our share of net income during 2017 includes approximately $284,000, of interest income earned by us on an advance made to Arlington Medical Properties, LLC. This advance was repaid to us effective with the previously mentioned Arlington Medical Properties, LLC transaction during March, 2017. |
Combined Balance Sheets for LLCs/LPs Accounted Under Equity Method | Below are the combined balance sheets for the five above-mentioned LLCs/LPs (including one LP that currently owns an MOB under construction) that were accounted for under the equity method as of December 31, 2019 and 2018: December 31, 2019 2018 (amounts in thousands) Net property, including construction in progress $ 33,207 $ 31,818 Other assets (a.) 7,452 3,251 Total assets $ 40,659 $ 35,069 Other liabilities (a.) $ 6,785 $ 2,717 Mortgage notes payable, non-recourse to us 26,650 27,256 Equity 7,224 5,096 Total liabilities and equity $ 40,659 $ 35,069 Investments in LLCs before amounts included in accrued expenses and other liabilities $ 6,918 $ 5,019 Amounts included in accrued expenses and other liabilities (1,856 ) (2,258 ) Our share of equity in LLCs, net $ 5,062 $ 2,761 (a.) Other assets and other liabilities as of December 31, 2019 include approximately $3.7 million of right-of-use land assets and right-of-use land liabilities, respectively, related to ground leases whereby the LLC/LP is the lessee, with third parties, including subsidiaries of UHS. |
Aggregate Principal Amounts due on Mortgage and Construction Notes Payable by Unconsolidated LLC's Accounted Under Equity Method | As of December 31, 2019, aggregate principal amounts due on mortgage notes payable by unconsolidated LLCs, which are accounted for under the equity method and are non-recourse to us, are as follows (amounts in thousands): 2020 $ 5,422 2021 13,569 2022 216 2023 224 2024 7,219 2025 and thereafter — Total $ 26,650 Mortgage Loan Balance (a.) Name of LLC/LP 12/31/2019 12/31/2018 Maturity Date FTX MOB Phase II (5.00% fixed rate mortgage loan) $ 4,926 $ 5,067 October, Grayson Properties (5.034% fixed rate mortgage loan) 13,658 13,929 September, 2021 Brunswick Associates (3.64% fixed rate mortgage loan) 8,066 8,260 December, 2024 $ 26,650 $ 27,256 (a.) All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results for Operating Activities | 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total (amounts in thousands, except per share amounts) Revenues $ 19,112 $ 19,326 $ 19,866 $ 18,859 $ 77,163 Net income before gains on sales $ 3,962 $ 4,261 $ 4,653 $ 4,137 $ 17,013 Gains on sales of real estate assets $ 250 $ — $ — $ 1,701 $ 1,951 Net income $ 4,212 $ 4,261 $ 4,653 $ 5,838 $ 18,964 Total basic earnings per share $ 0.31 $ 0.31 $ 0.34 $ 0.43 $ 1.38 Total diluted earnings per share $ 0.31 $ 0.31 $ 0.34 $ 0.42 $ 1.38 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total (amounts in thousands, except per share amounts) Revenues $ 18,539 $ 20,111 $ 18,828 $ 18,732 $ 76,210 Net income before excess insurance recovery proceeds $ 4,101 $ 5,611 $ 4,374 $ 4,413 $ 18,499 Hurricane insurance recovery proceeds in excess of damaged property write-downs $ 4,535 $ — $ — $ — $ 4,535 Hurricane business interruption insurance recovery proceeds $ 968 $ 194 $ — $ — $ 1,162 Net income $ 9,604 $ 5,805 $ 4,374 $ 4,413 $ 24,196 Total basic earnings per share $ 0.70 $ 0.42 $ 0.32 $ 0.32 $ 1.76 Total diluted earnings per share $ 0.70 $ 0.42 $ 0.32 $ 0.32 $ 1.76 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($)Property | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 26, 2020PropertyState | |
Significant Accounting Policies [Line Items] | ||||
Net intangible assets | $ 14,553,000 | $ 17,407,000 | ||
Intangible assets, accumulated amortization | 26,500,000 | 27,600,000 | ||
Depreciation expense | $ 21,800,000 | 20,500,000 | $ 19,700,000 | |
Federal excise tax rate when amount of 85% of ordinary income plus 95% of any capital gain income exceeds cash distributions | 4.00% | |||
Gross cost basis of properties for federal income tax purposes (Unaudited) | $ 606,000,000 | 593,000,000 | ||
Net book value of the properties for federal income tax purposes (Unaudited) | $ 382,000,000 | 384,000,000 | ||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of annual REIT taxable income that should be distributed to remain exempt from federal income taxes | 90.00% | |||
Minimum | 4 Unconsolidated Limited Liability Companies / Limited Partner | ||||
Significant Accounting Policies [Line Items] | ||||
Non-controlling equity interest, ownership percentage | 33.00% | |||
Maximum | 4 Unconsolidated Limited Liability Companies / Limited Partner | ||||
Significant Accounting Policies [Line Items] | ||||
Non-controlling equity interest, ownership percentage | 95.00% | |||
Buildings | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated original useful lives of property plant and equipment | 25 years | |||
Buildings | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated original useful lives of property plant and equipment | 45 years | |||
Capital Improvements | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated original useful lives of property plant and equipment | 3 years | |||
Capital Improvements | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated original useful lives of property plant and equipment | 35 years | |||
In Place Leases | ||||
Significant Accounting Policies [Line Items] | ||||
Net intangible assets | $ 12,800,000 | |||
Intangible assets, accumulated amortization | $ 25,900,000 | |||
Intangible asset, useful life | 4 years 2 months 12 days | |||
Intangible assets, estimated aggregate amortization expenses for 2020 | $ 2,900,000 | |||
Intangible assets, estimated aggregate amortization expenses for 2021 | 2,500,000 | |||
Intangible assets, estimated aggregate amortization expenses for 2022 | 1,800,000 | |||
Intangible assets, estimated aggregate amortization expenses for 2023 | 1,500,000 | |||
Intangible assets, estimated aggregate amortization expenses for 2024 and thereafter | 4,100,000 | |||
Amortization expense, intangible assets | 3,300,000 | 3,800,000 | 4,900,000 | |
Above-Market Leases | ||||
Significant Accounting Policies [Line Items] | ||||
Net intangible assets | 1,500,000 | |||
Intangible assets, accumulated amortization | $ 575,000 | |||
Intangible asset, useful life | 7 years 3 months 18 days | |||
Intangible assets, estimated aggregate amortization expenses for 2020 | $ 210,000 | |||
Intangible assets, estimated aggregate amortization expenses for 2021 | 210,000 | |||
Intangible assets, estimated aggregate amortization expenses for 2022 | 206,000 | |||
Intangible assets, estimated aggregate amortization expenses for 2023 | 203,000 | |||
Intangible assets, estimated aggregate amortization expenses for 2024 and thereafter | 710,000 | |||
Amortization expense, intangible assets | $ 189,000 | $ 176,000 | $ 173,000 | |
McAllen Medical Center | Customer Concentration Risk | Revenues | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of rental revenue | 10.00% | 9.00% | 10.00% | |
Medical office buildings | Limited Liability Companies | ||||
Significant Accounting Policies [Line Items] | ||||
Number of real estate investments | Property | 5 | |||
Subsequent Event | ||||
Significant Accounting Policies [Line Items] | ||||
Number of real estate investments | Property | 71 | |||
Number of states that real estate investments are located | State | 20 | |||
Subsequent Event | Hospitals | ||||
Significant Accounting Policies [Line Items] | ||||
Number of real estate investments | Property | 7 | |||
Subsequent Event | Hospitals | Acute Care | ||||
Significant Accounting Policies [Line Items] | ||||
Number of real estate investments | Property | 3 | |||
Subsequent Event | Hospitals | Speciality Hospitals | ||||
Significant Accounting Policies [Line Items] | ||||
Number of real estate investments | Property | 3 | |||
Subsequent Event | Hospitals | Behavioral health | ||||
Significant Accounting Policies [Line Items] | ||||
Number of real estate investments | Property | 1 | |||
Subsequent Event | Mission and Weslaco Freestanding Emergency Departments | ||||
Significant Accounting Policies [Line Items] | ||||
Number of real estate investments | Property | 4 | |||
Subsequent Event | Medical office buildings | ||||
Significant Accounting Policies [Line Items] | ||||
Number of real estate investments | Property | 56 | |||
Subsequent Event | Medical office buildings | Majority Owned Subsidiary Unconsolidated | ||||
Significant Accounting Policies [Line Items] | ||||
Number of real estate investments | Property | 5 | |||
Subsequent Event | Medical office buildings | Limited Liability Companies ("LLCs")/ Limited Liability Partnerships ("LPs") | ||||
Significant Accounting Policies [Line Items] | ||||
Number of real estate investments | Property | 5 | |||
Subsequent Event | Preschool and childcare Centers | ||||
Significant Accounting Policies [Line Items] | ||||
Number of real estate investments | Property | 4 |
Relationship with UHS and Rel_3
Relationship with UHS and Related Party Transactions - Additional Information (Detail) | 12 Months Ended | 60 Months Ended | ||
Dec. 31, 2019USD ($)PropertyTimeLease | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)PropertyTimeLease | |
Related Party Transaction [Line Items] | ||||
Remaining lease terms on ground leases | 58 years 3 months 18 days | 58 years 3 months 18 days | ||
Aggregate lease payments for 2019 | $ 480,000 | $ 480,000 | ||
Aggregate lease payments for 2020 | 480,000 | 480,000 | ||
Aggregate lease payments for 2021 | 480,000 | 480,000 | ||
Aggregate lease payments for 2022 | 480,000 | 480,000 | ||
Aggregate lease payments for 2023 | 480,000 | 480,000 | ||
Aggregate lease payments for thereafter | $ 25,442,000 | $ 25,442,000 | ||
Annual advisory fee as percentage of average invested real estate assets | 0.70% | 0.70% | 0.70% | 0.70% |
Universal Health Services, Inc | ||||
Related Party Transaction [Line Items] | ||||
