Acquisitions, Dispositions and Mortgage Repayments

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions, Dispositions and Mortgage Repayments

2022 Acquisitions

The following table details the Company's acquisitions, exclusive of the Merger, for the year ended December 31, 2022:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 2		REAL ESTATE		OTHER 3		SQUARE FOOTAGE unaudited
Dallas, TX 4	MOB	2/11/22	$	8,175	$	8,185	$	8,202	$	(17)	18,000
San Francisco, CA 5	MOB	3/7/22	114,000		112,986		108,687		4,299		166,396
Atlanta, GA	MOB	4/7/22	6,912		7,054		7,178		(124)		21,535
Denver, CO	MOB	4/13/22	6,320		5,254		5,269		(15)		12,207
Colorado Springs, CO 6	MOB	4/13/22	13,680		13,686		13,701		(15)		25,800
Seattle, WA	MOB	4/28/22	8,350		8,334		8,370		(36)		13,256
Houston, TX	MOB	4/28/22	36,250		36,299		36,816		(517)		76,781
Los Angeles, CA	MOB	4/29/22	35,000		35,242		25,400		9,842		34,282
Oklahoma City, OK	MOB	4/29/22	11,100		11,259		11,334		(75)		34,944
Raleigh, NC 5	MOB	5/31/22	27,500		26,710		27,127		(417)		85,113
Tampa. FL 6	MOB	6/9/22	18,650		18,619		18,212		407		55,788
Seattle, WA	MOB	8/1/22	4,850		4,806		4,882		(76)		10,593
Raleigh, NC	MOB	8/9/22	3,783		3,878		3,932		(54)		11,345
Jacksonville, FL	MOB	8/9/22	18,195		18,508		18,583		(75)		34,133
Atlanta, GA	MOB	8/10/22	11,800		11,525		12,038		(513)		43,496
Denver, CO	MOB	8/11/22	14,800		13,902		13,918		(16)		34,785
Raleigh, NC	MOB	8/18/22	11,375		10,670		10,547		123		31,318
Nashville, TN	MOB	9/15/22	21,000		20,764		20,572		192		61,932
Austin, TX	MOB	9/29/22	5,450		5,449		5,572		(123)		15,000
Jacksonville, FL 4	MOB	10/12/22	3,600		3,530		3,609		(79)		6,200
Houston, TX	MOB	11/21/22	5,500		5,469		5,513		(44)		28,369
Austin, TX 7	MOB	12/28/22	888		890		889		1		2,219
Denver, CO	MOB	12/28/22	16,400		16,170		16,467		(297)		39,692

			$	403,578	$	399,189	$	386,818	$	12,371	863,184

1MOB = medical office building.

2Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

3Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

4Represents a single-tenant property.

5Includes three properties.

6Includes two properties.

7The Company acquired additional ownership interests in an existing building bringing the Company's ownership to 71.4%.

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2022 as of the acquisition date:


	ESTIMATED FAIR VALUE in millions		ESTIMATED USEFUL LIFE in years
Building	$	250.7	14.0 - 38.0


Land	76.1		—
Land Improvements	11.2		5.0 - 14.0

Intangibles
At-market lease intangibles	48.8		1.5 - 13.4
Above-market lease intangibles (lessor)	15.9		1.3 - 15.6
Below-market lease intangibles (lessor)	(2.2)		1.3 - 19.3

Below-market lease intangibles (lessee)	1.2		13.1



Other assets acquired	0.4
Accounts payable, accrued liabilities and other liabilities assumed	(2.9)
Total cash paid	$	399.2

Unconsolidated Joint Ventures

As of December 31, 2022, the Company had a weighted average ownership interest of approximately 48% in 33 real estate properties held in joint ventures.

2022 Acquisitions

The following table details the joint venture acquisitions for the year ended December 31, 2022:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 2		REAL ESTATE		OTHER 3		SQUARE FOOTAGE unaudited
San Francisco, CA 4	MOB	3/7/22	$	67,175	$	66,789	$	65,179	$	1,610	110,865
Los Angeles, CA 5	MOB	3/7/22	33,800		32,384		32,390		(6)		103,259

			$	100,975	$	99,173	$	97,569	$	1,604	214,124

1MOB = medical office building.

2Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

3Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

4Includes three properties.

5Includes two properties.

