Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-11852 | |
Entity Registrant Name | HEALTHCARE REALTY TRUST INCORPORATED | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 62-1507028 | |
Entity Address, Address Line One | 3310 West End Avenue, Suite 700 | |
Entity Address, City or Town | Nashville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37203 | |
City Area Code | 615 | |
Local Phone Number | 269-8175 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | HR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 134,932,261 | |
Entity Central Index Key | 0000899749 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Real estate properties | ||
Land | $ 319,882 | $ 289,751 |
Buildings, improvements and lease intangibles | 4,126,046 | 3,986,326 |
Personal property | 10,783 | 10,538 |
Construction in progress | 0 | 48,731 |
Land held for development | 24,647 | 24,647 |
Real estate properties, Total | 4,481,358 | 4,359,993 |
Less accumulated depreciation and amortization | (1,164,462) | (1,121,102) |
Total real estate properties, net | 3,316,896 | 3,238,891 |
Cash and cash equivalents | 103,370 | 657 |
Assets held for sale, net | 20 | 37 |
Operating lease right-of-use assets | 125,040 | 126,177 |
Financing lease right-of-use assets | 12,615 | 12,667 |
Other assets, net | 189,708 | 185,426 |
Total assets | 3,747,649 | 3,563,855 |
Liabilities | ||
Notes and bonds payable | 1,644,454 | 1,414,069 |
Accounts payable and accrued liabilities | 64,574 | 78,517 |
Liabilities of properties held for sale | 74 | 145 |
Operating lease liabilities | 91,093 | 91,574 |
Financing lease liabilities | 17,953 | 18,037 |
Other liabilities | 70,073 | 61,504 |
Total liabilities | 1,888,221 | 1,663,846 |
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; 134,932 and 134,706 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 1,349 | 1,347 |
Additional paid-in capital | 3,494,123 | 3,485,003 |
Accumulated other comprehensive loss | (19,777) | (6,175) |
Cumulative net income attributable to common stockholders | 1,131,619 | 1,127,304 |
Cumulative dividends | (2,747,886) | (2,707,470) |
Total stockholders' equity | 1,859,428 | 1,900,009 |
Total liabilities and stockholders' equity | $ 3,747,649 | $ 3,563,855 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
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 | 134,932,000 | 134,706,000 |
Common stock, outstanding shares | 134,932,000 | 134,706,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Rental income | $ 122,644 | $ 110,696 |
Other operating | 2,163 | 1,961 |
Revenues | 124,807 | 112,657 |
Expenses | ||
Property operating | 49,552 | 42,725 |
General and administrative | 8,766 | 8,510 |
Acquisition and pursuit costs | 750 | 305 |
Depreciation and amortization | 47,497 | 42,662 |
Total Expenses | 106,565 | 94,202 |
Other Income (Expense) | ||
Gain (loss) on sales of real estate assets | (49) | 15 |
Interest expense | (13,960) | (13,588) |
Interest and other income (expense), net | 82 | 9 |
Total other income (expense) | (13,927) | (13,564) |
Net Income | $ 4,315 | $ 4,891 |
Basic earnings per common share (in dollars per share) | $ 0.03 | $ 0.04 |
Diluted earnings per common share (in dollars per share) | $ 0.03 | $ 0.04 |
Weighted average common shares outstanding - basic | 133,036,245 | 124,129,635 |
Weighted average common shares outstanding - diluted | 133,149,566 | 124,231,767 |
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, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 4,315 | $ 4,891 |
Interest rate swaps | ||
Reclassification adjustments for losses included in net income (interest expense) | 328 | 15 |
Losses arising during the period on interest rate swaps | (9,663) | (724) |
Losses on settlement of treasury rate locks arising during the period | (4,267) | 0 |
Total other comprehensive income (loss) | (13,602) | (709) |
Comprehensive income | $ (9,287) | $ 4,182 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements 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, 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 | ||||
Losses arising during the period on interest rate swaps | (724) | (724) | ||||
Dividends to common stockholders | (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) |
Beginning balance at Dec. 31, 2019 | 1,900,009 | 1,347 | 3,485,003 | (6,175) | 1,127,304 | (2,707,470) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of issuance costs | 7,321 | 2 | 7,319 | |||
Common stock redemptions | (798) | (798) | ||||
Share-based compensation | 2,599 | 2,599 | ||||
Net income | 4,315 | 4,315 | ||||
Reclassification adjustments for losses included in net income (interest expense) | 328 | 328 | ||||
Losses arising during the period on interest rate swaps | (13,930) | (13,930) | ||||
Dividends to common stockholders | (40,416) | (40,416) | ||||
Ending balance at Mar. 31, 2020 | $ 1,859,428 | $ 1,349 | $ 3,494,123 | $ (19,777) | $ 1,131,619 | $ (2,747,886) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividend per share to common Stockholders (in dollars per share) | $ 0.30 | $ 0.30 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net income | $ 4,315 | $ 4,891 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 47,497 | 42,662 |
Other amortization | 1,491 | 727 |
Share-based compensation | 2,599 | 2,639 |
Amortization of straight-line rent receivable (lessor) | (1,043) | (668) |
Amortization of straight-line rent on operating leases (lessee) | 375 | 390 |
(Gain) loss on sales of real estate assets | 49 | (15) |
Loss from unconsolidated joint ventures | 11 | 10 |
Distributions from unconsolidated joint ventures | 118 | 88 |
Changes in operating assets and liabilities: | ||
Other assets, including right-of-use-assets | (4,032) | (4,971) |
Accounts payable and accrued liabilities | (10,005) | (10,276) |
Other liabilities | (2,931) | (673) |
Net cash provided by operating activities | 38,444 | 34,804 |
INVESTING ACTIVITIES | ||
Acquisitions of real estate | (83,580) | (91,787) |
Development of real estate | (2,451) | (5,712) |
Additional long-lived assets | (22,164) | (11,741) |
Net cash used in investing activities | (108,195) | (109,240) |
FINANCING ACTIVITIES | ||
Net repayments on unsecured credit facility | (78,000) | (2,000) |
Borrowings of notes and bonds payable | 298,995 | |
Repayments on notes and bonds payable | (7,202) | (1,193) |
Dividends paid | (40,416) | (37,614) |
Net proceeds from issuance of common stock | 7,213 | 120,617 |
Common stock redemptions | (892) | (2,442) |
Settlement of treasury rate locks | (4,267) | |
Debt issuance and assumption costs | (2,646) | |
Payments made on finance leases | (321) | 0 |
Net cash provided by financing activities | 172,464 | 77,368 |
Increase in cash and cash equivalents | 102,713 | 2,932 |
Cash and cash equivalents at beginning of period | 657 | 8,381 |
Cash and cash equivalents at end of period | 103,370 | 11,313 |
Supplemental Cash Flow Information | ||
Interest paid | 11,428 | 11,071 |
Invoices accrued for construction, tenant improvements and other capitalized costs | 12,830 | 13,509 |
Mortgage notes payable assumed upon acquisition (adjusted to fair value) | 19,269 | |
Capitalized interest | $ 421 | $ 307 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 , the Company had gross investments of approximately $4.4 billion in 212 real estate properties located in 25 states totaling approximately 15.8 million square feet. The Company provided leasing and property management services to approximately 12.0 million square feet nationwide. Square footage and property count disclosures in these Notes to the Company's Condensed Consolidated Financial Statements are unaudited. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("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, 2019 . All material intercompany transactions and balances have been eliminated in consolidation. The Company considered the impact of COVID-19 on these assumptions and estimates used and determined that there were no material adverse impacts on the Company's results of operations and financial position at March 31, 2020. A prolonged outbreak could have a material adverse impact on the financial results and business operations of the Company. 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, 2019 . 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, 2020 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, such as the impact of the COVID-19 pandemic. 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: THREE MONTHS ENDED March 31, in thousands 2020 2019 Type of Revenue Parking income $ 2,051 $ 1,734 Rental lease guaranty — 128 Management fee income 78 69 Miscellaneous 34 30 $ 2,163 $ 1,961 The Company’s 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. 2016-13 In June 2016, the Financial Accounting Standards Board (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. This standard is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted. Operating lease receivables, representing the majority of the Company's receivables, are not within the scope of the new standard. The Company adopted this standard as of January 1, 2020. There was not a material impact to the Condensed Consolidated Financial Statements resulting from the adoption of this standard. Accounting Standards Update No. 2017-04 In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment." This update eliminates Step 2 of the goodwill impairment test. As such, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit's carrying amount exceeds its fair value. This standard is effective for the Company for annual and interim periods beginning after December 15, 2019. The Company adopted this standard as of January 1, 2020. There was not a material impact to the Condensed Consolidated Financial Statements resulting from the adoption of this standard. Accounting Standards Update No. 2020-04 On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) |
Real Estate Investments
Real Estate Investments | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Real Estate Investments | Real Estate Investments 2020 Acquisitions The following table details the Company's acquisitions for the three months ended March 31, 2020 : Dollars in millions TYPE 1 DATE ACQUIRED PURCHASE PRICE MORTGAGE NOTES PAYABLE CASH 2 REAL ESTATE OTHER 3 SQUARE FOOTAGE Los Angeles, CA MOB 1/3/20 $ 42.0 $ (19.3 ) $ 22.8 $ 42.4 $ (0.3 ) 86,986 Atlanta, GA MOB 2/13/20 12.0 — 11.8 12.1 (0.3 ) 64,624 Raleigh, NC MOB 2/25/20 6.3 — 6.5 6.5 — 15,964 Colorado Springs, CO MOB 3/9/20 8.2 — 8.3 8.6 (0.3 ) 34,210 Denver, CO 4 MOB 3/13/20 33.5 — 33.2 34.0 (0.8 ) 136,994 Total real estate acquisitions $ 102.0 $ (19.3 ) $ 82.6 $ 103.6 $ (1.7 ) 338,778 Land acquisition 5 1.6 — 1.7 1.7 — — $ 103.6 $ (19.3 ) $ 84.3 $ 105.3 $ (1.7 ) 338,778 1 MOB = medical office building. 2 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Includes three properties. 5 The Company acquired land parcels under four existing buildings (previously ground leased from the hospital system). Assets Held for Sale As of March 31, 2020 and December 31, 2019 , the Company had no |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases Lessor Accounting The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2035. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s portfolio of single-tenant 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. The Company's leases typically have escalators that are either based on a stated percentage or an index such as CPI (consumer price index). In addition, most of the Company's leases include nonlease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the three months ended March 31, 2020 was $122.6 million . Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of March 31, 2020 were as follows: In thousands 2020 $ 280,413 2021 335,188 2022 294,771 2023 250,284 2024 193,772 2025 and thereafter 514,144 $ 1,868,572 Lessee Accounting As of March 31, 2020 , the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of March 31, 2020 , the Company had 104 properties totaling 8.7 million square feet that were held under ground leases. Some of the ground leases' renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2117 . Any rental increases related to the Company’s ground leases are generally either stated or based on the CPI. The Company had 42 prepaid ground leases as of March 31, 2020 . The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.2 million and $0.1 million of the Company’s rental expense for the three months ended March 31, 2020 and March 31, 2019, respectively. The Company’s future lease payments (primarily for its 62 non-prepaid ground leases) as of March 31, 2020 were as follows: In thousands OPERATING FINANCING 2020 $ 3,113 $ 429 2021 4,844 754 2022 4,875 763 2023 4,913 774 2024 4,969 795 2025 and thereafter 307,665 83,404 Total undiscounted lease payments 330,379 86,919 Discount (239,286 ) (68,966 ) Lease liabilities $ 91,093 $ 17,953 The following table provides details of the Company's total lease expense for the three months ended March 31, 2020 and 2019 : THREE MONTHS ENDED MARCH 31, In thousands 2020 2019 Operating lease cost Operating lease expense $ 1,174 $ 1,116 Variable lease expense 800 740 Finance lease cost Amortization of right-of-use assets 70 — Interest on lease liabilities 237 — Total lease expense $ 2,281 $ 1,856 Other information Operating cash flows outflows related to operating leases $ 2,550 $ 2,771 Financing cash flows outflows related to financing leases $ 321 $ — Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Weighted-average remaining lease term (excluding renewal options) - operating leases 49.4 54.0 Weighted-average remaining lease term (excluding renewal options) -finance leases 64.9 — Weighted-average discount rate - operating leases 5.7 % 5.5 % Weighted-average discount rate - finance leases 5.4 % — % |
