Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HEALTHCARE REALTY TRUST INCORPORATED | |
Entity Central Index Key | 0000899749 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 129,214,135 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Real estate properties: | ||
Land | $ 230,206 | $ 230,206 |
Buildings, improvements and lease intangibles | 3,757,260 | 3,675,415 |
Personal property | 10,739 | 10,696 |
Construction in progress | 40,326 | 33,107 |
Land held for development | 24,647 | 24,647 |
Real estate properties, Total | 4,063,178 | 3,974,071 |
Less accumulated depreciation and amortization | (1,035,800) | (1,015,174) |
Total real estate properties, net | 3,027,378 | 2,958,897 |
Cash and cash equivalents | 11,313 | 8,381 |
Assets held for sale, net | 10,568 | 9,272 |
Operating lease right-of-use assets | 128,141 | |
Financing lease right-of-use assets | 9,259 | |
Other assets, net | 175,864 | 214,697 |
Total assets | 3,362,523 | 3,191,247 |
Liabilities: | ||
Notes and bonds payable | 1,343,110 | 1,345,984 |
Accounts payable and accrued liabilities | 61,519 | 80,411 |
Liabilities of properties held for sale | 633 | 587 |
Operating lease liabilities | 91,044 | |
Financing lease liabilities | 14,294 | |
Other liabilities | 46,144 | 47,623 |
Total liabilities | 1,556,744 | 1,474,605 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value per share; 50,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value per share; 300,000 shares authorized; 129,214 and 125,279 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 1,292 | 1,253 |
Additional paid-in capital | 3,302,814 | 3,180,284 |
Accumulated other comprehensive loss | (1,611) | (902) |
Cumulative net income attributable to common stockholders | 1,093,010 | 1,088,119 |
Cumulative dividends | (2,589,726) | (2,552,112) |
Total stockholders' equity | 1,805,779 | 1,716,642 |
Total liabilities and stockholders' equity | $ 3,362,523 | $ 3,191,247 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 50,000,000 | 50,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 300,000,000 | 300,000,000 |
Common stock, issued shares | 129,214,000 | 125,279,000 |
Common stock, outstanding shares | 129,214,000 | 125,279,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUES | ||
Rental income | $ 110,696 | $ 110,229 |
Other operating | 1,961 | 1,895 |
Revenues | 112,657 | 112,124 |
EXPENSES | ||
Property operating | 42,725 | 41,818 |
General and administrative | 8,510 | 9,101 |
Acquisition and pursuit costs | 305 | 277 |
Depreciation and amortization | 42,662 | 39,573 |
Total Expenses | 94,202 | 90,769 |
OTHER INCOME (EXPENSE) | ||
Gain on sales of real estate assets | 15 | |
Interest expense | (13,588) | (12,668) |
Interest and other income, net | 9 | 493 |
Total other income (expense) | (13,564) | (12,175) |
NET INCOME | $ 4,891 | $ 9,180 |
Basic earnings per common share (in dollars per share) | $ 0.04 | $ 0.07 |
Diluted earnings per common share (in dollars per share) | $ 0.04 | $ 0.07 |
Weighted average common shares outstanding - basic (in shares) | 124,129,635 | 123,257,351 |
Weighted average common shares outstanding - diluted (in shares) | 124,231,767 | 123,347,681 |
Dividends declared, per common share, during the period (in dollars per share) | $ 0.30 | $ 0.30 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 4,891 | $ 9,180 |
Interest rate swaps: | ||
Reclassification adjustments for losses included in net income (interest expense) | 15 | 147 |
(Losses) gains arising during the period on interest rate swaps | (724) | 513 |
Total other comprehensive income (loss) | (709) | 660 |
COMPREHENSIVE INCOME | $ 4,182 | $ 9,840 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity (Unaudited) Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends |
Beginning balance at Dec. 31, 2017 | $ 1,789,883 | $ 1,251 | $ 3,173,429 | $ (1,299) | $ 1,018,348 | $ (2,401,846) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of issuance costs | 239 | 239 | ||||
Common stock redemptions | (680) | (680) | ||||
Share-based compensation | 2,822 | 1 | 2,821 | |||
Net income | 9,180 | 9,180 | ||||
Reclassification adjustments for losses included in net income (interest expense) | 147 | 147 | ||||
Gains (losses) arising during the period on interest rate swaps | 513 | 513 | ||||
Dividends to common stockholders ($0.30 per share) | (37,556) | (37,556) | ||||
Ending balance at Mar. 31, 2018 | 1,764,548 | 1,252 | 3,175,809 | (639) | 1,027,528 | (2,439,402) |
Beginning balance at Dec. 31, 2018 | 1,716,642 | 1,253 | 3,180,284 | (902) | 1,088,119 | (2,552,112) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of issuance costs | 120,500 | 38 | 120,462 | |||
Common stock redemptions | (570) | (570) | ||||
Share-based compensation | 2,639 | 1 | 2,638 | |||
Net income | 4,891 | 4,891 | ||||
Reclassification adjustments for losses included in net income (interest expense) | 15 | 15 | ||||
Gains (losses) arising during the period on interest rate swaps | (724) | (724) | ||||
Dividends to common stockholders ($0.30 per share) | (37,614) | (37,614) | ||||
Ending balance at Mar. 31, 2019 | $ 1,805,779 | $ 1,292 | $ 3,302,814 | $ (1,611) | $ 1,093,010 | $ (2,589,726) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Equity (Unaudited) (Parenthetical) | 3 Months Ended |
Mar. 31, 2019$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividend per share to common Stockholders (in dollars per share) | $ 0.30 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 4,891 | $ 9,180 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 42,662 | 39,573 |
Other amortization | 727 | 584 |
Share-based compensation | 2,639 | 2,822 |
Amortization of straight-line rent receivable (lessor) | (668) | (1,722) |
Amortization of straight-line rent on operating leases (lessee) | 390 | 384 |
Gain on sales of real estate assets | (15) | |
Equity from unconsolidated joint ventures loss | 10 | 10 |
Distributions from unconsolidated joint ventures | 88 | 37 |
Changes in operating assets and liabilities: | ||
Other assets, including right-of-use-assets | (4,971) | (4,193) |
Accounts payable and accrued liabilities | (10,276) | (6,949) |
Other liabilities | (673) | 1,094 |
Net cash provided by operating activities | 34,804 | 40,820 |
INVESTING ACTIVITIES | ||
Acquisitions of real estate | (91,787) | (1,756) |
Development of real estate | (5,712) | (7,573) |
Additional long-lived assets | (11,741) | (16,764) |
Proceeds from notes receivable repayments | 0 | 5 |
Net cash used in investing activities | (109,240) | (26,088) |
FINANCING ACTIVITIES | ||
Net (repayments) borrowings on unsecured credit facility | (2,000) | 24,000 |
Repayments on notes and bonds payable | (1,193) | (1,154) |
Dividends paid | (37,614) | (37,556) |
Net proceeds from issuance of common stock | 120,617 | 236 |
Common stock redemptions | (2,442) | (2,633) |
Debt issuance and assumption costs | (44) | |
Net cash provided by (used in) financing activities | 77,368 | (17,151) |
Increase (decrease) in cash and cash equivalents | 2,932 | (2,419) |
Cash and cash equivalents at beginning of period | 8,381 | 6,215 |
Cash and cash equivalents at end of period | 11,313 | 3,796 |
Supplemental Cash Flow Information: | ||
Interest paid | 11,071 | 3,899 |
Invoices accrued for construction, tenant improvements and other capitalized costs | 13,509 | 8,592 |
Capitalized interest | $ 307 | $ 186 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Business Overview Healthcare Realty Trust Incorporated (the "Company") is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of March 31, 2019 , the Company had gross investments of approximately $4.0 billion in 201 real estate properties located in 26 states totaling approximately 15.0 million square feet. The Company provided leasing and property management services to approximately 11.3 million square feet nationwide. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2018 . All material intercompany transactions and balances have been eliminated in consolidation. This interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2019 for many reasons including, but not limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties. Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates. Revenue from Contracts with Customers (Topic 606) The Company recognizes certain revenue under the core principle of Topic 606. This requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance. Revenue that is accounted for under Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Income in the Other operating line item. This line item includes parking income, rental lease guaranty income, management fee income and other miscellaneous income. Below is a detail of the amounts by category: (in thousands) Three Months Ended March 31, Type of Revenue 2019 2018 Parking income $ 1,734 $ 1,626 Rental lease guaranty 128 175 Management fee income 69 68 Miscellaneous 30 26 $ 1,961 $ 1,895 The Company’s three major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied. The performance obligations that are identified for each of these items are satisfied over time and the Company recognizes revenue monthly based on this principle. New Accounting Pronouncements Accounting Standards Update No. 2016-02, No. 2018-01 and No. 2018-11 In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, "Leases." In January 2018, FASB issued ASU 2018-01, "Leases - Land Easement Practical Expedient for Transition to Topic 842," in July 2018, FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases" and ASU 2018-11, "Leases - Targeted Improvements," and in December 2018, FASB issued ASU 2018-20, “Narrow-Scope Improvements for Lessors.” These accounting standard updates are collectively referred to as "Topic 842." Topic 842 provides several practical expedients that the Company elected. These are (a) the package of practical expedients offered that allows an entity not to reassess upon adoption (i) whether an expired or existing contract contains a lease, (ii) lease classification related to expired or existing lease arrangements, and (iii) whether costs incurred on expired or existing leases qualify as initial direct costs, (b) the lessor practical expedient not to separate certain non-lease components, such as common area maintenance, from the lease component if (i) the timing and pattern of transfer are the same for the non-lease component and associated lease component, and (ii) the lease component would be classified as an operating lease if accounted for separately and (c) the lessee practical expedient not to separate certain non-lease components from the associated lease component. For lessees, the new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with the classification affecting the pattern of expense recognition in the income statement. Ground leases executed or assumed prior to the adoption of Topic 842 will continue to be accounted for as operating leases and will not result in a materially different ground lease expense. However, each ground lease executed after the adoption of Topic 842 will be evaluated to determine if it is an operating or finance lease. If the lease is to be accounted for as a finance lease, ground lease expense would be accounted for using the effective interest method instead of the straight-line method over the term of the lease, which would result in higher ground lease expense in the earlier years of a ground lease when compared to the straight-line method. The Company's lease population is primarily ground leases, but also includes management office leases in third party buildings and certain copier and postage machine leases. The Company utilized a third party to assist in determining the discount rate for its ground leases. The terms of the ground leases generally range from 40 to 99 years with a weighted average remaining lease term remaining of 54.9 years , excluding renewal options. The Company's discount rates, which approximates the Company's incremental borrowing rate, ranged from 3.4% for leases expiring in 2019 to 6.2% for leases expiring in 2115. The Company utilized a third party to assist in determining the discount rates. The discount rates consider the general economic environment and factor in various financing and asset specific adjustments so that the discount rate is appropriate for the intended use of the underlying lease. As of January 1, 2019, the Company recognized the present value of its lease payments and a corresponding lease liability of $91.7 million . In addition, the Company reclassified $45.0 million of prepaid ground leases and below-market lease intangibles from the Other assets line item, $1.9 million of above-market lease intangibles from the Other liabilities line and $8.4 million of straight-line rent from the Accounts payable and accrued liabilities line item to the Operating lease right-of-use assets line item on the Condensed Consolidated Balance Sheets. For lessors, the new standard requires a lessor to classify leases as either sales-type, direct-financing or operating. A lease will be treated as a sale if it is considered to transfer control of the underlying asset to the lessee. A lease will be classified as direct-financing if risks and rewards are conveyed without the transfer of control. Otherwise, the lease is treated as an operating lease. Lessor accounting remains largely unchanged with some exceptions including the concept of separating lease and nonlease components. Nonlease components, such as common area maintenance, are generally accounted for under Topic 606 and separated from the lease payments. However, the Company elected the lessor practical expedient allowing the Company to not separate these components when certain conditions are met. The combined component is accounted for under Topic 842. Lease related receivables, which include accounts receivable and accrued straight-line rent receivables, are reduced for revenue reserves and are recognized as a reduction to rental income. The adoption of Topic 842, where the Company is the lessor, did not have a material impact on the Company's Condensed Consolidated Financial Statements for the three months ended March 31, 2019 . The new standard was effective for the Company on January 1, 2019. Topic 842 provides two transition alternatives. The Company elected to choose the prospective optional transition method available to apply the guidance in Accounting Standards Codification Topic 840 in the comparative periods presented in the year Topic 842 is adopted. Topic 842 includes extensive quantitative and qualitative disclosures as compared to Topic 840, Leases, for both lessees and lessors. See Note 3 for additional disclosures. Accounting Standards Update No. 2016-13 and No. 2018-19 In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." This update is intended to improve financial reporting by requiring timelier recognition of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. This update requires that financial statement assets measured at an amortized cost and certain other financial instruments be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. ASU 2018-19 also clarifies that receivables arising from operating leases are not within the scope of this topic. Instead, impairment of these receivables should be accounted for in accordance with Topic 842, Leases. This standard is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted. The Company is in the initial stages of evaluating the impact from the adoption of this new standard on the Condensed Consolidated Financial Statements and related notes. Accounting Standards Update No. 2017-04 |
Real Estate Investments
Real Estate Investments | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Real Estate Investments | Real Estate Investments 2019 Acquisitions The following table details the Company's acquisitions for the three months ended March 31, 2019 : (Dollars in millions) Type (1) Date Purchase Price Cash (2) Real Other (3) Square (Unaudited) Washington, D.C. (4) MOB 3/28/19 $ 46.0 $ 45.9 $ 50.2 $ (4.3 ) 158,338 Indianapolis, IN (5) MOB 3/28/19 47.0 44.8 43.7 1.1 143,499 $ 93.0 $ 90.7 $ 93.9 $ (3.2 ) 301,837 ______ (1) MOB = medical office building (2) Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. (3) Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. (4) Includes two properties. The Company assumed two ground leases in connection with this acquisition that are classified as financing leases. The present value of future lease payments totaling $14.4 million was recorded on the Company's Condensed Consolidated Balance Sheets. In addition, the right-of-use assets were partially offset by $5.2 million of above-market lease intangibles included in Other. (5) The Company assumed a prepaid ground lease totaling $0.8 million and recorded a below-market lease intangible totaling $0.9 million in connection with this acquisition that is classified as an operating lease that are included in Other. Subsequent Acquisition On April 2, 2019, the Company acquired a 47,963 square foot medical office building in Atlanta, Georgia for a purchase price of $28.0 million . Subsequent Disposition On April 9, 2019, the Company disposed of three off-campus medical office buildings and one on-campus medical office building to a single purchaser. The buildings are located in Tucson, Arizona and total 67,345 square feet. The sales price was approximately $13.0 million and as