Number of term renewal options | Time | 6 | 6 | ||
Additional renewal terms | 5 years | |||
Number of medical office buildings and free standing emergency departments | Property | 17 | |||
Option to renew lease, notice period prior to termination date of current term | 90 days | |||
Period to purchase respective leased facilities at same price after lease terms | 180 days | |||
Renewal period of respective leased facilities at same price after lease terms | 180 days | |||
Number of renewal options at existing lease rates | Time | 3 | |||
Number of ground leases | Lease | 11 | 11 | ||
Aggregate lease payments for 2019 | $ 480,000 | $ 480,000 | ||
Aggregate lease payments for 2020 | 483,000 | 483,000 | ||
Aggregate lease payments for 2021 | 483,000 | 483,000 | ||
Aggregate lease payments for 2022 | 483,000 | 483,000 | ||
Aggregate lease payments for 2023 | 483,000 | 483,000 | ||
Aggregate lease payments for thereafter | $ 27,700,000 | $ 27,700,000 | ||
Percentage ownership of outstanding shares | 5.70% | 5.70% | 5.70% | |
Universal Health Services, Inc | Customer Concentration Risk | Revenues | ||||
Related Party Transaction [Line Items] | ||||
Percentage of revenues generated from leases and tenants | 22.00% | 21.00% | 22.00% | 23.00% |
Universal Health Services, Inc | Customer Concentration Risk | Revenues | Tenants | ||||
Related Party Transaction [Line Items] | ||||
Percentage of revenues generated from leases and tenants | 31.00% | 30.00% | 32.00% | 32.00% |
Universal Health Services, Inc | Hospital Facilities Leased | ||||
Related Party Transaction [Line Items] | ||||
Number of hospital facilities leased | Property | 3 | 3 | ||
Universal Health Services, Inc | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Initial lease terms | 13 years | |||
Remaining lease terms on ground leases | 30 years | 30 years | ||
Universal Health Services, Inc | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Initial lease terms | 15 years | |||
Remaining lease terms on ground leases | 79 years | 79 years | ||
Universal Health Services of Delaware Inc | ||||
Related Party Transaction [Line Items] | ||||
Annual incentive fee to Advisor as percentage of cash available for distribution | 20.00% | 20.00% | ||
Incentive fees | $ 0 | |||
Advisory fee | $ 4,000,000 | $ 3,800,000 | $ 3,600,000 | |
Cost, Product and Service [Extensible List] | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember | |
Average invested real estate assets | $ 568,000,000 | $ 544,000,000 | $ 511,000,000 | |
Universal Health Services of Delaware Inc | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Percentage of equity to be exceeded for incentive distribution | 15.00% | 15.00% |
Existing Lease Terms and Renewa
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities (Detail) - Universal Health Services, Inc | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
McAllen Medical Center | ||
Operating Leased Assets [Line Items] | ||
Annual Minimum Rent | $ 5,485,000 | |
End of Lease Term | 2026-12 | |
Renewal Term (years) | 5 years | [1] |
Wellington Regional Medical Center | ||
Operating Leased Assets [Line Items] | ||
Annual Minimum Rent | $ 3,030,000 | |
End of Lease Term | 2021-12 | |
Renewal Term (years) | 10 years | [2] |
Southwest Healthcare System, Inland Valley Campus | ||
Operating Leased Assets [Line Items] | ||
Annual Minimum Rent | $ 2,648,000 | |
End of Lease Term | 2021-12 | |
Renewal Term (years) | 10 years | [2] |
[1] | UHS has one | |
[2] | UHS has two |
Existing Lease Terms and Rene_2
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities (Parenthetical) (Detail) - Universal Health Services, Inc | 12 Months Ended |
Dec. 31, 2019TimeRenewalOption | |
Operating Leased Assets [Line Items] | |
Number of renewal option at existing lease rates | 3 |
McAllen Medical Center | |
Operating Leased Assets [Line Items] | |
Number of renewal option at existing lease rates | 1 |
Renewal option term at existing lease rates | 5 years |
Renewal option at existing lease rates expiration year | 2031 |
Wellington Regional Medical Center And Southwest Healthcare System | |
Operating Leased Assets [Line Items] | |
Number of renewal options at fair market value lease rates | RenewalOption | 2 |
Renewal options term at fair market value lease rates | 5 years |
Wellington Regional Medical Center And Southwest Healthcare System | Minimum | |
Operating Leased Assets [Line Items] | |
Renewal options at fair market value lease rates expiration year | 2022 |
Wellington Regional Medical Center And Southwest Healthcare System | Maximum | |
Operating Leased Assets [Line Items] | |
Renewal options at fair market value lease rates expiration year | 2031 |
New Construction, Acquisition_3
New Construction, Acquisitions, Dispositions and Property Exchange Transaction - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019USD ($)Time | Nov. 30, 2019USD ($)Time | Sep. 30, 2019USD ($) | Jul. 31, 2019USD ($)Time | Mar. 31, 2017USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)Time | Dec. 31, 2018USD ($)TimeDisposition | Dec. 31, 2017USD ($)Time | Sep. 30, 2017USD ($) | Mar. 12, 2017 | |
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Total purchase price | $ 9,000,000 | ||||||||||
Number of dispositions | Disposition | 0 | ||||||||||
Repayment of loan | 21,400,000 | ||||||||||
Kings Crossing II Medical Office Building | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Sale price net of closing costs | $ 2,500,000 | ||||||||||
Gain on divestiture of property | $ 1,700,000 | ||||||||||
Parcel of Land | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Sale price net of closing costs | $ 250,000 | ||||||||||
Gain on divestiture of property | 250,000 | ||||||||||
Net cash proceeds received from divestiture | $ 250,000 | $ 250,000 | |||||||||
St. Mary's Professional Office Building | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Gain on divestiture of property | $ 27,200,000 | ||||||||||
Net cash proceeds received from divestiture | $ 57,300,000 | ||||||||||
St. Mary's Professional Office Building | Restricted Cash | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Net cash proceeds received from divestiture | $ 11,300,000 | ||||||||||
Bellin Health Family Medicine Center | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Number of term renewal options | Time | 4 | ||||||||||
Total purchase price | $ 5,100,000 | ||||||||||
Percentage of building area leased | 100.00% | ||||||||||
Initial lease terms | 8 years | ||||||||||
Additional renewal terms | 5 years | ||||||||||
Beaumont Medical Sleep Center Building | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Number of term renewal options | Time | 2 | ||||||||||
Total purchase price | $ 4,100,000 | ||||||||||
Percentage of building area leased | 100.00% | ||||||||||
Initial lease terms | 9 years 6 months | ||||||||||
Additional renewal terms | 5 years | ||||||||||
Las Palmas Del Sol Emergency Center in El Paso | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Triple net lease agreement period | 10 years | ||||||||||
Number of term renewal options | Time | 2 | ||||||||||
Total purchase price | $ 4,200,000 | ||||||||||
Percentage of building area leased | 100.00% | ||||||||||
Additional renewal terms | 5 years | ||||||||||
Transaction costs | $ 60,000 | ||||||||||
Intangible asset, useful life | 9 years | ||||||||||
The Health Center at Hamburg | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Triple net lease agreement period | 15 years | ||||||||||
Number of term renewal options | Time | 2 | ||||||||||
Total purchase price | $ 4,800,000 | ||||||||||
Percentage of building area leased | 100.00% | ||||||||||
Additional renewal terms | 5 years | ||||||||||
Transaction costs | $ 96,000 | ||||||||||
Intangible asset, useful life | 8 years 6 months | ||||||||||
2017 Acquisitions | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Acquired intangible assets include in-place leases amortization period | 6 years 4 months 24 days | ||||||||||
Universal Health Services, Inc | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Master flex lease term | 10 years | ||||||||||
Percentage of rentable square feet | 50.00% | ||||||||||
Percentage of third-party lease rentable square feet threshold for reduction execution | 50.00% | ||||||||||
Number of term renewal options | Time | 6 | 6 | |||||||||
Additional renewal terms | 5 years | ||||||||||
Universal Health Services, Inc | Maximum | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Initial lease terms | 15 years | ||||||||||
Universal Health Services, Inc | Minimum | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Initial lease terms | 13 years | ||||||||||
Universal Health Services, Inc and Catholic Health Initiatives | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Triple net lease agreement period | 20 years | ||||||||||
Number of term renewal options | Time | 5 | ||||||||||
Renewal option term | 10 years | ||||||||||
Project manager's aggregate fee | $ 750,000 | ||||||||||
Estimated approximate project cost | 37,500,000 | ||||||||||
Estimated initial annual rent | $ 2,700,000 | ||||||||||
Des Moines Medical Properties, LLC | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Land and development and construction costs | $ 6,900,000 | $ 6,900,000 | |||||||||
Grayson Properties II LP | Medical office buildings | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Committed investment in equity or member loans | $ 2,500,000 | $ 2,500,000 | |||||||||
Grayson Properties II LP | Maximum | Medical office buildings | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Commitment to investment | $ 17,900,000 | ||||||||||
Grayson Properties II LP | Denison, Texas | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Non-controlling equity interest, ownership percentage | 95.00% | ||||||||||
Arlington Medical Properties | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Non-controlling equity interest, ownership percentage | 85.00% | ||||||||||
Total purchase price | $ 7,900,000 | ||||||||||
Ownership prior to minority interest purchase | 85.00% | ||||||||||
Remaining percentage owned by third party member | 15.00% |
Allocation of Purchase Price to
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed (Detail) - 2017 Acquisitions $ in Thousands | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |
Land | $ 1,496 |
Buildings and improvements | 8,434 |
Intangible assets | 1,598 |
Below-market lease intangibles | (2,488) |
Net cash paid | $ 9,040 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Land | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Leases Disclosure [Line Items] | |||
Tenant reimbursement revenue | $ 9,200,000 | $ 8,300,000 | |
Base rental revenue from non-related parties | 41,300,000 | 40,300,000 | |
Lessee in connection with ground leases for land | Land | 14 | ||
Right-of-use land assets | $ 8,944,000 | ||
Ground lease liabilities | 8,944,000 | ||
Measurement of lease liabilities related to operating leases | 480,000 | ||
Amount of expenses relating to applicable leases | $ 480,000 | 474,000 | 460,000 |
Universal Health Services, Inc | |||
Leases Disclosure [Line Items] | |||
Base rental revenue | 16,700,000 | 16,900,000 | |
Bonus rental revenue | 5,000,000 | 4,900,000 | |
Tenant reimbursement revenue | $ 935,000 | $ 806,000 |
Schedule of Minimum Future Base
Schedule of Minimum Future Base Rents from Non-Cancelable Leases (Topic 842) (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 57,102 |
2021 | 50,580 |
2022 | 35,030 |
2023 | 28,899 |
2024 | 23,147 |
Thereafter | 55,482 |
Total minimum base rents | $ 250,240 |
Schedule of Minimum Future Ba_2
Schedule of Minimum Future Base Rents from Non-Cancelable Leases (Topic 840) (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 56,494 |
2020 | 50,291 |
2021 | 45,357 |
2022 | 30,089 |
2023 | 24,972 |
Thereafter | 67,288 |
Total minimum base rents | $ 274,491 |
Components of Lease Expense Pay
Components of Lease Expense Payments (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 480 |
Total lease cost | $ 480 |
Schedule of Supplemental Balanc
Schedule of Supplemental Balance Sheet Information Related to Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
Right-of-use land assets, net | $ 8,944 |
Ground lease liabilities, net | $ 8,944 |
Weighted Average remaining lease term, years | |
Operating leases | 58 years 3 months 18 days |
Weighted Average discount rate | |
Operating leases | 5.07% |
Schedule of Maturities of lease
Schedule of Maturities of lease liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 480 |
2021 | 480 |
2022 | 480 |
2023 | 480 |
2024 | 480 |
Later years | 25,442 |
Total undiscounted lease payments | 27,842 |
Less imputed interest | 18,898 |
Ground lease liabilities, net | $ 8,944 |
Debt and Financial Instrument_2
Debt and Financial Instruments - Additional Information (Detail) | Mar. 27, 2018USD ($)Option | Jan. 31, 2020USD ($)Derivative | Sep. 30, 2019USD ($)Derivative | Mar. 31, 2019USD ($) | Sep. 30, 2016USD ($)Derivative | Jun. 30, 2016USD ($)Derivative | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Proceeds from Lines of Credit | $ 16,550,000 | $ 15,350,000 | ||||||||||
Outstanding borrowings under revolving credit agreement | $ 212,950,000 | 212,950,000 | 196,400,000 | |||||||||
Available borrowing capacity | $ 87,000,000 | 87,000,000 | ||||||||||
Average amounts outstanding under our revolving credit agreement | $ 198,300,000 | $ 191,400,000 | $ 182,400,000 | |||||||||
Effective interest rate | 3.70% | 3.70% | 3.50% | 2.80% | ||||||||
Line of credit, fair value of borrowings outstanding | $ 213,000,000 | $ 213,000,000 | ||||||||||
Interest Rate Swap | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of interest rate cap agreements | Derivative | 1 | |||||||||||
Notional amount | $ 50,000,000 | |||||||||||
Derivative instruments, fixed rate | 1.144% | |||||||||||
Expiration date of interest rate | Sep. 16, 2024 | |||||||||||
Interest Rate Swap | Subsequent Event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of interest rate cap agreements | Derivative | 1 | |||||||||||
Notional amount | $ 35,000,000 | |||||||||||
Derivative instruments, fixed rate | 1.4975% | |||||||||||
Expiration date of interest rate | Jan. 16, 2024 | |||||||||||
Interest Rate Cap | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of interest rate cap agreements | Derivative | 1 | 1 | ||||||||||
Notional amount | $ 30,000,000 | $ 30,000,000 | ||||||||||
Expiration date of interest rate | Mar. 31, 2019 | Mar. 31, 2019 | ||||||||||
Derivative interest rate cap, payment received or accrued from counterparties | $ 61,000 | $ 144,000 | $ 205,000 | $ 205,000 | ||||||||
Premium paid | $ 55,000 | $ 115,000 | ||||||||||
Level 2 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Mortgage debt | 61,100,000 | 61,100,000 | 65,300,000 | |||||||||
Mortgage loan fair value | 63,100,000 | 63,100,000 | $ 64,900,000 | |||||||||
Level 2 | Interest Rate Swap | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Asset derivatives, fair value | 1,000,000 | 1,000,000 | ||||||||||
Derivative interest rate cap, payment received or accrued from counterparties | 108,000 | |||||||||||
LIBOR | Interest Rate Cap | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Derivative instruments, LIBOR rate | 1.50% | 1.50% | ||||||||||
Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding borrowing | $ 300,000,000 | $ 300,000,000 | ||||||||||
Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding borrowing | $ 300,000,000 | |||||||||||
Increase in borrowing capacity | $ 50,000,000 | |||||||||||
Unsecured revolving amended credit agreement terminated date | 2022-03 | |||||||||||
Number of additional six month extension options | Option | 2 | |||||||||||
Proceeds from Lines of Credit | $ 50,000,000 | |||||||||||
Credit facility, Interest Rate Terms | one, two, three, or six month LIBOR plus an applicable margin ranging from 1.10% to 1.35% or at the Base Rate plus an applicable margin ranging from 0.10% to 0.35%. | |||||||||||
Base rate description | the greater of: (a) the administrative agent’s prime rate; (b) the federal funds effective rate plus 1/2 of 1%, and; (c) one month LIBOR plus 1% | |||||||||||
Facility fee payable on commitment | 0.20% | |||||||||||
Credit Agreement | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Margin points added to the reference rate | 1.20% | |||||||||||
Credit Agreement | Base Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Margin points added to the reference rate | 0.20% | |||||||||||
Credit Agreement | Swingline/Short-Term Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding borrowing | 30,000,000 | |||||||||||
Credit Agreement | Letters of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding borrowing | $ 40,000,000 | |||||||||||
Credit Agreement | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Facility fee payable on commitment | 0.15% | |||||||||||
Credit Agreement | Minimum | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Margin points added to the reference rate | 1.10% | |||||||||||
Margin points added to the base rate | 1.00% | |||||||||||
Credit Agreement | Minimum | Base Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Margin points added to the reference rate | 0.10% | |||||||||||
Credit Agreement | Minimum | Federal Funds Effective Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Margin points added to the base rate | 0.50% | |||||||||||
Credit Agreement | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Facility fee payable on commitment | 0.35% | |||||||||||
Credit Agreement | Maximum | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Margin points added to the reference rate | 1.35% | |||||||||||
Credit Agreement | Maximum | Base Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Margin points added to the reference rate | 0.35% |
Summary of Required Compliance
Summary of Required Compliance Ratios in Connection with Terms of Credit Agreements (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Covenant, Tangible net worth | $ 125,000 | $ 125,000 |
Tangible net worth | $ 167,181 | $ 181,203 |
Total leverage | 42.30% | 41.30% |
Secured leverage | 9.10% | 9.80% |
Unencumbered leverage | 38.50% | 37.60% |
Fixed charge coverage | 4.00% | 4.30% |
Maximum | ||
Debt Instrument [Line Items] | ||
Covenant, Total leverage | 60.00% | 60.00% |
Covenant, Secured leverage | 30.00% | 30.00% |
Covenant, Unencumbered leverage | 60.00% | 60.00% |
Minimum | ||
Debt Instrument [Line Items] | ||
Covenant, Fixed charge coverage | 1.50% | 1.50% |
Summary of Outstanding Mortgage
Summary of Outstanding Mortgages, Excluding Net Debt Premium (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Debt Instrument [Line Items] | ||||
Outstanding Balance | $ 61,144 | [1] | $ 65,345 | |
Less net financing fees | (594) | [1] | (711) | |
Plus net debt premium | 194 | [1] | 247 | |
Total mortgage notes payable, non-recourse to us, net | $ 60,744 | [1] | 64,881 | |
Corpus Christi, TX, Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Interest Rate Stated Percentage | [2] | 6.50% | ||
Maturity Date | [2] | 2019-07 | ||
Outstanding Balance | [2] | 2,519 | ||
700 Shadow Lane and Goldring MOBs Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Interest Rate Stated Percentage | 4.54% | |||
Maturity Date | 2022-06 | |||
Outstanding Balance | $ 5,654 | [1] | 5,861 | |
BRB Medical Office Building Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Interest Rate Stated Percentage | 4.27% | |||
Maturity Date | 2022-12 | |||
Outstanding Balance | $ 5,721 | [1] | 5,928 | |
Desert Valley Medical Center Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Interest Rate Stated Percentage | 3.62% | |||
Maturity Date | 2023-01 | |||
Outstanding Balance | $ 4,661 | [1] | 4,806 | |
2704 North Tenaya Way Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Interest Rate Stated Percentage | 4.95% | |||