Leases | Leases Lessor Accounting The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2035. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s portfolio of single-tenant 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. The Company's leases typically have escalators that are either based on a stated percentage or an index such as CPI (consumer price index). In addition, most of the Company's leases include nonlease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the three months ended March 31, 2020 was $122.6 million . Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of March 31, 2020 were as follows: In thousands 2020 $ 280,413 2021 335,188 2022 294,771 2023 250,284 2024 193,772 2025 and thereafter 514,144 $ 1,868,572 Lessee Accounting As of March 31, 2020 , the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of March 31, 2020 , the Company had 104 properties totaling 8.7 million square feet that were held under ground leases. Some of the ground leases' renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2117 . Any rental increases related to the Company’s ground leases are generally either stated or based on the CPI. The Company had 42 prepaid ground leases as of March 31, 2020 . The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.2 million and $0.1 million of the Company’s rental expense for the three months ended March 31, 2020 and March 31, 2019, respectively. The Company’s future lease payments (primarily for its 62 non-prepaid ground leases) as of March 31, 2020 were as follows: In thousands OPERATING FINANCING 2020 $ 3,113 $ 429 2021 4,844 754 2022 4,875 763 2023 4,913 774 2024 4,969 795 2025 and thereafter 307,665 83,404 Total undiscounted lease payments 330,379 86,919 Discount (239,286 ) (68,966 ) Lease liabilities $ 91,093 $ 17,953 The following table provides details of the Company's total lease expense for the three months ended March 31, 2020 and 2019 : THREE MONTHS ENDED MARCH 31, In thousands 2020 2019 Operating lease cost Operating lease expense $ 1,174 $ 1,116 Variable lease expense 800 740 Finance lease cost Amortization of right-of-use assets 70 — Interest on lease liabilities 237 — Total lease expense $ 2,281 $ 1,856 Other information Operating cash flows outflows related to operating leases $ 2,550 $ 2,771 Financing cash flows outflows related to financing leases $ 321 $ — Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Weighted-average remaining lease term (excluding renewal options) - operating leases 49.4 54.0 Weighted-average remaining lease term (excluding renewal options) -finance leases 64.9 — Weighted-average discount rate - operating leases 5.7 % 5.5 % Weighted-average discount rate - finance leases 5.4 % — % |
Notes and Bonds Payable
Notes and Bonds Payable | 3 Months Ended |
Mar. 31, 2020 | |
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 3/31/2020 Dollars in thousands 3/31/2020 12/31/2019 $700 million Unsecured Credit Facility 5/23 $ 215,000 $ 293,000 1.89 % $200 million Unsecured Term Loan Facility, net of issuance costs 1 5/24 199,069 199,013 3.20 % $150 million Unsecured Term Loan due 2026 2 6/26 — — N/A Senior Notes due 2023, net of discount and issuance costs 4/23 248,647 248,540 3.95 % Senior Notes due 2025, net of discount and issuance costs 3 5/25 248,584 248,522 4.08 % Senior Notes due 2028, net of discount and issuance costs 1/28 295,768 295,651 3.84 % Senior Notes due 2030, net of discount and issuance costs 4 3/30 296,211 — 2.71 % Mortgage notes payable, net of discounts and issuance costs and including premiums 7/20-5/40 141,175 129,343 4.70 % $ 1,644,454 $ 1,414,069 1 The effective interest rate includes the impact of interest rate swaps on $ 175.0 million at a weighted average rate of 2.29% (plus the applicable margin rate, currently 100 basis points). 2 As of March 31, 2020, there were no outstanding loans under the $150.0 million unsecured term loan due June 2026. This term loan has a delayed draw feature that allows the Company until May 29, 2020 to draw against the commitments. 3 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 loss on the Company's Condensed Consolidated Balance Sheets. 4 The effective interest rate includes the impact of the $4.3 million settlement of a forward-starting interest rate swap that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets. Changes in Debt Structure On February 3, 2020 , the Company repaid in full a mortgage note payable bearing interest at a rate of 6.10% per annum with an outstanding principal of $5.9 million . The mortgage note encumbered a 68,860 square foot property in Oklahoma. On March 4, 2020 , the Company issued $300.0 million of unsecured senior notes due 2030 (the "Senior Notes due 2030") in a registered public offering. The Senior Notes due 2030 bear interest at 2.40% , payable semi-annually on March 15 and September 15 , beginning September 15, 2020, and are due on March 15, 2030, unless redeemed earlier by the Company. The notes were issued at a discount of approximately $1.0 million and the Company incurred approximately $2.8 million in debt issuance costs. Concurrent with this transaction, the Company settled two treasury rate locks for $4.3 million . Inclusive of the discount, debt issuance costs and settlement of the treasury rate locks, the effective interest rate was 2.71% . The Senior Notes due 2030 have various financial covenants that are required to be met on a quarterly and annual basis. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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) ("AOCI") and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. On February 24 and 25, 2020 , the Company entered into two treasury rate locks totaling $75.0 million and $40.0 million , respectively. The treasury rate locks were settled for an aggregate amount of $4.3 million on March 4, 2020 concurrent with the Company's issuance of its Senior Notes due 2030. The settlement will be amortized over the 10-year term of the notes. As of March 31, 2020 , the Company had eight 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 8 $175.0 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, 2020 . BALANCE AT MARCH 31, 2020 In thousands BALANCE SHEET LOCATION FAIR VALUE Derivatives designated as hedging instruments Interest rate swaps Other liabilities $ 14,672 Total derivatives designated as hedging instruments $ 14,672 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 AOCI during the three months ended March 31, 2020 and 2019 related to the Company's outstanding interest rate swaps. LOSS RECOGNIZED IN AOCI ON DERIVATIVE three months ended March 31, (GAIN) LOSS RECLASSIFIED FROM AOCI INTO INCOME three months ended March 31, In thousands 2020 2019 2020 2019 Interest rate swaps $ 9,663 $ 724 Interest expense $ 271 $ (27 ) Settled treasury hedges 4,267 — Interest expense 15 — Settled interest rate swaps — — Interest expense 42 42 $ 13,930 $ 724 Total interest expense $ 328 $ 15 The Company estimates that $4.0 million will be reclassified from AOCI to interest expense over the next 12 months. 