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Real Property Acquisitions and Development | 6 Months Ended
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Jun. 30, 2022
Real Estate [Abstract] |
Real Property Acquisitions and Development | Real Property Acquisitions and Development The total purchase price for all properties acquired has been allocated to the tangible and identifiable intangible assets and liabilities at cost on a relative fair value basis. Liabilities assumed and any associated noncontrolling interests are reflected at fair value. The results of operations for these acquisitions have been included in our consolidated results of operations since the date of acquisition and are a component of the appropriate segments. Transaction costs primarily represent costs incurred with acquisitions, including due diligence costs, fees for legal and valuation services, termination of pre-existing relationships computed based on the fair value of the assets acquired, lease termination fees and other acquisition-related costs. Transaction costs related to asset acquisitions are capitalized as a component of purchase price and all other non-capitalizable costs are reflected in other expenses on our Consolidated Statements of Comprehensive Income. The following is a summary of our real property investment activity by segment for the periods presented (in thousands):
| Six Months Ended
| June 30, 2022 |  | June 30, 2021
| Seniors Housing Operating |  | Triple-net |  | Outpatient Medical |  | Totals |  | Seniors Housing Operating |  | Triple-net |  | Outpatient Medical |  | Totals
Land and land improvements | $ | 130,282 |  |  | $ | — |  |  | $ | 26,714 |  |  | $ | 156,996 |  |  | $ | 25,636 |  |  | $ | 30,849 |  |  | $ | 29,735 |  |  | $ | 86,220 |
Buildings and improvements | 1,249,982 |  |  | 171 |  |  | 205,161 |  |  | 1,455,314 |  |  | 167,791 |  |  | 268,210 |  |  | 152,737 |  |  | 588,738 |
Acquired lease intangibles | 77,705 |  |  | — |  |  | 26,836 |  |  | 104,541 |  |  | 10,679 |  |  | — |  |  | 6,274 |  |  | 16,953 |
Construction in progress | 108,141 |  |  | — |  |  | — |  |  | 108,141 |  |  | — |  |  | — |  |  | — |  |  | — |
Right of use assets, net | 169 |  |  | — |  |  | 3,852 |  |  | 4,021 |  |  | — |  |  | — |  |  | — |  |  | — |
Total net real estate assets | 1,566,279 |  |  | 171 |  |  | 262,563 |  |  | 1,829,013 |  |  | 204,106 |  |  | 299,059 |  |  | 188,746 |  |  | 691,911 |
Receivables and other assets | 6,091 |  |  | — |  |  | 260 |  |  | 6,351 |  |  | 634 |  |  | — |  |  | 8 |  |  | 642 |
Total assets acquired (1) | 1,572,370 |  |  | 171 |  |  | 262,823 |  |  | 1,835,364 |  |  | 204,740 |  |  | 299,059 |  |  | 188,754 |  |  | 692,553 |
Secured debt | (219,067) |  |  | — |  |  | — |  |  | (219,067) |  |  | — |  |  | — |  |  | — |  |  | — |
Lease liabilities | — |  |  | — |  |  | (3,852) |  |  | (3,852) |  |  | — |  |  | — |  |  | — |  |  | — |
Accrued expenses and other liabilities | (11,937) |  |  | — |  |  | (393) |  |  | (12,330) |  |  | (2,923) |  |  | (8,703) |  |  | (266) |  |  | (11,892) |
Total liabilities acquired | (231,004) |  |  | — |  |  | (4,245) |  |  | (235,249) |  |  | (2,923) |  |  | (8,703) |  |  | (266) |  |  | (11,892) |
Noncontrolling interests (2) | (101,885) |  |  | (4) |  |  | (664) |  |  | (102,553) |  |  | (2,597) |  |  | (2,056) |  |  | (14,723) |  |  | (19,376) |
Non-cash acquisition related activity(3) | (25,795) |  |  | — |  |  | — |  |  | (25,795) |  |  | — |  |  | — |  |  | — |  |  | — |
Cash disbursed for acquisitions | 1,213,686 |  |  | 167 |  |  | 257,914 |  |  | 1,471,767 |  |  | 199,220 |  |  | 288,300 |  |  | 173,765 |  |  | 661,285 |
Construction in progress additions | 229,044 |  |  | 45,939 |  |  | 24,336 |  |  | 299,319 |  |  | 93,108 |  |  | 46,904 |  |  | 13,371 |  |  | 153,383 |
Less: Capitalized interest | (9,305) |  |  | (2,031) |  |  | (530) |  |  | (11,866) |  |  | (6,014) |  |  | (1,238) |  |  | (2,106) |  |  | (9,358) |
Accruals (4) | (3,479) |  |  | — |  |  | 2,453 |  |  | (1,026) |  |  | 8 |  |  | — |  |  | 311 |  |  | 319 |
Cash disbursed for construction in progress | 216,260 |  |  | 43,908 |  |  | 26,259 |  |  | 286,427 |  |  | 87,102 |  |  | 45,666 |  |  | 11,576 |  |  | 144,344 |
Capital improvements to existing properties | 146,052 |  |  | 25,016 |  |  | 29,001 |  |  | 200,069 |  |  | 64,438 |  |  | 15,568 |  |  | 14,477 |  |  | 94,483 |
Total cash invested in real property, net of cash acquired | $ | 1,575,998 |  |  | $ | 69,091 |  |  | $ | 313,174 |  |  | $ | 1,958,263 |  |  | $ | 350,760 |  |  | $ | 349,534 |  |  | $ | 199,818 |  |  | $ | 900,112 |
(1) Excludes $5,491,000 and $301,000 of unrestricted and restricted cash acquired during the six months ended June 30, 2022 and June 30, 2021, respectively. (2) Includes amounts attributable to both redeemable noncontrolling interests and noncontrolling interests. For the six months ended June 30, 2022, 1,145,000 Welltower OP units were issued as a component of funding for certain transactions. (3) Relates to the acquisition of assets recognized as investments in unconsolidated entities. (4) R epresents non-cash accruals for amounts to be paid in future periods for properties that converted, off-set by amounts paid in the current period. Effective on April 1, 2022, our leasehold interest relating to the master lease with National Health Investors, Inc. ("NHI") for 17 properties assumed in conjunction with the Holiday Retirement acquisition was terminated as a result of the transition or sale of the properties by NHI. The lease termination was part of an agreement to resolve outstanding litigation with NHI. In conjunction with the agreement, a wholly owned subsidiary and the lessee on the master lease agreed to release $6,883,000 of cash to the landlord, which represents the net cash flow generated from the properties since we assumed the leasehold interest. Additionally, in conjunction with the lease termination, during the three months ended June 30, 2022 we recognized $58,621,000 in other income on our Consolidated Statements of Comprehensive Income, from the derecognition of the right of use asset and related lease liability. Construction Activity The following is a summary of the construction projects that were placed into service and began generating revenues during the periods presented (in thousands):
|  | Six Months Ended
|  | June 30, 2022 |  | June 30, 2021
Development projects: |  |  |  |
Seniors Housing Operating |  | $ | 134,562 |  |  | $ | 58,844 |
Triple-net |  | — |  |  | 22,990 |
Outpatient Medical |  | — |  |  | 101,867 |
Total construction in progress conversions |  | $ | 134,562 |  |  | $ | 183,701 |

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI https://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI https://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI https://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI https://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI https://asc.fasb.org/topic&trid=2134617 + Details
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