Real Estate Properties

6 Months Ended

Jun. 30, 2017

Real Estate [Abstract]

Real Estate Properties

Real Estate Properties

At June 30, 2017, we owned 434 properties (460 buildings) located in 42 states and Washington, D.C.

Acquisitions:

MOBs:

In January 2017, we acquired one MOB (one building) located in Kansas with approximately 117,000 square feet for a purchase price of approximately $15,106, including closing costs of $35. We funded this asset acquisition using cash on hand and borrowings under our revolving credit facility. The allocation of the purchase price for this acquisition is as follows:

Date	Location	Number of Properties	Number of Buildings	Square Feet (000’s)	Cash Paid plus Assumed Debt (1)		Land		Building and Improvements		Acquired Real Estate Leases(2)		Acquired Real Estate Lease Obligations(2)		Assumed Debt		Premium on Assumed Debt
Jan-17	Kansas	1	1	117	$	15,106	$	1,522	$	7,246	$	6,338	$	—	$	—	$	—

(1) Amount includes the cash we paid and various closing settlement adjustments, as well as closing costs.

(2) The weighted average amortization periods for acquired real estate leases at the time of this acquisition was 10.3 years.

In July 2017, we acquired one MOB (one building) located in Maryland with approximately 59,000 square feet for a purchase price of approximately $16,400, excluding closing costs.

Also in July 2017, we entered an agreement to acquire one MOB (one building) located in Minnesota with approximately 150,000 square feet for a purchase price of approximately $16,650, excluding closing costs. This acquisition is subject to conditions; accordingly, we may not acquire this property, this acquisition may be delayed or the terms may change.

Impairment:

We periodically evaluate our assets for impairments. 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 asset by comparing it to the expected future undiscounted net cash flows to be generated from that asset. If the sum of these expected future net cash flows is less than the carrying value, we reduce the net carrying value of the asset to its estimated fair value. We did not record any impairment charges for our real estate properties during the six months ended June 30, 2017. See Note 4 for further information regarding other than temporary impairment losses recorded in 2017 on our investments in available for sale securities.