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. As of March 31, 2020, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $15.2 million . As of March 31, 2020, the Company has not posted any collateral related to these agreements and was not in breach of any agreement. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 initiated the redevelopment of a 110,883 square foot medical office building in Memphis, Tennessee ("Memphis Redevelopment") in December 2019. The Company funded approximately $1.5 million , excluding the purchase price of $8.7 million for the land and building. The building will continue to operate with in-place leases during construction. The Memphis Redevelopment is expected to be completed in the first quarter of 2021. Development Activity The Company completed the development of a 151,031 square foot medical office building in Seattle, Washington. As of March 31, 2020 , the Company had funded approximately $54.1 million towards the development. The Company expects to fund an additional amount of approximately $10.0 million for additional tenant improvements associated with this project. The first tenant took occupancy in the first quarter of 2020. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and the year ended December 31, 2019 : MARCH 31, 2020 DECEMBER 31, 2019 Balance, beginning of period 134,706,154 125,279,455 Issuance of common stock 210,271 9,251,440 Nonvested share-based awards, net of withheld shares 15,781 175,259 Balance, end of period 134,932,206 134,706,154 At-The-Market Equity Offering Program On February 14, 2020 , the Company entered into sales agreements with six investment banks to allow sales under its at-the-market equity offering program of up to an aggregate of $500.0 million of common stock. During the first quarter of 2020, the Company sold 196,250 shares under the Company's at-the-market equity offering program generating approximately $7.0 million in net proceeds at prices to the public ranging from $33.00 to $36.15 per share (weighted average of $36.09 per share). No shares were sold from March 18, 2020 through the date of this filing. The Company had $492.9 million remaining available to be sold under the current sales agreements at the date of this filing. Common Stock Dividends During the three months ended March 31, 2020 , the Company declared and paid common stock dividends totaling $0.30 per share. On May 5, 2020 , the Company declared a quarterly common stock dividend in the amount of $0.30 per share payable on May 29, 2020 to stockholders of record on May 15, 2020 . 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, 2020 and 2019 . THREE MONTHS ENDED MARCH 31, Dollars in thousands, except per share data 2020 2019 Weighted average common shares outstanding Weighted average common shares outstanding 134,758,335 125,908,335 Non-vested shares (1,722,090 ) (1,778,700 ) Weighted average common shares outstanding - basic 133,036,245 124,129,635 Weighted average common shares outstanding - basic 133,036,245 124,129,635 Dilutive effect of employee stock purchase plan 113,321 102,132 Weighted average common shares outstanding - diluted 133,149,566 124,231,767 Net Income $ 4,315 $ 4,891 Dividends paid on nonvested share-based awards (517 ) (536 ) Net income applicable to common stockholders $ 3,798 $ 4,355 Basic earnings per common share - net income $ 0.03 $ 0.04 Diluted earnings per common share - net income $ 0.03 $ 0.04 Incentive Plans A summary of the activity under the Company's share-based incentive plans for the three months ended March 31, 2020 and 2019 is included in the table below. THREE MONTHS ENDED MARCH 31, 2020 2019 Share-based awards, beginning of period 1,754,066 1,769,863 Granted 39,344 64,771 Vested (68,649 ) (50,507 ) Share-based awards, end of period 1,724,761 1,784,127 During the three months ended March 31, 2020 and 2019 , the Company withheld 23,563 and 19,546 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, 2020 and 2019 is included in the table below. THREE MONTHS ENDED MARCH 31, 2020 2019 Outstanding and exercisable, beginning of period 332,659 328,533 Granted 212,716 235,572 Exercised (11,904 ) (14,630 ) Forfeited (22,981 ) (16,625 ) Expired (139,794 ) (142,074 ) Outstanding and exercisable, end of period 370,696 390,776 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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 and the Term Loan Due 2024 - 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, 2020 and December 31, 2019 . MARCH 31, 2020 DECEMBER 31, 2019 Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE Notes and bonds payable 1 $ 1,644.5 $ 1,706.7 $ 1,414.1 $ 1,425.8 1 Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events COVID-19 Update Since being reported in December 2019, COVID-19 has spread globally, including to every state in the United States. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. All of the states and cities in which the Company owns properties, manages properties, and/or has development or redevelopment projects have instituted quarantines, restrictions on travel, “shelter in place” rules, restrictions on types of businesses that may continue to operate, and/or restrictions on the types of construction projects that may continue. As a result, a number of the Company's tenants have temporarily closed their offices or clinical space or have operated on a reduced basis in response to government requirements or recommendations. Through May 5, 2020 , the Company has collected 89% of April 2020 aggregate tenant billings and has agreed to various forms of rent deferrals representing approximately 7% of April 2020 aggregate tenant billings. The tenant deferral agreements require the deferred amounts to be repaid in the third and fourth quarters of 2020. However, if tenants are unable to timely repay, or repay at all, deferred rent, if they request additional rent deferrals or abatements, decide not to renew leases, or renew leases at lower cash leasing spreads, the impact on the Company’s results of operations and financial condition could be material. Given the daily evolution of the COVID-19 pandemic and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 pandemic on its results of operations, financial condition, or liquidity for the fiscal year 