of March 31, 2019, the Company's net investment in the buildings was $6.9 million . Assets Held for Sale In March 2019, the Company reclassified an inpatient rehabilitation facility to held for sale upon notification that a ground lessor is exercising a purchase option. The purchase price is determined by an appraisal process that is currently underway. The Company expects the purchase price to be greater than the current net investment of approximately $1.3 million . As of March 31, 2019 and December 31, 2018 , the Company had two properties and one property, respectively, classified as held for sale. The table below reflects the assets and liabilities of the properties classified as held for sale as of March 31, 2019 and December 31, 2018 : (Dollars in thousands) March 31, December 31, Balance Sheet data: Land $ 1,125 $ 1,125 Buildings, improvements and lease intangibles 39,586 18,231 40,711 19,356 Accumulated depreciation (30,706 ) (10,657 ) Real estate assets held for sale, net 10,005 8,699 Operating lease right-of-use assets 168 — Other assets, net 395 573 Assets held for sale, net $ 10,568 $ 9,272 Accounts payable and accrued liabilities $ 251 $ 450 Operating lease liabilities 168 — Other liabilities 214 137 Liabilities of properties held for sale $ 633 $ 587 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Lessor Accounting Under ASC 842 The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2036. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company's leases typically have escalators that are either based on a stated percentage or an index such as CPI (consumer price index). In addition, most of the Company's leases include nonlease components such as reimbursement of operating expenses as additional rent or include the reimbursement of expected operating expenses as part of the lease payment. The Company elected the practical expedient and adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the periods when the information is known. As of March 31, 2019, the Company had one ground lease that is associated with a property under construction where rent has not yet commenced. Lease income for the Company's operating leases recognized for the three months ended March 31, 2019 was $110.7 million . Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of March 31, 2019 are as follows (in thousands): 2019 $ 250,619 2020 294,900 2021 250,050 2022 213,822 2023 175,215 2024 and thereafter 502,647 $ 1,687,253 Lessor Accounting Under ASC 840 The Company’s properties are generally leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2036 . Some leases and financial arrangements provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease and for a short period thereafter, with an option or a right of first refusal to purchase the leased property. The Company’s portfolio of single-tenant net leases generally requires the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. Future minimum lease payments under the non-cancelable operating leases, excluding any reimbursements, as of December 31, 2018 are as follows (in thousands): 2019 $ 326,441 2020 279,211 2021 235,660 2022 201,072 2023 163,978 2024 and thereafter 476,673 $ 1,683,035 Lessee Accounting Under ASC 842 As of March 31, 2019 , the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of March 31, 2019 , the Company had 109 properties, excluding one property classified as held for sale, totaling 9.1 million square feet that were held under ground leases with a remaining weighted average term of 54.9 years , excluding renewal options. Including renewal options, the remaining weighted average term would be 70.7 years. Some lease renewal terms are based on fixed rent renewal terms in addition to market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2117. Any increases related to the Company’s ground leases are generally either stated or based on the Consumer Price Index. The Company had 46 prepaid ground leases as of March 31, 2019. The amortization of the prepaid rent, included in the operating lease right-of-use asset represented approximately $0.1 million of the Company’s rental expense for the three months ended March 31, 2019 and March 31, 2018 . The Company’s future lease payments (primarily for its 63 non-prepaid ground leases) as of March 31, 2019 were as follows (in thousands): Operating Financing 2019 $ 2,948 $ 626 2020 4,849 611 2021 4,879 619 2022 4,909 628 2023 4,947 637 2024 and thereafter 314,406 74,766 Total undiscounted lease payments 336,938 77,887 Discount (245,894 ) (63,593 ) Lease Liability $ 91,044 $ 14,294 The following table provides a detail of the Company's total lease expense for the three months ended March 31, 2019 (in thousands): Operating FInancing Lease expense Operating lease expense $ 1,116 $ — Variable lease expense 740 — Total lease expense $ 1,856 $ — Other information Operating cash flows outflows related to operating leases $ 2,771 $ — Right-of-use assets obtained in exchange for new lease liabilities $ — $ 14,294 Weighted-average remaining lease term (excluding renewal options) 54.0 70.6 Weighted-average discount rate 5.5 % 5.9 % Lessee Accounting Under ASC 840 As of December 31, 2018, the Company was obligated under operating lease agreements consisting primarily of the Company’s ground leases. At December 31, 2018, the Company had 107 properties totaling 8.8 million square feet that were held under ground leases with a remaining weighted average term of 53.9 years, excluding renewal options. These ground leases typically have initial terms of 50 to 75 years with one or more renewal options extending the terms to 75 to 100 years, with expiration dates through 2117. Any rental increases related to the Company’s ground leases are generally either stated or based on the Consumer Price Index. The Company’s future minimum lease payments (primarily for its 60 non-prepaid ground leases) as of December 31, 2018 were as follows (in thousands): 2019 $ 5,288 2020 5,260 2021 5,238 2022 5,207 2023 5,224 2024 and thereafter 323,533 $ 349,750 |
Notes and Bonds Payable
Notes and Bonds Payable | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes and Bonds Payable | Notes and Bonds Payable The table below details the Company’s notes and bonds payable. Maturity Dates Balance as of Effective Interest Rate as of (Dollars in thousands) March 31, 2019 December 31, 2018 March 31, 2019 Unsecured Credit Facility 7/20 $ 260,000 $ 262,000 3.49 % Unsecured Term Loan Facility, net of issuance costs (1) 12/22 149,234 149,183 3.53 % Senior Notes due 2023, net of discount and issuance costs 4/23 248,223 248,117 3.95 % Senior Notes due 2025, net of discount and issuance costs (2) 5/25 248,338 248,278 4.08 % Senior Notes due 2028, net of discount and issuance costs 1/28 295,309 295,198 3.84 % Mortgage notes payable, net of discounts and issuance costs and including premiums 7/19-5/40 142,006 143,208 4.79 % $ 1,343,110 $ 1,345,984 ______ (1) The effective interest rate includes the impact of interest rate swaps on $25.0 million and $50.0 million of the outstanding balance at a rate of 2.18% and 2.46% , respectively (plus the applicable margin rate, currently 110 basis points). (2) The effective interest rate includes the impact of the $1.7 million settlement of a forward-starting interest rate swap that is included in Accumulated other comprehensive income (loss) on the Company's Condensed Consolidated Balance Sheets. Subsequent Mortgage Note Payable Payoff On April 10, 2019, the Company repaid in full a mortgage note payable bearing interest at a rate of 5.00% per annum with an outstanding principal of $8.9 million . The mortgage note encumbered a 52,813 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (Loss) and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in Accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. As of March 31, 2019 , the Company had four outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Derivative Instrument Number of Instruments Notional Amount (in millions) Interest rate swaps 4 $75.0 Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company's derivative financial instruments, as well as their classification on the Condensed Consolidated Balance Sheet as of March 31, 2019 . Balance at March 31, 2019 (Dollars in thousands) Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate swaps Other liabilities $ 589 Total derivatives designated as hedging instruments $ 589 Tabular Disclosure of the Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss) ("OCI") during the three months ended March 31, 2019 and 2018 related to the Company's outstanding interest rate swaps. Amount of Loss Recognized in OCI on Derivative Amount of Loss Reclassified from OCI into Income (Dollars in thousands) 2019 2019 2018 Interest rate products $ 724 Interest expense $ (27 ) $ 105 Settled interest rate swaps — Interest expense 42 42 $ 724 Total interest expense $ 15 $ 147 Credit-risk-related Contingent Features The Company's agreements with each of its derivative counterparties contain a cross-default provision under which the Company could be declared in default of its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. The Company estimates that $13 thousand related to active interest rate swaps will be reclassified from OCI as a decrease to interest expense over the next 12 months, and that $0.2 million related to settled interest rate swaps will be amortized from OCI as an increase to interest expense over the next 12 months. Subsequent Activity On April 12, 2019, the Company entered into two interest rate swaps totaling $50.0 million to hedge the 1-month LIBOR portion of the cost of borrowing under the Company's variable rate debt to a fixed interest rate of 2.334% |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company is, from time to time, involved in litigation arising in the ordinary course of business. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Redevelopment Activity The Company is redeveloping a medical office building in Charlotte, North Carolina, which includes a 38,000 square foot vertical expansion. As of March 31, 2019 , the Company had funded approximately $9.7 million on the redevelopment of this property. The project is expected to be completed in the second quarter of 2019. Development Activity The Company began the development of a 151,000 square foot medical office building in Seattle, Washington during 2017. As of March 31, 2019 , the Company had funded approximately $30.9 million |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the three months ended March 31, 2019 and the year ended December 31, 2018 : March 31, 2019 December 31, 2018 Balance, beginning of period 125,279,455 125,131,593 Issuance of common stock 3,889,411 26,203 Nonvested share-based awards, net of withheld shares 45,225 121,659 Balance, end of period 129,214,091 125,279,455 Equity Offering On March 19, 2019, the Company issued 3,737,500 shares of common stock, par value $0.01 per share, at $31.40 per share in an underwritten public offering pursuant to the Company's existing effective registration statement. The net proceeds of the offering, after underwriting discounts and offering expenses, were approximately $115.8 million . At-The-Market Equity Offering Program The Company sold 135,265 shares under the Company's at-the-market equity offering program during the three months ended March 31, 2019. The sales generated $4.3 million in net proceeds at prices to the public ranging from $32.01 to $32.86 (weighted average of $32.36 ). The Company had 5,733,432 authorized shares remaining available to be sold under the current sales agreements as of April 26, 2019 . Common Stock Dividends During the three months ended March 31, 2019 , the Company declared and paid common stock dividends totaling $0.30 per share. On April 30, 2019 , the Company declared a quarterly common stock dividend in the amount of $0.30 per share payable on May 30, 2019 to stockholders of record on May 15, 2019 . Earnings Per Common Share The Company uses the two-class method of computing net earnings per common shares. The Company's nonvested share-based awards are considered participating securities pursuant to the two-class method. The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2019 and 2018 . Three Months Ended March 31, (Dollars in thousands, except per share data) 2019 2018 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 125,908,335 125,167,128 Nonvested shares (1,778,700 ) (1,909,777 ) Weighted average Common Shares outstanding—Basic 124,129,635 123,257,351 Weighted average Common Shares outstanding—Basic 124,129,635 123,257,351 Dilutive effect of employee stock purchase plan 102,132 90,330 Weighted average Common Shares outstanding—Diluted 124,231,767 123,347,681 Net Income $ 4,891 $ 9,180 Dividends paid on nonvested share-based awards (536 ) (579 ) Net income applicable to common stockholders $ 4,355 $ 8,601 Basic earnings per common share - Net income $ 0.04 $ 0.07 Diluted earnings per common share - Net income $ 0.04 $ 0.07 Incentive Plans A summary of the activity under the Company's share-based incentive plans for the three months ended March 31, 2019 and 2018 is included in the table below. Three Months Ended March 31, 2019 2018 Share-based awards, beginning of period 1,769,863 1,907,645 Granted 64,771 76,762 Vested (50,507 ) (54,065 ) Share-based awards, end of period 1,784,127 1,930,342 During the three months ended March 31, 2019 and 2018 , the Company withheld 19,546 and 21,196 shares of common stock, respectively, from participants to pay estimated withholding taxes related to shares that vested. In addition to the share-based incentive plans, the Company maintains the 2000 Employee Stock Purchase Plan (the "Purchase Plan"). A summary of the activity under the Purchase Plan for the three months ended March 31, 2019 and 2018 is included in the table below. Three Months Ended March 31, 2019 2018 Outstanding and exercisable, beginning of period 328,533 318,100 Granted 235,572 203,836 Exercised (14,630 ) (8,835 ) Forfeited (16,625 ) (10,580 ) Expired (142,074 ) (135,790 ) Outstanding and exercisable, end of period 390,776 366,731 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practical to estimate that value. Cash and cash equivalents - The carrying amount approximates fair value due to the short term maturity of these investments. Borrowings under the unsecured credit facility due 2020 and unsecured term loan facility due 2022 - The carrying amount approximates fair value because the borrowings are based on variable market interest rates. Senior Notes and Mortgage Notes payable - The fair value of notes and bonds payable is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements. Interest rate swap agreements - Interest rate swap agreements are recorded in other liabilities on the Company's Consolidated Balance Sheets at fair value. Fair value is estimated by utilizing pricing models that consider forward yield curves and discount rates. The table below details the fair values and carrying values for notes and bonds payable at March 31, 2019 and December 31, 2018 . March 31, 2019 December 31, 2018 (Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Notes and bonds payable (1) $ 1,343.1 $ 1,329.8 $ 1,346.0 $ 1,326.5 ______ (1) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Business Overview | Business Overview Healthcare Realty Trust Incorporated (the "Company") is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of March 31, 2019 , the Company had gross investments of approximately $4.0 billion in 201 real estate properties located in 26 states totaling approximately 15.0 million square feet. The Company provided leasing and property management services to approximately 11.3 million |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2018 . All material intercompany transactions and balances have been eliminated in consolidation. This interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2019 |
Use of Estimates in the Condensed Consolidated Financial Statements | Use of Estimates in the Condensed Consolidated Financial StatementsPreparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates. |
