10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)
x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended December 31, 2015

 OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________

Commission file number: 000-55201

Healthcare Trust, Inc.

(Exact name of registrant as specified in its charter) 

Maryland	38-3888962
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
405 Park Ave., 14th Floor New York, NY	10022
(Address of principal executive offices)	(Zip Code)
(212) 415-6500
(Registrant's telephone number, including area code)
Securities registered pursuant to section 12(b) of the Act: None
Securities registered pursuant to section 12(g) of the Act: Common stock, $0.01 par value per share (Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant submitted electronically and posted on its corporate Web Site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes ¨ No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨		Accelerated filer ¨
Non-accelerated filer ¨	(Do not check if a smaller reporting company)	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No

There is no established public market for the registrant's shares of common stock. As of June 30, 2015, the last business day of the registrant's most recently completed second fiscal quarter, there were 85,182,244 shares of the registrant's common stock held by non-affiliates of the registrant.

As of February 29, 2016, the registrant had 86,681,390 shares of common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's definitive proxy statement to be delivered to stockholders in connection with the registrant's 2016 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. The registrant intends to file its proxy statement within 120 days after its fiscal year end.

HEALTHCARE TRUST, INC.

FORM 10-K

Year Ended December 31, 2015

PART I		Page
Item 1.	Business	5
Item 1A.	Risk Factors	14
Item 1B.	Unresolved Staff Comments	45
Item 2.	Properties	46
Item 3.	Legal Proceedings	49
Item 4.	Mine Safety Disclosure	49
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	50
Item 6.	Selected Financial Data	54
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	55
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	71
Item 8.	Financial Statements and Supplementary Data	72
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	72
Item 9A.	Controls and Procedures	72
Item 9B.	Other Information	73
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	74
Item 11.	Executive Compensation	74
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	74
Item 13.	Certain Relationships and Related Transactions, and Director Independence	74
Item 14.	Principal Accounting Fees and Services	74
PART IV
Item 15.	Exhibits and Financial Statement Schedules	74
Signatures		79

2

Forward-Looking Statements

Certain statements included in this Annual Report on Form 10-K are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of Healthcare Trust, Inc. (the "Company," "we," "our" or "us") and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

The following are some of the risks and uncertainties, although not all risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward-looking statements:

• Certain of our executive officers and directors are also officers, managers or holders of a direct or indirect controlling interest in our advisor, Healthcare Trust Advisors, LLC (the "Advisor"), formerly known as American Realty Capital Healthcare II Advisors, LLC, and other entities affiliated with AR Global Investments, LLC (the successor business to AR Capital, LLC, "AR Global"), the parent of our sponsor, American Realty Capital VII, LLC (the "Sponsor"). As a result, certain of our executive officers and directors, our Advisor and its affiliates face conflicts of interest, including significant conflicts created by our Advisor's compensation arrangements with us and other investment programs advised by affiliates of AR Global and conflicts in allocating time among these investment programs and us. These conflicts could result in unanticipated actions.

• Because investment opportunities that are suitable for us may also be suitable for other investment programs advised by affiliates of AR Global, our Advisor and its affiliates face conflicts of interest relating to the purchase of properties and other investments and such conflicts may not be resolved in our favor, meaning that we could invest in less attractive assets, which could reduce the investment return to our stockholders.

• Although we intend to list our shares of common stock on a national stock exchange when we believe market conditions are favorable to do so, there is no assurance that our shares of common stock will be listed. No public market currently exists, or may ever exist, for shares of our common stock and our shares are, and may continue to be, illiquid.

• We focus on acquiring a diversified portfolio of healthcare-related assets located in the United States and are subject to risks inherent in concentrating investments in the healthcare industry.

• If our Advisor loses or is unable to obtain qualified personnel, our ability to implement our investment strategies could be delayed or hindered.

• The healthcare industry is heavily regulated, and new laws or regulations, changes to existing laws or regulations, loss of licensure or failure to obtain licensure could result in the inability of tenants to make lease payments to us.

• We are depending on our Advisor to select investments and conduct our operations. Adverse changes in the financial condition of our Advisor or our relationship with our Advisor could adversely affect us.

• We may be unable to pay distributions with cash flows from operations, or maintain cash distributions or increase distributions over time.

• We are obligated to pay fees, which may be substantial, to our Advisor and its affiliates.

• We depend on tenants for our revenue and, accordingly, our revenue is dependent upon the success and economic viability of our tenants.

• We may not be able to achieve our rental rate objectives on new and renewal leases and our expenses could be greater, which may impact our results of operations.

• Increases in interest rates could increase the amount of our debt payments and limit our ability to pay distributions.

• We are permitted to pay distributions of unlimited amounts from any source. There are no established limits on the amount of borrowings that we may use to fund distribution payments, except for those imposed by Maryland law.

• Any distributions, especially those not covered by our cash flows from operations, may reduce the amount of capital we ultimately invest in properties and other permitted investments and negatively impact the value of our stockholders' investment.

3

• We have not and may not in the future generate cash flows sufficient to pay our distributions to stockholders and, as such, we may be required to fund distributions from borrowings, which may be at unfavorable rates and could restrict the amount we can borrow for investments and other purposes, or depend on our Advisor or our property manager, Healthcare Trust Properties, LLC (the "Property Manager"), formerly known as American Realty Capital Healthcare II Properties, LLC, to waive fees or reimbursement of certain expenses and fees to fund our operations. There is no assurance these entities will waive such amounts or that we will be able to borrow funds at all.

• We are subject to risks associated with any dislocations or liquidity disruptions that may exist or occur in the credit markets of the United States from time to time.

• We are subject to risks associated with changes in general economic, business and political conditions including the possibility of intensified international hostilities, acts of terrorism, and changes in conditions of United States or international lending, capital and financing markets.

• We may fail to continue to qualify to be treated as a real estate investment trust for U.S. federal income tax purposes ("REIT"), which would result in higher taxes, may adversely affect our operations and would reduce the value of an investment in our common stock and the cash available for distributions.

• We may be deemed to be an investment company under the Investment Company Act of 1940, as amended (the "Investment Company Act"), and thus subject to regulation under the Investment Company Act.

• Commencing with the day we publish a net asset value ("NAV"), anticipated on or prior to April 11, 2016, the offering price and repurchase price for our shares, including shares sold pursuant to our distribution reinvestment plan ("DRIP"), will be based on NAV, which may not accurately reflect the value of our assets and may not represent what stockholders may receive upon a liquidation of our assets.

In addition, we describe risks and uncertainties that could cause actual results and events to differ materially in "Risk Factors" (Part I, Item 1A), "Quantitative and Qualitative Disclosures about Market Risk" (Part II, Item 7A), and "Management's Discussion and Analysis" (Part II, Item 7) of this Annual Report on Form 10-K.

4

PART I

Item 1. Business

We invest in healthcare real estate, such as seniors housing and medical office buildings ("MOB"), located in the United States for investment purposes. As of December 31, 2015, we owned 166 properties located in 29 states and comprised of 8.5 million rentable square feet.

We were incorporated on October 15, 2012 as a Maryland corporation that elected and qualified to be taxed as a REIT beginning with our taxable year ended December 31, 2013. Substantially all of our business is conducted through Healthcare Trust Operating Partnership, LP (the "OP"), formerly known as American Realty Capital Healthcare Trust II Operating Partnership, LP.

In February 2013, we commenced our initial public offering ("IPO") on a "reasonable best efforts" basis of up to $1.7 billion of common stock, $0.01 par value per share, at a price of $25.00 per share, subject to certain volume and other discounts. We closed our IPO in November 2014, which resulted in net proceeds to us of $2.1 billion.

On March 18, 2015, we announced our intention to list our common stock on a national stock exchange under the symbol “HTI” (the "Listing") during the third quarter of 2015. On September 24, 2015, we announced that our board of directors had determined that it was in our best interest to not pursue the Listing during the third quarter of 2015. Our board of directors continues to monitor market conditions and other factors with a view toward reevaluating the Listing decision when market conditions are more favorable. There can be no assurance that our shares of common stock will be listed. We anticipate publishing an estimate of per share NAV on or prior to April 11, 2016 (the "NAV pricing date"), and subsequent valuations will occur periodically, at the discretion of our board of directors, provided that such calculations will be made at least annually. In the interim, we will continue to offer shares pursuant to the DRIP at $23.75 per share, and to repurchase shares pursuant to the share repurchase plan ("SRP"). Beginning with the NAV pricing date, the per share price for shares under the DRIP and SRP will vary periodically and will be based on our NAV.

We have no direct employees. Our Advisor has been retained by us to manage our affairs on a day-to-day basis. We have retained the Property Manager to serve as our property manager. The Advisor and the Property Manager are under common control with AR Global, as a result of which they are related parties, and each have received or will receive compensation, fees and expense reimbursements for services related to managing our business. The Advisor, Property Manager and our former dealer manager, Realty Capital Securities, LLC (the "Former Dealer Manager"), also have received or will receive compensation, fees and expense reimbursements from us related to the investment and management of our assets.

Our Former Dealer Manager served as the dealer manager of our IPO and, together with certain of its affiliates, continued to provide us with services through December 31, 2015. RCS Capital Corporation, the parent company of the Former Dealer Manager and certain of its affiliates that provided us with services, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of our Sponsor.

Healthcare Industry

Healthcare is the single largest industry in the United States based on Gross Domestic Product ("GDP"). According to the National Health Expenditures Projections, 2014 - 2024 report by the Centers for Medicare and Medicaid Services ("CMS"): (i) national health expenditures are projected to grow 4.9% in 2016 and 5.4% in 2017; (ii) the average compounded annual growth rate for national health expenditures, over the projection period of 2016 through 2024, is anticipated to be 5.9%; and (iii) the healthcare industry is projected to represent 18.1% of U.S. GDP in 2016. This growth in expenditures has led to significant growth in healthcare employment. According to the U.S. Department of Labor's Bureau of Labor Statistics, the healthcare industry was one of the largest industries in the United States, providing over 15.3 million jobs as of December 31, 2015. According to the Bureau of Labor Statistics, employment of healthcare occupations (healthcare practitioners and technical occupations and healthcare support) is projected to grow 19% from 2014 to 2024, adding about 2.3 million new jobs. This growth is expected due to an aging population and the projected increase in the number of individuals who have access to health insurance. We believe the continued growth in employment in the healthcare industry will lead to growth in demand for medical office buildings and other facilities that serve the healthcare industry.

In addition to the growth in national health expenditures and corresponding increases in employment in the healthcare sector, the nature of healthcare delivery continues to evolve due to the impact of government programs, regulatory changes and consumer preferences. We believe these changes have increased the need for capital among healthcare providers and increased incentives for these providers to develop more efficient real estate solutions in order to enhance the delivery of quality healthcare. In particular, we believe the following demographic factors and trends are creating an attractive environment in which to invest in healthcare properties.

5

Demographics

The aging of the U.S. population has a direct effect on the demand for healthcare as older persons generally utilize healthcare services at a rate well in excess of younger people. According to CMS, on a per capita basis, the 65-year and older segment of the population spends 120% more on healthcare than the 45 to 64-year-old segment and 160% more than the population average.

According to the Centers for Disease Control and Prevention (the "CDC"), 6.5% of all adults aged 65 and over in 2014 needed help with personal care from another person. For both sexes combined, adults aged 85 years and over (18.1%) were more than twice as likely as adults aged 75 to 84 (7.4%) to need help with personal care from other persons; adults aged 85 and over were slightly more than five times as likely as adults aged 65 to 74 (3.5%) to need help with personal care from other persons. Also, according to the CDC, Alzheimer’s disease and other forms of dementia usually occurs in individuals who are 60 years old and older. Starting at age 65, the risk of developing the disease doubles every five years. By age 85 years and older, between 25 and 50 percent of people will exhibit signs of Alzheimer’s disease. Up to 5.3 million Americans currently have Alzheimer’s disease and by 2050 the number is expected to more than double due to the aging of the population.

We believe that the aging population, improved chronic disease management, technological advances and healthcare reform will positively affect the demand for medical office buildings and seniors housing communities and other healthcare-related facilities and generate attractive investment opportunities. The first wave of Baby Boomers, the largest segment of the U.S. population, began turning 65 in 2011. According to the Pew Research Center, the U.S. population over 65 will grow to 81 million in 2050, up from 37 million in 2005. This group will grow more rapidly than the overall population. Thus, its share of the population will increase to 19% in 2050, from 12% in 2005. Patients with diseases that were once life threatening are now being treated with specialized medical care and an arsenal of new pharmaceuticals. Advances in research, diagnostics, surgical procedures, pharmaceuticals and a focus on healthier lifestyles have led to people living longer. Finally, we believe that with the arrival of healthcare reform in the United States, we and our tenants and operators will experience a significant increase in the demand for medical services.

Portfolio Summary

The following table summarizes our portfolio of properties as of and for the year ended December 31, 2015:

Asset Type	Number of Properties	Rentable Square Feet	Gross Asset Value (1)		Gross Asset Value %
			(In Thousands)
Medical office and outpatient	81	3,168,089	$	885,131	37.8	%
Seniors housing	58	4,044,190	1,114,651		47.6	%
Hospitals, post-acute and other	27	1,282,485	341,489		14.6	%
Total	166	8,494,764	$	2,341,271	100.0	%

_______________

(1) Gross asset value represents "real estate investments, at cost" on the accompanying consolidated balance sheets, which is the contract purchase price for an asset, adjusted for certain items in accordance with accounting principles generally accepted in the United States ("GAAP"), plus market lease intangible liabilities and debt premiums.

In constructing our portfolio, we are committed to a strategy dedicated to diversification of tenancy and geography. The following table details the geographic distribution, by region, of our portfolio as of December 31, 2015:

Geographic Region	Number of Properties	Annualized Rental Income (1)		Rentable Square Feet
		(In Thousands)
Northeast	16	$	37,097	1,549,578
South	53	121,332		3,157,929
Midwest	69	86,814		2,530,380
West	28	37,698		1,256,877
Total	166	$	282,941	8,494,764

_______________

(1) Annualized rental income as of December 31, 2015 for the leases in place in the property portfolio on a straight-line basis, which includes tenant concessions such as free rent, as applicable, as well as annualized revenue from our seniors housing — operating properties.

6

Business Strategy

We seek to protect and enhance our stockholders' value by creating stable, reliable and growing income streams generated through the ownership of a balanced and diversified portfolio of healthcare real estate. Our investment strategy is guided by three core principles: (1) maintaining a balanced, well diversified portfolio of high quality assets; (2) pursuing accretive and opportunistic investment opportunities; and (3) maintaining a strong and flexible capital structure.

Maintaining a Balanced, Well Diversified Portfolio of High Quality Assets

We seek balance and diversity within our portfolio. This extends to tenancy, geography, operator/managers and payors within our investment focus of medical office buildings and seniors housing communities. However, we may also invest in various other properties that serve as part of the healthcare delivery system, including properties occupied by healthcare providers, payors, researchers, pharmaceutical firms and manufacturers.

The following table lists the tenants (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income for all properties on a straight-line basis as of December 31, 2015, 2014 and 2013:

	December 31,
Tenant	2015	2014	2013
Adena Health System	*	*	10.8%
Advocate Health and Hospitals Corporation	*	*	10.9%
HH/Killeen Health System, LLC	*	*	12.8%
IASIS Healthcare, LLC	*	*	15.3%
National Mentor Holdings, Inc.	*	*	24.8%

_______________________________

* Tenant's annualized rental income on a straight-line basis was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.

The following table lists the states where we have concentrations of properties where annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis for all properties as of December 31, 2015, 2014 and 2013:

	December 31,
State	2015	2014	2013
Colorado	*	*	24.8%
Florida	18.6%	24.6%	*
Illinois	*	*	23.0%
Iowa	10.1%	13.9%	*
Louisiana	*	*	15.3%
Ohio	*	*	10.8%
Pennsylvania	11.4%	15.2%	*
Texas	*	*	12.8%

_______________________________

* State's annualized rental income on a straight-line basis was not 10% or more of total annualized rental income on a straight-line basis for all portfolio properties as of the period specified.

Investing in Healthcare-related Facilities

Healthcare-related facilities include MOBs and outpatient facilities, seniors housing communities, such as assisted and independent living and memory care facilities, as well as hospitals, inpatient rehabilitation hospitals, long-term acute care centers, surgery centers, skilled nursing facilities, specialty medical and diagnostic facilities, research laboratories and pharmaceutical buildings.

7

Medical Office Building and Outpatient Facilities

As of December 31, 2015, we owned 81 MOBs and outpatient facilities totaling 3.2 million square feet. These facilities typically contain physicians' offices and examination rooms, and may also include pharmacies, hospital ancillary service space and outpatient services such as diagnostic imaging centers, rehabilitation clinics and ambulatory surgery centers. These facilities can be located on or near hospital campuses and require significant plumbing, electrical and mechanical systems to accommodate diagnostic imaging equipment such as x-rays or other imaging equipment, and may also have significant plumbing to accommodate physician exam rooms. In addition, MOBs are often built to accommodate higher structural loads for certain equipment and may contain specialized construction such as cancer radiation therapy vaults for cancer treatment.

There are a variety of types of MOBs: on campus, off campus, affiliated and non-affiliated. On campus MOBs are physically located on a hospital's campus, often on land leased from the hospital. A hospital typically creates strong tenant demand which leads to high tenant retention. Off campus properties are located independent of a hospital's location. Affiliated MOBs may be located on campus or off campus, but are affiliated with a hospital or health system. In some respects, affiliated MOBs are similar to on campus MOBs because the hospital relationship drives tenant demand and retention. Finally, non-affiliated MOBs are not affiliated with any hospital or health system, but may contain physician offices and other healthcare services. We favor affiliated MOBs versus non-affiliated MOBs because of the relationship and synergy with the sponsoring hospital or health system.