2020. The Company continues to evaluate the impact of various forms of governmental assistance that may be or become available to the Company or its tenants, including the Coronavirus Aid, Relief, and Economic Security Act or the “CARES Act". |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 , the Company had gross investments of approximately $4.4 billion in 212 real estate properties located in 25 states totaling approximately 15.8 million square feet. The Company provided leasing and property management services to approximately 12.0 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 ("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, 2019 . All material intercompany transactions and balances have been eliminated in consolidation. The Company considered the impact of COVID-19 on these assumptions and estimates used and determined that there were no material adverse impacts on the Company's results of operations and financial position at March 31, 2020. A prolonged outbreak could have a material adverse impact on the financial results and business operations of the Company. 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, 2019 . 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, 2020 |
Use of Estimates in the Condensed Consolidated Financial Statements | Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates. |
Revenue from Contract with Customers (Topic 606) | Revenue from Contracts with Customers (Topic 606) The Company recognizes certain revenue under the core principle of Topic 606. This requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance. 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: THREE MONTHS ENDED March 31, in thousands 2020 2019 Type of Revenue Parking income $ 2,051 $ 1,734 Rental lease guaranty — 128 Management fee income 78 69 Miscellaneous 34 30 $ 2,163 $ 1,961 |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards Update No. 2016-13 In June 2016, the Financial Accounting Standards Board (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. This standard is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted. Operating lease receivables, representing the majority of the Company's receivables, are not within the scope of the new standard. The Company adopted this standard as of January 1, 2020. There was not a material impact to the Condensed Consolidated Financial Statements resulting from the adoption of this standard. Accounting Standards Update No. 2017-04 In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment." This update eliminates Step 2 of the goodwill impairment test. As such, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit's carrying amount exceeds its fair value. This standard is effective for the Company for annual and interim periods beginning after December 15, 2019. The Company adopted this standard as of January 1, 2020. There was not a material impact to the Condensed Consolidated Financial Statements resulting from the adoption of this standard. Accounting Standards Update No. 2020-04 On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Disaggreation of revenue | Below is a detail of the amounts by category: THREE MONTHS ENDED March 31, in thousands 2020 2019 Type of Revenue Parking income $ 2,051 $ 1,734 Rental lease guaranty — 128 Management fee income 78 69 Miscellaneous 34 30 $ 2,163 $ 1,961 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of acquisitions | The following table details the Company's acquisitions for the three months ended March 31, 2020 : Dollars in millions TYPE 1 DATE ACQUIRED PURCHASE PRICE MORTGAGE NOTES PAYABLE CASH 2 REAL ESTATE OTHER 3 SQUARE FOOTAGE Los Angeles, CA MOB 1/3/20 $ 42.0 $ (19.3 ) $ 22.8 $ 42.4 $ (0.3 ) 86,986 Atlanta, GA MOB 2/13/20 12.0 — 11.8 12.1 (0.3 ) 64,624 Raleigh, NC MOB 2/25/20 6.3 — 6.5 6.5 — 15,964 Colorado Springs, CO MOB 3/9/20 8.2 — 8.3 8.6 (0.3 ) 34,210 Denver, CO 4 MOB 3/13/20 33.5 — 33.2 34.0 (0.8 ) 136,994 Total real estate acquisitions $ 102.0 $ (19.3 ) $ 82.6 $ 103.6 $ (1.7 ) 338,778 Land acquisition 5 1.6 — 1.7 1.7 — — $ 103.6 $ (19.3 ) $ 84.3 $ 105.3 $ (1.7 ) 338,778 1 MOB = medical office building. 2 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Includes three properties. 5 The Company acquired land parcels under four existing buildings (previously ground leased from the hospital system). |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Future Minimum Lease Payments Receivable | Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of March 31, 2020 were as follows: In thousands 2020 $ 280,413 2021 335,188 2022 294,771 2023 250,284 2024 193,772 2025 and thereafter 514,144 $ 1,868,572 |
Future Minimum Operating Lease Payments | The Company’s future lease payments (primarily for its 62 non-prepaid ground leases) as of March 31, 2020 were as follows: In thousands OPERATING FINANCING 2020 $ 3,113 $ 429 2021 4,844 754 2022 4,875 763 2023 4,913 774 2024 4,969 795 2025 and thereafter 307,665 83,404 Total undiscounted lease payments 330,379 86,919 Discount (239,286 ) (68,966 ) Lease liabilities $ 91,093 $ 17,953 |
Future Minimum Financing Lease Payments | The Company’s future lease payments (primarily for its 62 non-prepaid ground leases) as of March 31, 2020 were as follows: In thousands OPERATING FINANCING 2020 $ 3,113 $ 429 2021 4,844 754 2022 4,875 763 2023 4,913 774 2024 4,969 795 2025 and thereafter 307,665 83,404 Total undiscounted lease payments 330,379 86,919 Discount (239,286 ) (68,966 ) Lease liabilities $ 91,093 $ 17,953 |
Lease Cost | The following table provides details of the Company's total lease expense for the three months ended March 31, 2020 and 2019 : THREE MONTHS ENDED MARCH 31, In thousands 2020 2019 Operating lease cost Operating lease expense $ 1,174 $ 1,116 Variable lease expense 800 740 Finance lease cost Amortization of right-of-use assets 70 — Interest on lease liabilities 237 — Total lease expense $ 2,281 $ 1,856 Other information Operating cash flows outflows related to operating leases $ 2,550 $ 2,771 Financing cash flows outflows related to financing leases $ 321 $ — Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Weighted-average remaining lease term (excluding renewal options) - operating leases 49.4 54.0 Weighted-average remaining lease term (excluding renewal options) -finance leases 64.9 — Weighted-average discount rate - operating leases 5.7 % 5.5 % Weighted-average discount rate - finance leases 5.4 % — % |
Notes and Bonds Payable (Tables