The Company's investment in and loss recognized for the years ended December 31, 2022 and 2021 related to its joint ventures accounted for under the equity method are shown in the table below:


	DECEMBER 31,
Dollars in millions	2022		2021
Investments in unconsolidated joint ventures, beginning of period	$	161.9	$	73.1
New investments during the period1	167.9		89.6
Equity loss recognized during the period	(0.7)		(0.8)
Owner distributions	(1.9)		—
Investments in unconsolidated joint ventures, end of period	$	327.2	$	161.9

1For the year ended December 31, 2022, this included unconsolidated joint ventures acquired as part of the Merger, as well as investments in two joint ventures representing a 20% and 40% ownership interest in portfolios in Los Angeles, California and Dallas, Texas, respectively. Also, see 2022 Real Estate Asset Dispositions below for additional information.

2021 Acquisitions

The following table details the Company's acquisitions for the year ended December 31, 2021:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE 2		MORTGAGES ASSUMED 3		CASH CONSIDERATION 4		REAL ESTATE 2		OTHER 5		SQUARE FOOTAGE unaudited
San Diego, CA 6	MOB	1/7/21	$	17,150	$	—	$	17,182	$	17,182	$	—	22,461
Dallas, TX 8	MOB	2/1/21	22,515		—		22,299		22,641		(342)		121,709
Atlanta, GA 8	MOB	2/17/21	9,800		—		10,027		10,073		(46)		44,567
Washington, D.C.	MOB	3/3/21	12,750		—		12,709		12,658		51		26,496
Houston, TX	MOB	5/14/21	13,500		—		12,986		13,379		(393)		45,393
San Diego, CA 6,7	MOB	5/28/21	102,650		—		103,984		104,629		(645)		160,394
Greensboro, NC	MOB	6/28/21	9,390		—		9,475		10,047		(572)		25,168
Baltimore, MD	MOB	6/29/21	14,600		—		14,357		14,437		(80)		33,316
Denver, CO 9	MOB	7/16/21	70,426		—		69,151		65,100		4,051		259,555
Greensboro, NC 6	MOB	7/19/21	6,400		—		6,374		6,514		(140)		18,119
Colorado Springs, CO	MOB	7/27/21	33,400		—		32,738		33,241		(503)		69,526
Birmingham, AL	MOB	8/19/21	9,250		—		9,355		9,388		(33)		29,942
Raleigh, NC	MOB	9/20/21	5,780		—		5,821		5,810		11		18,280
Denver, CO	MOB	9/22/21	20,250		—		19,630		19,405		225		83,604
Raleigh, NC	MOB	9/30/21	10,000		—		9,921		9,874		47		29,178
Denver, CO	MOB	11/15/21	7,700		—		7,383		7,431		(48)		18,599
Denver, CO	MOB	11/18/21	22,400		—		22,343		22,422		(79)		30,185
Columbus, OH 10	MOB	12/1/21	16,275		—		15,970		7,365		8,605		71,930
Nashville, TN	MOB	12/2/21	11,300		—		11,245		11,263		(18)		34,908
Colorado Springs, CO	MOB	12/20/21	10,575		—		10,541		11,009		(468)		44,166
Columbus, OH 8	MOB	12/28/21	9,525		—		9,521		9,601		(80)		28,962
Los Angeles, CA	MOB	12/28/21	20,500		(11,000)		9,396		20,316		80		56,762
Nashville, TN 11	MOB	12/29/21	19,775		—		19,833		19,982		(149)		85,590
Austin, TX	MOB	12/29/21	20,500		—		20,696		20,741		(45)		62,548
Atlanta, GA	MOB	12/30/21	4,900		—		4,772		4,419		353		11,840
Nashville, TN 12	MOB	12/30/21	54,000		—		53,923		54,072		(149)		74,489
Nashville, TN 12	MOB	12/30/21	20,500		—		19,833		19,825		8		32,454

			$	575,811	$	(11,000)	$	561,465	$	562,824	$	9,641	1,540,141

1MOB = medical office building.

2Includes investments in financing receivables and an $8.9 million right-of-use asset related to the Columbus, Ohio transaction.

3The mortgages assumed in the acquisitions do not reflect the fair value adjustments totaling $0.8 million in aggregate recorded by the Company upon acquisition (included in Other).

4Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

5Includes other assets acquired, liabilities assumed, intangibles, and fair value mortgage adjustments recognized at acquisition.

6Represents a single-tenant property.

7The Company acquired a single-tenant net lease property in San Diego, CA in a sale-leaseback transaction which was accounted for as a financing arrangement as required under ASC 842, Leases.

8Includes two properties.

9Includes three properties.

10This sale-leaseback transaction was a multi-tenant lease property. A portion of the transaction totaling $7.4 million was accounted for as a financing receivable and the remaining $8.9 million was accounted for as an imputed lease arrangement. See Note 1 to the Consolidated Financial Statements accompanying this report for more information.

11Includes purchase of an adjoining 2.7 acre land parcel that will be held for development.

12This sale-leaseback transaction was a multi-tenant lease property which was accounted for as a financing arrangement as required under ASC 842, Leases.

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2021 as of the acquisition date:


	ESTIMATED FAIR VALUE in millions		ESTIMATED USEFUL LIFE in years
Building	$	275.1	18.0 - 44.0
Investment in financing receivables, net	185.9		0.5 - 34.0
Financing lease right of use assets 1	8.9		15.0 - 34.0
Land	34.1		—
Land Improvements	8.9		6.0 - 16.0

Intangibles
At-market lease intangibles	58.8		2.6 - 16.6
Above-market lease intangibles (lessor)	3.4		1.9 - 8.1
Below-market lease intangibles (lessor)	(1.4)		3.1 - 21.8
Above-market lease intangibles (lessee)	(0.3)		36.7 - 64.5
Below-market lease intangibles (lessee)	4.7		45.4
Mortgage notes payable assumed, including fair value adjustments	(11.8)


Other assets acquired	0.8
Accounts payable, accrued liabilities and other liabilities assumed	(5.6)
Total cash paid	$	561.5

1The Company acquired a building in Columbus, Ohio in a sale lease back transaction totaling $16.3 million, in which $8.9 million was recorded as an imputed lease arrangement and the remaining $7.4 million was recorded as an investment in financing receivables.

Unconsolidated Joint Ventures

The following table details the joint venture acquisitions for the year ended December 31, 2021:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 2		REAL ESTATE		OTHER 3		SQUARE FOOTAGE unaudited
Denver, CO	MOB	3/30/21	$	14,375	$	14,056	$	14,550	$	(494)	59,359
Colorado Springs, CO	MOB	4/1/21	7,200		7,288		7,347		(59)		27,510
Los Angeles, CA	MOB	4/8/21	31,335		30,179		30,642		(463)		57,573
San Antonio, TX	MOB	4/30/21	13,600		13,412		13,656		(244)		45,000
Los Angeles, CA	MOB	5/10/21	24,600		24,259		24,147		112		73,078
Colorado Springs, CO 4	MOB	7/27/21	9,133		9,137		9,135		2		23,956
Denver, CO	MOB	10/21/21	23,000		22,638		23,021		(383)		57,257
San Antonio, TX 5	MOB	12/10/21	42,300		41,892		42,190		(298)		117,597
San Antonio, TX	MOB	12/29/21	6,094		6,218		6,308		(90)		22,381
San Antonio, TX	MOB	12/29/21	8,850		8,915		8,866		49		30,542

			$	180,487	$	177,994	$	179,862	$	(1,868)	514,253

1MOB = medical office building.

2Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

3Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

4Includes purchase of an adjoining 3.0 acre land parcel.

5Includes three properties.

2022 Real Estate Asset Dispositions

The following table details the Company's dispositions for the year ended December 31, 2022:


Dollars in thousands	TYPE 1	DATE DISPOSED	SALES PRICE		CLOSING ADJUSTMENTS		NET PROCEEDS		NET REAL ESTATE INVESTMENT		OTHER including receivables 2		GAIN/ (IMPAIRMENT)		SQUARE FOOTAGE unaudited
Loveland, CO 3, 4	MOB	2/24/22	$	84,950	$	(45)	$	84,905	$	40,095	$	4	$	44,806	150,291
San Antonio, TX 3	MOB	4/15/22	25,500		(2,272)		23,228		14,381		284		8,563		201,523
GA, FL, PA 5, 11	MOB	7/29/22	133,100		(8,109)		124,991		124,991		—		—		316,739
GA, FL, TX 7, 11	MOB	8/4/22	160,917		(5,893)		155,024		151,819		3,205		—		343,545
Los Angeles, CA 5, 9, 11	MOB	8/5/22	134,845		(3,102)		131,743		131,332		411		—		283,780
Dallas, TX 7, 10, 11	MOB	8/30/22	114,290		(682)		113,608		113,608		—		—		189,385
Indianapolis, IN 6, 12	MOB	8/31/22	238,845		(5,846)		232,999		84,767		4,324		143,908		506,406
Dallas, TX 3	MOB	10/4/22	104,025		(5,883)		98,142		38,872		6,436		52,834		291,328
Houston, TX	MOB	10/21/22	32,000		(280)		31,720		10,762		744		20,214		134,910
College Station, TX	MOB	11/10/22	49,177		(3,755)		45,422		44,918		475		28		122,942
El Paso, TX	MOB	12/22/22	55,326		(4,002)		51,324		56,427		(1,897)		(3,205)		110,465
Atlanta, GA 8	MOB	12/22/22	91,243		(4,326)		86,917		109,051		235		(22,369)		348,416
St. Louis, MO	MOB	12/28/22	18,000		(1,471)		16,529		18,340		4		(1,815)		69,394