Maturity Date | 2023-11 | |||
Outstanding Balance | $ 6,727 | [1] | 6,871 | |
Summerlin Hospital Medical Office Building III Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Interest Rate Stated Percentage | 4.03% | |||
Maturity Date | 2024-04 | |||
Outstanding Balance | $ 13,196 | [1] | 13,198 | |
Tuscan Professional Building Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Interest Rate Stated Percentage | 5.56% | |||
Maturity Date | 2025-06 | |||
Outstanding Balance | $ 3,492 | [1] | 4,020 | |
Rosenberg Children's Medical Plaza Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Interest Rate Stated Percentage | 4.42% | |||
Maturity Date | 2033-09 | |||
Outstanding Balance | $ 12,732 | [1] | 12,948 | |
Phoenix Children’s East Valley Care Center Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Interest Rate Stated Percentage | 3.95% | |||
Maturity Date | 2030-01 | |||
Outstanding Balance | $ 8,961 | [1] | $ 9,194 | |
[1] | All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. | |||
[2] | On April 2, 2019, the $2.5 million fixed rate mortgage loan on Corpus Christi, TX, was fully repaid utilizing borrowings under our Credit Agreement. |
Summary of Outstanding Mortga_2
Summary of Outstanding Mortgages, Excluding Net Debt Premium (Parenthetical) (Detail) - USD ($) $ in Thousands | Apr. 02, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Repayments of mortgage loan | $ 4,201 | $ 23,397 | $ 61,021 | |
Corpus Christi, TX, Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Repayments of mortgage loan | $ 2,500 |
Aggregate Consolidated Schedule
Aggregate Consolidated Scheduled Debt Repayment (Detail) $ in Thousands | Dec. 31, 2019USD ($) | |
Debt Disclosure [Abstract] | ||
2020 | $ 1,913 | |
2021 | 2,081 | |
2022 | 225,147 | [1] |
2023 | 11,892 | |
2024 | 13,550 | |
Later | 19,511 | |
Total | $ 274,094 | |
[1] | Includes assumed repayment of $213.0 million of outstanding borrowings under the terms of our $300 million revolving credit agreement scheduled to mature in March, 2022. |
Aggregate Consolidated Schedu_2
Aggregate Consolidated Scheduled Debt Repayment (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Equity Method Investments [Line Items] | ||
Line of credit borrowings | $ 212,950,000 | $ 196,400,000 |
New Revolving Credit Facility Agreement | ||
Schedule Of Equity Method Investments [Line Items] | ||
Outstanding borrowing | $ 300,000,000 | |
Maturity date | 2022-03 |
Dividends and Equity Issuance_2
Dividends and Equity Issuance Program - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Dividends and Equity Issuance [Line Items] | ||||
Declared and paid dividends, per share | $ 2.72 | $ 2.68 | $ 2.64 | |
Ordinary income per share | 2.48 | 2.35 | 1.47 | |
Capital gain per share | $ 0.24 | $ 0.33 | $ 1.17 | |
Securities, aggregate sales price | $ 23,300,000 | |||
At-The-Market Equity Issuance Program (ATM) | ||||
Dividends and Equity Issuance [Line Items] | ||||
Aggregate sales of threshold amount | $ 23,300,000 | |||
Share issued | 0 | 0 | 127,499 | |
Average sale price per share | $ 74.71 | |||
Net cash proceeds from stock issued | $ 9,100,000 | |||
Payment of stock issuance cost | 400,000 | |||
Payments for stock issuance | 238,000 | |||
At-The-Market Equity Issuance Program (ATM) | Other Expense | ||||
Dividends and Equity Issuance [Line Items] | ||||
Payments for stock issuance | $ 162,000 | |||
Capital gain | ||||
Dividends and Equity Issuance [Line Items] | ||||
Unrecaptured Section 1250 gain dividends per share | $ 0.30 | $ 0.453 |
Incentive Plans - Additional In
Incentive Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Incentive Plan [Line Items] | |||
Number of options outstanding | 0 | 0 | 0 |
Number of stock options exercised | 0 | 0 | 0 |
Incentive Plan 2007 | |||
Equity Incentive Plan [Line Items] | |||
Number of shares authorized for issuance | 125,000 | ||
Shares issued, net of cancellation | 106,275 | ||
Number of shares vested | 84,715 | ||
Number of shares remaining for issuance | 18,725 | ||
Restricted shares issued, net of cancellation | 10,980 | 10,580 | 8,405 |
Restricted shares issued, weighted average grant price | $ 84.24 | $ 61.77 | $ 73.46 |
Restricted shares of beneficial interest, net of cancellations, issued, value | $ 924,955 | $ 653,526 | $ 617,431 |
Restricted shares, Vesting Period | 2021-06 | 2020-06 | 2019-06 |
Compensation expense | $ 702,000 | $ 575,000 | $ 538,000 |
Compensation expense remained to be recognized in future | $ 815,000 | ||
Compensation expense not yet recognized, period of recognition | 1 year |
Summarized Financial Informat_3
Summarized Financial Information of Equity Affiliates - Additional Information (Detail) - Property | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2017 | Mar. 12, 2017 | |
Arlington Medical Properties | |||
Schedule Of Equity Method Investments [Line Items] | |||
Non-controlling equity interest, ownership percentage | 85.00% | ||
Remaining percentage owned by third party member | 15.00% | ||
Limited Liability Companies | Medical office buildings | |||
Schedule Of Equity Method Investments [Line Items] | |||
Number of real estate investments | 5 | ||
Number of real estate investments under construction | 1 | ||
Minimum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Number of days for Non-Offering Member either to purchase or sell its entire ownership interest to or from Offering Member | 60 days | ||
Maximum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Number of days for Non-Offering Member either to purchase or sell its entire ownership interest to or from Offering Member | 90 days | ||
4 Unconsolidated Limited Liability Companies / Limited Partner | Minimum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Non-controlling equity interest, ownership percentage | 33.00% | ||
4 Unconsolidated Limited Liability Companies / Limited Partner | Maximum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Non-controlling equity interest, ownership percentage | 95.00% |
Limited Liability Companies Acc
Limited Liability Companies Accounted for Under Equity Method (Detail) - Equity Method Investments | 12 Months Ended | |
Dec. 31, 2019 | ||
Suburban Properties | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 33.00% | |
Property Owned by LLC/LP | St. Matthews Medical Plaza II | |
Brunswick Associates | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 74.00% | [1],[2] |
Property Owned by LLC/LP | Mid Coast Hospital MOB | [1],[2] |
Grayson Properties | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | [3],[4] |
Property Owned by LLC/LP | Texoma Medical Plaza | [3],[4] |
FTX MOB Phase II limited partnership | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | [5] |
Property Owned by LLC/LP | Forney Medical Plaza II | [5] |
Grayson Properties II | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | [4],[6] |
Property Owned by LLC/LP | Texoma Medical Plaza II | [4],[6] |
[1] | This LLC has a third-party term loan of $8.1 million, which is non-recourse to us, outstanding as of December 31, 2019. | |
[2] | We are the lessee with a third party on a ground lease for land. | |
[3] | This building is on the campus of a UHS hospital and has tenants that include subsidiaries of UHS. This LP has a third-party term loan, which is non-recourse to us, of $13.7 million, outstanding as of December 31, 2019. | |
[4] | We are the lessee, or have committed to a lease, with a UHS-related party for the land related to this property. | |
[5] | We have committed to invest up to $2.5 million in equity and debt financing, of which $2.1 million has been funded as of December 31, 2019. This LP has a third-party term loan, which is non-recourse to us, of $4.9 million, outstanding as of December 31, 2019. | |
[6] | This MOB, currently under construction, will be located in Denison, Texas on the campus of a hospital owned and operated by a wholly-owned subsidiary of UHS. We have committed to invest up to $17.9 million in equity and debt financing, which may be reduced if a third-party construction loan is obtained on the property. We have incurred approximately $2.5 million of costs as of December 31, 2019 in connection with this property and our related commitment. The LP will develop, construct, own and operate the Texoma Medical Plaza II which is expected to open in late 2020. |
Limited Liability Companies A_2
Limited Liability Companies Accounted for Under Equity Method (Parenthetical) (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Brunswick Associates | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | $ 8.1 |
Grayson Properties | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | 13.7 |
FTX MOB Phase II limited partnership | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | 4.9 |
Committed investment in equity and debt financing, funded | 2.1 |
FTX MOB Phase II limited partnership | Maximum | |
Schedule Of Equity Method Investments [Line Items] | |
Commitment to investment | 2.5 |
Grayson Properties II | Denison, Texas | |
Schedule Of Equity Method Investments [Line Items] | |
Committed investment in equity and debt financing, incurred | 2.5 |
Grayson Properties II | Maximum | Denison, Texas | |
Schedule Of Equity Method Investments [Line Items] | |
Commitment to investment | $ 17.9 |
Combined Statements of Income f
Combined Statements of Income for LLCs/LPs Accounted Under Equity Method (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Equity Method Investments And Joint Ventures [Abstract] | ||||
Revenues | $ 10,063 | $ 9,592 | $ 10,673 | |
Operating expenses | 4,046 | 3,557 | 3,883 | |
Depreciation and amortization | 1,758 | 1,772 | 1,988 | |
Interest, net | 1,295 | 1,311 | 1,570 | |
Net income | 2,964 | 2,952 | 3,232 | |
Our share of net income | [1] | $ 1,796 | $ 1,771 | $ 2,416 |
[1] | Our share of net income during 2017 includes approximately $284,000, of interest income earned by us on an advance made to Arlington Medical Properties, LLC. |
Combined Statements of Income_2
