XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.24.3

Real Estate and Other Investments | 9 Months Ended
--- | ---
Sep. 30, 2024
Real Estate [Abstract] |
Real Estate and Other Investments | Real Estate and Other Investments As of September 30, 2024, we owned 368 properties located in 36 states and Washington, D.C., including 25 properties classified as held for sale and three closed senior living communities, and we owned an equity interest in each of two unconsolidated joint ventures that own medical office and life science properties located in five states. Acquisitions and Dispositions: We did not acquire any properties during the nine months ended September 30, 2024. During the nine months ended September 30, 2024, we sold four properties for an aggregate sales price of $29,075, excluding closing costs, as presented in the table below. The sales of these properties do not represent a significant disposition and we do not believe these sales represent a strategic shift in our business. As a result, the results of operations for these properties are included in continuing operations through the date of sale of such properties in our condensed consolidated statements of comprehensive income (loss).
Date of Sale |  | Location |  | Type of Property |  | Number of Properties |  |  |  |  | Sales Price (1) |  | (Loss) Gain on Sale |  |
March 2024 |  | Arizona |  | Medical Office |  | 1 |  |  |  |  | $ | 3,600 |  |  | $ | (5,874) |  |  |
June 2024 |  | Texas |  | Medical Office |  | 1 |  |  |  |  | 4,200 |  |  | (13,213) |  |  |
July 2024 |  | Illinois and Minnesota |  | Medical Office |  | 2 |  |  |  |  | 21,275 |  |  | 111 |  |  |
|  |  |  |  |  | 4 |  |  |  |  | $ | 29,075 |  |  | $ | (18,976) |  |  |
(1)Sales price excludes closing costs. As of September 30, 2024, we had 25 properties classified as held for sale in our condensed consolidated balance sheet as follows:
Segment |  | Number of Properties |  | Real Estate Properties, Net |  |
Medical Office and Life Science |  | 4 |  | $ | 33,213 |  |  |
SHOP |  | 3 |  | 8,780 |  |  |
Non-Segment (1) |  | 18 |  | 35,660 |  |  |
|  | 25 |  | $ | 77,653 |  |  |
(1)Represents 18 triple net leased senior living communities. Subsequent to September 30, 2024, we sold one of these properties for a sales price of $6,600, excluding closing costs. As of November 4, 2024, we had 28 properties under agreements or letters of intent to sell for an aggregate sales price of $348,080, excluding closing costs. If these sales are completed, approximately $302,100 of the proceeds are required to be used to partially redeem our outstanding senior secured notes due 2026. We may not complete the sales of any or all of the properties we currently plan to sell. Also, we may sell some or all of these properties at amounts that are less than currently expected and/or less than the carrying values of such properties and we may incur losses on any such sales as a result. Impairment: We regularly evaluate our assets for indicators of impairment. Impairment indicators may include declining tenant or resident occupancy, weak or declining profitability from the property, decreasing tenant cash flows or liquidity, our decision to dispose of an asset before the end of its estimated useful life, and legislative, market or industry changes that could permanently reduce the value of an asset. If indicators of impairment are present, we evaluate the carrying value of the affected assets by comparing it to the expected future undiscounted cash flows to be generated from those assets. The future cash flows are subjective and are based in part on assumptions regarding hold periods, market rents and terminal capitalization rates. If the sum of these expected future cash flows is less than the carrying value, we reduce the net carrying value of the asset to its estimated fair value. During the nine months ended September 30, 2024, we recorded impairment charges of $27,173 related to one medical office property and one life science property that were classified as held for sale as of September 30, 2024. We also recorded impairment charges of $14,545 related to two medical office properties that were sold in 2024. Equity Method Investments in Unconsolidated Joint Ventures: As of September 30, 2024, we had equity investments in unconsolidated joint ventures as follows:
Joint Venture |  | DHC Ownership |  | DHC Carrying Value of Investment at September 30, 2024 |  | Number of Properties |  | Location |  | Square Feet
Seaport Innovation LLC |  | 10% |  | $ | 65,590 |  |  | 1 |  | MA |  | 1,134,479 |
The LSMD Fund REIT LLC |  | 20% |  | 44,923 |  |  | 10 |  | CA, MA, NY, TX, WA |  | 1,068,763 |
|  |  |  | $ | 110,513 |  |  | 11 |  |  |  | 2,203,242 |
The following table provides a summary of the mortgage debts of these joint ventures:
Joint Venture |  | Coupon Rate |  | Maturity Date |  | Principal Balance at September 30, 2024 (1)
Mortgage Notes Payable (secured by one property in Massachusetts) (2) (3) |  | 3.53% |  | 11/6/2028 |  | $ | 620,000 |
Mortgage Notes Payable (secured by nine properties in five states) (4) |  | 3.46% |  | 2/11/2032 |  | 189,800 |
Mortgage Notes Payable (secured by one property in California) (4) (5) |  | 6.38% |  | 2/9/2025 |  | 266,825 |
|  | 4.22% |  |  |  | $ | 1,076,625 |
(1)Amounts are not adjusted for our minority equity interest. (2)We provide certain guaranties on this debt. (3)This mortgage loan requires interest only payments until the anticipated repayment date on August 6, 2026, at which time all accrued and unpaid interest along with the principal balance of $620,000 is expected to be repaid. This mortgage loan matures on November 6, 2028 and any unpaid principal from the anticipated repayment date through the maturity date bears interest at a variable rate of the greater of 6.53% or the then effective U.S. swap rate terminating on the maturity date plus 5.00%. (4)The debt securing these properties is non-recourse to us. (5)This mortgage loan matures on February 9, 2025 and requires interest to be paid at an annual rate of the one month term secured overnight financing rate, or SOFR, plus a premium of 1.90%. This joint venture has also purchased an interest rate cap through February 2025 with a SOFR strike rate equal to 4.48% and an initial premium of $1,200. The maturity date of this mortgage loan is subject to two remaining one-year extension options. We account for the unconsolidated joint venture for 10 medical office and life science properties in which we own a 20% equity interest, or the LSMD JV, and the unconsolidated joint venture for a life science property located in Boston, Massachusetts in which we own a 10% equity interest, or the Seaport JV, using the equity method of accounting under the fair value option. We recognized changes in the fair value of our investments in our unconsolidated joint ventures of $1,707 and $(145) during the three months ended September 30, 2024 and 2023, respectively, and $(18,173) and $2,137 during the nine months ended September 30, 2024 and 2023, respectively. These amounts are included in equity in net earnings (losses) of investees in our condensed consolidated statements of comprehensive income (loss). See Note 6 for further information regarding the valuation of our investment in these joint ventures. Equity Method Investment in AlerisLife: As of September 30, 2024, we owned approximately 34.0% of the outstanding common shares of AlerisLife Inc., or AlerisLife. We account for our 34.0% non-controlling interest in AlerisLife using the equity method of accounting. As of September 30, 2024, our investment in AlerisLife had a carrying value of $23,758. The cost basis of our investment in AlerisLife exceeded our proportionate share of AlerisLife's total stockholders' equity book value on the date of acquisition of our initial interest in AlerisLife, which was February 16, 2024, by an aggregate of $29,500. As required under GAAP, we are amortizing this difference to equity in earnings of an investee over 21 years, the weighted average remaining useful life of the real estate assets owned by AlerisLife and the intangible contract asset with us as of the date of acquisition. We recorded amortization of the basis difference of $351 and $877 for the three and nine months ended September 30, 2024, respectively. We recognized income of $(1,531) and $7,414 related to our investment in AlerisLife for the three and nine months ended September 30, 2024, respectively. These amounts are included in equity in net earnings (losses) of investees in our condensed consolidated statements of comprehensive income (loss). See Note 11 for further information regarding our investment in AlerisLife.

X
- References No definition available. + Details
Name: | us-gaap_RealEstateAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://www.xbrl.org/2003/role/disclosureRef -Topic 974 -SubTopic 720 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477728/974-720-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 976 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/976/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 978 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/978/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 970 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/970/tableOfContent Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 972 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/972/tableOfContent Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 974 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/974/tableOfContent + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration