Acquisitions, Dispositions and Mortgage Repayments

12 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisitions, Dispositions and Mortgage Repayments

2023 Acquisition Activity

The following table details the Company's real estate acquisition activity for the year ended December 31, 2023:


Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		MORTGAGE NOTES PAYABLE, NET		CASH CONSIDERATION 1		REAL ESTATE		OTHER 2		SQUARE FOOTAGE
Tampa, FL	3/10/23	$	31,500	$	—	$	30,499	$	30,596	$	(97)	115,867
Colorado Springs, CO	7/28/23	11,450		(5,284)		6,024		11,416		(108)		42,770

Total real estate acquisitions		$	42,950	$	(5,284)	$	36,523	$	42,012	$	(205)	158,637

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

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

In the second quarter of 2023, the Company entered into a joint venture agreement for the development of a medical office building in Scottsdale, Arizona. The Company holds a 90% interest in the joint venture and determined the arrangement meets the criteria to be consolidated. The joint venture acquired an $8.8 million land parcel to be developed with the Company contributing cash of $8.3 million.

In the third quarter of 2023, the Company acquired the fee interest in a parcel of land previously held under a ground lease for $0.8 million and an additional interest in an operating property for $0.6 million.

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2023 as of the acquisition date:


	ESTIMATED FAIR VALUE in millions		ESTIMATED USEFUL LIFE in years
Building	$	27.5	17.0 - 30.0


Tenant Improvements	3.4		5.1 - 5.9
Land	5.5		—
Land Improvements	1.1		6.0 - 10.0

Intangibles
At-market lease intangibles	4.5		5.1 - 5.9
Above-market lease intangibles (lessor)	0.2		1.8 - 4.9
Below-market lease intangibles (lessor)	(0.2)		6.4 - 13.9



Mortgage notes payable assumed, including fair value adjustments	(5.3)


Other assets acquired	0.1
Accounts payable, accrued liabilities and other liabilities assumed	(0.3)
Total cash paid	$	36.5

Unconsolidated Joint Ventures

As of December 31, 2023, the Company had a weighted average ownership interest of approximately 43% in 33 real estate properties held in unconsolidated joint ventures. The Company recognizes distributions from unconsolidated joint ventures utilizing the nature of distribution approach and classifies the distributions based on the nature of the underlying activity that generated the distribution. The distributions from unconsolidated joint ventures for the years ended December 31, 2023 and 2022 were classified as operating activities.

The Company's investment in and loss recognized for the years ended December 31, 2023 and 2022 related to its unconsolidated joint ventures accounted for under the equity method are shown in the table below:


	DECEMBER 31,
Dollars in millions	2023		2022
Investments in unconsolidated joint ventures, beginning of period	$	327.2	$	161.9
New investments during the period	3.8		167.9
Equity loss recognized during the period	(1.7)		(0.7)
Owner distributions	(17.8)		(1.9)
Investments in unconsolidated joint ventures, end of period	$	311.5	$	327.2

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 outpatient 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


Tenant Improvements	20.7		1.5 - 13.4
Land	76.1		—
Land Improvements	11.2		5.0 - 14.0

Intangibles
At-market lease intangibles	28.1		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

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 outpatient 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.

2023 Real Estate Asset Dispositions

The following table details the Company's dispositions for the year ended December 31, 2023:


Dollars in thousands	Type1	DATE DISPOSED	SALE PRICE		CLOSING ADJ		COMPANY-FINANCED NOTES		NET PROCEEDS		NET REAL ESTATE		OTHER (INCLUDING RECEIVABLES) 2		GAIN/(IMPAIR-MENT)		SQUARE FOOTAGE
Tampa/Miami, FL3	MOB	1/12/23	$	93,250	$	(5,875)	$	—	$	87,375	$	87,302	$	(888)	$	961	224,037
Dallas, TX 4	MOB	1/30/23	19,210		(141)		—		19,069		18,986		43		40		36,691
St. Louis, MO	MOB	2/10/23	350		(18)		—		332		398		—		(66)		6,500
Los Angeles, CA	MOB	3/23/23	21,000		(526)		—		20,474		20,610		52		(188)		37,165
Los Angeles, CA 5	MOB	3/30/23	75,000		(8,079)		(45,000)		21,921		88,624		(803)		(20,900)		147,078
Los Angeles, CA 6	LAND	5/12/23	3,300		(334)		—		2,966		3,268		—		(302)		—
Albany, NY	MOB	6/30/23	10,000		(1,229)		—		8,771		2,613		(1,040)		7,198		40,870
Houston, TX	MOB	8/2/23	8,320		(285)		—		8,035		4,567		194		3,274		57,170
Atlanta, GA	MOB	8/22/23	25,140		(66)		—		25,074		23,226		(536)		2,386		55,195
Dallas, TX	INPATIENT	9/15/23	115,000		(1,504)		—		113,496		64,183		6,094		43,219		161,264
Houston, TX	MOB	9/18/23	250		(24)		—		226		1,998		—		(1,772)		52,040
Chicago, IL	MOB	9/27/23	59,950		(870)		—		59,080		74,710		(380)		(15,250)		104,912
Evansville, IN 7	MOB	11/13/23	18,500		(63)		—		18,437		17,807		(149)		779		260,520
Houston, TX	HOSPITAL	12/1/23	4,100		(6)		—		4,094		3,486		—		608		83,223
Charleston, SC 8	OFFICE	12/15/23	6,200		(401)		—		5,799		3,415		—		2,384		15,014
Dallas, TX	MOB	12/20/23	43,295		(764)		—		42,531		33,882		(3,782)		12,431		77,827
Los Angeles, CA	OFFICE	12/21/23	19,000		(1,311)		—		17,689		17,787		—		(98)		104,377
Tucson, AZ 9,10	MOB	12/22/23	43,230		(3,770)		(6,000)		33,460		39,786		(26)		(300)		215,471
Miami, FL	MOB	12/22/23	18,250		(756)		—		17,494		17,354		643		(503)		48,000
Sebring, FL	MOB	12/27/23	9,500		(81)		—		9,419		10,438		(512)		(507)		38,949
Boston, MA	MOB	12/28/23	117,197		(2,079)		—		115,118		107,803		9,828		(2,513)		161,254
Jacksonville/Orlando/Miami, FL 11	SNF	12/29/23	77,000		(8,678)		(7,700)		60,622		65,839		(294)		2,777		354,500
Total dispositions			$	787,042	$	(36,860)	$	(58,700)	$	691,482	$	708,082	$	8,444	$	33,658	2,282,057

1.MOB = medical outpatient building; SNF = skilled nursing facility.

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

3.Includes two properties sold in two separate transactions to the same buyer on the same date.

4.The Company sold this property to a joint venture in which it retained a 40% interest. Sales price and square footage reflect the total sales price paid by the joint venture and total square footage of the property.

5.The Company entered into a mortgage loan agreement with the buyer for $45.0 million.

6.The Company sold a land parcel totaling 0.34 acres.

7.Includes five properties sold in three separate transactions to the same buyer on the same date.

8.The Company sold a corporate office in Charleston, SC that was 100% occupied by the Company.

9.Includes 12 properties sold in one transaction to the same buyer.

10.The Company entered into a mezzanine loan with the buyer for $6.0 million.

11.Includes three properties sold in one transaction to the same buyer. The Company entered into a separate note receivable for $7.7 million related to this sale.

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 outpatient 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.