The following table reflects the on campus, off campus, affiliated and non-affiliated MOB composition of our portfolio as of December 31, 2015:

MOB Classification	Number of Buildings	Rentable Square Feet
On Campus	20	1,178,889
Off Campus	61	1,989,200
Total	81	3,168,089
Affiliated	66	2,658,265
Non-affiliated	15	509,824
Total	81	3,168,089

Seniors Housing Communities

As of December 31, 2015, we owned 38 seniors housing communities under a structure permitted by the REIT Investment Diversification Empowerment Act of 2007 ("RIDEA"), our seniors housing — operating properties ("SHOP") segment, and 20 seniors housing communities under long term leases, which are included within our triple net leased healthcare facilities segment. Under RIDEA, a REIT may lease qualified healthcare properties on an arm's length basis to a taxable REIT subsidiary ("TRS") if the property is operated on behalf of such subsidiary by a person who qualifies as an eligible independent contractor. Seniors housing communities include independent living facilities, assisted living facilities and memory care facilities. These communities cater to different segments of the elderly population based upon their personal needs and need for assistance with the activities of daily living. Services provided by our operators or tenants in these facilities are primarily paid for by the residents directly and are less reliant on government reimbursement programs such as Medicaid and Medicare. Our seniors housing communities primarily consist of assisted living, memory care and independent living units.

Assisted Living and Memory Care Facilities

Assisted living facilities ("ALFs") are licensed care facilities that provide personal care services, support and housing for those who need help with activities of daily living, such as bathing, eating and dressing, yet require limited medical care. The programs and services may include transportation, social activities, exercise and fitness programs, beauty or barber shop access, hobby and craft activities, community excursions, meals in a dining room setting and other activities sought by residents. ALFs are often in apartment-like buildings with private residences ranging from single rooms to large apartments. Certain ALFs may offer a separate facility that provides a higher level of care for residents requiring memory care as a result of Alzheimer's disease or other forms of dementia. Levels of personal assistance are based in part on local regulations. As of December 31, 2015, our seniors housing assets included 2,352 assisted living units and 1,237 memory care units.

Independent Living Facilities

Independent living facilities are designed to meet the needs of seniors who choose to live in an environment surrounded by their peers with services such as housekeeping, meals and activities. These residents generally do not need assistance with activities of daily living, however, in some of our facilities, residents have the option to contract for these services. As of December 31, 2015, our seniors housing assets included 935 independent living units.

8

Hospitals, Post-Acute Care and Other Facilities

Our hospitals, post-acute care and other facilities are leased to tenants that provide healthcare services. As of December 31, 2015, we owned 27 other healthcare-related assets, including hospitals and post-acute care facilities. Hospitals can include general acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals and surgical and specialty hospitals. These facilities provide inpatient diagnosis and treatment, both medical and surgical, and provide a broad array of inpatient and outpatient services including surgery, rehabilitation therapy as well as diagnostic and treatment services. Post-acute facilities offer restorative, rehabilitative and custodial care for people not requiring the more extensive and complex treatment available at acute care hospitals. Ancillary revenues and revenues from sub-acute care services are derived from providing services beyond room and board and include occupational, physical, speech, respiratory and intravenous therapy, wound care, oncology treatment, brain injury care and orthopedic therapy, as well as sales of pharmaceutical products and other services. Certain facilities provide some of the foregoing services on an outpatient basis. Inpatient rehabilitation services provided by our operators and tenants in these facilities are primarily paid for by private sources or through the Medicare and Medicaid programs.

Pursuing Accretive and Opportunistic Investment Opportunities

Depending upon market conditions, we believe that new investments will be available in the future which will be accretive to our earnings and will generate attractive returns to our stockholders. We invest in medical office buildings, seniors housing and certain other healthcare real estate primarily through acquisitions, although we may also do so through development and joint venture partnerships. In determining whether to invest in a property, we focus on the following: (1) the experience of the obligor's/partner's management team; (2) the historical and projected financial and operational performance of the property; (3) the credit of the obligor/partner; (4) the security for any lease or loan; (5) the real estate attributes of the building, its age and location; (6) the capital committed to the property by the obligor/partner; and (7) the operating fundamentals of the applicable industry. We conduct market research and analysis for all potential investments. In addition, we review the value of all properties, the interest rates and covenant requirements of any facility-level debt to be assumed at the time of the acquisition and the anticipated sources of repayment of any existing debt that is not to be assumed at the time of the acquisition.

We monitor our investments through a variety of methods determined by the type of property. Our proactive and comprehensive asset management process generally includes review of monthly financial statements and other operating data for each property, review of obligor/partner creditworthiness, property inspections, and review of covenant compliance relating to licensure, real estate taxes, letters of credit and other collateral. Our internal asset managers actively manage and monitor the medical office building portfolio with a comprehensive process including tenant relations, lease expirations, the mix of health service providers, hospital/health system relationships, property performance, capital improvement needs, and market conditions among other things. In monitoring our portfolio, our personnel use a proprietary database to collect and analyze property-specific data. Additionally, we conduct extensive research to ascertain industry trends.

As of March 4, 2016, we had $49.0 million of assets under contract and executed letters of intent. Pursuant to the terms of the purchase and sale agreements and letters of intent, our obligation to close upon these acquisitions is subject to certain conditions customary to closing, including the successful completion of due diligence and fully negotiated binding agreements. There can be no assurance that we will complete these acquisitions. We intend to use advances from our Credit Facility to fund acquisitions (see "Note 5 — Credit Facility" of the accompanying notes to the consolidated financial statements for more information on our Credit Facility).

Primary Investment Focus

We have invested, and expect to continue investing, primarily in MOBs and seniors housing communities. In addition we may invest in facilities leased to hospitals, rehabilitation hospitals, long-term acute care centers, surgery centers, inpatient rehabilitation facilities, special medical and diagnostic service providers, laboratories, research firms, pharmaceutical and medical supply manufacturers and health insurance firms. We generally acquire a fee interest in any property we acquire (a "fee interest" is the absolute, legal possession and ownership of land, property, or rights), although we may also acquire a leasehold interest (a "leasehold interest" is a right to enjoy the exclusive possession and use of an asset or property for a stated definite period as created by a written lease). We have and may continue to acquire properties through a joint venture or the acquisition of substantially all of the interests of an entity which in turn owns the real property. We also may make preferred equity investments in an entity.

We have, and may in the future, enter into management agreements with healthcare operators to manage communities that are placed in a structure permitted by RIDEA. Under the provisions of RIDEA, a REIT may lease "qualified healthcare properties" on an arm's length basis to a TRS if the property is operated on behalf of such subsidiary by a person who qualifies as an "eligible independent contractor." We view RIDEA as a structure primarily to be used on properties that present attractive valuation entry points with long term growth prospects or drive growth by: (i) transitioning the asset to a new operator that can bring scale, operating efficiencies, or ancillary services; or (ii) investing capital to reposition the asset.

9

A smaller part of our business may involve originating or acquiring loans secured by or related to the same types of properties in which we may invest directly. Likewise, we may invest in securities of publicly-traded and private companies primarily engaged in real estate businesses, including REITs and other real estate operating companies, and securities issued by pass-through entities of which substantially all of the assets consist of qualifying assets or real estate-related assets. For example, we may purchase the common stock, preferred stock, debt, or other securities of these entities or options to acquire these securities. Examples of loans we may invest in include, but are not limited to, investments in first, second and third mortgage loans, wraparound mortgage loans, construction mortgage loans on real property and loans on leasehold interest mortgages. We also may invest in participations in mortgage, bridge or mezzanine loans unsecured loans.

Maintaining a Strong and Flexible Capital Structure

We utilize a combination of debt and equity to fund our investment activity. Our debt and equity levels are determined by management in consultation with our board of directors. For short-term purposes, we may borrow from our senior secured line of credit arrangement. We may replace these borrowings with long-term capital such as senior secured or unsecured notes or other forms of longer term financing. We may invest in properties subject to existing mortgage indebtedness, which we assume as part of the acquisition. In addition, we may obtain secured financing for unleveraged properties in which we have invested or may refinance properties acquired on a leveraged basis. In our agreements with our lenders, we are subject to restrictions with respect to secured and unsecured indebtedness. As of December 31, 2015, our secured debt leverage ratio (total secured debt divided by total assets) was approximately 25.9% and we had total secured borrowings of $589.5 million and no unsecured borrowings.

Tax Status

We elected and qualified to be taxed as a REIT under Sections 856 through 860 of Internal Revenue Code of 1986, as amended (the "Code"), commencing with our taxable year ended December 31, 2013. Commencing with such taxable year, we have been organized and operated in a manner so that we qualify for taxation as a REIT under the Code. We intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to remain qualified as a REIT. In order to continue to qualify for taxation as a REIT, we must, among other things, distribute at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with accounting principles generally accepted in the United States ("GAAP")), determined without regard to the deduction for dividends paid and excluding net capital gains, and must comply with a number of other organizational and operational requirements. If we continue to qualify for taxation as a REIT, we generally will not be subject to federal corporate income tax on that portion of our REIT taxable income that we distribute to our stockholders. Even if we continue to qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and properties as well as federal income and excise taxes on our undistributed income.

Competition

The market for MOBs, seniors housing and other healthcare-related real estate is highly competitive. We compete in all of our markets based on a number of factors that include location, rental rates, security, suitability of the property's design to prospective tenants' needs and the manner in which the property is operated and marketed. In addition, we compete with other entities engaged in real estate investment activities to locate suitable properties to acquire, tenants to occupy our properties and purchasers to buy our properties. These competitors include other REITs, private investment funds, specialty finance companies, institutional investors, pension funds and their advisors and other entities. There are also other REITs, including American Realty Capital Healthcare Trust III, Inc. ("HT III"), which is indirectly sponsored by AR Global, with asset acquisition objectives similar to ours, and others may be organized in the future. Some of these competitors, including larger REITs, have substantially greater marketing and financial resources than we have and generally may be able to accept more risk than we can prudently manage, including risks with respect to the creditworthiness of tenants. In addition, these same entities seek financing through similar channels.

10

Healthcare Regulation

Overview

The healthcare industry is subject to substantial regulation and faces increased regulation particularly relating to fraud, waste and abuse, cost control and healthcare management, including, but not limited to, the Federal Anti-Kickback Statute, the Federal Stark Law, the False Claims Act and similar state laws. We may experience a significant expansion of applicable federal, state or local laws and regulations, previously enacted or future healthcare reform, new interpretations of existing laws and regulations or changes in enforcement priorities all of which could materially impact the business and operations of our tenants and therefore our business. Our tenants and operators are subject to extensive federal, state, and local licensure laws, regulations and industry standards governing business operations, the physical plant and structure, patient rights and privacy and security of health information. Our tenants’ and operators’ failure to comply with any of these laws could result in loss of licensure, denial of reimbursement, imposition of fines or other penalties, suspension or exclusion from the government sponsored Medicare and Medicaid programs, loss of accreditation or certification, or closure of the facility. In addition, efforts by third-party payors, such as the Medicare and Medicaid programs and private insurance carriers, including health maintenance organizations and other health plans, impose greater discounts and more stringent cost controls upon healthcare provider operations (through changes in reimbursement rates and methodologies, discounted fee structures, the assumption by healthcare providers of all or a portion of the financial risk or otherwise). Our tenants and operators may also face significant limits on the scope of services reimbursed and on reimbursement rates and fees, all of which could impact their ability to pay rent or other obligations to us.

Licensure, Certification and Certificate of Need

Our tenants operate hospitals, assisted living facilities, skilled nursing facilities and other healthcare facilities that receive reimbursement for services from third-party payors, such as the government-sponsored Medicare and Medicaid programs and private insurance carriers. Participation in the Medicare and Medicaid programs generally requires the operators of a healthcare facility to be licensed and certified and be subject to compliance surveys. In granting and renewing these licenses and certifications, the state regulatory agencies consider numerous factors relating to a facility’s operations, including, but not limited to, the plant and physical structure, admission and discharge standards, staffing, training, patient and consumer rights, medication guidelines and other rules. The failure of an operator to maintain or renew any required license, certification or other regulatory approval or to correct serious deficiencies identified in compliance surveys could prevent it from continuing operations at a facility. A loss of licensure or certification or change in participation status could also adversely affect an operator's ability to receive payments from the Medicare and Medicaid programs, which, in turn, could adversely affect its ability to satisfy its contractual obligations, including making rental payments under, and otherwise complying with the terms of, its leases with us. In addition, if we have to replace an operator, we may experience difficulties in finding a replacement because our ability to replace the operator may be affected by federal and state laws governing changes in control and ownership.

Similarly, in order to receive Medicare and Medicaid reimbursement, our hospitals must meet the applicable conditions of participation established by the U.S. Department of Health and Human Services ("HHS") relating to the type of hospital and its equipment, personnel and standard of medical care, as well as comply with state and local laws and regulations. Hospitals undergo periodic on-site licensure surveys, which generally are limited if the hospital is accredited by The Joint Commission (formerly the Joint commission on Accreditation of Healthcare Organizations) or other recognized accreditation organizations. A loss of licensure or certification could adversely affect a hospital's ability to receive payments from the Medicare and Medicaid programs, which, in turn, could adversely affect its ability to satisfy its contractual obligations, including making rental payments under, and otherwise complying with the terms of, its leases with us.

Skilled nursing facilities and hospitals are also subject to various state certificate of need ("CON") laws requiring governmental approval prior to the development or expansion of healthcare facilities and services. The approval process in these states generally requires a facility to demonstrate the need for additional or expanded healthcare facilities or services. CONs, where applicable, are also sometimes necessary for changes in ownership or control of licensed facilities, addition of beds, investment in major capital equipment or introduction of new services or termination of services previously approved through the CON process. CON laws and regulations may restrict an operator's ability to expand our properties and grow its business in certain circumstances, which could have an adverse effect on the operator's revenues and, in turn, its ability to make rental payments under, and otherwise comply with the terms of, its leases with us.

11

Fraud and Abuse Enforcement

Various federal and state laws and regulations are aimed at actions that may constitute fraud and abuse by healthcare providers who participate in, receive payments from or make or receive referrals in connection with government-funded healthcare programs, including Medicare and Medicaid. The federal laws include, for example, the following:

• The anti-kickback statute (Section 1128B(b) of the Social Security Act) which prohibits certain business practices and relationships, including the payment, receipt or solicitation of any remuneration, directly or indirectly, to induce a referral of any patient or service or item covered by a federal healthcare program, including Medicare and Medicaid;

• The physician self-referral prohibition (Ethics in Patient Referral Act of 1989, commonly referred as the "Stark Law"), which prohibits referrals by physicians of Medicare or Medicaid patients to providers of a broad range of designated healthcare services in which the physicians (or their immediate family members) have ownership interests or certain other financial arrangements;

• The False Claims Act, which prohibits any person from knowingly presenting false or fraudulent claims for payment by the federal government (including the Medicare and Medicaid programs); and

• The Civil Monetary Penalties Law, which authorizes HHS to impose civil penalties administratively for fraudulent acts.

Sanctions for violating these federal laws include criminal and civil penalties such as punitive sanctions, damage assessments, monetary penalties, imprisonment, denial of Medicare and Medicaid payments, and exclusion from the Medicare and Medicaid programs. These laws also impose an affirmative duty on operators to ensure that they do not employ or contract with persons excluded from the Medicare and other government programs. Many states have adopted laws similar to, or more expansive than, the federal anti-fraud and abuse laws and have also adopted laws that increase patient protections, such as minimum staffing levels, criminal background checks, and restrictions on the use and disclosure of health information.

In the ordinary course of their business, the operators at our properties are subject regularly to inquiries, investigations and audits by federal and state agencies that oversee applicable laws and regulations. Increased funding for investigation and enforcement efforts accompanied by an increased pressure to eliminate government waste has led to a significant increase in the number of investigations and enforcement actions over the past several years. Private enforcement of healthcare fraud through qui tam lawsuits filed by whistleblowers has also increased.

Violations of federal or state law by an operator of our properties could have a material adverse effect on the operator's liquidity, financial condition or results of operations, which could adversely affect its ability to satisfy its contractual obligations, including making rental payments under, and otherwise complying with the terms of, its leases and other agreements with us. Federal and state fraud and abuse laws may also restrict the terms of our rental agreements with our tenants.

Privacy and Security of Health Information

Various federal and state laws protect the privacy and security of health information. For example, the Health Insurance Portability and Accountability Act of 1996, its implementing regulations and related federal laws and regulations (commonly referred to as "HIPAA") protect the privacy and security of individually identifiable health information by limiting its use and disclosure. Many states have implemented similar laws to limit the use and disclosure of patient specific health information. Violations of federal and state privacy and security laws could have a material adverse effect on the operator’s financial condition or operations, which could adversely affect its ability to satisfy its contractual obligations, including making rental payments under, and otherwise complying with the terms of, its leases and other agreements with us.

Reimbursement

The reimbursement methodologies for healthcare facilities are constantly changing and federal and state authorities may implement new or modified reimbursement methodologies that may negatively impact healthcare operations. For example, the Patient Protection and Affordable Care Act (the "Affordable Care Act") enacted certain reductions in Medicare reimbursement rates for various healthcare providers, as well as certain other changes to Medicare payment methodologies. The Affordable Care Act, among other things, reduced the inflation-adjusted market based increase included in standard federal payment rates for inpatient and outpatient hospital services, long-term care hospitals and inpatient rehabilitation facilities. In addition, under the Affordable Care Act, long-term acute care hospitals and inpatient rehabilitation facilities are subject to a rate adjustment to the market basket increase to reflect improvements in productivity. Accordingly, current and future payments under federal and state healthcare programs may not be sufficient to sustain a facility’s operations, which could adversely affect its ability to satisfy its contractual obligations, including making rental payments under, and otherwise complying with the terms of, its leases and other agreements with us.

12

Federal and state budget pressures also continue to escalate, and in an effort to address actual or potential budget shortfalls, Congress and many state legislatures may enact reductions to Medicare and Medicaid expenditures through cuts in rates paid to providers or restrictions in eligibility and benefits.

Certain of our facilities are also subject to periodic pre- and post-payment reviews and other audits by governmental authorities, which could result in recoupments, denials, or delay of payments. Recoupment of past payments or denial or delay of future payments could adversely affect an operator’s ability to satisfy its contractual obligations, including making rental payments under, and otherwise complying with the terms of, its leases and other agreements with us.

We regularly assess the financial implications of reimbursement rule changes on our tenants, but we cannot assure you that current rules or future updates will not materially adversely affect our operators and tenants, which, in turn, could have a material adverse effect on their ability to pay rent and other obligations to us. See “Risk Factors - Healthcare Industry Risks - Reductions or changes in reimbursement from third-party payors, including Medicare and Medicaid, could adversely affect the profitability of our tenants and hinder their ability to make rent payments to us” and “Risk Factors - Healthcare Industry Risks - A reduction in Medicare payment rates for skilled nursing facilities may have an adverse effect on the Medicare reimbursements received by certain of our tenants” included in Item 1A of this Annual Report on Form 10-K.

Environmental Regulations

As an owner of real property, we are subject to various federal, state and local laws and regulations regarding environmental, health and safety matters. These laws and regulations address, among other things, asbestos, polychlorinated biphenyls, fuel, oil management, wastewater discharges, air emissions, radioactive materials, medical wastes, and hazardous wastes, and in certain cases, the costs of complying with these laws and regulations and the penalties for non-compliance can be substantial. Even with respect to properties that we do not operate or manage, we may be held primarily or jointly and severally liable for costs relating to the investigation and clean-up of any property from which there is or has been an actual or threatened release of a regulated material and any other affected properties, regardless of whether we knew of or caused the release. Such costs typically are not limited by law or regulation and could exceed the property's value. In addition, we may be liable for certain other costs, such as governmental fines and injuries to persons, property or natural resources, as a result of any such actual or threatened release.

Under the terms of our lease and management agreements, we generally have a right to indemnification by the tenants, operators and managers of our properties for any contamination caused by them. However, we cannot assure you that our tenants, operators and managers will have the financial capability or willingness to satisfy their respective indemnification obligations to us, and any such inability or unwillingness to do so may require us to satisfy the underlying environmental claims.

We did not make any material capital expenditures in connection with environmental, health, and safety laws, ordinances and regulations in 2015 and do not expect that we will be required to make any such material capital expenditures during 2016.

Employees

As of December 31, 2015, we had no employees. Instead, the employees of our Advisor and other affiliates of our Sponsor performed a full range of services for us, including acquisitions, property management, accounting, legal, asset management, transfer agent and investor relations services. We are dependent on these affiliates for services that are essential to us, including asset acquisition decisions, property management and other general administrative responsibilities. In the event that any of these companies were unable to provide these services to us, we would be required to provide such services ourselves by hiring our own workforce or obtaining such services from an unrelated party at potentially higher costs.

Available Information

We electronically file annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and all amendments to those filings with the SEC. We also filed a registration statement on Form S-11 (File No. 333-184677) (the "Registration Statement") in connection with our IPO and a registration statement on Form S-3 (File No. 333-197802) for additional shares to be issued under the DRIP with the SEC. You may read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, D.C. 20549 or you may obtain information by calling the SEC at 1-800-SEC-0330. The SEC maintains an internet address at http://www.sec.gov that contains reports, proxy statements and information statements, and other information, which you may obtain free of charge. In addition, copies of our filings with the SEC may be obtained from the website maintained for us and our affiliates at www.thehealthcarereit2.com or www.ar-global.com. Access to these filings is free of charge. We are not incorporating our website or any information from these websites into this Annual Report on Form 10-K.

13

Item 1A. Risk Factors

Set forth below are the risk factors that we believe are material to our investors. The occurrence of any of the risks discussed in this Annual Report on Form 10-K could have a material adverse effect on our business, financial condition, results of operations, ability to pay distributions and the value of our common stock.

Risks Related to Our Properties and Operations

We have incurred net losses on a U.S. GAAP basis for the years ended December 31, 2015, 2014 and 2013.

We have incurred net losses on a U.S. GAAP basis for the years ended December 31, 2015, 2014, or 2013 of $41.7 million, $37.7 million and $0.2 million, respectively. Our losses can be attributed, in part, to acquisition related expenses and depreciation and amortization. We are subject to all of the business risks and uncertainties associated with any business, including the risk that the value of a stockholder's investment could decline substantially. We were incorporated on October 15, 2012. As of December 31, 2015, we have acquired 166 properties. We cannot assure you that, in the future, we will be profitable or that we will realize growth in the value of our assets.

We depend upon our Advisor and our Property Manager to provide us with executive officers and key personnel and our operating performance may be impacted by any adverse changes in the financial health of our Advisor.

We have no employees. Personnel and services that we require are provided to us under contracts with our Advisor. We depend on our Advisor and our Property Manager to manage our operations and acquire and manage our portfolio of real estate assets. Our Advisor makes all decisions with respect to the management of our company, subject to the supervision of, and any guidelines established by, our board of directors.

Our success depends to a significant degree upon the contributions of our executive officers and other key personnel of our Advisor and our Property Manager. Our executive officers are also executive officers of a non-traded REIT with similar investment objectives to ours which is sponsored and advised by entities under common control with our Sponsor and our Advisor. Competition for such skilled personnel is intense, and we cannot assure you that our Advisor will be successful in attracting and retaining such skilled personnel capable of meeting the needs of our business. We cannot guarantee that all, or any particular one of these key personnel, will continue to provide services to us or our Advisor, and the loss of any of these key personnel could cause our operating results to suffer. Further, we have not and do not intend to separately maintain key person life insurance on any of our Advisor’s key personnel. Moreover, any adverse changes in the financial health of our Advisor or our Property Manager could negatively impact their ability to supply us with the key personnel necessary for successful operations.

In addition, our Advisor and our Property Manager depend upon the fees and other compensation that they receive from us in connection with the management of our business and sale of our properties to conduct their operations. Any adverse changes in the financial condition of, or our relationship with, our Advisor or Property Manager could hinder their ability to successfully manage our operations and our portfolio of investments. Additionally, changes in ownership or management practices, the occurrence of adverse events affecting our Advisor or its affiliates or other companies advised by our Advisor and its affiliates could create adverse publicity and adversely affect us and our relationship with lenders, tenants or counterparties.

There is no public trading market for our shares and there may never be one.

Our shares are not listed on a national securities exchange and there currently is no established trading market for our shares and no assurance that one will develop. There is no assurance that our shares will in fact be listed on an exchange in the near future, if at all, or of the price at which the shares would trade or the volume that would develop. Unless our shares are listed, purchasers in so-called secondary market transactions must satisfy applicable suitability and minimum purchase standards and the sale must not violate state securities laws. Those requirements may further limit the ability of stockholders to sell shares.

If we, through our Advisor, are unable to find further suitable investments, then we may not be able to achieve our investment objectives or pay distributions, which would adversely affect the value of an investment in our shares.

Our ability to achieve our investment objectives and to pay distributions is dependent upon the performance of our Advisor in acquiring our investments, selecting tenants for our properties and securing independent financing arrangements. Our Advisor may not be successful in obtaining further suitable investments on financially attractive terms or that, if it makes investments on our behalf, our objectives will be achieved.

14

We may suffer from delays in locating further suitable investments or may lack the available capital to make a suitable investment, which could adversely affect our ability to make distributions and the value of an investment in our shares.

We could suffer from delays in locating further suitable investments, particularly as a result of our reliance on our Advisor at times when management of our Advisor is simultaneously seeking to locate suitable investments for other affiliated programs. Delays we encounter in the selection, acquisition and, if we develop properties, development of income-producing properties, likely would adversely affect our ability to make distributions and our overall returns. Generally, we may continue to fund distributions from unlimited amounts of any source, including borrowing funds, issuing additional securities or selling assets in order to fund distributions if we are unable to make distributions with our cash flows from our operations. Using these sources reduces the proceeds we have available to invest in properties and other real estate assets. If we encounter any such delays, we may pay a substantial portion of our distributions from borrowings in anticipation of future cash flow. In particular, where we acquire properties prior to the start of construction or during the early stages of construction, it typically will take several months to complete construction and rent available space. Therefore, we could suffer delays in the receipt of cash flow in properties and other real estate assets attributable to those particular properties.

We may change our targeted investments without stockholder consent.

We have acquired and expect to continue to acquire a diversified portfolio of healthcare-related assets including MOBs, seniors housing communities and other healthcare-related facilities. We may make adjustments to our target portfolio based on real estate market conditions and investment opportunities, and we may change our targeted investments and investment guidelines at any time without the consent of our stockholders, which could result in our making investments that are different from, and possibly riskier than, initially anticipated. A change in our targeted investments or investment guidelines may increase our exposure to interest rate risk, default risk and real estate market fluctuations.

We may be unable to maintain distributions over time.

There are many factors that can affect the availability and timing of cash distributions to stockholders, including the amount of cash flow that we generate from operations. In the past, we have not generated, and may not in the future generate, operating cash flows sufficient to continue to pay dividends to our stockholders at the current rate. Our cash flows provided by operations were $65.8 million for the year ended December 31, 2015. During the year ended December 31, 2015, we paid distributions of $145.4 million, of which $58.6 million, or 40.3%, was funded from proceeds from our cash flows from operations, $68.1 million, or 46.8%, was funded from proceeds from our IPO which were reinvested in common stock issued under our DRIP and $18.7 million, or 12.9%, was funded from proceeds from the sale of investment securities. Our IPO closed in November 2014 and all proceeds from the IPO have been invested. During the year ended December 31, 2015, cash flow from operations included an increase in accounts payable and accrued expenses of $5.2 million. Accordingly, if these accounts payable and accrued expenses had been paid during the years ended December 31, 2015, there would have been $5.2 million less in cash flow from operations.

We may not generate sufficient cash flows from operations to pay future distributions. The amount of cash available for distributions is affected by many factors, such as any property acquisitions, rental income from acquired properties and our operating expense levels, as well as many other variables. Actual cash available for distributions may vary substantially from estimates. With limited operating history, we cannot assure our stockholders that we will be able to continue to pay distributions or that distributions will increase over time. We cannot give any assurance that rents from the properties we have acquired will increase, or that future acquisitions of real properties will increase our cash available for distributions to stockholders. Our actual results may differ significantly from the assumptions used by our board of directors in establishing a distribution rate to stockholders.

If we do not generate sufficient cash flows from our operations, we expect to use a portion of our cash on hand and the proceeds from our DRIP to pay distributions. A decrease in the level of stockholder participation in our DRIP could have an adverse impact on our ability to meet these expectations. If these sources are insufficient, we may use other sources, such as from borrowings, the sale of additional securities, advances from our Advisor, and our Advisor's deferral, suspension or waiver of its fees and expense reimbursements, as to which it has no obligation, to fund distributions.

Funding distributions from any of these sources may reduce the amount of capital we ultimately invest in any properties and other permitted investments, have available for other purposes and may negatively impact the value of an investment in our common stock. There is no guarantee that we will pay any particular amount of distributions, if at all. There is no assurance that we will be able to obtain funds from such sources, or pay or maintain our current level of dividends.

15

Funding distributions from borrowings could restrict the amount we can borrow for investments, which may affect our profitability. Funding distributions with the sale of assets may affect our ability to generate additional operating cash flows. Funding distributions from the sale of additional securities could dilute each stockholder's interest in us if we sell shares of our common stock or securities that are convertible or exercisable into shares of our common stock to third-party investors. Payment of distributions from the mentioned sources could restrict our ability to generate sufficient cash flows from operations, affect our profitability or affect the distributions payable to stockholders upon a liquidity event, any or all of which may have an adverse effect on an investment in our shares.

We may not have sufficient cash from operations to make a distribution required to maintain our REIT status, which may materially adversely affect an investment in our common stock. Moreover, our board of directors may change our distribution policy, in its sole discretion, at any time.

If we internalize our management functions, we may be unable to obtain key personnel, and our ability to achieve our investment objectives could be delayed or hindered, which could adversely affect our ability to pay distributions and the value of an investment in our shares.

We may engage in an internalization transaction and become self-managed in the future. If we internalize our management functions, certain key employees of our Advisor may not become our employees but may instead remain employees of our Advisor or its affiliates. An inability to manage an internalization transaction effectively could also result in our incurring excess costs and suffering deficiencies in our disclosure controls and procedures or our internal control over financial reporting. Such deficiencies could cause us to incur additional costs, and our management's attention could be diverted from most effectively managing our investments, which could result in litigation and resulting associated costs in connection with the internalization transaction.

Our Advisor may lose or be unable to obtain key personnel, due to, among other things, another AR Global-sponsored program internalizing its advisor and hiring such personnel, which could delay or hinder our ability to implement our investment strategies.

Our future success depends, in large part, upon our Advisor’s ability to hire and retain highly skilled managerial, operational and marketing personnel. Competition for such personnel is intense, and we cannot assure our stockholders that our Advisor and its affiliates will be successful in attracting and retaining such skilled individuals. If our Advisor loses or is unable to obtain the services of key personnel, our ability to implement our investment strategies could be delayed or hindered, and the value of an investment in our common stock may decline.

On December 18, 2015, Thomas P. D’Arcy stepped down as chief executive officer, president and secretary of our company and our Advisor to pursue other opportunities. Also on December 18, 2015, Edward F. Lange, Jr. stepped down as chief financial officer and treasurer to pursue other opportunities. There were no disagreements between us and Mr. D’Arcy or us and Mr. Lange.

Our rights and the rights of our stockholders to recover claims against our officers, directors and Advisor are limited, which could reduce stockholders' and our recovery against them if they cause us to incur losses.

Maryland law provides that a director has no liability in that capacity if he or she performs his or her duties in good faith, in a manner he or she reasonably believes to be in the corporation's best interests and with the care that an ordinarily prudent person in a like position would use under similar circumstances. In addition, subject to certain limitations set forth therein or under Maryland law, our charter provides that no director or officer will be liable to us or our stockholders for monetary damages and requires us to indemnify our directors, officers and Advisor and our Advisor's affiliates and permits us to indemnify our employees and agents.

Although our charter does not allow us to indemnify or hold harmless an indemnitee to a greater extent than permitted under Maryland law, we and our stockholders may have more limited rights against our directors, officers, employees and agents, and our Advisor and its affiliates, than might otherwise exist under common law, which could reduce our stockholders and our recovery against them. In addition, we may be obligated to fund the defense costs incurred by our directors, officers, employees and agents or our Advisor and its affiliates in some cases which would decrease the cash otherwise available for distribution to stockholders.

Our business could suffer in the event our Advisor or any other party that provides us with services essential to our operations experiences system failures or cyber-incidents or a deficiency in cybersecurity.

Despite system redundancy, the implementation of security measures and the existence of a disaster recovery plan for the internal information technology systems of our Advisor and other parties that provide us with services essential to our operations, these systems are vulnerable to damage from any number of sources, including computer viruses, unauthorized access, energy blackouts, natural disasters, terrorism, war and telecommunication failures. Any system failure or accident that causes interruptions in our operations could result in a material disruption to our business.

16

A cyber-incident is considered to be any adverse event that threatens the confidentiality, integrity or availability of information resources. More specifically, a cyber-incident is an intentional attack or an unintentional event that can result in third parties gaining unauthorized access to systems to disrupt operations, corrupt data, or steal confidential information. As reliance on technology in our industry has increased, so have the risks posed to the systems of our Advisor and other parties that provide us with services essential to our operations, both internal and those that have been outsourced. In addition, the risk of a cyber-incident, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. Even the most well protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted attacks and intrusions evolve and generally are not recognized until launched against a target, and in some cases are designed not to be detected and, in fact, may not be detected.

The remediation costs and lost revenues experienced by a victim of a cyber-incident may be significant and significant resources may be required to repair system damage, protect against the threat of future security breaches or to alleviate problems, including reputational harm, loss of revenues and litigation, caused by any breaches. In addition, a security breach or other significant disruption involving the IT networks and related systems of our Advisor or any other party that provides us with services essential to our operations could:

• result in misstated financial reports, violations of loan covenants, missed reporting deadlines and/or missed permitting deadlines;

• affect our ability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT;

• result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of, proprietary, confidential, sensitive or otherwise valuable information, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes;

• result in our inability to maintain the building systems relied upon by our tenants for the efficient use of their leased space;

• require significant management attention and resources to remedy any damages that result;

• subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; or

• adversely impact our reputation among our tenants and investors generally.

Although our Advisor and other parties that provide us with services essential to our operations intend to continue to implement industry-standard security measures, there can be no assurance that those measures will be sufficient, and any material adverse effect experienced by our Advisor and other parties that provide us with services essential to our operations could, in turn, have an adverse impact on us.

The purchase price per share for shares issued under the DRIP and the repurchase price of our shares under our share repurchase program will be based on our NAV, which will be based upon subjective judgments, assumptions and opinions about future events, and may not reflect the amount that our stockholders might receive for their shares in a market transaction.

We intend to publish an estimated per share NAV as of December 31, 2015 on or before April 11, 2016. Our Advisor has engaged an independent valuer to perform appraisals of our real estate assets in accordance with valuation guidelines established by our board of directors. As with any methodology used to estimate value, the valuation methodologies that will be used by any independent valuer to value our properties involve subjective judgments concerning factors such as comparable sales, rental and operating expense data, capitalization or discount rate, and projections of future rent and expenses.