Revenue from Contracts with Customers (Topic 606) | Revenue from Contracts with Customers (Topic 606) The Company recognizes certain revenue under the core principle of Topic 606. This requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance. Revenue that is accounted for under Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Income in the Other operating line item. This line item includes parking income, rental lease guaranty income, management fee income and other miscellaneous income. Below is a detail of the amounts by category: (in thousands) Three Months Ended March 31, Type of Revenue 2019 2018 Parking income $ 1,734 $ 1,626 Rental lease guaranty 128 175 Management fee income 69 68 Miscellaneous 30 26 $ 1,961 $ 1,895 |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards Update No. 2016-02, No. 2018-01 and No. 2018-11 In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, "Leases." In January 2018, FASB issued ASU 2018-01, "Leases - Land Easement Practical Expedient for Transition to Topic 842," in July 2018, FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases" and ASU 2018-11, "Leases - Targeted Improvements," and in December 2018, FASB issued ASU 2018-20, “Narrow-Scope Improvements for Lessors.” These accounting standard updates are collectively referred to as "Topic 842." Topic 842 provides several practical expedients that the Company elected. These are (a) the package of practical expedients offered that allows an entity not to reassess upon adoption (i) whether an expired or existing contract contains a lease, (ii) lease classification related to expired or existing lease arrangements, and (iii) whether costs incurred on expired or existing leases qualify as initial direct costs, (b) the lessor practical expedient not to separate certain non-lease components, such as common area maintenance, from the lease component if (i) the timing and pattern of transfer are the same for the non-lease component and associated lease component, and (ii) the lease component would be classified as an operating lease if accounted for separately and (c) the lessee practical expedient not to separate certain non-lease components from the associated lease component. For lessees, the new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with the classification affecting the pattern of expense recognition in the income statement. Ground leases executed or assumed prior to the adoption of Topic 842 will continue to be accounted for as operating leases and will not result in a materially different ground lease expense. However, each ground lease executed after the adoption of Topic 842 will be evaluated to determine if it is an operating or finance lease. If the lease is to be accounted for as a finance lease, ground lease expense would be accounted for using the effective interest method instead of the straight-line method over the term of the lease, which would result in higher ground lease expense in the earlier years of a ground lease when compared to the straight-line method. The Company's lease population is primarily ground leases, but also includes management office leases in third party buildings and certain copier and postage machine leases. The Company utilized a third party to assist in determining the discount rate for its ground leases. The terms of the ground leases generally range from 40 to 99 years with a weighted average remaining lease term remaining of 54.9 years , excluding renewal options. The Company's discount rates, which approximates the Company's incremental borrowing rate, ranged from 3.4% for leases expiring in 2019 to 6.2% for leases expiring in 2115. The Company utilized a third party to assist in determining the discount rates. The discount rates consider the general economic environment and factor in various financing and asset specific adjustments so that the discount rate is appropriate for the intended use of the underlying lease. As of January 1, 2019, the Company recognized the present value of its lease payments and a corresponding lease liability of $91.7 million . In addition, the Company reclassified $45.0 million of prepaid ground leases and below-market lease intangibles from the Other assets line item, $1.9 million of above-market lease intangibles from the Other liabilities line and $8.4 million of straight-line rent from the Accounts payable and accrued liabilities line item to the Operating lease right-of-use assets line item on the Condensed Consolidated Balance Sheets. For lessors, the new standard requires a lessor to classify leases as either sales-type, direct-financing or operating. A lease will be treated as a sale if it is considered to transfer control of the underlying asset to the lessee. A lease will be classified as direct-financing if risks and rewards are conveyed without the transfer of control. Otherwise, the lease is treated as an operating lease. Lessor accounting remains largely unchanged with some exceptions including the concept of separating lease and nonlease components. Nonlease components, such as common area maintenance, are generally accounted for under Topic 606 and separated from the lease payments. However, the Company elected the lessor practical expedient allowing the Company to not separate these components when certain conditions are met. The combined component is accounted for under Topic 842. Lease related receivables, which include accounts receivable and accrued straight-line rent receivables, are reduced for revenue reserves and are recognized as a reduction to rental income. The adoption of Topic 842, where the Company is the lessor, did not have a material impact on the Company's Condensed Consolidated Financial Statements for the three months ended March 31, 2019 . The new standard was effective for the Company on January 1, 2019. Topic 842 provides two transition alternatives. The Company elected to choose the prospective optional transition method available to apply the guidance in Accounting Standards Codification Topic 840 in the comparative periods presented in the year Topic 842 is adopted. Topic 842 includes extensive quantitative and qualitative disclosures as compared to Topic 840, Leases, for both lessees and lessors. See Note 3 for additional disclosures. Accounting Standards Update No. 2016-13 and No. 2018-19 In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." This update is intended to improve financial reporting by requiring timelier recognition of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. This update requires that financial statement assets measured at an amortized cost and certain other financial instruments be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. ASU 2018-19 also clarifies that receivables arising from operating leases are not within the scope of this topic. Instead, impairment of these receivables should be accounted for in accordance with Topic 842, Leases. This standard is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted. The Company is in the initial stages of evaluating the impact from the adoption of this new standard on the Condensed Consolidated Financial Statements and related notes. Accounting Standards Update No. 2017-04 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | Below is a detail of the amounts by category: (in thousands) Three Months Ended March 31, Type of Revenue 2019 2018 Parking income $ 1,734 $ 1,626 Rental lease guaranty 128 175 Management fee income 69 68 Miscellaneous 30 26 $ 1,961 $ 1,895 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of acquisitions | The following table details the Company's acquisitions for the three months ended March 31, 2019 : (Dollars in millions) Type (1) Date Purchase Price Cash (2) Real Other (3) Square (Unaudited) Washington, D.C. (4) MOB 3/28/19 $ 46.0 $ 45.9 $ 50.2 $ (4.3 ) 158,338 Indianapolis, IN (5) MOB 3/28/19 47.0 44.8 43.7 1.1 143,499 $ 93.0 $ 90.7 $ 93.9 $ (3.2 ) 301,837 ______ (1) MOB = medical office building (2) Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. (3) Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. (4) Includes two properties. The Company assumed two ground leases in connection with this acquisition that are classified as financing leases. The present value of future lease payments totaling $14.4 million was recorded on the Company's Condensed Consolidated Balance Sheets. In addition, the right-of-use assets were partially offset by $5.2 million of above-market lease intangibles included in Other. (5) The Company assumed a prepaid ground lease totaling $0.8 million and recorded a below-market lease intangible totaling $0.9 million |
Assets held for sale | The table below reflects the assets and liabilities of the properties classified as held for sale as of March 31, 2019 and December 31, 2018 : (Dollars in thousands) March 31, December 31, Balance Sheet data: Land $ 1,125 $ 1,125 Buildings, improvements and lease intangibles 39,586 18,231 40,711 19,356 Accumulated depreciation (30,706 ) (10,657 ) Real estate assets held for sale, net 10,005 8,699 Operating lease right-of-use assets 168 — Other assets, net 395 573 Assets held for sale, net $ 10,568 $ 9,272 Accounts payable and accrued liabilities $ 251 $ 450 Operating lease liabilities 168 — Other liabilities 214 137 Liabilities of properties held for sale $ 633 $ 587 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Future Minimum Lease Payments Receivable | Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of March 31, 2019 are as follows (in thousands): 2019 $ 250,619 2020 294,900 2021 250,050 2022 213,822 2023 175,215 2024 and thereafter 502,647 $ 1,687,253 |
Future Minimum Lease Payments Receivable under ASC 840 | Future minimum lease payments under the non-cancelable operating leases, excluding any reimbursements, as of December 31, 2018 are as follows (in thousands): 2019 $ 326,441 2020 279,211 2021 235,660 2022 201,072 2023 163,978 2024 and thereafter 476,673 $ 1,683,035 |
