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Acquisitions, Dispositions and Mortgage Repayments (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of 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 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.

Schedule of assets acquired and liabilities assumed

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Closing Date:

Dollars in thousands			PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE			MEASUREMENT PERIOD ADJUSTMENTS			PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE (as adjusted)
ASSETS
Real estate investments
Land			$	985,926		$	6,775		$	992,701
Buildings and improvements			6,960,418			(83,662)			6,876,756
Lease intangible assets(a)			831,920			1,230			833,150
Financing lease right-of-use assets			9,874			3,146			13,020
Construction in progress			10,071			(6,744)			3,327
Land held for development			46,538			—			46,538
Total real estate investments			$	8,844,747		$	(79,255)		$	8,765,492
Assets held for sale, net			707,442			(7,946)			699,496
Investments in unconsolidated joint ventures			67,892			—			67,892
Cash and cash equivalents			26,034			11,403			37,437
Restricted cash			1,123,647			(1,247)			1,122,400
Operating lease right-of-use assets			198,261			17,786			216,047
Other assets, net (b) (c)			209,163			(3,840)			205,323
Total assets acquired			$	11,177,186		$	(63,099)		$	11,114,087
LIABILITIES
Notes and bonds payable			$	3,991,300		$	—		$	3,991,300
Accounts payable and accrued liabilities			1,227,570			17,374			1,244,944
Liabilities of assets held for sale			28,677			(3,939)			24,738
Operating lease liabilities			173,948			10,173			184,121
Financing lease liabilities			10,720			(855)			9,865
Other liabilities			203,210			(11,541)			191,669
Total liabilities assumed			$	5,635,425		$	11,212		$	5,646,637
Net identifiable assets acquired			$	5,541,761		$	(74,311)		$	5,467,450
Non-controlling interest			$	110,702		$	—		$	110,702
Goodwill			$	145,404		$	74,311		$	219,715
(a) The weighted average amortization period for the acquired lease intangible assets is approximately 6 years.
(b) Includes $15.9 million of contractual accounts receivable, which approximates fair value.
(c) Includes $78.7 million of gross contractual real estate notes receivable, the fair value of which was $74.8 million, and the Company preliminarily expects to collect substantially all of the real estate notes receivable proceeds as of the Closing Date.

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

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

Schedule of Joint Venture Transactions

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 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.

Schedule of equity method investments

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.

Schedule of 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.

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.

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-URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

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- Definition

Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4845-128472

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