Combined Statements of Income for LLCs/LPs Accounted Under Equity Method (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Arlington Medical Properties | |
Schedule Of Equity Method Investments [Line Items] | |
Interest income earned on various advances made to LLCs | $ 284,000 |
Combined Balance Sheets for LLC
Combined Balance Sheets for LLCs/LPs Accounted Under Equity Method (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |||
Net property, including construction in progress | $ 33,207 | $ 31,818 | |
Other assets | [1] | 7,452 | 3,251 |
Total assets | 40,659 | 35,069 | |
Other liabilities | [1] | 6,785 | 2,717 |
Mortgage notes payable, non-recourse to us | 26,650 | 27,256 | |
Equity | 7,224 | 5,096 | |
Total liabilities and equity | 40,659 | 35,069 | |
Investments in LLCs before amounts included in accrued expenses and other liabilities | 6,918 | 5,019 | |
Amounts included in accrued expenses and other liabilities | (1,856) | (2,258) | |
Our share of equity in LLCs, net | $ 5,062 | $ 2,761 | |
[1] | Other assets and other liabilities as of December 31, 2019 include approximately $3.7 million of right-of-use land assets and right-of-use land liabilities, respectively, related to ground leases whereby the LLC/LP is the lessee, with third parties, including subsidiaries of UHS. |
Combined Balance Sheets for L_2
Combined Balance Sheets for LLCs/LPs Accounted Under Equity Method (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Schedule Of Equity Method Investments [Line Items] | |
Right-of-use land assets | $ 8,944 |
Right-of-use land liabilities | 8,944 |
Limited Liability Companies | |
Schedule Of Equity Method Investments [Line Items] | |
Right-of-use land assets | 3,700 |
Right-of-use land liabilities | $ 3,700 |
Aggregate Principal Amounts Due
Aggregate Principal Amounts Due on Mortgage Notes Payable by Unconsolidated LLCs, Accounted Under Equity Method (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Schedule Of Equity Method Investments [Line Items] | |||
2020 | $ 1,913 | ||
2021 | 2,081 | ||
2022 | [1] | 225,147 | |
2023 | 11,892 | ||
2024 | 13,550 | ||
2025 and thereafter | 19,511 | ||
Total | 274,094 | ||
Mortgage Loan Balance | 26,650 | $ 27,256 | |
Equity Method Investments | |||
Schedule Of Equity Method Investments [Line Items] | |||
2020 | 5,422 | ||
2021 | 13,569 | ||
2022 | 216 | ||
2023 | 224 | ||
2024 | 7,219 | ||
Total | 26,650 | ||
Mortgage Loan Balance | [2] | 26,650 | 27,256 |
Equity Method Investments | FTX MOB Phase II | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [2] | $ 4,926 | 5,067 |
Maturity Date | [2] | 2020-10 | |
Equity Method Investments | Grayson Properties | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [2] | $ 13,658 | 13,929 |
Maturity Date | [2] | 2021-09 | |
Equity Method Investments | Brunswick Associates | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [2] | $ 8,066 | $ 8,260 |
Maturity Date | [2] | 2024-12 | |
[1] | Includes assumed repayment of $213.0 million of outstanding borrowings under the terms of our $300 million revolving credit agreement scheduled to mature in March, 2022. | ||
[2] | All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. |
Aggregate Principal Amounts D_2
Aggregate Principal Amounts Due on Mortgage Notes Payable by Unconsolidated LLCs, Accounted Under Equity Method (Parenthetical) (Detail) | Dec. 31, 2019 |
5.00% Fixed Rate Mortgage Loan | FTX MOB Phase II | |
Schedule Of Equity Method Investments [Line Items] | |
Loan interest rate fixed percentage | 5.00% |
5.034% Fixed Rate Mortgage Loan | Grayson Properties | |
Schedule Of Equity Method Investments [Line Items] | |
Loan interest rate fixed percentage | 5.034% |
3.64% Fixed Rate Mortgage Loan | Brunswick Associates | |
Schedule Of Equity Method Investments [Line Items] | |
Loan interest rate fixed percentage | 3.64% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Impact of Hurricane Harvey - Ad
Impact of Hurricane Harvey - Additional Information (Detail) | 3 Months Ended | 4 Months Ended | 10 Months Ended | 12 Months Ended | |||
Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2017Building | |
Unusual Or Infrequent Item [Line Items] | |||||||
Hurricane related insurance recoveries | $ 194,000 | $ 968,000 | $ 1,162,000 | ||||
Hurricane related expenses | $ 4,967,000 | ||||||
Hurricane insurance recoveries in excess of property damage write-downs | $ 4,535,000 | 4,535,000 | 2,033,000 | ||||
Hurricane Harvey, Extensive Water Damage | Houston, Texas | |||||||
Unusual Or Infrequent Item [Line Items] | |||||||
Number of medical office buildings | Building | 5 | ||||||
Hurricane Harvey | |||||||
Unusual Or Infrequent Item [Line Items] | |||||||
Additional insurance recovery proceeds | 5,500,000 | ||||||
Hurricane related insurance recoveries | 12,500,000 | 7,000,000 | |||||
Hurricane related expenses | 5,000,000 | ||||||
Property damage expenses | 3,600,000 | ||||||
Remediation and demolition expenses | 1,400,000 | ||||||
Hurricane insurance recoveries in excess of property damage write-downs | $ 2,000,000 | ||||||
Hurricane Harvey | Business Interruption | |||||||
Unusual Or Infrequent Item [Line Items] | |||||||
Hurricane related insurance recoveries | $ 1,200,000 | ||||||
Hurricane insurance recoveries in excess of property damage write-downs | $ 4,500,000 | ||||||
Hurricane Harvey | 2017 business interruption | |||||||
Unusual Or Infrequent Item [Line Items] | |||||||
Hurricane related insurance recoveries | $ 500,000 |
Quarterly Results (Detail)
Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 18,859 | $ 19,866 | $ 19,326 | $ 19,112 | $ 18,732 | $ 18,828 | $ 20,111 | $ 18,539 | $ 77,163 | $ 76,210 | $ 72,348 |
Net income before gains on sales | 4,137 | 4,653 | 4,261 | 3,962 | 17,013 | ||||||
Gains on sales of real estate assets | 1,701 | 250 | 1,951 | ||||||||
Net income before excess insurance recovery proceeds | 4,413 | 4,374 | 5,611 | 4,101 | 18,499 | ||||||
Hurricane insurance recovery proceeds in excess of damaged property write-downs | 4,535 | 4,535 | 2,033 | ||||||||
Hurricane business interruption insurance recovery proceeds | 194 | 968 | 1,162 | ||||||||
Net income | $ 5,838 | $ 4,653 | $ 4,261 | $ 4,212 | $ 4,413 | $ 4,374 | $ 5,805 | $ 9,604 | $ 18,964 | $ 24,196 | $ 45,619 |
Total basic earnings per share | $ 0.43 | $ 0.34 | $ 0.31 | $ 0.31 | $ 0.32 | $ 0.32 | $ 0.42 | $ 0.70 | $ 1.38 | $ 1.76 | $ 3.35 |
Total diluted earnings per share | $ 0.42 | $ 0.34 | $ 0.31 | $ 0.31 | $ 0.32 | $ 0.32 | $ 0.42 | $ 0.70 | $ 1.38 | $ 1.76 | $ 3.35 |
Schedule III Real Estate and Ac
Schedule III Real Estate and Accumulated Depreciation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrance | [1],[2] | $ 61,144 | ||||
Initial Cost, Land | [2] | 52,051 | ||||
Initial Cost, Building & Improvements | [2] | 484,109 | ||||
Adjustments to Basis | [2],[3] | 84,046 | ||||
Land | [2] | 54,892 | ||||
Buildings and Improvements | [2] | 565,315 | ||||
CIP | [2] | 7,188 | ||||
Total | 627,395 | [2] | $ 611,046 | $ 599,776 | $ 585,828 | |
Accumulated Depreciation | 194,888 | [2] | $ 173,316 | |||
Inland Valley Regional Medical Center Wildomar, California | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | 2,050 | |||||
Initial Cost, Building & Improvements | 10,701 | |||||
Adjustments to Basis | [3] | 14,596 | ||||
Land | 2,050 | |||||
Buildings and Improvements | 25,297 | |||||
Total | 27,347 | |||||
Accumulated Depreciation | $ 14,728 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2007 | |||||
Date Acquired | 1986 | |||||
Average Depreciable Life | 43 years | |||||
McAllen Medical Center McAllen, Texas | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 4,720 | |||||
Initial Cost, Building & Improvements | 31,442 | |||||
Adjustments to Basis | [3] | 10,189 | ||||
Land | 6,281 | |||||
Buildings and Improvements | 40,070 | |||||
Total | 46,351 | |||||
Accumulated Depreciation | $ 29,111 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1994 | |||||
Date Acquired | 1986 | |||||
Average Depreciable Life | 42 years | |||||
Wellington Regional Medical Center West Palm Beach, Florida | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,190 | |||||
Initial Cost, Building & Improvements | 14,652 | |||||
Adjustments to Basis | [3] | 17,370 | ||||
Land | 1,663 | |||||
Buildings and Improvements | 31,549 | |||||
Total | 33,212 | |||||
Accumulated Depreciation | $ 21,637 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2006 | |||||
Date Acquired | 1986 | |||||
Average Depreciable Life | 42 years | |||||
Evansville Rehabilitation Hospital Evansville, Indiana | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 500 | |||||
Initial Cost, Building & Improvements | 6,945 | |||||
Adjustments to Basis | [3] | 1,062 | ||||
Land | 500 | |||||
Buildings and Improvements | 8,007 | |||||
Total | 8,507 | |||||
Accumulated Depreciation | $ 6,084 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1993 | |||||
Date Acquired | 1989 | |||||
Average Depreciable Life | 40 years | |||||
Kindred Chicago Central Hospital Central Chicago, Illinois | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 158 | |||||
Initial Cost, Building & Improvements | 6,404 | |||||
Adjustments to Basis | [3] | 1,838 | ||||
Land | 158 | |||||
Buildings and Improvements | 8,242 | |||||
Total | 8,400 | |||||
Accumulated Depreciation | $ 8,242 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1993 | |||||
Date Acquired | 1986 | |||||
Average Depreciable Life | 25 years | |||||
Family Doctor's Medical Office Building Shreveport, Louisiana | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 54 | |||||
Initial Cost, Building & Improvements | 1,526 | |||||
Adjustments to Basis | [3] | 494 | ||||
Land | 54 | |||||
Buildings and Improvements | 2,020 | |||||
Total | 2,074 | |||||
Accumulated Depreciation | $ 1,140 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1991 | |||||
Date Acquired | 1995 | |||||
Average Depreciable Life | 45 years | |||||