Future Minimum Operating Lease Payments | The Company’s future lease payments (primarily for its 63 non-prepaid ground leases) as of March 31, 2019 were as follows (in thousands): Operating Financing 2019 $ 2,948 $ 626 2020 4,849 611 2021 4,879 619 2022 4,909 628 2023 4,947 637 2024 and thereafter 314,406 74,766 Total undiscounted lease payments 336,938 77,887 Discount (245,894 ) (63,593 ) Lease Liability $ 91,044 $ 14,294 |
Future Minimum Financing Lease Payments | The Company’s future lease payments (primarily for its 63 non-prepaid ground leases) as of March 31, 2019 were as follows (in thousands): Operating Financing 2019 $ 2,948 $ 626 2020 4,849 611 2021 4,879 619 2022 4,909 628 2023 4,947 637 2024 and thereafter 314,406 74,766 Total undiscounted lease payments 336,938 77,887 Discount (245,894 ) (63,593 ) Lease Liability $ 91,044 $ 14,294 |
Lease Cost | The following table provides a detail of the Company's total lease expense for the three months ended March 31, 2019 (in thousands): Operating FInancing Lease expense Operating lease expense $ 1,116 $ — Variable lease expense 740 — Total lease expense $ 1,856 $ — Other information Operating cash flows outflows related to operating leases $ 2,771 $ — Right-of-use assets obtained in exchange for new lease liabilities $ — $ 14,294 Weighted-average remaining lease term (excluding renewal options) 54.0 70.6 Weighted-average discount rate 5.5 % 5.9 % |
Future Minimum Lease Payments under ASC 840 | The Company’s future minimum lease payments (primarily for its 60 non-prepaid ground leases) as of December 31, 2018 were as follows (in thousands): 2019 $ 5,288 2020 5,260 2021 5,238 2022 5,207 2023 5,224 2024 and thereafter 323,533 $ 349,750 |
Notes and Bonds Payable (Tables
Notes and Bonds Payable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The table below details the Company’s notes and bonds payable. Maturity Dates Balance as of Effective Interest Rate as of (Dollars in thousands) March 31, 2019 December 31, 2018 March 31, 2019 Unsecured Credit Facility 7/20 $ 260,000 $ 262,000 3.49 % Unsecured Term Loan Facility, net of issuance costs (1) 12/22 149,234 149,183 3.53 % Senior Notes due 2023, net of discount and issuance costs 4/23 248,223 248,117 3.95 % Senior Notes due 2025, net of discount and issuance costs (2) 5/25 248,338 248,278 4.08 % Senior Notes due 2028, net of discount and issuance costs 1/28 295,309 295,198 3.84 % Mortgage notes payable, net of discounts and issuance costs and including premiums 7/19-5/40 142,006 143,208 4.79 % $ 1,343,110 $ 1,345,984 ______ (1) The effective interest rate includes the impact of interest rate swaps on $25.0 million and $50.0 million of the outstanding balance at a rate of 2.18% and 2.46% , respectively (plus the applicable margin rate, currently 110 basis points). (2) The effective interest rate includes the impact of the $1.7 million settlement of a forward-starting interest rate swap that is included in Accumulated other comprehensive income (loss) on the Company's Condensed Consolidated Balance Sheets. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | As of March 31, 2019 , the Company had four outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Derivative Instrument Number of Instruments Notional Amount (in millions) Interest rate swaps 4 $75.0 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below presents the fair value of the Company's derivative financial instruments, as well as their classification on the Condensed Consolidated Balance Sheet as of March 31, 2019 . Balance at March 31, 2019 (Dollars in thousands) Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate swaps Other liabilities $ 589 Total derivatives designated as hedging instruments $ 589 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss) ("OCI") during the three months ended March 31, 2019 and 2018 related to the Company's outstanding interest rate swaps. Amount of Loss Recognized in OCI on Derivative Amount of Loss Reclassified from OCI into Income (Dollars in thousands) 2019 2019 2018 Interest rate products $ 724 Interest expense $ (27 ) $ 105 Settled interest rate swaps — Interest expense 42 42 $ 724 Total interest expense $ 15 $ 147 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Reconciliation of beginning and ending common stock outstanding | The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the three months ended March 31, 2019 and the year ended December 31, 2018 : March 31, 2019 December 31, 2018 Balance, beginning of period 125,279,455 125,131,593 Issuance of common stock 3,889,411 26,203 Nonvested share-based awards, net of withheld shares 45,225 121,659 Balance, end of period 129,214,091 125,279,455 |
Earnings (loss) per share | The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2019 and 2018 . Three Months Ended March 31, (Dollars in thousands, except per share data) 2019 2018 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 125,908,335 125,167,128 Nonvested shares (1,778,700 ) (1,909,777 ) Weighted average Common Shares outstanding—Basic 124,129,635 123,257,351 Weighted average Common Shares outstanding—Basic 124,129,635 123,257,351 Dilutive effect of employee stock purchase plan 102,132 90,330 Weighted average Common Shares outstanding—Diluted 124,231,767 123,347,681 Net Income $ 4,891 $ 9,180 Dividends paid on nonvested share-based awards (536 ) (579 ) Net income applicable to common stockholders $ 4,355 $ 8,601 Basic earnings per common share - Net income $ 0.04 $ 0.07 Diluted earnings per common share - Net income $ 0.04 $ 0.07 |
Summary of the activity under the Incentive Plan | A summary of the activity under the Company's share-based incentive plans for the three months ended March 31, 2019 and 2018 is included in the table below. Three Months Ended March 31, 2019 2018 Share-based awards, beginning of period 1,769,863 1,907,645 Granted 64,771 76,762 Vested (50,507 ) (54,065 ) Share-based awards, end of period 1,784,127 1,930,342 |
Summary of employee stock purchase plan activity | A summary of the activity under the Purchase Plan for the three months ended March 31, 2019 and 2018 is included in the table below. Three Months Ended March 31, 2019 2018 Outstanding and exercisable, beginning of period 328,533 318,100 Granted 235,572 203,836 Exercised (14,630 ) (8,835 ) Forfeited (16,625 ) (10,580 ) Expired (142,074 ) (135,790 ) Outstanding and exercisable, end of period 390,776 366,731 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value and carrying values for notes and bonds payable, mortgage notes receivable, and notes receivable | The table below details the fair values and carrying values for notes and bonds payable at March 31, 2019 and December 31, 2018 . March 31, 2019 December 31, 2018 (Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Notes and bonds payable (1) $ 1,343.1 $ 1,329.8 $ 1,346.0 $ 1,326.5 ______ (1) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) ft² in Millions, $ in Billions | Mar. 31, 2019USD ($)ft²stateproperty |
Business Overview: | |
Gross investment amount, total | $ | $ 4 |
Number of real estate properties | property | 201 |
Number of states that the Company owns real estate in, whole units | state | 26 |
Square footage of owned real estate properties | 15 |
Approximate square feet for which Nationwide property management services provided by company | 11.3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Other operating | $ 1,961 | $ 1,895 |
Parking Income | ||
Disaggregation of Revenue [Line Items] | ||
Other operating | 1,734 | 1,626 |
Rental Lease Guaranty | ||
Disaggregation of Revenue [Line Items] | ||
Other operating | 128 | 175 |
Management Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Other operating | 69 | 68 |
Miscellaneous | ||
Disaggregation of Revenue [Line Items] | ||
Other operating | $ 30 | $ 26 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Impact of Adoption of New Accounting Standard (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Weighted-average remaining lease term - operating leases | 54 years | ||
Operating lease right-of-use assets | $ 128,141 | ||
Operating lease liabilities | $ 91,044 | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Ground lease, initial term | 50 years | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Ground lease, initial term | 75 years | ||
Weighted Average Remaining Term | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Ground lease, initial term | 53 years 10 months 24 days | ||
Accounting Standards Update 2016-02 | Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Ground lease, initial term | 40 years | ||
Ground lease, discount rate (percent) | 3.40% | ||
Operating lease liabilities | $ 91,700 | ||