Under our valuation guidelines, our independent valuer estimates the market value of our principal real estate and real estate-related assets, and our Advisor determines the net value of our real estate and real estate-related assets and liabilities taking into consideration such estimate provided by the independent valuer. Our Advisor reviews the valuation provided by the independent valuer for consistency with its determinations of value and our valuation guidelines and the reasonableness of the independent valuer's conclusions. Our board of directors reviews the appraisals and valuations and makes a final determination of the estimated per share NAV. Although the valuations of our real estate assets by the independent valuer are reviewed by our Advisor and approved by our board of directors, neither our Advisor nor our board of directors will independently verify the appraised value of our properties and valuations do not necessarily represent the price at which we would be able to sell an asset. As a result, the appraised value of a particular property may be greater or less than its potential realizable value, which would cause our estimated per share NAV to be greater or less than the potential realizable NAV.

Because they are based on estimated per share NAV, the price at which our shares may be sold under the DRIP and the price at which our shares may be repurchased by us pursuant to the SRP may not reflect the price that our stockholders would receive for their shares in a market transaction.

17

Because valuations will only occur periodically, estimated per share NAV may not accurately reflect material events that would impact our NAV and may suddenly change materially if the appraised values of our properties change materially or the actual operating results differ from what we originally budgeted.

Following the initial valuation of estimated per share NAV, subsequent valuations will occur periodically, at the discretion of our board of directors, provided that such calculations will be made at least once annually. In connection with any periodic valuation, which are generally expected to be conducted annually, our Advisor's estimate of the value of our real estate and real estate-related assets will be partly based on appraisals of our properties, which we expect will only be appraised in connection with a periodic valuation. Any changes in value that may have occurred since the most recent periodic valuation will not be reflected in estimated per share NAV, and there may be a sudden change in the estimated per share NAV when new appraisals and other material events are reflected. To the extent actual operating results differ from our original estimates, estimated per share NAV may be affected, but we will not retroactively or proactively adjust estimated per share NAV because our actual results from operations may be better or worse than what we previously budgeted for any period. If our actual operating results cause our NAV to change, such change will only be reflected in our estimated per share NAV when a periodic valuation is completed.

Because valuations will only occur periodically, our estimated per share NAV may differ significantly from our actual NAV at any given time.

Risks Related to Conflicts of Interest

We will be subject to conflicts of interest arising out of our relationships with our Advisor and its affiliates, including the material conflicts discussed below.

Our Advisor faces conflicts of interest relating to the acquisition of assets and leasing of properties and such conflicts may not be resolved in our favor, meaning that we could invest in less attractive assets.

We rely on our Advisor and its executive officers and other key real estate professionals at our Advisor and our Property Manager to identify suitable investment opportunities for us. Several of the other key real estate professionals of our Advisor are also the key real estate professionals at our Sponsor and its other public programs. Many investment opportunities that are suitable for us may also be suitable for other programs sponsored directly or indirectly by the parent of our sponsor. For example, HT III seeks, like us, to acquire a diversified portfolio of healthcare-related assets. The investment opportunity allocation agreement we have entered into with HT III may result in us not being able to acquire separate properties identified by our Advisor and its affiliates.

In addition, we may acquire properties in geographic areas where other AR Global-sponsored or any service provider-sponsored programs own properties. Also, we may acquire properties from, or sell properties to, other AR Global-sponsored programs. If one of the other AR Global-sponsored programs attracts a tenant that we are competing for, we could suffer a loss of revenue due to delays in locating another suitable tenant.

Our Advisor faces conflicts of interest relating to joint ventures, which could result in a disproportionate benefit to the other venture partners at our expense.

We may enter into joint ventures with other AR Global-sponsored programs for the acquisition, development or improvement of properties. Our Advisor may have conflicts of interest in determining which AR Global-sponsored program should enter into any particular joint venture agreement. The co-venturer may have economic or business interests or goals that are or may become inconsistent with our business interests or goals. In addition, our Advisor may face a conflict in structuring the terms of the relationship between our interests and the interest of the affiliated co-venturer and in managing the joint venture. Since our Advisor and its affiliates will control both the affiliated co-venturer and, to a certain extent, us, agreements and transactions between the co-venturers with respect to any such joint venture will not have the benefit of arm's-length negotiation of the type normally conducted between unrelated co-venturers, which may result in the co-venturer receiving benefits greater than the benefits that we receive. In addition, we may assume liabilities related to the joint venture that exceeds the percentage of our investment in the joint venture.

Our Advisor and Sponsor and their officers and employees and certain of our executive officers and other key personnel face competing demands relating to their time, and this may cause our operating results to suffer.

Our Advisor and Sponsor and their officers and employees and certain of our executive officers and other key personnel and their respective affiliates are key personnel, general partners, sponsors, managers, owners and advisors of other real estate investment programs, including AR Global-sponsored REITs, some of which have investment objectives and legal and financial obligations similar to ours and may have other business interests as well. Some REITs will have concurrent or overlapping operational, disposition and liquidation phases as us, which may cause conflicts of interest to arise with respect to, among other things, locating and acquiring properties, entering into leases and disposing of properties. Because these persons have competing demands on their time and resources, they may have conflicts of interest in allocating their time between our business and these other activities. If this occurs, the returns on our investments may suffer.

18

All of our executive officers, some of our directors and the key real estate and other professionals assembled by our Advisor and our Property Manager face conflicts of interest related to their positions or interests in affiliates of our Sponsor, which could hinder our ability to implement our business strategy.

All of our executive officers, some of our directors and the key real estate and other professionals assembled by our Advisor and Property Manager are also executive officers, directors, managers, key professionals or holders of a direct or indirect controlling interests in our Advisor and our Property Manager or other Sponsor-affiliated entities. Through our Sponsor’s affiliates, some of these persons work on behalf of programs sponsored directly or indirectly by the parent of our Sponsor. As a result, they have loyalties to each of these entities, which loyalties could conflict with the fiduciary duties they owe to us and could result in action or inaction detrimental to our business. Conflicts with our business and interests are most likely to arise from (a) allocation of investments and management time and services between us and the other entities, (b) our purchase of properties from, or sale of properties to, entities sponsored by affiliates of our Advisor, (c) investments with entities sponsored by affiliates of our Advisor, (d) compensation to our Advisor and (e) our relationship with our Advisor and our Property Manager. If we do not successfully implement our business strategy, we may be unable to generate the cash needed to make distributions to our stockholders and to maintain or increase the value of our assets.

The conflicts of interest inherent in the incentive fee structure of our arrangements with our Advisor and its affiliates could result in actions that are not necessarily in the long-term best interests of our stockholders, including required payments if we terminate the advisory agreement, even for poor performance by our Advisor.

Under our advisory agreement and the limited partnership agreement of our operating partnership, or the partnership agreement, the special limited partner and its affiliates will be entitled to fees, distributions and other amounts that are structured in a manner intended to provide incentives to our Advisor to perform in our best interests. However, because our Advisor does not maintain a significant equity interest in us and is entitled to receive substantial minimum compensation regardless of performance, its interests may not be wholly aligned with those of our stockholders. In that regard, our Advisor could be motivated to recommend riskier or more speculative investments in order for us to generate the specified levels of performance or sales proceeds that would entitle it or the special limited partner to fees. In addition, the special limited partner and its affiliates’ entitlement to fees and distributions upon the sale of our assets and to participate in sale proceeds could result in our Advisor recommending sales of our investments at the earliest possible time at which sales of investments would produce the level of return that would entitle our Advisor and its affiliates, including the special limited partner, to compensation relating to such sales, even if continued ownership of those investments might be in our best long-term interest. In addition, our advisory agreement, property management agreement and other agreements with our Advisor and its affiliates include covenants and conditions that are subject to interpretation and could result in disagreements.

Moreover, the partnership agreement requires our operating partnership to pay a performance-based termination distribution to the special limited partner or its assignees if we terminate the advisory agreement, even for poor performance by our Advisor, prior to the listing of our shares for trading on an exchange or, absent such listing, in respect of its participation in net sales proceeds. To avoid paying this distribution, our independent directors may decide against terminating the advisory agreement prior to our listing of our shares or disposition of our investments even if, but for the termination distribution, termination of the advisory agreement would be in our best interest. Similarly, because this distribution would still be due even if we terminate the advisory agreement for poor performance, our Advisor may be incentivized to focus its resources and attention on other matters or otherwise fail to use its best efforts on our behalf.

In addition, the requirement to pay the distribution to the special limited partner or its assignees at termination could cause us to make different investment or disposition decisions than we would otherwise make, in order to satisfy our obligation to pay the distribution to the special limited partner or its assignees. Moreover, our Advisor will have the right to terminate the advisory agreement upon a change of control of our company and thereby trigger the payment of the termination distribution, which could have the effect of delaying, deferring or preventing the change of control. In addition, our Advisor will be entitled to an annual subordinated performance fee such that for any year in which investors receive payment of a 6.0% annual cumulative, pre-tax, non-compounded return on the capital contributed by investors, our Advisor is entitled to 15.0% of the amount in excess of such 6.0% per annum return, provided that the amount paid to our Advisor does not exceed 10.0% of the aggregate return for such year, and that the amount, while accruing annually in each year the 6.0% return is attained, will not actually be paid to our Advisor unless investors receive a return of capital contributions, which could encourage our Advisor to recommend riskier or more speculative investments.

19

Risks Related to our Corporate Structure

We disclose funds from operations and modified funds from operations, each a non-GAAP financial measure, in communications with investors, including documents filed with the SEC; however, funds from operations and modified funds from operations are not equivalent to our net income or loss or cash flows from operations as determined under GAAP, and stockholders should consider GAAP measures to be more relevant to our operating performance.

We disclose to investors funds from operations ("FFO") and modified funds from operations ("MFFO"), which are non-GAAP financial measures. FFO and MFFO are not equivalent to our net income or loss or cash flows from operations as determined in accordance with GAAP, and investors should consider GAAP measures to be more relevant to evaluating our operating performance and ability to pay distributions.

Because of differences in calculating FFO and MFFO in comparison to GAAP net income, these measures may not be accurate indicators of our operating performance. In addition, FFO and MFFO are not indicative of cash flows available to fund cash needs and investors should not consider FFO and MFFO as alternatives to cash flows from operations or an indication of our liquidity, or indicative of funds available to fund our cash needs, including our ability to pay distributions to our stockholders. Neither the SEC nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO and MFFO. Also, because not all companies calculate FFO and MFFO the same way, comparisons with other companies may not be meaningful.

The limit on the number of shares a person may own may discourage a takeover that could otherwise result in a premium price to our stockholders.

Our charter, with certain exceptions, authorizes our directors to take such actions as are necessary and desirable to preserve our qualification as a REIT. Unless exempted (prospectively or retroactively) by our board of directors, no person may own more than 9.8% in value of the aggregate of our outstanding shares of capital stock or more than 9.8% (in value or in number of shares, whichever is more restrictive) of any class or series of shares of our capital stock. This restriction may have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction (such as a merger, tender offer or sale of all or substantially all our assets) that might provide a premium price for holders of our common stock.

Our charter permits our board of directors to authorize the issuance of stock with terms that may subordinate the rights of common stockholders or discourage a third party from acquiring us in a manner that might result in a premium price to our stockholders.

Our charter permits our board of directors to authorize the issuance of up to 350.0 million shares of stock. In addition, our board of directors, without any action by our stockholders, may amend our charter from time to time to increase or decrease the aggregate number of shares or the number of shares of any class or series of stock that we have authority to issue. Our board of directors may classify or reclassify any unissued common stock or preferred stock into other classes or series of stock and establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of any such stock. Thus, our board of directors could authorize the issuance of preferred stock with terms and conditions that could have a priority as to distributions and amounts payable upon liquidation over the rights of the holders of our common stock. Preferred stock could also have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction (such as a merger, tender offer or sale of all or substantially all our assets) that might provide a premium price for holders of our common stock.

Maryland law prohibits certain business combinations, which may make it more difficult for us to be acquired and may limit the ability of stockholders to exit the investment.

Under Maryland law, "business combinations" between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:

• any person who beneficially owns, directly or indirectly, 10% or more of the voting power of the corporation's outstanding voting stock; or

• an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner of, directly or indirectly, 10% or more of the voting power of the then outstanding stock of the corporation.

A person is not an interested stockholder under the statute if the board of directors approved in advance the transaction by which he or she otherwise would have become an interested stockholder. However, in approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board of directors.

20

After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:

• 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and

• two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder.

These super-majority vote requirements do not apply if the corporation's common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares. The business combination statute permits various exemptions from its provisions, including business combinations that are exempted by the board of directors prior to the time that the interested stockholder becomes an interested stockholder. Pursuant to the statute, our board of directors has exempted any business combination involving our Advisor or any affiliate of our Advisor. Consequently, the five-year prohibition and the super-majority vote requirements will not apply to business combinations between us and our Advisor or any affiliate of our Advisor. As a result, our Advisor and any affiliate of our Advisor may be able to enter into business combinations with us that may not be in the best interests of our stockholders, without compliance with the super-majority vote requirements and the other provisions of the statute. The business combination statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer.

Maryland law limits the ability of a third party to buy a large stake in us and exercise voting power in electing directors, which may discourage a takeover that could otherwise result in a premium price to our stockholders.

The Maryland Control Share Acquisition Act provides that holders of “control shares” of a Maryland corporation acquired in a “control share acquisition” have no voting rights except to the extent approved by the affirmative vote of at least stockholders entitled to cast two-thirds of the votes entitled to be cast on the matter. Shares of stock owned by the acquirer, by officers or by employees who are directors of the corporation, are excluded from shares entitled to vote on the matter. “Control shares” are voting shares of stock which, if aggregated with all other shares of stock owned by the acquirer or in respect of which the acquirer can exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquirer to exercise voting power in electing directors within specified ranges of voting power. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval or shares acquired directly from the corporation. A “control share acquisition” means the acquisition of issued and outstanding control shares.

The control share acquisition statute does not apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction, or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation.

Our bylaws contain a provision exempting from the Maryland Control Share Acquisition Act any and all acquisitions of our stock by any person. There can be no assurance that this provision will not be amended or eliminated at any time in the future.

Stockholder returns may be reduced if we are required to register as an investment company under the Investment Company Act.

We are not registered, and do not intend to register ourself or any of our subsidiaries, as an investment company under the Investment Company Act. If we become obligated to register ourself or any of our subsidiaries as an investment company, we would have to comply with a variety of substantive requirements under the Investment Company Act imposing, among other things:

• limitations on capital structure;

• restrictions on specified investments;

• prohibitions on transactions with affiliates; and

• compliance with reporting, record keeping, voting, proxy disclosure and other rules and regulations that would significantly change our operations.

21

We conduct, and intend to continue conducting, our operations, directly and through wholly or majority-owned subsidiaries, so that we and each of our subsidiaries are not an investment company under the Investment Company Act. Under Section 3(a)(1)(A) of the Investment Company Act, a company is deemed to be an “investment company” if it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities. Under Section 3(a)(1)(C) of the Investment Company Act, a company is deemed to be an “investment company” if it is engaged, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and owns or proposes to acquire “investment securities” having a value exceeding 40% of the value of its total assets (exclusive of government securities and cash items) on an unconsolidated basis. “Investment securities” excludes (A) government securities, (B) securities issued by employees’ securities companies, and (C) securities issued by majority-owned subsidiaries which (i) are not investment companies and (ii) are not relying on the exception from the definition of investment company under Section 3(c)(1) or 3(c)(7) of the Investment Company Act.

Because we are primarily engaged in the business of acquiring real estate, we believe that we and most, if not all, of our wholly and majority-owned subsidiaries will not be considered investment companies under either Section 3(a)(1)(A) or Section 3(a)(1)(C) of the Investment Company Act. If we or any of our wholly or majority-owned subsidiaries would ever inadvertently fall within one of the definitions of “investment company,” we intend to rely on the exception provided by Section 3(c)(5)(C) of the Investment Company Act.

Under Section 3(c)(5)(C), the SEC staff generally requires us to maintain at least 55% of our assets directly in qualifying assets and at least 80% of the entity’s assets in qualifying assets and in a broader category of real estate-related assets to qualify for this exception. Mortgage-related securities may or may not constitute such qualifying assets, depending on the characteristics of the mortgage-related securities, including the rights that we have with respect to the underlying loans. Our ownership of mortgage-related securities, therefore, is limited by provisions of the Investment Company Act and SEC staff interpretations.

The method we use to classify our assets for purposes of the Investment Company Act is based in large measure upon no-action positions taken by the SEC staff in the past. These no-action positions were issued in accordance with factual situations that may be substantially different from the factual situations we may face, and a number of these no-action positions were issued more than twenty years ago. No assurance can be given that the SEC staff will concur with our classification of our assets. In addition, the SEC staff may, in the future, issue further guidance that may require us to re-classify our assets for purposes of qualifying for an exclusion from regulation under the Investment Company Act. If we are required to re-classify our assets, we may no longer be in compliance with the exclusion from the definition of an “investment company” provided by Section 3(c)(5)(C) of the Investment Company Act.

A change in the value of any of our assets could cause us or one or more of our wholly or majority-owned subsidiaries to fall within the definition of “investment company” and negatively affect our ability to maintain our exclusion from regulation under the Investment Company Act. To avoid being required to register ourself or any of our subsidiaries as an investment company under the Investment Company Act, we may be unable to sell assets we would otherwise want to sell and may need to sell assets we would otherwise wish to retain. In addition, we may have to acquire additional income- or loss-generating assets that we might not otherwise have acquired or may have to forgo opportunities to acquire interests in companies that we would otherwise want to acquire and would be important to our investment strategy.

If we were required to register ourself as an investment company but failed to do so, we would be prohibited from engaging in our business, and civil actions could be brought against us. In addition, our contracts would be unenforceable unless a court required enforcement, and a court could appoint a receiver to take control of us and liquidate our business.

Rapid changes in the values of potential investments in real estate-related investments may make it more difficult for us to maintain our qualification as a REIT or our exception from the Investment Company Act.

If the market value or income generated by our real estate-related investments declines, including as a result of increased interest rates, prepayment rates or other factors, we may need to increase our real estate investments and income or liquidate our non-qualifying assets in order to maintain our REIT qualification or our exception from registration under the Investment Company Act. If the decline in real estate asset values or income occurs quickly, this may be especially difficult to accomplish. This difficulty may be exacerbated by the illiquid nature of any non-real estate assets that we may own. We may have to make investment decisions that we otherwise would not make absent REIT and Investment Company Act considerations.

We are an "emerging growth company" under the federal securities laws and will be subject to reduced public company reporting requirements.

We are an “emerging growth company,” as defined in the JOBS Act of 2012, and are eligible to take advantage of certain exemptions from, or reduced disclosure obligations relating to, various reporting requirements that are normally applicable to public companies.

22

We will remain an “emerging growth company” for up to five years, or until the earliest of (1) the last day of the first fiscal year in which we have total annual gross revenue of $1 billion or more, (2) December 31 of the fiscal year that we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act (which would occur if the market value of our common stock held by non-affiliates exceeds $700 million, measured as of the last business day of our most recently completed second fiscal quarter, and we have been publicly reporting for at least 12 months) or (3) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period.

Under the JOBS Act, emerging growth companies are not required to (1) provide an auditor’s attestation report on management’s assessment of the effectiveness of internal control over financial reporting, pursuant to Section 404 of the Sarbanes-Oxley Act, (2) comply with any new requirements adopted by the Public Company Accounting Oversight Board ("PCAOB") that require mandatory audit firm rotation or a supplement to the auditor’s report in which the auditor must provide additional information about the audit and the issuer’s financial statements, (3) comply with new audit rules adopted by the PCAOB after April 5, 2012 (unless the SEC determines otherwise), (4) provide certain disclosures relating to executive compensation generally required for larger public companies, or (5) hold stockholder advisory votes on executive compensation. Although we have not yet made a decision as to whether to take advantage of all of the JOBS Act exemptions that are applicable to us, we have taken advantage of certain applicable exemptions. We do not know if some investors will find our common stock less attractive if we continue to take advantage of certain JOBS Act exemptions or take advantage of additional exemptions in the future.

Additionally, the JOBS Act provides that an “emerging growth company” may take advantage of an extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies. This means that an “emerging growth company” can delay adopting certain accounting standards until such standards are otherwise applicable to private companies. However, we have elected to “opt out” of such extended transition period, and will therefore comply with new or revised accounting standards on the applicable dates on which the adoption of such standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of such extended transition period for compliance with new or revised accounting standards is irrevocable.

If our stockholders do not agree with the decisions of our board of directors, our stockholders only have limited control over changes in our policies and operations and may not be able to change our policies and operations.

Our board of directors determines our major policies, including our policies regarding investments, financing, growth, debt capitalization, REIT qualification and distributions. Our board of directors may amend or revise these and other policies without a vote of the stockholders except to the extent that the policies are set forth in our charter. Under Maryland General Corporation Law and our charter, our stockholders have a right to vote only on the following:

• the election or removal of directors;

• amendment of our charter, except that our board of directors may amend our charter without stockholder approval to (a) increase or decrease the aggregate number of our shares of stock or the number of shares of stock of any class or series that we have the authority to issue, (b) effect certain reverse stock splits, and (c) change our name or the name or other designation or the par value of any class or series of our stock and the aggregate par value of our stock;

• our liquidation or dissolution;

• certain reorganizations of our company, as provided in our charter; and

• certain mergers, consolidations or sales or other dispositions of all or substantially all our assets, as provided in our charter.

All other matters are subject to the discretion of our board of directors.

Our board of directors may change our investment policies without stockholder approval, which could alter the nature of a stockholder's investment.

Our charter requires that our independent directors review our investment policies at least annually to determine that the policies we are following are in the best interests of the stockholders. These policies may change over time. The methods of implementing our investment policies also may vary, as new real estate development trends emerge and new investment techniques are developed. Our investment policies, the methods for their implementation, and our other objectives, policies and procedures may be altered by our board of directors without the approval of our stockholders. As a result, the nature of a stockholder's investment could change without his or her consent.

23

Stockholders are limited in their ability to sell their shares pursuant to our share repurchase program and may have to hold shares for an indefinite period of time.

Our board of directors may amend the terms of our share repurchase program without stockholder approval. Our board of directors also is free to amend, suspend or terminate the program upon 30 days’ notice or to reject any request for repurchase. In addition, the SRP includes numerous restrictions that would limit stockholders' ability to sell their shares. Generally, a stockholder must have held his or her shares for at least one year in order to participate in our SRP. Subject to funds being available, the purchase price for shares repurchased under our SRP will be as set forth below.

Unless such repurchase is in connection with a stockholder’s death or disability, prior to establishing the estimated NAV, the price per share that we will pay to repurchase shares of our common stock will be as follows: (a) for stockholders who have continuously held their shares of our common stock for at least one year and less than two years, the price will be 92.5% of the amount paid for each such share, (b) for stockholders who have continuously held their shares of our common stock for at least two years and less than three years, the price will be 95.0% of the amount paid for each such share, (c) for stockholders who have continuously held their shares of our common stock for at least three years and less than four years, the price will be 97.5% of the amount paid for each such share, and (d) for stockholders who have held their shares of our common stock for a period greater than four years, the price will be 100.0% of the amount a stockholder paid for each share (in each case, as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock).

On and after establishing the estimated NAV, unless such repurchase is in connection with a stockholder's death or disability, the repurchase price per share that we will pay to repurchase shares of our common stock will be as follows: the estimated per share NAV in each case multiplied by a percentage equal to (a) 92.5% for stockholders who have continuously held their shares of our common stock for at least one year and less than two years; (b) 95% for stockholders who have continuously held their shares of our common stock for at least two years and less than three years; (c) 97.5% for stockholders who have continuously held their shares of our common stock for at least three years and less than four years; and (d) 100% for stockholders who have continuously held their shares of our common stock for a period greater than four years (in each case, as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock).

During the quarter ended December 31, 2015, our board of directors authorized, with respect to redemption requests received during that quarter, the repurchase of shares validly submitted for repurchase in an amount equal to 1.0% of the weighted average number of shares of common stock outstanding during the fiscal year ended December 31, 2014, representing less than all the shares validly submitted for repurchase during the quarter ended December 31, 2015, but including all shares submitted for death or disability.

Following the SRP amendment (as discussed in Part II —Item 5, under the heading "Purchases of Equity Securities by the Issuer and Affiliated Purchasers"), we will limit the number of shares repurchased during any fiscal semester to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5% of the weighted average number of shares of common stock outstanding on December 31st of the previous fiscal year. Funding for repurchases pursuant to our share repurchase program is limited to proceeds received during that same fiscal semester from the DRIP; provided that our board of directors has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds used for that purpose. These limits might prevent us from accommodating all repurchase requests made in any year. There is no assurance that our SRP, as amended, will not be further limited or amended.

Stockholders may be diluted if the price we pay in respect of shares repurchased under our share repurchase program exceeds the NAV of our shares.

The prices we may pay for shares repurchased under our share repurchase program may exceed the NAV of the shares at the time of repurchase, which may reduce the NAV of the remaining shares. In addition, if we issue shares under the DRIP at a price that exceeds the NAV of the shares at the time of issuance, the NAV of our remaining shares will be reduced.

24

Stockholders will suffer dilution if we issue additional shares, which could adversely affect the value of one's shares.

Our existing stockholders do not have preemptive rights to any shares issued by us in the future. Our charter currently authorizes us to issue 350.0 million shares of stock, of which 300.0 million shares are classified as common stock and 50.0 million shares are classified as preferred stock. Our board of directors may amend our charter from time to time to increase or decrease the aggregate number of authorized shares of stock or the number of authorized shares of any class or series of stock, or may classify or reclassify any unissued shares into other classes or series of stock without the necessity of obtaining stockholder approval. All such shares may be issued in the discretion of our board of directors, except that the issuance of preferred stock must be approved by a majority of our independent directors not otherwise interested in the transaction, who will have access, at our expense, to our legal counsel or to independent legal counsel. Holders of our common stock are not entitled to preemptive rights or other protections against dilution. Stockholders will suffer dilution (both economic and percentage interest) of their equity investment in us, (a) from the sale of additional shares in the future, including those issued pursuant to the DRIP; (b) if we sell securities that are convertible into shares of our common stock; (c) if we issue shares of our common stock in a private offering of securities to institutional investors; (d) if we issue restricted share awards to our directors; (e) if we issue shares to our Advisor or its affiliates, successors or assigns, in payment of an outstanding fee obligation as set forth under our advisory agreement and other agreements; or (f) if we issue shares of our common stock to sellers of properties acquired by us in connection with an exchange of limited partnership interests of our OP. In addition, the partnership agreement contains provisions that would allow, under certain circumstances, other entities, including other AR Global-sponsored programs, to merge into or cause the exchange or conversion of their interest for interests of our OP. Because the limited partnership interests may, in the discretion of our board of directors, be exchanged for shares of our common stock, any merger, exchange or conversion between our OP and another entity ultimately could result in the issuance of a substantial number of shares of our common stock, thereby diluting the percentage ownership interest of other stockholders.

Future offerings of equity securities which are senior to our common stock for purposes of dividend distributions or upon liquidation, may adversely affect the per share trading price of the value of our common stock.

In the future, we may attempt to increase our capital resources by making additional offerings of equity securities. Under our charter, we may issue, without stockholder approval, preferred stock or other classes of common stock with rights that could dilute the value of our stockholders' shares of common stock. Any issuance of preferred stock must be approved by a majority of our independent directors not otherwise interested in the transaction. Upon liquidation, holders of our shares of preferred stock will be entitled to receive our available assets prior to distribution to the holders of our common stock. Additionally, any convertible, exercisable or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable than those of our common stock and may result in dilution to owners of our common stock. Holders of our common stock are not entitled to preemptive rights or other protections against dilution.

Our preferred stock, if issued, could have a preference on liquidating distributions or a preference on dividend payments that could limit our ability pay dividends to the holders of our common stock. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings. Thus, our stockholders bear the risk of our future offerings reducing the value of our common stock.

Payment of fees to our Advisor and its affiliates reduces cash available for investment and distributions to stockholders.

Our Advisor and its affiliates perform various services for us and are paid fees for these services which are substantial. Payment of these fees reduces the amount of cash available for investment in properties or distribution to stockholders.

We depend on our operating partnership and its subsidiaries for cash flow and we are structurally subordinated in right of payment to the obligations of the operating partnership and its subsidiaries, which could adversely affect, among other things, our ability to make distributions to stockholders.

Our only significant assets are and will be the general and limited partnership interests in our operating partnership. We conduct, and intend to conduct, all of our business operations through our operating partnership. Accordingly, our only source of cash to pay our obligations will be distributions from our operating partnership and its subsidiaries of their net earnings and cash flows. There is no assurance that our operating partnership or its subsidiaries will be able to, or be permitted to, make distributions to us that will enable us to make distributions to our stockholders from cash flows from operations. Each of our operating partnership’s subsidiaries will be a distinct legal entity and, under certain circumstances, legal and contractual restrictions may limit our ability to obtain cash from such entities. In addition, stockholder's claims will be structurally subordinated to all existing and future liabilities and obligations of our operating partnership and its subsidiaries. Therefore, in the event of our bankruptcy, liquidation or reorganization, our assets and those of our operating partnership and its subsidiaries will be able to satisfy stockholders' claims only after all liabilities and obligations of us and our operating partnership and its subsidiaries have been paid in full.

25

General Risks Related to Investments in Real Estate

Our operating results will be affected by economic and regulatory changes that have an adverse impact on the real estate market in general, and we cannot assure our stockholders that we will be profitable or that we will realize growth in the value of our real estate properties.

Our operating results are subject to risks generally incident to the ownership of real estate, including:

• changes in general economic or local conditions;

• changes in supply of or demand for competing properties in an area;

• changes in interest rates and availability of permanent mortgage funds that may render the sale of a property difficult or unattractive;

• changes in tax, real estate, environmental and zoning laws; and

• periods of high interest rates and tight money supply.

These and other risks may prevent us from being profitable or from realizing growth or maintaining the value of our real estate properties.

Our property portfolio has a high concentration of properties located in seven states. Our properties may be adversely affected by economic cycles and risks inherent to those states.

As of December 31, 2015, the following seven states represented 5% or more of our consolidated annualized rental income on a straight-line basis for the fiscal year ended December 31, 2015:

State	Percentage of Straight-Line Rental Income
Arkansas	5.5%
Florida	18.6%
Georgia	9.3%
Iowa	10.1%
Michigan	6.6%
Missouri	5.2%
Pennsylvania	11.4%

Any adverse situation that disproportionately affects the states listed above may have a magnified adverse effect on our portfolio. Real estate markets are subject to economic downturns, as they have been in the past, and we cannot predict how economic conditions will impact this market in both the short and long term. Declines in the economy or a decline in the real estate market in these states could hurt our financial performance and the value of our properties. Factors that may negatively affect economic conditions in these states include:

• business layoffs or downsizing;

• industry slowdowns;

• relocations of businesses;

• changing demographics;

• increased telecommuting and use of alternative work places;

• infrastructure quality;

• any oversupply of, or reduced demand for, real estate;

• concessions or reduced rental rates under new leases for properties where tenants defaulted;

• increased insurance premiums;

• state budgets and payment to providers under Medicaid or other state healthcare programs; and

• changes in reimbursement for healthcare services from commercial insurers.

26

If a tenant declares bankruptcy, we may be unable to collect balances due under the relevant lease, which could adversely affect our financial condition and ability to make distributions to our stockholders.

Any of our tenants, or any guarantor of a tenant's lease obligations, could be subject to a bankruptcy proceeding pursuant to Title 11 of the bankruptcy laws of the United States. Such a bankruptcy filing would bar all efforts by us to collect pre-bankruptcy debts from these entities or their properties, unless we receive an enabling order from the bankruptcy court. Post-bankruptcy debts would be paid currently. If a lease is assumed, all pre-bankruptcy balances owing under it must be paid in full. If a lease is rejected by a tenant in bankruptcy, we would have a general unsecured claim for damages. If a lease is rejected, it is unlikely we would receive any payments from the tenant because our claim is capped at the rent reserved under the lease, without acceleration, for the greater of one year or 15% of the remaining term of the lease, but not greater than three years, plus rent already due but unpaid. This claim could be paid only if funds were available, and then only in the same percentage as that realized on other unsecured claims.

A tenant or lease guarantor bankruptcy could delay efforts to collect past due balances under the relevant leases, and could ultimately preclude full collection of these sums. Such an event could cause a decrease or cessation of rental payments, which could adversely affect our financial condition and ability to pay distributions to our stockholders. In the event of a bankruptcy, we cannot assure our stockholders that the tenant or its trustee will assume our lease. If a given lease, or guaranty of a lease, is not assumed, our cash flow and the amounts available for distributions to our stockholders may be adversely affected.

If a sale-leaseback transaction is re-characterized in a tenant's bankruptcy proceeding, our financial condition and ability to make distributions to our stockholders could be adversely affected.

We may enter into sale-leaseback transactions, whereby we would purchase a property and then lease the same property back to the person from whom we purchased it. In the event of the bankruptcy of a tenant, a transaction structured as a sale-leaseback may be re-characterized as either a financing or a joint venture, either of which outcomes could adversely affect our business. If the sale-leaseback were re-characterized as a financing, we might not be considered the owner of the property, and as a result would have the status of a creditor in relation to the tenant. In that event, we would no longer have the right to sell or encumber our ownership interest in the property. Instead, we would have a claim against the tenant for the amounts owed under the lease, with the claim arguably secured by the property. The tenant/debtor might have the ability to propose a plan restructuring the term, interest rate and amortization schedule of its outstanding balance. If confirmed by the bankruptcy court, we could be bound by the new terms, and prevented from foreclosing our lien on the property. If the sale-leaseback were re-characterized as a joint venture, our lessee and we could be treated as co-venturers with regard to the property. As a result, we could be held liable, under some circumstances, for debts incurred by the lessee relating to the property. Either of these outcomes could adversely affect our cash flow and the amount available for distributions to our stockholders.

Recharacterization of sale-leaseback transactions may cause us to lose our REIT status.

If we enter into sale-leaseback transactions, we will use commercially reasonable efforts to structure any such sale-leaseback transaction such that the lease will be characterized as a "true lease" for tax purposes, thereby allowing us to be treated as the owner of the property for U.S. federal income tax purposes. However, the IRS may challenge such characterization. In the event that any such sale-leaseback transaction is challenged and recharacterized as a financing transaction or loan for U.S. federal income tax purposes, deductions for depreciation and cost recovery relating to such property would be disallowed. If a sale-leaseback transaction were so recharacterized, we might fail to satisfy the REIT qualification "asset tests" or "income tests" and, consequently, lose our REIT status effective with the year of recharacterization. Alternatively, the amount of our REIT taxable income could be recalculated, which might also cause us to fail to meet the distribution requirement for a taxable year.

Properties that have vacancies for a significant period of time could be difficult to sell, which could diminish the return on a stockholder's investment in our shares.

A property may incur vacancies either by the continued default of tenants under their leases or the expiration of tenant leases. If vacancies continue for a long period of time, we may suffer reduced revenues resulting in less cash to be distributed to stockholders. In addition, properties' market values depend principally upon the value of the cash flow generated by the properties. Prolonged vacancies reduce this cash flow which would likely, therefore, reduce the value of the affected property.