			$	1,242,218	$	(45,666)	$	1,196,552	$	939,363	$	14,225	$	242,964	3,069,124

1MOB = medical office building

2Includes straight-line rent receivables, leasing commissions and lease inducements.

3Includes two properties.

4The Company deferred the tax gain through a 1031 exchange and reinvested the proceeds.

5Includes four properties.

6Includes five properties.

7Includes six properties.

8Includes nine properties.

9Values and square feet are represented at 100%. The Company retained a 20% ownership interest in the joint venture with an unrelated third party that purchased these properties.

10Values and square feet are represented at 100%. The Company retained a 40% ownership interest in the joint venture with an unrelated third party that purchased these properties.

11These properties were acquired as part of the Merger and were included as assets held for sale in the purchase price allocation.

12Two of the five properties included in this portfolio were acquired in the Merger and were included as assets held for sale in the purchase price allocation.

Subsequent Dispositions

On January 13, 2023, the Company disposed of two medical office buildings, one in Tampa, Florida and one in Miami, Florida, with a combined total of 224,037 square feet for an aggregate purchase price of $93.3 million.

On January 30, 2023, the Company disposed of a 36,691 square foot medical office building in Dallas, Texas, for a purchase price of $19.2 million. The Company retained a 40% ownership interest in the joint venture that purchased this property.

On February 10, 2023, the Company disposed of a 6,500 square foot medical office building in St. Louis, Missouri for a purchase price of $0.4 million.

2021 Real Estate Asset Dispositions

The following table details the Company's dispositions for the year ended December 31, 2021:


Dollars in thousands	TYPE 1	DATE DISPOSED	SALES PRICE		CLOSING ADJUSTMENTS		NET PROCEEDS		NET REAL ESTATE INVESTMENT		OTHER including receivables 2		GAIN/ (IMPAIRMENT)		SQUARE FOOTAGE unaudited
Los Angeles, CA 3	MOB	3/11/21	$	26,000	$	(555)	$	25,445	$	6,046	$	509	$	18,890	73,906
Atlanta, GA	MOB	4/12/21	8,050		(272)		7,778		5,675		151		1,952		19,732
Richmond, VA	MOB	5/18/21	52,000		(314)		51,686		29,414		3,270		19,002		142,856
Gadsden, AL 4	MOB	5/19/21	5,500		(280)		5,220		5,914		175		(869)		120,192
Dallas, TX 5	MOB	7/9/21	23,000		(1,117)		21,883		18,733		1,966		1,184		190,160
Chicago, IL	MOB	10/28/21	13,300		(388)		12,912		23,213		706		(11,007)		95,436
Des Moines, IA 6	MOB	12/8/21	47,000		(901)		46,099		32,312		1,037		12,750		132,617
Aberdeen, SD	MOB	12/22/21	12,750		(299)		12,451		10,337		—		2,114		58,285
Dallas, TX	MOB	12/23/21	800		(103)		697		712		167		(182)		13,818
			$	188,400	$	(4,229)	$	184,171	$	132,356	$	7,981	$	43,834	847,002

1MOB = medical office building

2Includes straight-line rent receivables, leasing commissions and lease inducements.

3Includes two properties sold to a single purchaser in two transactions which closed on March 5 and March 11, 2021.

4Includes three properties.

5Includes four properties and a land parcel sold under a single purchase agreement.

6Includes three properties and two land parcels under a single purchase agreement.