Notes and Bonds Payable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 3/31/2020 Dollars in thousands 3/31/2020 12/31/2019 $700 million Unsecured Credit Facility 5/23 $ 215,000 $ 293,000 1.89 % $200 million Unsecured Term Loan Facility, net of issuance costs 1 5/24 199,069 199,013 3.20 % $150 million Unsecured Term Loan due 2026 2 6/26 — — N/A Senior Notes due 2023, net of discount and issuance costs 4/23 248,647 248,540 3.95 % Senior Notes due 2025, net of discount and issuance costs 3 5/25 248,584 248,522 4.08 % Senior Notes due 2028, net of discount and issuance costs 1/28 295,768 295,651 3.84 % Senior Notes due 2030, net of discount and issuance costs 4 3/30 296,211 — 2.71 % Mortgage notes payable, net of discounts and issuance costs and including premiums 7/20-5/40 141,175 129,343 4.70 % $ 1,644,454 $ 1,414,069 1 The effective interest rate includes the impact of interest rate swaps on $ 175.0 million at a weighted average rate of 2.29% (plus the applicable margin rate, currently 100 basis points). 2 As of March 31, 2020, there were no outstanding loans under the $150.0 million unsecured term loan due June 2026. This term loan has a delayed draw feature that allows the Company until May 29, 2020 to draw against the commitments. 3 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 loss on the Company's Condensed Consolidated Balance Sheets. 4 The effective interest rate includes the impact of the $4.3 million settlement of a forward-starting interest rate swap that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | As of March 31, 2020 , the Company had eight 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 8 $175.0 |
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, 2020 . BALANCE AT MARCH 31, 2020 In thousands BALANCE SHEET LOCATION FAIR VALUE Derivatives designated as hedging instruments Interest rate swaps Other liabilities $ 14,672 Total derivatives designated as hedging instruments $ 14,672 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The table below presents the effect of cash flow hedge accounting on AOCI during the three months ended March 31, 2020 and 2019 related to the Company's outstanding interest rate swaps. LOSS RECOGNIZED IN AOCI ON DERIVATIVE three months ended March 31, (GAIN) LOSS RECLASSIFIED FROM AOCI INTO INCOME three months ended March 31, In thousands 2020 2019 2020 2019 Interest rate swaps $ 9,663 $ 724 Interest expense $ 271 $ (27 ) Settled treasury hedges 4,267 — Interest expense 15 — Settled interest rate swaps — — Interest expense 42 42 $ 13,930 $ 724 Total interest expense $ 328 $ 15 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and the year ended December 31, 2019 : MARCH 31, 2020 DECEMBER 31, 2019 Balance, beginning of period 134,706,154 125,279,455 Issuance of common stock 210,271 9,251,440 Nonvested share-based awards, net of withheld shares 15,781 175,259 Balance, end of period 134,932,206 134,706,154 |
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, 2020 and 2019 . THREE MONTHS ENDED MARCH 31, Dollars in thousands, except per share data 2020 2019 Weighted average common shares outstanding Weighted average common shares outstanding 134,758,335 125,908,335 Non-vested shares (1,722,090 ) (1,778,700 ) Weighted average common shares outstanding - basic 133,036,245 124,129,635 Weighted average common shares outstanding - basic 133,036,245 124,129,635 Dilutive effect of employee stock purchase plan 113,321 102,132 Weighted average common shares outstanding - diluted 133,149,566 124,231,767 Net Income $ 4,315 $ 4,891 Dividends paid on nonvested share-based awards (517 ) (536 ) Net income applicable to common stockholders $ 3,798 $ 4,355 Basic earnings per common share - net income $ 0.03 $ 0.04 Diluted earnings per common share - net income $ 0.03 $ 0.04 |
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, 2020 and 2019 is included in the table below. THREE MONTHS ENDED MARCH 31, 2020 2019 Share-based awards, beginning of period 1,754,066 1,769,863 Granted 39,344 64,771 Vested (68,649 ) (50,507 ) Share-based awards, end of period 1,724,761 1,784,127 |
Summary of employee stock purchase plan activity | A summary of the activity under the Purchase Plan for the three months ended March 31, 2020 and 2019 is included in the table below. THREE MONTHS ENDED MARCH 31, 2020 2019 Outstanding and exercisable, beginning of period 332,659 328,533 Granted 212,716 235,572 Exercised (11,904 ) (14,630 ) Forfeited (22,981 ) (16,625 ) Expired (139,794 ) (142,074 ) Outstanding and exercisable, end of period 370,696 390,776 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 . MARCH 31, 2020 DECEMBER 31, 2019 Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE Notes and bonds payable 1 $ 1,644.5 $ 1,706.7 $ 1,414.1 $ 1,425.8 1 Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) ft² in Millions, $ in Billions | Mar. 31, 2020USD ($)ft²stateproperty |
Business Overview: | |
Gross investment amount, total | $ | $ 4.4 |
Number of real estate properties | property | 212 |
Number of states that the Company owns real estate in, whole units | state | 25 |
Square footage of owned real estate properties | 15.8 |
Approximate square feet for which Nationwide property management services provided by company | 12 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2,163 | $ 1,961 |
Parking Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,051 | 1,734 |
Rental Lease Guaranty | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 128 |
Management Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 78 | 69 |
Miscellaneous | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 34 | $ 30 |
Real Estate Investments - Acqui
Real Estate Investments - Acquisitions (Details) $ in Millions | Mar. 09, 2020USD ($)ft² | Feb. 25, 2020USD ($)ft² | Feb. 13, 2020USD ($)ft² | Jan. 03, 2020USD ($)ft² | Mar. 31, 2020USD ($)ft² | Dec. 31, 2019property |
Business Acquisition [Line Items] | ||||||
Number of properties held for sale | property | 0 | |||||
Real Estate Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 102 | |||||
Mortgage Notes Payable | (19.3) | |||||
Cash consideration | 82.6 | |||||
Real Estate | 103.6 | |||||
Other | $ (1.7) | |||||
Square footage | ft² | 338,778 | |||||
Land Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 1.6 | |||||
Mortgage Notes Payable | 0 | |||||
Cash consideration | 1.7 | |||||
Real Estate | 1.7 | |||||
Other | $ 0 | |||||
Square footage | ft² | 0 | |||||
Real Estate and Land Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 103.6 | |||||
Mortgage Notes Payable | (19.3) | |||||
Cash consideration | 84.3 | |||||
Real Estate | 105.3 | |||||
Other | $ (1.7) | |||||
Square footage | ft² | 338,778 | |||||
Medical Office Building | Los Angeles, CA | Real Estate Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 42 | |||||
Mortgage Notes Payable | (19.3) | |||||
Cash consideration | 22.8 | |||||
Real Estate | 42.4 | |||||
Other | $ (0.3) | |||||
Square footage | ft² | 86,986 | |||||
Medical Office Building | Atlanta, GA | Real Estate Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 12 | |||||
Mortgage Notes Payable | 0 | |||||
Cash consideration | 11.8 | |||||