We may obtain only limited warranties when we purchase a property and would have only limited recourse if our due diligence did not identify any issues that lower the value of the applicable property.

The seller of a property often sells such property in its "as is" condition on a "where is" basis and "with all faults," without any warranties of merchantability or fitness for a particular use or purpose. In addition, purchase agreements may contain only limited warranties, representations and indemnifications that will only survive for a limited period after the closing. The purchase of properties with limited warranties increases the risk that we may lose some or all our invested capital in the property as well as the loss of rental income from that property.

27

We may be unable to secure funds for future tenant improvements or capital needs.

To attract new replacement tenants, or in some cases secure renewal of a lease, we may expend substantial funds for tenant improvements and refurbishments. In addition, we are typically responsible for any major structural repairs, such as repairs to the foundation, exterior walls and rooftops, even if our leases with tenants may require tenants to pay routine property maintenance costs. We may not reserve sufficient gross proceeds from our IPO to fund future capital needs. Accordingly, if we need additional capital in the future to improve or maintain our properties or for any other reason, we will have to obtain financing from other sources, such as cash flow from operations, borrowings, property sales or future equity offerings. These sources of funding may not be available on attractive terms or at all. If we cannot procure additional funding for capital improvements, we may not be able to lease or re-lease space on attractive terms, if at all.

We may not be able to sell our properties at a price equal to, or greater than, the price for which we purchased such property, which may lead to a decrease in the value of our assets.

Some of our leases may not contain rental increases over time. Therefore, the value of the property to a potential purchaser may not increase over time, which may restrict our ability to sell a property, or if we are able to sell such property, may lead to a sale price less than the price that we paid to purchase the property.

We may acquire or finance properties with lock-out provisions, which may prohibit us from selling a property, or may require us to maintain specified debt levels for a period of years on some properties.

Lock-out provisions could materially restrict us from selling or otherwise disposing of or refinancing properties. These provisions would affect our ability to sell our investments. Lock-out provisions may prohibit us from reducing the outstanding indebtedness secured by the applicable property, refinancing such indebtedness on a non-recourse basis at maturity, or increasing the amount of indebtedness with respect to such properties. Lock-out provisions could impair our ability to take other actions during the lock-out period that could be in our best interests, such as precluding us from participating in major transactions that could result in a disposition of our assets or a change in control even though that disposition or change in control might be in the best interests of the Company and our stockholders.

Rising expenses could reduce cash flow and funds available for future acquisitions.

Any properties that we own or acquire are or will be subject to operating risks common to real estate in general, any or all of which may negatively affect us. If any property is not fully occupied or if rents are being paid in an amount that is insufficient to cover operating expenses, we could be required to expend funds with respect to that property for operating expenses. We may also experience increases in tax rates, utility costs, operating expenses, insurance costs, repairs and maintenance and administrative expenses. Leases may not be negotiated on a triple-net basis or on a basis requiring the tenants to pay all or some of such expenses, in which event we may have to pay those costs. If we are unable to lease properties on a triple-net-lease basis or on a basis requiring the tenants to pay all or some of such expenses, or if tenants fail to pay required tax, utility and other impositions, we could be required to pay those costs.

We may incur uninsured losses relating to real property or excessively expensive premiums for insurance coverage, due to the non-renewal of the Terrorism Risk Insurance Act of 2002 ("TRIA"), could reduce our cash flows and the return on our stockholders' investments.

There are types of losses, generally catastrophic in nature, such as losses due to wars, acts of terrorism, earthquakes, floods, hurricanes, pollution or environmental matters, that are uninsurable or not economically insurable, or may be insured subject to limitations, such as large deductibles or co-payments. Insurance risks associated with such catastrophic events could sharply increase the premiums we pay for coverage against property and casualty claims.

This risk is particularly relevant with respect to potential acts of terrorism. The TRIA, under which the U.S. federal government bears a significant portion of insured losses caused by terrorism, will expire on December 31, 2020, and there can be no assurance that Congress will act to renew or replace the TRIA following its expiration. In the event the TRIA is not renewed or replaced, terrorism insurance may become difficult or impossible to obtain at reasonable costs or at all, which may result in adverse impacts and additional costs to us.

Changes in the cost or availability of insurance due to the non-renewal of the TRIA or for other reasons could expose us to uninsured casualty losses. If any of our properties incurs a casualty loss that is not fully insured, the value of our assets will be reduced by any such uninsured loss, which may reduce the value of an investment in our shares. In addition, other than any working capital reserve or other reserves we may establish, we have no source of funding to repair or reconstruct any uninsured property. Also, to the extent we must pay unexpectedly large amounts for insurance, we could suffer reduced earnings that would result in lower distributions to stockholders.

28

Additionally, mortgage lenders insist in some cases that commercial property owners purchase coverage against terrorism as a condition for providing mortgage loans. Accordingly, to the extent terrorism risk insurance policies are not available at reasonable costs, if at all, our ability to finance or refinance our properties could be impaired. In such instances, we may be required to provide other financial support, either through financial assurances or self-insurance, to cover potential losses. We may not have adequate, or any, coverage for such losses.

Terrorist attacks and other acts of violence, civilian unrest or war may affect the markets in which we operate and our business.

We may acquire real estate assets located in areas throughout the United States, Canada and Mexico in major metropolitan areas as well as densely populated sub-markets that are susceptible to terrorist attack. In addition, any kind of terrorist activity or violent criminal acts, including terrorist acts against public institutions or buildings or modes of public transportation (including airlines, trains or buses) could have a negative effect on our business. More generally, any terrorist attack, other act of violence or war, including armed conflicts, could result in increased volatility in, or damage to, the worldwide financial markets and economy.

Real estate-related taxes may increase and if these increases are not passed on to tenants, our income will be reduced.

From time to time our property taxes increase as property values or assessment rates change or for other reasons. An increase in the assessed valuation of a property for real estate tax purposes will result in an increase in the related real estate taxes on that property. There is no assurance that leases will be negotiated on a basis that passes such taxes on to the tenant.

Properties may be subject to restrictions on their use that affect our ability to operate a property, which may adversely affect our operating costs.

Some of our properties may be contiguous to other parcels of real property, comprising part of the same commercial center. In connection with such properties, there are significant covenants, conditions and restrictions ("CC&Rs") restricting the operation of such properties and any improvements on such properties, and related to granting easements on such properties. Moreover, the operation and management of the contiguous properties may impact such properties. Compliance with CC&Rs may adversely affect our operating costs and reduce the amount of funds that we have available to pay distributions.

Our operating results may be negatively affected by potential development and construction delays and resultant increased costs and risks.

We may acquire and develop properties upon which we will construct improvements. We will be subject to uncertainties associated with re-zoning for development, environmental concerns of governmental entities and/or community groups, and our builder's ability to build in conformity with plans, specifications, budgeted costs, and timetables. If a builder fails to perform, we may resort to legal action to rescind the purchase or the construction contract or to compel performance. A builder's performance also may be affected or delayed by conditions beyond the builder's control. Delays in completion of construction could also give tenants the right to terminate preconstruction leases. We may incur additional risks when we make periodic progress payments or other advances to builders before they complete construction. These and other factors can result in increased costs of a project or loss of our investment. In addition, we will be subject to normal lease-up risks relating to newly constructed projects. We also must rely on rental income and expense projections and estimates of the fair market value of property upon completion of construction when agreeing upon a price at the time we acquire the property. If our projections are inaccurate, we may pay too much for a property, and our return on our investment could suffer.

We may invest in unimproved real property. For purposes of this paragraph, "unimproved real property" does not include properties acquired for the purpose of producing rental or other operating income, properties under development or construction, and properties under contract for development or in planning for development within one year. Returns from development of unimproved properties are also subject to risks associated with re-zoning the land for development and environmental concerns of governmental entities and/or community groups. If we invest in unimproved property other than property we intend to develop, a stockholder's investment in our shares will be subject to the risks associated with investments in unimproved real property.

We compete with third parties in acquiring properties and other investments and attracting creditworthy tenants.

We compete with many other entities engaged in real estate investment activities, including individuals, corporations, bank and insurance company investment accounts, other REITs, real estate limited partnerships, and other entities engaged in real estate investment activities, many of which have greater resources than we do. Larger REITs may enjoy significant competitive advantages that result from, among other things, a lower cost of capital and enhanced operating efficiencies. In addition, the number of entities and the amount of funds competing for suitable investments may increase. Any such increase would result in increased demand for these assets and therefore increased prices paid for them.

29

We also compete with other comparable properties for tenants, which impacts our ability to rent space and the amount of rent charged. We could be adversely affected if additional competitive properties are built in locations near our properties, causing increased competition for creditworthy tenants. This could result in decreased cash flow from our properties and may require us to make capital improvements to properties that we would not have otherwise made, further impacting property cash flows.

Discovery of previously undetected environmentally hazardous conditions may adversely affect our operating results.

We are subject to various federal, state and local laws and regulations that (a) regulate certain activities and operations that may have environmental or health and safety effects, such as the management, generation, release or disposal of regulated materials, substances or wastes, (b) impose liability for the costs of cleaning up, and damages to natural resources from, past spills, waste disposals on and off-site, or other releases of hazardous materials or regulated substances, and (c) regulate workplace safety. Compliance with these laws and regulations could increase our operational costs. Violation of these laws may subject us to significant fines, penalties or disposal costs, which could negatively impact our results of operations, financial position and cash flows. Under various federal, state and local environmental laws (including those of foreign jurisdictions), a current or previous owner or operator of currently or formerly owned, leased or operated real property may be liable for the cost of removal or remediation of hazardous or toxic substances on, under or in such property. The costs of removal or remediation could be substantial. Such laws often impose liability whether or not the owner or operator knew of, or was responsible for, the presence of such hazardous or toxic substances. Certain environmental laws and common law principles could be used to impose liability for release of and exposure to hazardous substances, including asbestos-containing materials into the air, and third parties may seek recovery from owners or operators of real properties for personal injury or property damage associated with exposure to released hazardous substances. In addition, when excessive moisture accumulates in buildings or on building materials, mold growth may occur, particularly if the moisture problem remains undiscovered or is not addressed over a period of time. Some molds may produce airborne toxins or irritants. Concern about indoor exposure to mold has been increasing, as exposure to mold may cause a variety of adverse health effects and symptoms, including allergic or other reactions. As a result, the presence of significant mold at any of our properties could require us to undertake a costly remediation program to contain or remove the mold from the affected property or development project.

Accordingly, we may incur significant costs to defend against claims of liability, to comply with environmental regulatory requirements, to remediate any contaminated property, or to pay personal injury claims.

Moreover, environmental laws also may impose liens on property or other restrictions on the manner in which property may be used or businesses may be operated, and these restrictions may require substantial expenditures or prevent us or our Property Manager and its assignees from operating such properties. Compliance with new or more stringent laws or regulations or stricter interpretation of existing laws may require us to incur material expenditures. Future laws, ordinances or regulations or the discovery of currently unknown conditions or non-compliances may impose material liability under environmental laws.

If we sell properties by providing financing to purchasers, defaults by the purchasers would adversely affect our cash flows.

If we decide to sell any of our properties, in some instances we may sell our properties by providing financing to purchasers. If we do so, we will bear the risk that the purchaser may default on its debt, requiring us to seek remedies, a process which may be time-consuming and costly. Further, the borrower may have defenses that could limit or eliminate our remedies. In addition, even in the absence of a purchaser default, the distribution of the proceeds of sales to our stockholders, or their reinvestment in other assets, will be delayed until the promissory notes or other property we may accept upon the sale are actually paid, sold, refinanced or otherwise disposed of. In some cases, we may receive initial down payments in cash and other property in the year of sale in an amount less than the selling price and subsequent payments will be spread over a number of years.

Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on the financial condition of co-venturers and disputes between us and our co-venturers.

We may enter into joint ventures, partnerships and other co-ownership arrangements (including preferred equity investments) for the purpose of making investments. In such event, we may not be in a position to exercise sole decision-making authority regarding the joint venture. Investments in joint ventures may, under certain circumstances, involve risks not present were a third party not involved, including the possibility that partners or co-venturers might become bankrupt or fail to fund their required capital contributions. Co-venturers may have economic or other business interests or goals which are inconsistent with our business interests or goals, and may be in a position to take actions contrary to our policies or objectives. Such investments may also have the potential risk of impasses on decisions, such as a sale, because neither we nor the co-venturer would have full control over the joint venture. Disputes between us and co-venturers may result in litigation or arbitration that would increase our expenses and prevent our officers and/or directors from focusing their time and effort on our business. Consequently, actions by or disputes with co-venturers might result in subjecting properties owned by the joint venture to additional risk. In addition, we may in certain circumstances be liable for the actions of our co-venturers.

30

Our costs associated with complying with the Americans with Disabilities Act may affect cash available for distributions.

Our properties are and will be subject to the Americans with Disabilities Act of 1990 (the "Disabilities Act"). Under the Disabilities Act, all places of public accommodation are required to comply with federal requirements related to access and use by disabled persons. The Disabilities Act has separate compliance requirements for "public accommodations" and "commercial facilities" that generally require that buildings and services, including restaurants and retail stores, be made accessible and available to people with disabilities. The Disabilities Act's requirements could require removal of access barriers and could result in the imposition of injunctive relief, monetary penalties, or, in some cases, an award of damages. There is no assurance that we will be able to acquire properties or allocate the burden on the seller or other third party, such as a tenant, to ensure compliance with the Disabilities Act. If we cannot, our funds used for Disabilities Act compliance may affect cash available for distributions and the amount of distributions paid to our stockholders.

Net leases may not result in fair market lease rates over time.

Some of our rental income is generated by net leases, which generally provide the tenant greater discretion in using the leased property than ordinary property leases, such as the right to freely sublease the property, to make alterations in the leased premises and to terminate the lease prior to its expiration under specified circumstances. Furthermore, net leases typically have longer lease terms and, thus, there is an increased risk that contractual rental increases in future years will fail to result in fair market rental rates during those years.

We may be unable to renew leases or re-lease space as leases expire.

We may be unable to renew expiring leases on terms and conditions that are as, or more, favorable as the terms and conditions of the expiring leases. In addition, vacancies may occur at one or more of our properties due to a default by a tenant on its lease or expiration of a lease. Healthcare facilities in general and MOBs in particular tend to be specifically suited for the particular needs of their tenants and major renovations and expenditures may be required in order for us to re-lease vacant space. Vacancies may reduce the value of a property as a result of reduced cash flow generated by the property.

Our properties may be subject to impairment charges.

We periodically evaluate our real estate investments for impairment indicators. The judgment regarding the existence of impairment indicators is based on factors such as market conditions, tenant performance and legal structure. For example, the early termination of, or default under, a lease by a major tenant may lead to an impairment charge. If we determine that an impairment has occurred, we would be required to make a downward adjustment to the net carrying value of the property. Impairment charges also indicate a potential permanent adverse change in the fundamental operating characteristics of the impaired property. There is no assurance that these adverse changes will be reversed in the future and the decline in the impaired property's value could be permanent.

Our real estate investments are relatively illiquid, and therefore we may not be able to dispose of properties when appropriate or on favorable terms.

Investments in real properties are relatively illiquid. We may not be able to quickly alter our portfolio or generate capital by selling properties. The real estate market is affected by many factors, such as general economic conditions, availability of financing, interest rates and other factors, including supply and demand, that are beyond our control. If we need or desire to sell a property or properties, we cannot predict whether we will be able to do so at a price or on the terms and conditions acceptable to us. We cannot predict the length of time needed to find a willing purchaser and to close the sale of a property. Further, we may be required to invest monies to correct defects or to make improvements before a property can be sold. We can make no assurance that we will have funds available to correct these defects or to make these improvements. Moreover, in acquiring a property, we may agree to restrictions that prohibit the sale of that property for a period of time or impose other restrictions, such as a limitation on the amount of debt that can be placed or repaid on that property. These provisions would restrict our ability to sell a property.

In addition, applicable provisions of the Code impose restrictions on the ability of a REIT to dispose of properties that are not applicable to other types of real estate companies. Thus, we may be unable to realize our investment objectives by selling or otherwise disposing of or refinancing a property at attractive prices within any given period of time or may otherwise be unable to complete any exit strategy.

31

Potential changes in U.S. accounting standards regarding operating leases may make the leasing of our properties less attractive to our potential tenants, which could reduce overall demand for our leasing services.

Under current authoritative accounting guidance for leases, a lease is classified by a tenant as a capital lease if the significant risks and rewards of ownership are considered to reside with the tenant. Under capital lease accounting for a tenant, both the leased asset and liability are reflected on their balance sheet. If the lease does not meet any of the criteria for a capital lease, the lease is considered an operating lease by the tenant, and the obligation does not appear on the tenant’s balance sheet; rather, the contractual future minimum payment obligations are only disclosed in the footnotes thereto. Thus, entering into an operating lease can appear to enhance a tenant’s balance sheet in comparison to direct ownership. The Financial Accounting Standards Board (the "FASB") and the International Accounting Standards Board (the "IASB") conducted a joint project to reevaluate lease accounting. In June 2013, the FASB and the IASB jointly finalized exposure drafts of a proposed accounting model that would significantly change lease accounting. In March 2014, the FASB and the IASB deliberated aspects of the joint project, including the lessee and lessor accounting models, lease term, and exemptions and simplifications. The final standards were released in February 2016 and will become effective for us in 2019. We are currently evaluating the impact of this new guidance. Changes to the accounting guidance could affect both our accounting for leases as well as that of our current and potential tenants. These changes may affect how the real estate leasing business is conducted. For example, if the accounting standards regarding the financial statement classification of operating leases are revised, then companies may be less willing to enter into leases in general or desire to enter into leases with shorter terms because the apparent benefits to their balance sheets could be reduced or eliminated. This in turn could cause a delay in investing our offering proceeds and make it more difficult for us to enter into leases on terms we find favorable.