Accounting Standards Update 2016-02 | Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Ground lease, initial term | 99 years | ||
Ground lease, discount rate (percent) | 6.20% | ||
Accounting Standards Update 2016-02 | Weighted Average Remaining Term | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Ground lease, initial term | 54 years 10 months 24 days | ||
Other Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Transfers to operating lease, right-of-use assets | $ 45,000 | ||
Other liabilities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Transfers to operating lease, right-of-use assets | 1,900 | ||
Accounts Payable and Accrued Liabilities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Transfers to operating lease, right-of-use assets | $ 8,400 |
Real Estate Investments - Acqui
Real Estate Investments - Acquisitions and dispositions (Details) $ in Thousands | Apr. 02, 2019USD ($)ft² | Mar. 28, 2019USD ($)ft² | May 21, 2018USD ($) | May 03, 2018USD ($)property | Mar. 31, 2019USD ($)ft² | Apr. 09, 2019USD ($)ft²Building |
Business Acquisition [Line Items] | ||||||
Financing lease liabilities | $ 14,294 | |||||
Real Estate Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | 93,000 | |||||
Cash consideration | 90,700 | |||||
Real Estate | 93,900 | |||||
Other | $ (3,200) | |||||
Square footage | ft² | 301,837 | |||||
Medical Office Building | Washington, D.C. (4) | Real Estate Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Number of properties acquired | property | 2 | |||||
Date Acquired | Mar. 28, 2019 | |||||
Purchase price | $ 46,000 | |||||
Cash consideration | $ 45,900 | |||||
Real Estate | 50,200 | |||||
Other | $ (4,300) | |||||
Square footage | ft² | 158,338 | |||||
Financing lease liabilities | $ 14,400 | |||||
Above-market lease intangibles | 5,200 | |||||
Medical Office Building | Indianapolis, IN (5) | Real Estate Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Date Acquired | Mar. 28, 2019 | |||||
Purchase price | $ 47,000 | |||||
Cash consideration | $ 44,800 | |||||
Real Estate | 43,700 | |||||
Other | $ 1,100 | |||||
Square footage | ft² | 143,499 | |||||
Prepaid ground leases | $ 800 | |||||
Below-market lease intangible | $ 900 | |||||
Medical Office Building | Tucson, Arizona | Real Estate Dispositions | ||||||
Business Acquisition [Line Items] | ||||||
Net Real Estate Investment | $ 6,900 | |||||
Subsequent Event | Medical Office Building | Atlanta, Georgia | Real Estate Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 28,000 | |||||
Square footage | ft² | 47,963 | |||||
Subsequent Event | Medical Office Building | Tucson, Arizona | Real Estate Dispositions | ||||||
Business Acquisition [Line Items] | ||||||
Square footage | ft² | 67,345 | |||||
Number of Off-campus Buildings | Building | 3 | |||||
Number of On-campus Buildings | Building | 1 | |||||
Sales price | $ 13,000 |
Real Estate Investments - Asset
Real Estate Investments - Assets Held for Sale (Details) $ in Millions | Mar. 31, 2019USD ($)property | Dec. 31, 2018property |
Business Combinations [Abstract] | ||
Net investment in property held for sale | $ | $ 1.3 | |
Number of properties held for sale | property | 2 | 1 |
Real Estate Investments - Disco
Real Estate Investments - Discontinued Operations and Assets Held for Sale - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Balance Sheet data (as of the period ended): | ||
Land | $ 230,206 | $ 230,206 |
Investment Building and Building Improvements | 3,757,260 | 3,675,415 |
Real estate properties, Total | 4,063,178 | 3,974,071 |
Accumulated depreciation | (1,035,800) | (1,015,174) |
Total real estate properties, net | 3,027,378 | 2,958,897 |
Liabilities of properties held for sale | 633 | 587 |
Inpatient Rehabilitation Facility | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Balance Sheet data (as of the period ended): | ||
Land | 1,125 | 1,125 |
Investment Building and Building Improvements | 39,586 | 18,231 |
Real estate properties, Total | 40,711 | 19,356 |
Accumulated depreciation | (30,706) | (10,657) |
Total real estate properties, net | 10,005 | 8,699 |
Operating lease right-of-use assets | 168 | 0 |
Other assets, net | 395 | 573 |
Assets held for sale, net | 10,568 | 9,272 |
Accounts payable and accrued liabilities | 251 | 450 |
Operating lease liabilities | 168 | 0 |
Other liabilities | 214 | 137 |
Liabilities of properties held for sale | $ 633 | $ 587 |
Leases - Lease Income (Details)
Leases - Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Rental income | $ 110,696 | $ 110,229 |
Leases - Lessor Accounting (Det
Leases - Lessor Accounting (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Future Lease Payments Receivable [Abstract] | |
2019 | $ 250,619 |
2020 | 294,900 |
2021 | 250,050 |
2022 | 213,822 |
2023 | 175,215 |
2024 and thereafter | 502,647 |
Total | $ 1,687,253 |
Leases - Future Lease Payments
Leases - Future Lease Payments Receivable under ASC 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 326,441 |
2020 | 279,211 |
2021 | 235,660 |
2022 | 201,072 |
2023 | 163,978 |
2024 and thereafter | 476,673 |
Total | $ 1,683,035 |
Leases - Ground Leases (Details
Leases - Ground Leases (Details) ft² in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019USD ($)ft²propertyLease | Mar. 31, 2018USD ($) | Dec. 31, 2018ft²propertyLease | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Lessee, Lease, Description [Line Items] | |||||
Number of properties subject to ground leases | property | 109 | 107 | |||
Square feet subject to ground leases | ft² | 9.1 | 8.8 | |||
Number of prepaid ground leases | 46 | ||||
Amortization of prepaid rent | $ | $ 100,000 | $ 100,000 | $ 500,000 | $ 500 | |
Number of non-prepaid ground leases | 63 | 60 | |||
Weighted Average Remaining Term | |||||
Lessee, Lease, Description [Line Items] | |||||
Ground lease, initial term | 53 years 10 months 24 days | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Ground lease, initial term | 50 years | ||||
Term of lease, including renewals | 75 years | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Ground lease, initial term | 75 years | ||||
Term of lease, including renewals | 100 years | ||||
Accounting Standards Update 2016-02 | Weighted Average Remaining Term | |||||
Lessee, Lease, Description [Line Items] | |||||
Ground lease, initial term | 54 years 10 months 24 days | ||||
Term of lease, including renewals | 70 years 8 months 12 days | ||||
Accounting Standards Update 2016-02 | Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Ground lease, initial term | 40 years | ||||
Accounting Standards Update 2016-02 | Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Ground lease, initial term | 99 years |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating | |
2019 | $ 2,948 |
2020 | 4,849 |
2021 | 4,879 |
2022 | 4,909 |
2023 | 4,947 |
2024 and thereafter | 314,406 |
Total undiscounted lease payments | 336,938 |
Discount | (245,894) |
Lease Liability | 91,044 |
Financing | |
2019 | 626 |
2020 | 611 |
2021 | 619 |
2022 | 628 |
2023 | 637 |
2024 and thereafter | 74,766 |
Total undiscounted lease payments | 77,887 |
Discount | (63,593) |
Lease Liability | $ 14,294 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease expense | |
Operating lease expense | $ 1,116 |
Variable lease expense | 740 |
Total lease expense | 1,856 |
Other information | |
Operating cash flows outflows related to operating leases | 2,771 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 0 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 14,294 |
Weighted-average remaining lease term - operating leases | 54 years |
Weighted-average remaining lease term - finance leases | 70 years 7 months 6 days |
Weighted-average discount rate - operating leases (percent) | 5.50% |
Weighted-average discount rate - finance leases (percent) | 5.90% |
Leases - Future Minimum Lease_2
Leases - Future Minimum Lease Payments under ASC 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 5,288 |
2020 | 5,260 |
2021 | 5,238 |
2022 | 5,207 |
2023 | 5,224 |
2024 and thereafter | 323,533 |
Total | $ 349,750 |
Notes and Bonds Payable (Detail
Notes and Bonds Payable (Details) $ in Thousands | Apr. 10, 2019USD ($)ft² | Mar. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 1,343,110 | $ 1,345,984 | |
Area of Real Estate Property | ft² | 15,000,000 | ||
Line of Credit | Unsecured Credit Facility | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 260,000 | 262,000 | |
Effective interest rate (percent) | 3.49% | ||
Medium-term Notes | Unsecured Term Loan Facility, net of issuance costs (1) | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 149,234 | 149,183 | |
Effective interest rate (percent) | 3.53% | ||