Real Estate | 12.1 | |||||
Other | $ (0.3) | |||||
Square footage | ft² | 64,624 | |||||
Medical Office Building | Raleigh, NC | Real Estate Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 6.3 | |||||
Mortgage Notes Payable | 0 | |||||
Cash consideration | 6.5 | |||||
Real Estate | 6.5 | |||||
Other | $ 0 | |||||
Square footage | ft² | 15,964 | |||||
Medical Office Building | Colorado Springs, CO | Real Estate Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 8.2 | |||||
Mortgage Notes Payable | 0 | |||||
Cash consideration | 8.3 | |||||
Real Estate | 8.6 | |||||
Other | $ (0.3) | |||||
Square footage | ft² | 34,210 | |||||
Medical Office Building | Denver, CO | Real Estate Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 33.5 | |||||
Mortgage Notes Payable | 0 | |||||
Cash consideration | 33.2 | |||||
Real Estate | 34 | |||||
Other | $ (0.8) | |||||
Square footage | ft² | 136,994 |
Leases - Lease Income (Details)
Leases - Lease Income (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Rental income | $ 122.6 |
Leases - Lessor Accounting (Det
Leases - Lessor Accounting (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Future Lease Payments Receivable [Abstract] | |
2020 | $ 280,413 |
2021 | 335,188 |
2022 | 294,771 |
2023 | 250,284 |
2024 | 193,772 |
2025 and thereafter | 514,144 |
Total | $ 1,868,572 |
Leases - Ground Leases (Details
Leases - Ground Leases (Details) ft² in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)ft²Leaseproperty | Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Number of properties subject to ground leases | property | 104 | |
Square feet subject to ground leases | ft² | 8.7 | |
Number of prepaid ground leases | 42 | |
Amortization of prepaid rent | $ | $ 0.2 | $ 0.1 |
Number of non-prepaid ground leases | 62 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Ground lease, initial term | 40 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Ground lease, initial term | 99 years |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
OPERATING | ||
2020 | $ 3,113 | |
2021 | 4,844 | |
2022 | 4,875 | |
2023 | 4,913 | |
2024 | 4,969 | |
2025 and thereafter | 307,665 | |
Total undiscounted lease payments | 330,379 | |
Discount | (239,286) | |
Lease liabilities | 91,093 | $ 91,574 |
FINANCING | ||
2020 | 429 | |
2021 | 754 | |
2022 | 763 | |
2023 | 774 | |
2024 | 795 | |
2025 and thereafter | 83,404 | |
Total undiscounted lease payments | 86,919 | |
Discount | (68,966) | |
Lease liabilities | $ 17,953 | $ 18,037 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating lease cost | ||
Operating lease expense | $ 1,174 | $ 1,116 |
Variable lease expense | 800 | 740 |
Amortization of right-of-use assets | 70 | 0 |
Interest on lease liabilities | 237 | 0 |
Lease, Cost | 2,281 | 1,856 |
Other information | ||
Operating cash flows outflows related to operating leases | 2,550 | 2,771 |
Financing cash flows outflows related to financing leases | 321 | 0 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 0 | $ 0 |
Weighted-average remaining lease term - operating leases | 49 years 4 months 24 days | 54 years |
Weighted-average remaining lease term - finance leases | 64 years 10 months 24 days | |
Weighted-average discount rate - operating leases | 5.70% | 5.50% |
Weighted-average discount rate - finance leases | 5.40% | 0.00% |
Notes and Bonds Payable (Detail
Notes and Bonds Payable (Details) | Mar. 04, 2020USD ($)derivative | Feb. 03, 2020USD ($)ft² | Mar. 31, 2020USD ($)ft² | Feb. 25, 2020USD ($) | Feb. 24, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Notes and bonds payable | $ 1,644,454,000 | $ 1,414,069,000 | ||||
Area of real estate property | ft² | 15,800,000 | |||||
Line of Credit | $700 million Unsecured Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Notes and bonds payable | $ 215,000,000 | 293,000,000 | ||||
Effective interest rate | 1.89% | |||||
Medium-term Notes | $200 million Unsecured Term Loan Facility, net of issuance costs | ||||||
Debt Instrument [Line Items] | ||||||
Notes and bonds payable | $ 199,069,000 | 199,013,000 | ||||
Effective interest rate | 3.20% | |||||
Medium-term Notes | $150 million Unsecured Term Loan due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Notes and bonds payable | $ 0 | 0 | ||||
Term-loan facility | 150,000,000 | |||||
Senior Notes | Senior Notes due 2023, net of discount and issuance costs | ||||||
Debt Instrument [Line Items] | ||||||
Notes and bonds payable | $ 248,647,000 | 248,540,000 | ||||
Effective interest rate | 3.95% | |||||
Senior Notes | Senior Notes due 2025, net of discount and issuance costs | ||||||
Debt Instrument [Line Items] | ||||||
Notes and bonds payable | $ 248,584,000 | 248,522,000 | ||||
Effective interest rate | 4.08% | |||||
Senior Notes | Senior Notes due 2028, net of discount and issuance costs | ||||||
Debt Instrument [Line Items] | ||||||
Notes and bonds payable | $ 295,768,000 | 295,651,000 | ||||
Effective interest rate | 3.84% | |||||
Senior Notes | Senior Notes due 2030, net of discount and issuance costs | ||||||
Debt Instrument [Line Items] | ||||||
Fixed interest rate | 2.40% | |||||
Notes and bonds payable | $ 296,211,000 | 0 | ||||
Term-loan facility | $ 300,000,000 | |||||
Effective interest rate | 2.71% | 2.71% | ||||
Debt issuance costs | $ 2,800,000 | |||||
Debt discount | $ 1,000,000 | |||||
Number of Derivative Instruments Settled | derivative | 2 | |||||
Mortgages | Mortgage notes payable, net of discounts and issuance costs and including premiums | ||||||
Debt Instrument [Line Items] | ||||||
Notes and bonds payable | $ 141,175,000 | $ 129,343,000 | ||||
Effective interest rate | 4.70% | |||||
Interest Rate Swap | Medium-term Notes | $200 million Unsecured Term Loan Facility, net of issuance costs | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount | $ 175,000,000 | |||||
Fixed interest rate | 2.29% | |||||
Debt Instrument, Basis Spread on Variable Rate | 100.00% | |||||
Interest Rate Swap | Senior Notes | Senior Notes due 2025, net of discount and issuance costs | ||||||
Debt Instrument [Line Items] | ||||||
Loss on derivative instrument agreement recognized in OCI | $ 1,700,000 | |||||
Treasury Lock | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount | $ 40,000,000 | $ 75,000,000 | ||||
Loss on derivative instrument agreement recognized in OCI | $ 4,300,000 | |||||
Treasury Lock | Senior Notes | Senior Notes due 2025, net of discount and issuance costs | ||||||
Debt Instrument [Line Items] | ||||||
Loss on derivative instrument agreement recognized in OCI | $ 4,300,000 | $ 4,300,000 | ||||
Mortgages | ||||||
Debt Instrument [Line Items] | ||||||
Fixed interest rate | 6.10% | |||||
Outstanding principal repaid | $ 5,900,000 | |||||