Professional Buildings at King's Crossing Kingwood, Texas | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | [4] | $ 439 | ||||
Initial Cost, Building & Improvements | [4] | 1,837 | ||||
Adjustments to Basis | [3],[4] | (388) | ||||
Land | [4] | 439 | ||||
Buildings and Improvements | [4] | 1,449 | ||||
CIP | [4] | 33 | ||||
Total | [4] | 1,921 | ||||
Accumulated Depreciation | [4] | $ 187 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [4] | 1995 | ||||
Date Acquired | [4] | 1995 | ||||
Average Depreciable Life | [4] | 45 years | ||||
Chesterbrook Academy Audubon, Pennsylvania | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 307 | |||||
Initial Cost, Building & Improvements | 996 | |||||
Land | 307 | |||||
Buildings and Improvements | 996 | |||||
Total | 1,303 | |||||
Accumulated Depreciation | $ 520 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1996 | |||||
Date Acquired | 1996 | |||||
Average Depreciable Life | 45 years | |||||
Chesterbrook Academy New Britain, Pennsylvania | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 250 | |||||
Initial Cost, Building & Improvements | 744 | |||||
Land | 250 | |||||
Buildings and Improvements | 744 | |||||
Total | 994 | |||||
Accumulated Depreciation | $ 394 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1991 | |||||
Date Acquired | 1996 | |||||
Average Depreciable Life | 45 years | |||||
Chesterbrook Academy Uwchlan, Pennsylvania | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 180 | |||||
Initial Cost, Building & Improvements | 815 | |||||
Land | 180 | |||||
Buildings and Improvements | 815 | |||||
Total | 995 | |||||
Accumulated Depreciation | $ 428 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1992 | |||||
Date Acquired | 1996 | |||||
Average Depreciable Life | 45 years | |||||
Chesterbrook Academy Newtown, Pennsylvania | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 195 | |||||
Initial Cost, Building & Improvements | 749 | |||||
Land | 195 | |||||
Buildings and Improvements | 749 | |||||
Total | 944 | |||||
Accumulated Depreciation | $ 396 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1992 | |||||
Date Acquired | 1996 | |||||
Average Depreciable Life | 45 years | |||||
The Southern Crescent Center I | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | [5] | $ 1,130 | ||||
Initial Cost, Building & Improvements | [5] | 5,092 | ||||
Adjustments to Basis | [3],[5] | (2,246) | ||||
Land | [5] | 1,130 | ||||
Buildings and Improvements | [5] | 2,846 | ||||
Total | [5] | 3,976 | ||||
Accumulated Depreciation | [5] | $ 2,557 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [5] | 1994 | ||||
Date Acquired | [5] | 1996 | ||||
Average Depreciable Life | [5] | 45 years | ||||
The Southern Crescent Center II Riverdale, Georgia | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Adjustments to Basis | [3],[5] | $ 5,264 | ||||
Land | [5] | 806 | ||||
Buildings and Improvements | [5] | 4,458 | ||||
Total | [5] | 5,264 | ||||
Accumulated Depreciation | [5] | $ 2,953 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [5] | 2000 | ||||
Date Acquired | [5] | 1998 | ||||
Average Depreciable Life | [5] | 35 years | ||||
The Cypresswood Professional Center Spring, Texas | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | [6] | $ 573 | ||||
Initial Cost, Building & Improvements | [6] | 3,842 | ||||
Adjustments to Basis | [3],[6] | (2,667) | ||||
Land | [6] | 573 | ||||
Buildings and Improvements | [6] | 1,175 | ||||
CIP | [6] | 81 | ||||
Total | [6] | 1,829 | ||||
Accumulated Depreciation | [6] | $ 127 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [6] | 1997 | ||||
Date Acquired | [6] | 1997 | ||||
Average Depreciable Life | [6] | 35 years | ||||
701 South Tonopah Building Las Vegas, Nevada | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Building & Improvements | [7] | $ 1,579 | ||||
Adjustments to Basis | [3],[7] | 68 | ||||
Buildings and Improvements | [7] | 1,647 | ||||
Total | [7] | 1,647 | ||||
Accumulated Depreciation | [7] | $ 1,302 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [7] | 1999 | ||||
Date Acquired | [7] | 1999 | ||||
Average Depreciable Life | [7] | 25 years | ||||
Danbury Medical Plaza Danbury, Connecticut | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,151 | |||||
Initial Cost, Building & Improvements | 5,176 | |||||
Adjustments to Basis | [3] | 1,087 | ||||
Land | 1,151 | |||||
Buildings and Improvements | 6,263 | |||||
CIP | 13 | |||||
Total | 7,427 | |||||
Accumulated Depreciation | $ 4,020 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2000 | |||||
Date Acquired | 2000 | |||||
Average Depreciable Life | 30 years | |||||
Corpus Christi Corpus Christi Texas | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,104 | |||||
Initial Cost, Building & Improvements | 5,508 | |||||
Land | 1,104 | |||||
Buildings and Improvements | 5,508 | |||||
Total | 6,612 | |||||
Accumulated Depreciation | $ 1,872 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2008 | |||||
Date Acquired | 2008 | |||||
Average Depreciable Life | 35 years | |||||
Apache Junction Medical Plaza Apache Junction, AZ | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 240 | |||||
Initial Cost, Building & Improvements | 3,590 | |||||
Adjustments to Basis | [3] | 1,295 | ||||
Land | 240 | |||||
Buildings and Improvements | 4,885 | |||||
Total | 5,125 | |||||
Accumulated Depreciation | $ 1,945 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2004 | |||||
Date Acquired | 2004 | |||||
Average Depreciable Life | 30 years | |||||
Auburn Medical Office Building II Auburn, WA | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Building & Improvements | [8] | $ 10,200 | ||||
Adjustments to Basis | [3],[8] | 176 | ||||
Buildings and Improvements | [8] | 10,376 | ||||
Total | [8] | 10,376 | ||||
Accumulated Depreciation | [8] | $ 2,740 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [8] | 2009 | ||||
Date Acquired | [8] | 2009 | ||||
Average Depreciable Life | [8] | 36 years | ||||
BRB Medical Office Building Kingwood, Texas | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrance | [1] | $ 5,721 | ||||
Initial Cost, Land | 430 | |||||
Initial Cost, Building & Improvements | 8,970 | |||||
Adjustments to Basis | [3] | 84 | ||||
Land | 430 | |||||
Buildings and Improvements | 9,054 | |||||
Total | 9,484 | |||||
Accumulated Depreciation | $ 2,361 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2010 | |||||
Date Acquired | 2010 | |||||
Average Depreciable Life | 37 years | |||||
Centennial Hills Medical Office Building Las Vegas, NV | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Building & Improvements | [7] | $ 19,890 | ||||
Adjustments to Basis | [3],[7] | 2,539 | ||||
Buildings and Improvements | [7] | 22,429 | ||||
CIP | [7] | 64 | ||||
Total | [7] | 22,493 | ||||
Accumulated Depreciation | [7] | $ 6,461 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [7] | 2006 | ||||
Date Acquired | [7] | 2006 | ||||
Average Depreciable Life | [7] | 34 years | ||||
Desert Springs Medical Plaza Las Vegas, NV | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,200 | |||||
Initial Cost, Building & Improvements | 9,560 | |||||
Adjustments to Basis | [3] | 1,897 | ||||
Land | 1,200 | |||||
Buildings and Improvements | 11,457 | |||||
CIP | 78 | |||||
Total | 12,735 | |||||
Accumulated Depreciation | $ 3,709 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1998 | |||||
Date Acquired | 1998 | |||||
Average Depreciable Life | 30 years | |||||
700 Shadow Lane & Goldring MOBs Las Vegas, NV | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrance | [1] | $ 5,654 | ||||
Initial Cost, Land | 400 | |||||
Initial Cost, Building & Improvements | 11,300 | |||||
Adjustments to Basis | [3] | 4,949 | ||||
Land | 400 | |||||
Buildings and Improvements | 16,249 | |||||
CIP | 106 | |||||
Total | 16,755 | |||||
Accumulated Depreciation | $ 5,154 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2003 | |||||
Date Acquired | 2003 | |||||
Average Depreciable Life | 30 years | |||||
Spring Valley Hospital MOB I Las Vegas, NV | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Building & Improvements | [7] | $ 9,500 | ||||
Adjustments to Basis | [3],[7] | 1,533 | ||||
Buildings and Improvements | [7] | 11,033 | ||||
CIP | [7] | 5 | ||||
Total | [7] | 11,038 | ||||
Accumulated Depreciation | [7] | $ 3,238 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [7] | 2004 | ||||
Date Acquired | [7] | 2004 | ||||
Average Depreciable Life | [7] | 35 years | ||||
Spring Valley Hospital MOB II Las Vegas, NV | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Building & Improvements | [7] | $ 9,800 | ||||
Adjustments to Basis | [3],[7] | 510 | ||||
Buildings and Improvements | [7] | 10,310 | ||||
CIP | [7] | 43 | ||||
Total | [7] | 10,353 | ||||
Accumulated Depreciation | [7] | $ 3,123 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [7] | 2006 | ||||
Date Acquired | [7] | 2006 | ||||
Average Depreciable Life | [7] | 34 years | ||||
Summerlin Hospital MOB I Las Vegas, NV | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 460 | |||||
Initial Cost, Building & Improvements | 15,440 | |||||
Adjustments to Basis | [3] | 1,945 | ||||
Land | 460 | |||||
Buildings and Improvements | 17,385 | |||||
CIP | 18 | |||||
Total | 17,863 | |||||
Accumulated Depreciation | $ 5,695 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1999 | |||||
Date Acquired | 1999 | |||||
Average Depreciable Life | 30 years | |||||
Summerlin Hospital MOB II Las Vegas, NV | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 370 | |||||
Initial Cost, Building & Improvements | 16,830 | |||||
Adjustments to Basis | [3] | 1,587 | ||||
Land | 370 | |||||
Buildings and Improvements | 18,417 | |||||
CIP | 26 | |||||
Total | 18,813 | |||||
Accumulated Depreciation | $ 5,895 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2000 | |||||
Date Acquired | 2000 | |||||
Average Depreciable Life | 30 years | |||||