Notional amount | $ 50,000 | ||
Derivative, fixed interest rate (percent) | 2.46% | ||
Basis spread on variable rate (percent) | 1.10% | ||
Senior Notes | Senior Notes due 2023, net of discount and issuance costs | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 248,223 | 248,117 | |
Effective interest rate (percent) | 3.95% | ||
Senior Notes | Senior Notes due 2025, net of discount and issuance costs (2) | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 248,338 | 248,278 | |
Effective interest rate (percent) | 4.08% | ||
Senior Notes | Senior Notes due 2028, net of discount and issuance costs | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 295,309 | 295,198 | |
Effective interest rate (percent) | 3.84% | ||
Mortgages | Mortgage notes payable, net of discounts and issuance costs and including premiums | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 142,006 | $ 143,208 | |
Effective interest rate (percent) | 4.79% | ||
Interest Rate Swap | Medium-term Notes | Unsecured Term Loan Facility, net of issuance costs (1) | |||
Debt Instrument [Line Items] | |||
Notional amount | $ 25,000 | ||
Derivative, fixed interest rate (percent) | 2.18% | ||
Interest Rate Swap | Senior Notes | Senior Notes due 2025, net of discount and issuance costs (2) | |||
Debt Instrument [Line Items] | |||
Loss on forward starting interest rate swap agreement recognized in OCI | $ 1,700 | ||
Subsequent Event | Mortgages | Mortgage notes payable, net of discounts and issuance costs and including premiums | |||
Debt Instrument [Line Items] | |||
Effective interest rate (percent) | 5.00% | ||
Extinguishment of Debt, Amount | $ 8,900 | ||
Area of Real Estate Property | ft² | 52,813 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Derivative Instruments Designated as Cash Flow Hedges (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Interest Rate Swap $ in Millions | Mar. 31, 2019USD ($)swap_agreement |
Derivative [Line Items] | |
Number of instruments | swap_agreement | 4 |
Notional amount | $ | $ 75 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Balance Sheet (Details) - Designated as Hedging Instrument - Interest Rate Swap $ in Thousands | Mar. 31, 2019USD ($) |
Derivative [Line Items] | |
Liability derivatives | $ 589 |
Other liabilities | |
Derivative [Line Items] | |
Liability derivatives | $ 589 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Cash Flow Hedging on AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Amount of Loss Recognized in OCI on Derivative | $ 724 | |
Amount of Loss Reclassified from OCI into Income | (15) | $ (147) |
Interest Rate Products | ||
Derivative [Line Items] | ||
Amount of Loss Recognized in OCI on Derivative | 724 | |
Settled Interest Rate Swaps | ||
Derivative [Line Items] | ||
Amount of Loss Recognized in OCI on Derivative | 0 | |
Interest Expense | ||
Derivative [Line Items] | ||
Amount of Loss Reclassified from OCI into Income | 15 | 147 |
Interest Expense | Interest Rate Products | ||
Derivative [Line Items] | ||
Amount of Loss Reclassified from OCI into Income | (27) | 105 |
Interest Expense | Settled Interest Rate Swaps | ||
Derivative [Line Items] | ||
Amount of Loss Reclassified from OCI into Income | $ 42 | $ 42 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Additional Information (Details) $ in Thousands | Apr. 12, 2019USD ($)derivative | Mar. 31, 2019USD ($) |
Active Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months | $ 13 | |
Settled Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months | $ (200) | |
Cash Flow Hedging | Subsequent Event | Interest Rate Products | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of instruments | derivative | 2 | |
Notional amount | $ 50,000 | |
Derivative, fixed interest rate (percent) | 2.334% |
Commitments and Contingencies -
Commitments and Contingencies - Construction Activity (Details) $ in Millions | Mar. 31, 2019USD ($)ft² |
Other Commitments [Line Items] | |
Approximate Square Feet | 15,000,000 |
Medical Office Building Expansion | NORTH CAROLINA | |
Other Commitments [Line Items] | |
Approximate Square Feet | 38,000 |
Medical Office Building | NORTH CAROLINA | |
Other Commitments [Line Items] | |
Total amount funded | $ | $ 9.7 |
Medical Office Building | COLORADO | |
Other Commitments [Line Items] | |
Approximate Square Feet | 151,000 |
Total amount funded | $ | $ 30.9 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of beginning and ending common stock outstanding (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period | 125,279,000 | |
Balance, end of period | 129,214,000 | |
Common Stock | ||
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period | 125,279,455 | 125,131,593 |
Issuance of common stock | 3,889,411 | 26,203 |
Nonvested share-based awards, net of withheld shares | 45,225 | 121,659 |
Balance, end of period | 129,214,091 | 125,279,455 |
Stockholders' Equity (Stock Tra
Stockholders' Equity (Stock Transactions - Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 30, 2019 | Mar. 19, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 26, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | ||||
Proceeds from Issuance of Common Stock | $ 120,617 | $ 236 | ||||
Dividends declared per common share, during the period (in dollars per share) | $ 0.30 | $ 0.30 | ||||
At The Market Equity Offering Program | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock (shares) | 135,265 | |||||
Proceeds from Issuance of Common Stock | $ 4,300 | |||||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Dividends declared per common share, during the period (in dollars per share) | $ 0.30 | |||||
Subsequent Event | At The Market Equity Offering Program | ||||||
Class of Stock [Line Items] | ||||||
Number of authorized shares remaining under offering program (shares) | 5,733,432 | |||||
Equity Offering | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock (shares) | 3,737,500 | |||||
Common stock, par value (dollars per share) | $ 0.01 | |||||
Shares Issued, Price Per Share | $ 31.40 | |||||
Proceeds from Issuance of Common Stock | $ 115,800 | |||||
Minimum | At The Market Equity Offering Program | ||||||
Class of Stock [Line Items] | ||||||
Shares Issued During Period, Price Per Share | $ 32.01 | |||||
Maximum | At The Market Equity Offering Program | ||||||
Class of Stock [Line Items] | ||||||
Shares Issued During Period, Price Per Share | 32.86 | |||||
Weighted Average | At The Market Equity Offering Program | ||||||
Class of Stock [Line Items] | ||||||
Shares Issued During Period, Price Per Share | $ 32.36 |
Stockholders' Equity - Computat
Stockholders' Equity - Computation of basic and diluted earnings (loss) per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Weighted average Common Shares outstanding | ||
Weighted average Common Shares outstanding | 125,908,335 | 125,167,128 |
Nonvested shares | (1,778,700) | (1,909,777) |
Weighted average Common Shares—Basic | 124,129,635 | 123,257,351 |
Dilutive effect of employee stock purchase plan | 102,132 | 90,330 |
Weighted average Common Shares outstanding—Diluted | 124,231,767 | 123,347,681 |
Net Income | $ 4,891 | $ 9,180 |
Dividends paid on nonvested share-based awards | (536) | (579) |
Net income applicable to common stockholders | $ 4,355 | $ 8,601 |
Basic earnings per common share (in dollars per share) | $ 0.04 | $ 0.07 |
Diluted earnings per common share (in dollars per share) | $ 0.04 | $ 0.07 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of activity under stock-based incentive plans (Details) - Stock Incentive Plan - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Summary of the activity under the incentive plans | ||
Share-based awards, beginning of period | 1,769,863 | 1,907,645 |
Granted (shares) | 64,771 | 76,762 |
Vested (shares) | (50,507) | (54,065) |
Share-based awards, end of period | 1,784,127 | 1,930,342 |
Restricted Stock | ||
Summary of the activity under the incentive plans | ||
Shares withheld to pay estimated withholding taxes | 19,546 | 21,196 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of activity under Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Summary of the Employee Stock Purchase Plan activity | ||
Outstanding and exercisable, beginning of period (shares) | 328,533 | 318,100 |
Granted (shares) | 235,572 | 203,836 |
Exercised (shares) | (14,630) | (8,835) |
Forfeited (shares) | (16,625) | (10,580) |
Expired (shares) | (142,074) | (135,790) |
Outstanding and exercisable, end of period (shares) | 390,776 | 366,731 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Derivative [Line Items] | ||
Notes and bonds payable | $ 1,343.1 | $ 1,346 |
Fair Value | ||
Derivative [Line Items] | ||
Notes and bonds payable | $ 1,329.8 | $ 1,326.5 |