Real Estate Acquisitions And Dispositions

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

Real Estate Acquisitions and Dispositions

REAL ESTATE ACQUISITIONS AND DISPOSITIONS

Acquisitions

During the first quarter of 2024, the Company acquired four real estate properties in three transactions. Upon acquisition, the properties were 98.6% leased in the aggregate with lease expirations through 2039. Amounts reflected in revenues and net income for these properties for the three months ended March 31, 2024 were approximately $0.2 million and $0.1 million, respectively, and transaction costs totaling approximately $0.3 million were capitalized relating to these property acquisitions.

The following table summarizes our property acquisitions for the three months ended March 31, 2024:


Location	Property Type (1)	Number of Properties	Date Acquired	Purchase Price		Cash Consideration		Real Estate		Other (2)		Square Footage
				(000's)		(000's)		(000's)		(000's)
New Bedford, MA	LTACH	1	1/31/24	$	6,500	$	6,540	$	6,547	$	(7)	70,657
Elkton, MD	MOB	1	3/25/24	4,500		4,578		4,757		(179)		19,656
Bemidji, MN	MOB	2	3/29/24	23,200		23,179		23,375		(196)		74,700

















				$	34,200	$	34,297	$	34,679	$	(382)	165,013

(1) LTACH - Long-term Acute Care Hospital; MOB - Medical Office Building
(2) Includes other assets acquired, liabilities assumed, and above and below-market intangibles recognized at acquisition

The following table summarizes the relative fair values of the assets acquired and liabilities assumed in the property acquisitions for the three months ended March 31, 2024:


			Relative Fair Value		Estimated Useful Life
			(in thousands)		(in years)
Land and land improvements			$	4,597	5.1
Building and building improvements			27,538		26.7
Intangibles:
	At-market lease intangibles		2,544		3.6
	Above-market lease intangibles		121		5.0
	Below-market lease intangibles		(275)		2.0
		Total intangibles	2,390



Accounts payable, accrued liabilities and other liabilities assumed			(194)
Accounts receivable and other assets acquired			48
Prorated rent, interest and operating expense reimbursement amounts collected			(82)
	Total cash consideration		$	34,297

Assets Held for Sale

The Company had two properties classified as held for sale as of March 31, 2024. The table below reflects the assets and liabilities classified as held for sale as of March 31, 2024 and December 31, 2023.


(Dollars in thousands)	March 31, 2024		December 31, 2023
Balance Sheet data:
Land	$	1,576	$	1,576
Building, improvements, and lease intangibles	10,056		10,056
	11,632		11,632
Accumulated depreciation	(4,166)		(4,166)
Real estate assets held for sale, net	$	7,466	$	7,466