Summerlin Hospital MOB III Las Vegas, NV | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrance | [1],[7] | $ 13,197 | ||||
Initial Cost, Building & Improvements | [7] | 14,900 | ||||
Adjustments to Basis | [3],[7] | 2,238 | ||||
Buildings and Improvements | [7] | 17,138 | ||||
CIP | [7] | 37 | ||||
Total | [7] | 17,175 | ||||
Accumulated Depreciation | [7] | $ 4,404 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [7] | 2009 | ||||
Date Acquired | [7] | 2009 | ||||
Average Depreciable Life | [7] | 36 years | ||||
Emory at Dunwoody Building Dunwoody, GA | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 782 | |||||
Initial Cost, Building & Improvements | 3,455 | |||||
Land | 782 | |||||
Buildings and Improvements | 3,455 | |||||
Total | 4,237 | |||||
Accumulated Depreciation | $ 1,051 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2011 | |||||
Date Acquired | 2011 | |||||
Average Depreciable Life | 35 years | |||||
Forney Medical Plaza Forney, TX | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 910 | |||||
Initial Cost, Building & Improvements | 11,960 | |||||
Adjustments to Basis | [3] | 91 | ||||
Land | 910 | |||||
Buildings and Improvements | 12,051 | |||||
Total | 12,961 | |||||
Accumulated Depreciation | $ 3,817 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2011 | |||||
Date Acquired | 2011 | |||||
Average Depreciable Life | 35 years | |||||
Lake Pointe Medical Arts Building Rowlett, TX | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,100 | |||||
Initial Cost, Building & Improvements | 9,000 | |||||
Adjustments to Basis | [3] | 289 | ||||
Land | 1,100 | |||||
Buildings and Improvements | 9,289 | |||||
Total | 10,389 | |||||
Accumulated Depreciation | $ 2,643 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2011 | |||||
Date Acquired | 2011 | |||||
Average Depreciable Life | 35 years | |||||
Tuscan Professional Building Irving, TX | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrance | [1] | $ 3,492 | ||||
Initial Cost, Land | 1,100 | |||||
Initial Cost, Building & Improvements | 12,525 | |||||
Adjustments to Basis | [3] | 1,648 | ||||
Land | 1,100 | |||||
Buildings and Improvements | 14,173 | |||||
Total | 15,273 | |||||
Accumulated Depreciation | $ 4,049 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2011 | |||||
Date Acquired | 2011 | |||||
Average Depreciable Life | 35 years | |||||
Peace Health Medical Clinic Bellingham, WA | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,900 | |||||
Initial Cost, Building & Improvements | 24,910 | |||||
Adjustments to Basis | [3] | 921 | ||||
Land | 1,900 | |||||
Buildings and Improvements | 25,831 | |||||
Total | 27,731 | |||||
Accumulated Depreciation | $ 6,579 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2012 | |||||
Date Acquired | 2012 | |||||
Average Depreciable Life | 35 years | |||||
Northwest Texas Professional Office Tower Amarillo TX | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Building & Improvements | [7] | $ 7,180 | ||||
Adjustments to Basis | [3],[7] | 57 | ||||
Buildings and Improvements | [7] | 7,237 | ||||
CIP | [7] | 646 | ||||
Total | [7] | 7,883 | ||||
Accumulated Depreciation | [7] | $ 1,705 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [7] | 2012 | ||||
Date Acquired | [7] | 2012 | ||||
Average Depreciable Life | [7] | 35 years | ||||
Ward Eagle Office Village Farmington Hills MI | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 220 | |||||
Initial Cost, Building & Improvements | 3,220 | |||||
Adjustments to Basis | [3] | 90 | ||||
Land | 220 | |||||
Buildings and Improvements | 3,310 | |||||
Total | 3,530 | |||||
Accumulated Depreciation | $ 762 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2013 | |||||
Date Acquired | 2013 | |||||
Average Depreciable Life | 35 years | |||||
5004 Poole Road Medical Office Building Denison, TX | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 96 | |||||
Initial Cost, Building & Improvements | 529 | |||||
Land | 96 | |||||
Buildings and Improvements | 529 | |||||
Total | 625 | |||||
Accumulated Depreciation | $ 117 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2013 | |||||
Date Acquired | 2013 | |||||
Average Depreciable Life | 35 years | |||||
Desert Valley Medical Center Phoenix AZ | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrance | [1] | $ 4,661 | ||||
Initial Cost, Land | 2,280 | |||||
Initial Cost, Building & Improvements | 4,624 | |||||
Adjustments to Basis | [3] | 1,033 | ||||
Land | 2,280 | |||||
Buildings and Improvements | 5,657 | |||||
CIP | 25 | |||||
Total | 7,962 | |||||
Accumulated Depreciation | $ 1,339 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1996 | |||||
Date Acquired | 1996 | |||||
Average Depreciable Life | 30 years | |||||
Hanover Emergency Center Mechanicsville, VA | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,300 | |||||
Initial Cost, Building & Improvements | 6,224 | |||||
Land | 1,300 | |||||
Buildings and Improvements | 6,224 | |||||
Total | 7,524 | |||||
Accumulated Depreciation | $ 1,117 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2014 | |||||
Date Acquired | 2014 | |||||
Average Depreciable Life | 35 years | |||||
Haas Medical Office Park Ottumwa, IA | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Building & Improvements | [8] | $ 3,571 | ||||
Buildings and Improvements | [8] | 3,571 | ||||
Total | [8] | 3,571 | ||||
Accumulated Depreciation | [8] | $ 583 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [8] | 2015 | ||||
Date Acquired | [8] | 2015 | ||||
Average Depreciable Life | [8] | 35 years | ||||
South Texas ER at Mission, Mission, TX | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,441 | |||||
Initial Cost, Building & Improvements | 4,696 | |||||
Land | 1,441 | |||||
Buildings and Improvements | 4,696 | |||||
Total | 6,137 | |||||
Accumulated Depreciation | $ 774 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2015 | |||||
Date Acquired | 2015 | |||||
Average Depreciable Life | 35 years | |||||
North Valley Medical Plaza Phoenix, AZ | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 930 | |||||
Initial Cost, Building & Improvements | 6,929 | |||||
Adjustments to Basis | [3] | 2,250 | ||||
Land | 930 | |||||
Buildings and Improvements | 9,179 | |||||
CIP | 9 | |||||
Total | 10,118 | |||||
Accumulated Depreciation | $ 1,947 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2010 | |||||
Date Acquired | 2010 | |||||
Average Depreciable Life | 30 years | |||||
Northwest Medical Center at Sugar Creek, Bentonville, AR | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,100 | |||||
Initial Cost, Building & Improvements | 2,870 | |||||
Land | 1,100 | |||||
Buildings and Improvements | 2,870 | |||||
Total | 3,970 | |||||
Accumulated Depreciation | $ 575 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2014 | |||||
Date Acquired | 2014 | |||||
Average Depreciable Life | 35 years | |||||
The Children's Clinic at Springdale, Springdale, AR | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 610 | |||||
Initial Cost, Building & Improvements | 1,570 | |||||
Land | 610 | |||||
Buildings and Improvements | 1,570 | |||||
Total | 2,180 | |||||
Accumulated Depreciation | $ 314 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2014 | |||||
Date Acquired | 2014 | |||||
Average Depreciable Life | 35 years | |||||
Rosenberg Children's Medical Plaza, Phoenix, AZ | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrance | [1],[8] | $ 12,732 | ||||
Initial Cost, Building & Improvements | [8] | 23,302 | ||||
Adjustments to Basis | [3],[8] | 142 | ||||
Buildings and Improvements | [8] | 23,444 | ||||
Total | [8] | 23,444 | ||||
Accumulated Depreciation | [8] | $ 4,256 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [8] | 2001 | ||||
Date Acquired | [8] | 2001 | ||||
Average Depreciable Life | [8] | 35 years | ||||
Phoenix Children's East Valley Care Center, Phoenix, AZ | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrance | [1] | $ 8,960 | ||||
Initial Cost, Land | 1,050 | |||||
Initial Cost, Building & Improvements | 10,900 | |||||
Land | 1,050 | |||||
Buildings and Improvements | 10,900 | |||||
Total | 11,950 | |||||
Accumulated Depreciation | $ 1,982 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2006 | |||||
Date Acquired | 2006 | |||||
Average Depreciable Life | 35 years | |||||
Palmdale Medical Plaza, Palmdale, CA | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Building & Improvements | [7] | $ 10,555 | ||||
Adjustments to Basis | [3],[7] | 1,846 | ||||
Buildings and Improvements | [7] | 12,401 | ||||
CIP | [7] | 38 | ||||
Total | [7] | 12,439 | ||||
Accumulated Depreciation | [7] | $ 2,569 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [7] | 2008 | ||||
Date Acquired | [7] | 2008 | ||||
Average Depreciable Life | [7] | 34 years | ||||
Piedmont-Roswell Physician Center Sandy Springs, GA | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 2,338 | |||||
Initial Cost, Building & Improvements | 2,128 | |||||
Land | 2,338 | |||||
Buildings and Improvements | 2,128 | |||||
Total | 4,466 | |||||
Accumulated Depreciation | $ 428 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2015 | |||||
Date Acquired | 2015 | |||||
Average Depreciable Life | 30 years | |||||
Piedmont-Vinings Physician Center Vinings, GA | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,348 | |||||
Initial Cost, Building & Improvements | 2,418 | |||||
Land | 1,348 | |||||
Buildings and Improvements | 2,418 | |||||
Total | 3,766 | |||||
Accumulated Depreciation | $ 470 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2015 | |||||
Date Acquired | 2015 | |||||
Average Depreciable Life | 30 years | |||||
Santa Fe Professional Plaza Scottsdale, AZ | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,090 | |||||
Initial Cost, Building & Improvements | 1,960 | |||||
Adjustments to Basis | [3] | 502 | ||||
Land | 1,090 | |||||
Buildings and Improvements | 2,462 | |||||
CIP | 6 | |||||
Total | 3,558 | |||||
Accumulated Depreciation | $ 621 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1999 | |||||
Date Acquired | 1999 | |||||
Average Depreciable Life | 30 years | |||||
Sierra San Antonio Medical Plaza Fontana, CA | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Building & Improvements | [8] | $ 11,538 | ||||
Adjustments to Basis | [3],[8] | 870 | ||||
Buildings and Improvements | [8] | 12,408 | ||||
CIP | [8] | 3 | ||||
Total | [8] | 12,411 | ||||
Accumulated Depreciation | [8] | $ 2,647 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [8] | 2006 | ||||
Date Acquired | [8] | 2006 | ||||
Average Depreciable Life | [8] | 30 years | ||||
Vista Medical Terrace & Sparks MOB Sparks, NV | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Building & Improvements | [7] | $ 9,276 | ||||
Adjustments to Basis | [3],[7] | 1,717 | ||||
Buildings and Improvements | [7] | 10,993 | ||||
Total | [7] | 10,993 | ||||
Accumulated Depreciation | [7] | $ 2,870 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | [7] | 2008 | ||||
Date Acquired | [7] | 2008 | ||||
Average Depreciable Life | [7] | 30 years | ||||
South Texas ER at Weslaco, Weslaco, TX | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,749 | |||||
Initial Cost, Building & Improvements | 4,879 | |||||
Land | 1,749 | |||||
Buildings and Improvements | 4,879 | |||||
Total | 6,628 | |||||
Accumulated Depreciation | $ 813 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2015 | |||||
Date Acquired | 2015 | |||||
Average Depreciable Life | 35 years | |||||
Chandler Corporate Center III Chandler, AZ | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 2,328 | |||||
Initial Cost, Building & Improvements | 14,131 | |||||
Land | 2,328 | |||||
Buildings and Improvements | 14,131 | |||||
Total | 16,459 | |||||
Accumulated Depreciation | $ 2,420 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2016 | |||||
Date Acquired | 2016 | |||||
Average Depreciable Life | 35 years | |||||
Frederick Crestwood MOB Frederick, MD | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 2,265 | |||||
Initial Cost, Building & Improvements | 18,731 | |||||
Land | 2,265 | |||||
Buildings and Improvements | 18,731 | |||||
Total | 20,996 | |||||
Accumulated Depreciation | $ 2,386 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2016 | |||||
Date Acquired | 2016 | |||||
Average Depreciable Life | 35 years | |||||
Madison Professional Office Building Madison, AL | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 2,296 | |||||
Initial Cost, Building & Improvements | 6,411 | |||||
Land | 2,296 | |||||
Buildings and Improvements | 6,411 | |||||
Total | 8,707 | |||||
Accumulated Depreciation | $ 988 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2016 | |||||
Date Acquired | 2016 | |||||
Average Depreciable Life | 35 years | |||||
Tenaya Medical Office Building Las Vegas, NV | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrance | [1] | $ 6,727 | ||||
Initial Cost, Land | 3,032 | |||||
Initial Cost, Building & Improvements | 10,602 | |||||
Land | 3,032 | |||||
Buildings and Improvements | 10,602 | |||||
Total | 13,634 | |||||
Accumulated Depreciation | $ 1,246 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2016 | |||||
Date Acquired | 2016 | |||||
Average Depreciable Life | 35 years | |||||
Henderson Medical Plaza Henderson, NV | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Building & Improvements | $ 10,718 | |||||
Adjustments to Basis | [3] | 7,170 | ||||
Buildings and Improvements | 17,888 | |||||
CIP | 341 | |||||
Total | 18,229 | |||||
Accumulated Depreciation | $ 2,421 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2017 | |||||
Date Acquired | 2017 | |||||
Average Depreciable Life | 35 years | |||||
Hamburg Medical Building Hamburg, PA | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 696 | |||||
Initial Cost, Building & Improvements | 3,406 | |||||
Land | 696 | |||||
Buildings and Improvements | 3,406 | |||||
Total | 4,102 | |||||
Accumulated Depreciation | $ 338 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2017 | |||||
Date Acquired | 2017 | |||||
Average Depreciable Life | 35 years | |||||
Las Palmas Del Sol Emergency Center - West El Paso, TX | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 801 | |||||
Initial Cost, Building & Improvements | 5,029 | |||||
Land | 801 | |||||
Buildings and Improvements | 5,029 | |||||
Total | 5,830 | |||||
Accumulated Depreciation | $ 433 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2017 | |||||
Date Acquired | 2017 | |||||
Average Depreciable Life | 35 years | |||||
Beaumont Medical Sleep Center Building | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 254 | |||||
Initial Cost, Building & Improvements | 2,968 | |||||
Land | 254 | |||||
Buildings and Improvements | 2,968 | |||||
Total | 3,222 | |||||
Accumulated Depreciation | $ 187 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2018 | |||||
Date Acquired | 2018 | |||||
Average Depreciable Life | 35 years | |||||
Clive Behavioral Health Clive, IA | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 1,330 | |||||
Land | 1,330 | |||||
CIP | 5,616 | |||||
Total | 6,946 | |||||
Accumulated Depreciation | $ 0 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2020 | |||||
Date Acquired | 2019 | |||||
Average Depreciable Life | 35 years | |||||
Bellin Health Family Medical Center Escanaba, MI | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost, Land | $ 604 | |||||
Initial Cost, Building & Improvements | 3,906 | |||||
Land | 605 | |||||
Buildings and Improvements | 3,906 | |||||
CIP | 0 | |||||
Total | 4,511 | |||||
Accumulated Depreciation | $ 18 | |||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2019 | |||||
Date Acquired | 2019 | |||||
Average Depreciable Life | 35 years | |||||
[1] | Consists of outstanding balances as of December 31, 2019 on third-party debt that is non-recourse to us. | |||||
[2] | The aggregate cost for federal income tax purposes is $606 million (unaudited) with a net book value of $382 million (unaudited). | |||||
[3] | Consists of costs subsequent to acquisition that were capitalized, divested or written down in connection with asset impairments and hurricane related damage. | |||||
[4] | Carrying value of depreciable assets were written down to zero as a result of substantial damage from Hurricane Harvey during the third quarter of 2017. | |||||
[5] | During 2008, a $4.6 million provision for asset impairment was recorded in connection with the real estate assets of Southern Crescent Center I & Southern Crescent Center II. | |||||
[6] | Carrying value of depreciable assets were written down as a result of substantial damage from Hurricane Harvey during the third quarter of 2017. | |||||
[7] | At December 31, 2019, we are the lessee with a UHS-related party on a ground lease for land. | |||||
[8] | At December 31, 2019, we are the lessee with a third party on a ground lease for land. |
Schedule III Real Estate and _2
Schedule III Real Estate and Accumulated Depreciation (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate And Accumulated Depreciation Disclosure [Abstract] | |||
Provision for asset impairment | $ 4.6 | ||
Aggregate cost of properties for federal income tax purposes | $ 606 | $ 593 | |
Net book value of the properties for federal income tax purposes | $ 382 | $ 384 |
Reconciliation of Real Estate P
Reconciliation of Real Estate Properties and Accumulated Depreciation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Real Estate And Accumulated Depreciation Disclosure [Abstract] | |||||
Beginning balance | $ 611,046 | $ 599,776 | $ 585,828 | ||
Additions | [1] | 12,882 | 8,641 | 12,492 | |
Acquisitions | 4,510 | 3,222 | 9,931 | ||
Disposals/Divestitures | [2] | (1,043) | (593) | (8,475) | |
Ending balance | 627,395 | [3] | 611,046 | 599,776 | |
Beginning balance | 173,316 | 153,379 | 138,588 | ||
Disposals/Divestitures | [2] | (220) | (593) | (4,896) | |
Depreciation expense | 21,792 | 20,530 | 19,687 | ||
Ending balance | $ 194,888 | $ 173,316 | $ 153,379 | ||
[1] | Included in the additions for 2019 are approximately $5.6 million related to the new behavioral health hospital construction project, located in Clive, Iowa. Included in the additions during 2018, and 2017, were approximately $313,000 and $3.0 million, respectively, related to Henderson Medical Plaza, which was completed and opened during 2017. Additionally, 2018 includes approximately $2.7 million of hurricane-related reconstruction costs. | ||||
[2] | 2019 includes the sale of the Kings Crossing II medical office building, as well as the sale of a parcel of land located at one of our buildings. 2017 includes property damage write-downs resulting from substantial damage from Hurricane Harvey during the third quarter of 2017, as discussed in Note 10 to the consolidated financial statements. | ||||
[3] | The aggregate cost for federal income tax purposes is $606 million (unaudited) with a net book value of $382 million (unaudited). |
Reconciliation of Real Estate_2
Reconciliation of Real Estate Properties and Accumulated Depreciation (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Additions | [1] | $ 12,882,000 | $ 8,641,000 | $ 12,492,000 |
Hurricane-related reconstruction costs. | 4,967,000 | |||
New Behavioral Health Hospital Construction Project | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Additions | $ 5,600,000 | |||
Henderson Medical Plaza | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Additions | 313,000 | $ 3,000,000 | ||
Hurricane-related reconstruction costs. | $ 2,700,000 | |||
[1] | Included in the additions for 2019 are approximately $5.6 million related to the new behavioral health hospital construction project, located in Clive, Iowa. Included in the additions during 2018, and 2017, were approximately $313,000 and $3.0 million, respectively, related to Henderson Medical Plaza, which was completed and opened during 2017. Additionally, 2018 includes approximately $2.7 million of hurricane-related reconstruction costs. |