Area of real estate property | ft² | 68,860 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Derivative Instruments Designated as Cash Flow Hedges (Details) $ in Millions | Mar. 04, 2020USD ($) | Mar. 31, 2020USD ($)swap_agreement | Feb. 25, 2020USD ($)treasury_lock | Feb. 24, 2020USD ($) |
Derivative [Line Items] | ||||
Derivatives in net liability position | $ 15.2 | |||
Treasury Lock | ||||
Derivative [Line Items] | ||||
Number of instruments | treasury_lock | 2 | |||
Notional amount | $ 40 | $ 75 | ||
Loss on derivative instrument agreement recognized in OCI | $ 4.3 | |||
Active Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months | $ 4 | |||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Number of instruments | swap_agreement | 8 | |||
Notional amount | $ 175 |
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, 2020USD ($) |
Derivative [Line Items] | |
Liability derivatives | $ 14,672 |
Other liabilities | |
Derivative [Line Items] | |
Liability derivatives | $ 14,672 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Cash Flow Hedging on AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
LOSS RECOGNIZED IN AOCI ON DERIVATIVE | $ 13,930 | $ 724 |
(GAIN) LOSS RECLASSIFIED FROM AOCI INTO INCOME | (328) | (15) |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
LOSS RECOGNIZED IN AOCI ON DERIVATIVE | 9,663 | 724 |
Treasury Hedges | ||
Derivative [Line Items] | ||
LOSS RECOGNIZED IN AOCI ON DERIVATIVE | 4,267 | 0 |
Settled Interest Rate Swaps | ||
Derivative [Line Items] | ||
LOSS RECOGNIZED IN AOCI ON DERIVATIVE | 0 | 0 |
Interest Expense | ||
Derivative [Line Items] | ||
(GAIN) LOSS RECLASSIFIED FROM AOCI INTO INCOME | 328 | 15 |
Interest Expense | Interest Rate Swaps | ||
Derivative [Line Items] | ||
(GAIN) LOSS RECLASSIFIED FROM AOCI INTO INCOME | 271 | (27) |
Interest Expense | Treasury Hedges | ||
Derivative [Line Items] | ||
(GAIN) LOSS RECLASSIFIED FROM AOCI INTO INCOME | 15 | 0 |
Interest Expense | Settled Interest Rate Swaps | ||
Derivative [Line Items] | ||
(GAIN) LOSS RECLASSIFIED FROM AOCI INTO INCOME | $ 42 | $ 42 |
Commitments and Contingencies -
Commitments and Contingencies - Construction Activity (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)ft² | |
Other Commitments [Line Items] | |
Approximate Square Feet | ft² | 15,800,000 |
Medical Office Building Expansion | Memphis, Tennessee | |
Other Commitments [Line Items] | |
Approximate Square Feet | ft² | 110,883 |
Medical Office Building | Memphis, Tennessee | |
Other Commitments [Line Items] | |
Construction Activity, Total Funding During the Period, Excluding Purchase of Land and Building | $ 1.5 |
Medical Office Building | Washington | |
Other Commitments [Line Items] | |
Approximate Square Feet | ft² | 151,031 |
Total amount funded | $ 54.1 |
Estimated amount to complete project | 10 |
Land and Building | Medical Office Building | Memphis, Tennessee | |
Other Commitments [Line Items] | |
Construction Activity, Total Funding During the Period | $ 8.7 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of beginning and ending common stock outstanding (Details) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period | 134,706,000 | |
Balance, end of period | 134,932,000 | 134,706,000 |
Common Stock | ||
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period | 134,706,154 | 125,279,455 |
Issuance of common stock | 210,271 | 9,251,440 |
Nonvested share-based awards, net of withheld shares | 15,781 | 175,259 |
Balance, end of period | 134,932,206 | 134,706,154 |
Stockholders' Equity (Stock Tra
Stockholders' Equity (Stock Transactions - Narrative) (Details) - USD ($) | May 29, 2020 | May 06, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Feb. 14, 2020 |
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 500,000,000 | ||||
Proceeds from issuance of common stock | $ 7,213,000 | $ 120,617,000 | |||
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) | 196,250 | ||||
Proceeds from issuance of common stock | $ 7,000,000 | ||||
Shares issued during period, price per share | $ 36.09 | ||||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 492,900,000 | ||||
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] | |||||
Issuance of common stock (shares) | 0 | ||||
Minimum | At The Market Equity Offering Program | |||||
Class of Stock [Line Items] | |||||
Shares issued during period, price per share | 33 | ||||
Maximum | At The Market Equity Offering Program | |||||
Class of Stock [Line Items] | |||||
Shares issued during period, price per share | $ 36.15 |
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, 2020 | Mar. 31, 2019 | |
Weighted average Common Shares outstanding | ||
Weighted average Common Shares outstanding | 134,758,335 | 125,908,335 |
Nonvested shares | (1,722,090) | (1,778,700) |
Weighted average Common Shares—Basic | 133,036,245 | 124,129,635 |
Dilutive effect of employee stock purchase plan | 113,321 | 102,132 |
Weighted average Common Shares outstanding—Diluted | 133,149,566 | 124,231,767 |
Net Income | $ 4,315 | $ 4,891 |
Dividends paid on nonvested share-based awards | (517) | (536) |
Net income applicable to common stockholders | $ 3,798 | $ 4,355 |
Basic earnings per common share (in dollars per share) | $ 0.03 | $ 0.04 |
Diluted earnings per common share (in dollars per share) | $ 0.03 | $ 0.04 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of activity under stock-based incentive plans (Details) - Stock Incentive Plan - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Summary of the activity under the incentive plans | ||
Share-based awards, beginning of period | 1,754,066 | 1,769,863 |
Granted (shares) | 39,344 | 64,771 |
Vested (shares) | (68,649) | (50,507) |
Share-based awards, end of period | 1,724,761 | 1,784,127 |
Restricted Stock | ||
Summary of the activity under the incentive plans | ||
Shares withheld to pay estimated withholding taxes | 23,563 | 19,546 |
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, 2020 | Mar. 31, 2019 | |
Summary of the Employee Stock Purchase Plan activity | ||
Outstanding and exercisable, beginning of period (shares) | 332,659 | 328,533 |
Granted (shares) | 212,716 | 235,572 |
Exercised (shares) | (11,904) | (14,630) |
Forfeited (shares) | (22,981) | (16,625) |
Expired (shares) | (139,794) | (142,074) |
Outstanding and exercisable, end of period (shares) | 370,696 | 390,776 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Derivative [Line Items] | ||
Notes and bonds payable | $ 1,644.5 | $ 1,414.1 |
Fair Value | ||
Derivative [Line Items] | ||
Notes and bonds payable | $ 1,706.7 | $ 1,425.8 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | 1 Months Ended | |
May 04, 2020 | Apr. 30, 2020 | |
Subsequent Event [Line Items] | ||
Aggregate April tenant billings collected (percent) | 89.00% | |
April tenant billings deferred under rent deferral agreements (percent) | 7.00% |