Healthcare Industry Risks

Our real estate investments are concentrated in MOBs, seniors housing communities and other healthcare-related facilities, making us more vulnerable economically than if our investments were less focused on healthcare-related assets.

We own and seek to acquire a diversified portfolio of healthcare-related assets including MOBs, seniors housing communities and other healthcare-related facilities. We are subject to risks inherent in concentrating investments in real estate and, in particular, healthcare-related assets. A downturn in the commercial real estate industry generally could significantly adversely affect the value of our properties. A downturn in the healthcare industry could particularly negatively affect our lessees' ability to make lease payments to us and our ability to make distributions to our stockholders. These adverse effects could be more pronounced than if we diversified our investments outside of real estate or if our portfolio did not include a concentration in healthcare-related assets.

Certain of our properties may not have efficient alternative uses, so the loss of a tenant may cause us to not be able to find a replacement or cause us to spend considerable capital to adapt the property to an alternative use.

Some of our properties and the properties we will seek to acquire are healthcare-related assets that may only be suitable for similar healthcare-related tenants. If we or our tenants terminate the leases for these properties or our tenants lose their regulatory authority to operate such properties, we may not be able to locate suitable replacement tenants to lease the properties for their specialized uses. Alternatively, we may be required to spend substantial amounts to adapt the properties to other uses.

Our properties and tenants may be unable to compete successfully.

The properties we have acquired and will acquire may face competition from nearby hospitals and other medical facilities that provide comparable services. Some of those competing facilities are owned by governmental agencies and supported by tax revenues, and others are owned by nonprofit corporations and may be supported to a large extent by endowments and charitable contributions. These types of support are not available to our properties. Similarly, our tenants face competition from other medical practices in nearby hospitals and other medical facilities. Our tenants' failure to compete successfully with these other practices could adversely affect their ability to make rental payments, which could adversely affect our rental revenues.

Further, from time to time and for reasons beyond our control, referral sources, including physicians and managed care organizations, may change their lists of hospitals or physicians to which they refer patients. This could adversely affect our tenants' ability to make rental payments, which could adversely affect our rental revenues.

32

Reductions or changes in reimbursement from third-party payors, including Medicare and Medicaid, could adversely affect the profitability of our tenants and hinder their ability to make rent payments to us.

Sources of revenue for our tenants may include the federal Medicare program, state Medicaid programs, private insurance carriers and health maintenance organizations, among others. Efforts by such payors to reduce healthcare costs have intensified in recent years and will likely continue, which may result in reductions or slower growth in reimbursement for certain services provided by some of our tenants. In addition, the failure of any of our tenants to comply with various laws and regulations could jeopardize their ability to continue participating in Medicare, Medicaid and other government-sponsored payment programs. The healthcare industry continues to face various challenges, including increased government and private payor pressure on healthcare providers to control or reduce costs. Our tenants may continue to experience a shift in payor mix away from fee-for-service payors, resulting in an increase in the percentage of revenues attributable to managed care payors, and general industry trends that include pressures to control healthcare costs. In addition, some of our tenants may be subject to value-based purchasing programs, which base reimbursement on the quality and efficiency of care provided by facilities and require the public reporting of quality data and preventable adverse events to receive full reimbursement. Pressures to control healthcare costs and a shift away from traditional health insurance reimbursement to managed care plans have resulted in an increase in the number of patients whose healthcare coverage is provided under managed care plans, such as health maintenance organizations and preferred provider organizations. These changes could have a material adverse effect on the financial condition of some or all of our tenants in our properties. The financial impact on our tenants could restrict their ability to make rent payments to us.

A reduction in Medicare payment rates for skilled nursing facilities may have an adverse effect on the Medicare reimbursements received by certain of our tenants.

Several government initiatives have resulted in reductions in funding of the Medicare and Medicaid programs and additional changes in reimbursement regulations by the Centers for Medicare & Medicaid Services ("CMS"), contributing to enhanced pressure to contain healthcare costs and additional operational requirements, which could adversely affect our tenants' ability to make rent payments to us.

On April 16, 2015, President Obama signed into law the Medicare Access and CHIP Reauthorization Act of 2015, which among other things, permanently repealed the Sustainable Growth Rate formula ("SGR"), which threatened physician reimbursement under Medicare, and provided for an annual rate increase of 0.5% for physicians through 2019. The law also provides for a 1% cap on the market basket increase for skilled nursing facilities for fiscal year 2018. In addition, on July 30, 2015, CMS announced a final rule that increased Medicare payments to skilled nursing facilities by approximately $430 million, or 1.2%, for fiscal year 2016. If these rate increases and payments under Medicare to our tenants do not continue or increase, our tenants may have difficulty making rent payments to us.

In addition, there have been numerous initiatives on the federal and state levels for comprehensive reforms affecting the payment for and availability of healthcare services. We may acquire skilled nursing facility assets that rely on revenue from Medicaid or Medicare. Our tenants may experience limited increases or reductions in Medicare payments and aspects of certain of these government initiatives, such as further reductions in funding of the Medicare and Medicaid programs, additional changes in reimbursement regulations by CMS, enhanced pressure to contain healthcare costs by Medicare, Medicaid and other payors, and additional operational requirements may adversely affect their ability to make rental payments.

Certain of our facilities may be subject to pre- and post-payment reviews and audits by governmental authorities, which could result in recoupments, denials or delay of payments and could adversely affect the profitability of our tenants.

Certain of our facilities may be subject to periodic pre- and post-payment reviews and audits by governmental authorities. If the review or audit shows a facility is not in compliance with federal and state requirements, previous payments to the facility may be recouped and future payments may be denied or delayed. Recoupments, denials or delay of payments could adversely affect the profitability of our tenants and hinder their ability to make rent payments to us.

Events that adversely affect the ability of seniors and their families to afford daily resident fees at our seniors housing communities could cause our occupancy rates and resident fee revenues to decline.

Assisted and independent living services generally are not reimbursable under government reimbursement programs, such as Medicare and Medicaid. Substantially all of the resident fee revenues generated by our senior living operations, therefore, are derived from private pay sources consisting of the income or assets of residents or their family members. The rates for such residents are set by the facilities based on local market conditions and operating costs. In light of the significant expense associated with building new properties and staffing and other costs of providing services, typically only seniors with income or assets that meet or exceed the comparable region median can afford the daily resident and care fees at our seniors housing communities, and a weak economy, depressed housing market or changes in demographics could adversely affect their continued ability to do so. If the managers of our seniors housing communities are unable to attract and retain seniors that have sufficient income, assets or other resources to pay the fees associated with assisted and independent living services, the occupancy rates, resident fee revenues and results of operations of our senior living operations could decline.

33

The healthcare industry is heavily regulated, and new laws or regulations, changes to existing laws or regulations, loss of licensure or failure to obtain licensure could result in the inability of our tenants to make rent payments to us.

The healthcare industry is heavily regulated by federal, state and local governmental bodies. The tenants in medical facilities we acquire generally are subject to laws and regulations covering, among other things, licensure, certification for participation in government programs, relationships with physicians and other referral sources, and the privacy and security of patient health information. Changes in these laws and regulations could negatively affect the ability of our tenants to make lease payments to us and our ability to make distributions to our stockholders. Many of our medical facilities and their tenants may require a license or CON to operate. Failure to obtain a license or CON, or loss of a required license or CON, would prevent a facility from operating in the manner intended by the tenant. These events could materially adversely affect our tenants' ability to make rent payments to us. State and local laws also may regulate expansion, including the addition of new beds or services or acquisition of medical equipment, and the construction of medical facilities, by requiring a CON or other similar approval. State CON laws are not uniform throughout the United States and are subject to change. We cannot predict the impact of state CON laws on our improvement of medical facilities or the operations of our tenants. In addition, state CON laws often materially impact the ability of competitors to enter into the marketplace of our facilities. The repeal of CON laws could allow competitors to freely operate in previously closed markets. This could negatively affect our tenants' abilities to make current payments to us. In limited circumstances, loss of state licensure or certification or closure of a facility could ultimately result in loss of authority to operate the facility and require new CON authorization to re-institute operations.

Furthermore, uncertainty surrounding the implementation of the Affordable Care Act may adversely affect our operators. As the primary vehicle for comprehensive healthcare reform in the United States, the Affordable Care Act was designed to reduce the number of individuals in the United States without health insurance and change the ways in which healthcare is organized, delivered and reimbursed. The Affordable Care Act is being implemented in phases that will conclude in 2018.

The Affordable Care Act includes program integrity provisions that both create new authorities and expand existing authorities for federal and state governments to address fraud, waste and abuse in federal health programs. In addition, the Affordable Care Act expands reporting requirements and responsibilities related to facility ownership and management, patient safety and care quality. In the ordinary course of their businesses, our operators may be regularly subjected to inquiries, investigations and audits by federal and state agencies that oversee these laws and regulations. If they do not comply with the additional reporting requirements and responsibilities, our operators' ability to participate in federal health programs may be adversely affected. Moreover, there may be other aspects of the comprehensive healthcare reform legislation for which regulations have not yet been adopted, which, depending on how they are implemented, could materially and adversely affect our operators, and therefore our business, financial condition, results of operations and ability to pay distributions to our stockholders.

The Affordable Care Act also requires the reporting and return of overpayments. On February 11, 2016, CMS published a final rule that requires Medicare Parts A and B health care providers and suppliers to report and return overpayments by the later of the date that is 60 days after the date an overpayment was identified, or the due date of any corresponding cost report, if applicable. Healthcare providers that fail to report and return an overpayment could face potential liability under the False Claims Act and the Civil Monetary Penalties law and exclusion from federal healthcare programs. Accordingly, if our operators fail to comply with the Affordable Care Act’s requirements, they may be subject to significant monetary penalties and excluded from participation in Medicare and Medicaid, which could materially and adversely affect their ability to pay rent and satisfy other financial obligations to us.

Residents in our seniors housing communities may terminate leases.

State regulations generally require assisted living communities to have a written lease agreement with each resident that permits the resident to terminate his or her lease for any reason on reasonable notice, unlike typical apartment lease agreements that have initial terms of one year or longer. Due to these lease termination rights and the advanced age of the residents, the resident turnover rate in our seniors housing communities may be difficult to predict. A large number of resident lease agreements may terminate at or around the same time, and the affected units may remain unoccupied.

Some tenants of our healthcare-related assets are subject to fraud and abuse laws, the violation of which by a tenant may jeopardize the tenant's ability to make rent payments to us.

There are various federal and state laws prohibiting fraudulent and abusive business practices by healthcare providers who participate in, receive payments from or are in a position to make referrals in connection with government-sponsored healthcare programs, including the Medicare and Medicaid programs.

34

Our lease arrangements with certain tenants may also be subject to these fraud and abuse laws. These laws include the Federal Anti-Kickback Statute, which prohibits, among other things, the offer, payment, solicitation or receipt of any form of remuneration in return for, or to induce, the referral of any item or service reimbursed by Medicare or Medicaid; the Federal Physician Self-Referral Prohibition, which, subject to specific exceptions, restricts physicians from making referrals for specifically designated health services for which payment may be made under Medicare or Medicaid programs to an entity with which the physician, or an immediate family member, has a financial relationship; the False Claims Act, which prohibits any person from knowingly presenting false or fraudulent claims for payment to the federal government, including claims paid by the Medicare and Medicaid programs; and the Civil Monetary Penalties Law, which authorizes the U.S. Department of Health and Human Services to impose monetary penalties for certain fraudulent acts. Each of these laws includes criminal or civil penalties for violations that range from punitive sanctions, damage assessments, penalties, imprisonment, denial of Medicare and Medicaid payments and/or exclusion from the Medicare and Medicaid programs. Certain laws, such as the False Claims Act, allow for individuals to bring whistleblower actions on behalf of the government for violations thereof. Additionally, states in which the facilities are located may have similar fraud and abuse laws. Investigation by a federal or state governmental body for violation of fraud and abuse laws or imposition of any of these penalties upon one of our tenants could jeopardize that tenant's business and its ability to operate or to make rent payments.

Adverse trends in healthcare provider operations may negatively affect our ability to lease space at our facilities at attractive or growing rates and lease revenues.

The healthcare industry currently is experiencing changes in the demand for and methods of delivering healthcare services; changes in third party reimbursement policies; significant unused capacity in certain areas, which has created substantial competition for patients among healthcare providers in those areas; continuing pressure by private and governmental payors to reduce payments to providers of services; and increased scrutiny of billing, referral and other practices by federal and state authorities. These factors may adversely affect the economic performance of some or all of our tenants and, in turn, our company and revenues.

Tenants of our healthcare-related assets may be subject to significant legal actions that could subject them to increased operating costs and substantial uninsured liabilities, which may affect their ability to pay their rent payments to us.

As is typical in the healthcare industry, certain types of tenants of our healthcare-related assets may often become subject to claims that their services have resulted in patient injury or other adverse effects. Many of these tenants may have experienced an increasing trend in the frequency and severity of professional liability and general liability insurance claims and litigation asserted against them. The insurance coverage maintained by these tenants may not cover all claims made against them nor continue to be available at a reasonable cost, if at all. In some states, insurance coverage for the risk of punitive damages arising from professional liability and general liability claims or litigation may not, in certain cases, be available to these tenants due to state law prohibitions or limitations of availability. As a result, these types of tenants operating in these states may be liable for punitive damage awards that are either not covered or are in excess of their insurance policy limits. Recently, there has been an increase in governmental investigations of certain healthcare providers, particularly in the area of Medicare/Medicaid false claims, as well as an increase in enforcement actions resulting from these investigations. Insurance is not available to cover such losses. Any adverse determination in a legal proceeding or governmental investigation, whether currently asserted or arising in the future, could have a material adverse effect on a tenant's financial condition. If a tenant is unable to obtain or maintain insurance coverage, if judgments are obtained in excess of the insurance coverage, if a tenant is required to pay uninsured punitive damages, or if a tenant is subject to an uninsurable government enforcement action, the tenant could be exposed to substantial additional liabilities, which may affect the tenant's business, operations and ability to pay rent to us.

We may experience adverse effects as a result of potential financial and operational challenges faced by the operators of any seniors housing facilities and skilled nursing facilities we own or acquire.

Operators of any seniors housing facilities and skilled nursing facilities may face operational challenges from potentially reduced revenue streams and increased demands on their existing financial resources. Our skilled nursing operators' revenues likely are primarily derived from governmentally funded reimbursement programs, such as Medicare and Medicaid. Accordingly, our facility operators will be subject to the potential negative effects of decreased reimbursement rates offered through such programs. Our operators' revenue may also be adversely affected as a result of falling occupancy rates or slow lease-ups for assisted and independent living facilities due to the recent turmoil in the capital debt and real estate markets. In addition, our facility operators may incur additional demands on their existing financial resources as a result of increases in seniors housing facility operator liability, insurance premiums and other operational expenses. The economic deterioration of an operator could cause such operator to file for bankruptcy protection. The bankruptcy or insolvency of an operator may adversely affect the income produced by the property or properties it operates. Our financial position could be weakened and our ability to make distributions could be limited if any of our seniors housing facility operators were unable to meet their financial obligations to us.

35

Our operators' performance and economic condition may be negatively affected if they fail to comply with various complex federal and state laws that govern a wide array of referrals, relationships and licensure requirements in the senior healthcare industry. The violation of any of these laws or regulations by a seniors housing facility operator may result in the imposition of fines or other penalties that could jeopardize that operator's ability to make payment obligations to us or to continue operating its facility. In addition, legislative proposals are commonly being introduced or proposed in federal and state legislatures that could affect major changes in the seniors housing sector, either nationally or at the state level. It is impossible to say with any certainty whether this proposed legislation will be adopted or, if adopted, what effect such legislation would have on our facility operators and our seniors housing operations.

Risks Associated with Debt Financing and Investments

We have broad authority to incur debt.

We expect that in most instances, we will continue to acquire real properties by using either existing financing or borrowing new funds. In addition, we may continue to incur mortgage debt and pledge all or some of our real properties as security for that debt to obtain funds to acquire additional real properties. We may borrow if we need funds to satisfy the REIT tax qualification requirement that we generally distribute annually to our stockholders at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding capital gain. We also may borrow if we otherwise deem it necessary or advisable to assure that we maintain our qualification as a REIT.

There is no limit on the amount we may borrow against any single improved property. High debt levels would cause us to incur higher interest charges, would result in higher debt service payments and could be accompanied by restrictive covenants.

We may experience a shortfall between the cash flow from a property and the cash flow needed to service mortgage debt on that property, especially if we acquire the property when it is being developed or under construction. Using leverage increases the risk of loss because defaults on indebtedness secured by a property may result in lenders initiating foreclosure actions. In that case, we could lose the property securing the loan that is in default, thus reducing the value of our stockholders' investment. For U.S. federal income tax purposes, a foreclosure of any of our properties would be treated as a sale of the property for a purchase price equal to the outstanding balance of the debt secured by the mortgage. If the outstanding balance of the debt secured by the mortgage exceeds our tax basis in the property, we would recognize taxable income on foreclosure, but would not receive any cash proceeds. In such event, we may be unable to pay the amount of distributions required in order to maintain our REIT status. We may give full or partial guarantees to lenders of mortgage debt to the entities that own our properties. If we provide a guaranty on behalf of an entity that owns one of our properties, we will be responsible to the lender for satisfaction of the debt if it is not paid by such entity. If any mortgages contain cross-collateralization or cross-default provisions, a default on a single property could affect multiple properties.

The debt markets may be volatile.

Volatility or disruption in debt markets could result in lenders increasing the cost for debt financing or limiting the availability of debt financing. If the overall cost of borrowings increase, either by increases in the index rates or by increases in lender spreads, we will need to factor such increases into the economics of future acquisitions. This may result in future acquisitions generating lower overall economic returns. If debt markets experience volatility or disruptions, our ability to borrow monies to finance the purchase of, or other activities related to, real estate assets will be negatively impacted.

If we are unable to borrow monies on terms and conditions that we find acceptable, we likely will have to reduce the number of properties we can purchase, and the return on the properties we do purchase may be lower. In addition, we may find it difficult, costly or impossible to refinance indebtedness which is maturing.

In addition, the state of the debt markets could have an impact on the overall amount of capital available to invest in real estate which may result in price or value decreases of real estate assets. This could negatively impact the value of our assets after the time we acquire them.

We may not be able to refinance our indebtedness.

Mortgage debt on properties increases the risk that we will be unable to refinance the properties when the loans come due or that we will be able to refinance on favorable terms. If interest rates are higher than the rates on the expiring debt, we may not be able to refinance the debt or our interest expense could increase.

Lenders may require us to enter into restrictive covenants relating to our operations.

In connection with providing us financing, a lender could impose restrictions on us that affect our distribution and operating policies and our ability to incur additional debt. Loan documents we enter into may contain covenants that limit our ability to further mortgage the property, discontinue insurance coverage or replace our Advisor. These or other limitations may adversely affect our flexibility and our ability to achieve our investment and operating objectives.

36

Increases in interest rates could increase the amount of our debt payments and adversely affect our ability to pay distributions to our stockholders.

We have incurred indebtedness, and we expect that we will incur additional indebtedness in the future. To the extent that we incur variable rate debt, increases in interest rates would increase our interest costs, which could reduce our cash flows and our ability to pay distributions to our stockholders. If we refinance long-term debt at high interest rates it may reduce the cash we have available to make distributions to our stockholders. In addition, if we need to repay existing debt during periods of rising interest rates, we could be required to liquidate one or more of our investments in properties at times that may not permit realization of the maximum return on such investments.

We may invest in collateralized mortgage-backed securities, which may increase our exposure to credit and interest rate risk.

We may invest in collateralized mortgage-backed securities ("CMBS"), which may increase our exposure to credit and interest rate risk. We have not adopted, and do not expect to adopt, any formal policies or procedures designed to manage risks associated with our investments in CMBS. In this context, credit risk is the risk that borrowers will default on the mortgages underlying the CMBS. While we may invest in CMBS guaranteed by U.S. government agencies, such as the Government National Mortgage Association ("GNMA"), or U.S. government sponsored enterprises, such as the Federal National Mortgage Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC"), there is no guarantee that such CMBS will be available or continue to be guaranteed by the U.S. government. Interest rate risk occurs as prevailing market interest rates change relative to the current yield on the CMBS. For example, when interest rates fall, borrowers are more likely to prepay their existing mortgages to take advantage of the lower cost of financing. As prepayments occur, principal is returned to the holders of the CMBS sooner than expected, thereby lowering the effective yield on the investment. On the other hand, when interest rates rise, borrowers are more likely to maintain their existing mortgages. As a result, prepayments decrease, thereby extending the average maturity of the mortgages underlying the CMBS.

Any real estate debt securities that we originate or purchase are subject to the risks of delinquency and foreclosure.

We may originate and purchase real estate debt securities, which are subject to risks of delinquency and foreclosure and risks of loss. Typically, we will not have recourse to the personal assets of our borrowers. The ability of a borrower to repay a real estate debt security secured by an income-producing property depends primarily upon the successful operation of the property, rather than upon the existence of independent income or assets of the borrower. If the net operating income of the property is reduced, the borrower's ability to repay the real estate debt security may be impaired.

A property's net operating income can be affected by, among other things:

• increased costs;

• property management decisions;

• property location and condition;

• competition from comparable types of properties;

• changes in specific industry segments;

• declines in regional or local real estate values, or occupancy rates; and

• increases in interest rates, real estate tax rates and other operating expenses.

We bear the risks of loss of principal to the extent of any deficiency between the value of the collateral and the principal and accrued interest of the real estate debt security, which could have a material adverse effect on our cash flow from operations and limit amounts available for distribution to our stockholders. In the event of the bankruptcy of a real estate debt security borrower, the real estate debt security to that borrower will be deemed to be collateralized only to the extent of the value of the underlying collateral at the time of bankruptcy (as determined by the bankruptcy court), and the lien securing the real estate debt security will be subject to the avoidance powers of the bankruptcy trustee or debtor-in-possession to the extent the lien is unenforceable under state law. Foreclosure of a real estate debt security can be an expensive and lengthy process that could have a substantial negative effect on our anticipated return on the foreclosed real estate debt security. We also may be forced to foreclose on certain properties, be unable to sell these properties and be forced to incur substantial expenses to improve operations at the property.

37

Disruptions in the financial markets and challenging economic conditions could adversely impact the market for real estate-related debt investments, which could hinder our ability to implement our business strategy and generate returns to our stockholders.

We may allocate a percentage of our portfolio to real estate-related investments such as debt and derivative securities related to real estate assets, including mortgage-backed securities and the equity securities of other REITs and real estate companies. The returns available to investors in these investments are determined by (a) the supply and demand for these investments, (b) the performance of the assets underlying the investments, and (c) the existence of a market for these investments, which includes the ability to sell or finance these investments.

During periods of volatility, the number of investors participating in the market may change at an accelerated pace. As liquidity or "demand" increases the returns available to investors on new investments will decrease. Conversely, a lack of liquidity will cause the returns available to investors on new investments to increase.

Any hedging strategies we utilize may not be successful in mitigating our risks.

We may enter into hedging transactions to manage risk of interest rate changes, price changes or currency fluctuations with respect to borrowings made or to be made to acquire or own real estate assets. To the extent that we use derivative financial instruments in connection with these risks, we will be exposed to credit, basis and legal enforceability risks. Derivative financial instruments may include interest rate swap contracts, interest rate cap or floor contracts, futures or forward contracts, options or repurchase agreements. In this context, credit risk is the failure of the counterparty to perform under the terms of the derivative contract. If the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. Basis risk occurs when the index upon which the contract is based is more or less variable than the index upon which the hedged asset or liability is based, thereby making the hedge less effective. Finally, legal enforceability risks encompass general contractual risks, including the risk that the counterparty will breach the terms of, or fail to perform its obligations under, the derivative contract.

U.S. Federal Income Tax Risks

Our failure to qualify or remain qualified as a REIT would subject us to U.S. federal income tax and potentially state and local tax, and would adversely affect our operations and the market price of our common stock.

We elected and qualified to be taxed as a REIT commencing with our taxable year ended December 31, 2013 and intend to operate in a manner that would allow us to continue to qualify as a REIT. However, we may terminate our REIT qualification, if our board of directors determines that not qualifying as a REIT is in our best interests, or inadvertently. Our qualification as a REIT depends upon our satisfaction of certain asset, income, organizational, distribution, stockholder ownership and other requirements on a continuing basis. The REIT qualification requirements are extremely complex and interpretation of the U.S. federal income tax laws governing qualification as a REIT is limited. Furthermore, any opinion of our counsel, including tax counsel, as to our eligibility to qualify or remain qualified as a REIT is not binding on the IRS and is not a guarantee that we will qualify, or continue to qualify, as a REIT. Accordingly, we cannot be certain that we will be successful in operating so we can qualify or remain qualified as a REIT. Our ability to satisfy the asset tests depends on our analysis of the characterization and fair market values of our assets, some of which are not susceptible to a precise determination, and for which we will not obtain independent appraisals. Our compliance with the REIT income or quarterly asset requirements also requires us to successfully manage the composition of our income and assets on an ongoing basis. Accordingly, if certain of our operations were to be recharacterized by the IRS, such recharacterization would jeopardize our ability to satisfy all requirements for qualification as a REIT. Furthermore, future legislative, judicial or administrative changes to the U.S. federal income tax laws could be applied retroactively, which could result in our disqualification as a REIT.

If we fail to qualify as a REIT for any taxable year, and we do not qualify for certain statutory relief provisions, we will be subject to U.S. federal income tax on our taxable income at corporate rates. In addition, we would generally be disqualified from treatment as a REIT for the four taxable years following the year of losing our REIT qualification. Losing our REIT qualification would reduce our net earnings available for investment or distribution to stockholders because of the additional tax liability. In addition, distributions to stockholders would no longer qualify for the dividends paid deduction, and we would no longer be required to make distributions. If this occurs, we might be required to borrow funds or liquidate some investments in order to pay the applicable tax.

38

Even if we qualify as a REIT, in certain circumstances, we may incur tax liabilities that would reduce our cash available for distribution to our stockholders.

Even if we qualify and maintain our status as a REIT, we may be subject to U.S. federal, state and local income taxes. For example, net income from the sale of properties that are "dealer" properties sold by a REIT (a "prohibited transaction" under the Code) will be subject to a 100% tax. We may not make sufficient distributions to avoid excise taxes applicable to REITs. We also may decide to retain net capital gain we earn from the sale or other disposition of our property and pay U.S. federal income tax directly on such income. In that event, our stockholders would be treated as if they earned that income and paid the tax on it directly. However, stockholders that are tax-exempt, such as charities or qualified pension plans, would have no benefit from their deemed payment of such tax liability unless they file U.S. federal income tax returns and thereon seek a refund of such tax. We also will be subject to corporate tax on any undistributed REIT taxable income. We also may be subject to state and local taxes on our income or property, including franchise, payroll and transfer taxes, either directly or at the level of our OP or at the level of the other companies through which we indirectly own our assets, such as taxable REIT subsidiaries, which are subject to full U.S. federal, state, local and foreign corporate-level income taxes. Any taxes we pay directly or indirectly will reduce our cash available for distribution to our stockholders.

To qualify as a REIT we must meet annual distribution requirements, which may force us to forgo otherwise attractive opportunities or borrow funds during unfavorable market conditions. This could delay or hinder our ability to meet our investment objectives and reduce an overall return.

In order to qualify as a REIT, we must distribute annually to our stockholders at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding net capital gain. We will be subject to U.S. federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (a) 85% of our ordinary income, (b) 95% of our capital gain net income and (c) 100% of our undistributed income from prior years. These requirements could cause us to distribute amounts that otherwise would be spent on investments in real estate assets and it is possible that we might be required to borrow funds, possibly at unfavorable rates, or sell assets to fund these distributions. It is possible that we might not always be able to make distributions sufficient to meet the annual distribution requirements and to avoid U.S. federal income and excise taxes on our earnings while we qualify as a REIT.

Certain of our business activities are potentially subject to the prohibited transaction tax, which could reduce the return on an investment in our shares.

For so long as we qualify as a REIT, our ability to dispose of property during the first few years following acquisition may be restricted to a substantial extent as a result of our REIT qualification. Under applicable provisions of the Code regarding prohibited transactions by REITs, while we qualify as a REIT, we will be subject to a 100% penalty tax on any gain recognized on the sale or other disposition of any property (other than foreclosure property) that we own, directly or indirectly through any subsidiary entity, including our OP, but generally excluding taxable REIT subsidiaries, that is deemed to be inventory or property held primarily for sale to customers in the ordinary course of a trade or business. Whether property is inventory or otherwise held primarily for sale to customers in the ordinary course of a trade or business depends on the particular facts and circumstances surrounding each property. We intend to avoid the 100% prohibited transaction tax by (a) conducting activities that may otherwise be considered prohibited transactions through a taxable REIT subsidiary (but such taxable REIT subsidiary would incur corporate rate income taxes with respect to any income or gain recognized by it), (b) conducting our operations in such a manner so that no sale or other disposition of an asset we own, directly or indirectly through any subsidiary, will be treated as a prohibited transaction or (c) structuring certain dispositions of our properties to comply with the requirements of the prohibited transaction safe harbor available under the Code for properties that, among other requirements, have been held for at least two years. Despite our present intention, no assurance can be given that any particular property we own, directly or through any subsidiary entity, including our OP, but generally excluding taxable REIT subsidiaries, will not be treated as inventory or property held primarily for sale to customers in the ordinary course of a trade or business.

39

Our taxable REIT subsidiaries are subject to corporate-level taxes and our dealings with our taxable REIT subsidiaries may be subject to 100% excise tax.

A REIT may own up to 100% of the stock of one or more taxable REIT subsidiaries. Both the subsidiary and the REIT must jointly elect to treat the subsidiary as a taxable REIT subsidiary. A corporation of which a taxable REIT subsidiary directly or indirectly owns more than 35% of the voting power or value of the stock will automatically be treated as a taxable REIT subsidiary. Overall, no more than 25% (20% for taxable years beginning after December 31, 2017) of the gross value of a REIT's assets may consist of stock or securities of one or more taxable REIT subsidiaries. A taxable REIT subsidiary may hold assets and earn income that would not be qualifying assets or income if held or earned directly by a REIT, including gross income from operations pursuant to management contracts. We may lease some of our "qualified health care properties" to one or more taxable REIT subsidiaries which in turn contract with independent third-party management companies to operate such "qualified health care properties" on behalf of such taxable REIT subsidiaries. We may use taxable REIT subsidiaries generally for other activities as well, such as to hold properties for sale in the ordinary course of a trade or business or to hold assets or conduct activities that we cannot conduct directly as a REIT. A taxable REIT subsidiary will be subject to applicable U.S. federal, state, local and foreign income tax on its taxable income. In addition, the rules, which are applicable to us as a REIT, also impose a 100% excise tax on certain transactions between a taxable REIT subsidiary and its parent REIT that are not conducted on an arm's-length basis.

If our leases to our taxable REIT subsidiaries are not respected as true leases for U.S. federal income tax purposes, we likely would fail to qualify as a REIT.

To qualify as a REIT, we must satisfy two gross income tests, under which specified percentages of our gross income must be derived from certain sources, such as “rents from real property.” Rents paid to our OP by our taxable REIT subsidiaries pursuant to the lease of our “qualified healthcare properties” will constitute a substantial portion of our gross income. In order for such rent to qualify as “rents from real property” for purposes of the REIT gross income tests, the leases must be respected as true leases for U.S. federal income tax purposes and not be treated as service contracts, joint ventures or some other type of arrangement. If our leases are not respected as true leases for U.S. federal income tax purposes, we may fail to qualify as a REIT.

If our OP failed to qualify as a partnership or is not otherwise disregarded for U.S. federal income tax purposes, we would cease to qualify as a REIT.

We intend to maintain the status of our OP as a partnership or a disregarded entity for U.S. federal income tax purposes. However, if the IRS were to successfully challenge the status of our OP as a partnership or disregarded entity for such purposes, it would be taxable as a corporation. In such event, this would reduce the amount of distributions that the OP could make to us. This also would result in our failing to qualify as a REIT, and becoming subject to a corporate level tax on our income. This substantially would reduce our cash available to pay distributions and the yield on our stockholders' investment. In addition, if any of the partnerships or limited liability companies through which our OP owns its properties, in whole or in part, loses its characterization as a partnership and is otherwise not disregarded for U.S. federal income tax purposes, it would be subject to taxation as a corporation, thereby reducing distributions to the OP. Such a recharacterization of an underlying property owner could also threaten our ability to maintain our REIT qualification.

If our "qualified health care properties" are not properly leased to a taxable REIT subsidiary or the managers of such "qualified health care properties" do not qualify as "eligible independent contractors," we could fail to qualify as a REIT.

In general, we cannot operate any "qualified health care properties" and can only indirectly participate in the operation of "qualified health care properties" on an after-tax basis through leases of such properties to health care facility operators or our taxable REIT subsidiaries. A "qualified health care property" includes any real property, and any personal property incident to such real property, which is, or is necessary or incidental to the use of, a hospital, nursing facility, assisted living facility, congregate care facility, qualified continuing care facility, or other licensed facility which extends medical or nursing or ancillary services to patients and which is operated by a provider of such services which is eligible for participation in the Medicare program with respect to such facility. Rent paid by a lessee that is a "related party tenant" of ours will not be qualifying income for purposes of the two gross income tests applicable to REITs. A taxable REIT subsidiary that leases "qualified health care properties" from us will not be treated as a "related party tenant" with respect to our "qualified health care properties" that are managed by an independent management company, so long as the independent management company qualifies as an "eligible independent contractor."

40

Each of the management companies that enters into a management contract with our taxable REIT subsidiaries must qualify as an "eligible independent contractor" under the REIT rules in order for the rent paid to us by our taxable REIT subsidiaries to be qualifying income for purposes of the REIT gross income tests. An "eligible independent contractor" is an independent contractor that, at the time such contractor enters into a management or other agreement with a taxable REIT subsidiary to operate a "qualified health care property," is actively engaged in the trade or business of operating "qualified health care properties" for any person not related, as defined in the Code, to us or the taxable REIT subsidiary. Among other requirements, in order to qualify as an independent contractor a manager must not own, directly or applying attribution provisions of the Code, more than 35% of our outstanding shares of stock (by value), and no person or group of persons can own more than 35% of our outstanding shares and 35% of the ownership interests of the manager (taking into account only owners of more than 5% of our shares and, with respect to ownership interest in such managers that are publicly traded, only holders of more than 5% of such ownership interests). The ownership attribution rules that apply for purposes of the 35% thresholds are complex. There can be no assurance that the levels of ownership of our stock by our managers and their owners will not be exceeded.

Our investments in certain debt instruments may cause us to recognize income for U.S. federal income tax purposes even though no cash payments have been received on the debt instruments, and certain modifications of such debt by us could cause the modified debt to not qualify as a good REIT asset, thereby jeopardizing our REIT qualification.

Our taxable income may substantially exceed our net income as determined based on GAAP, or differences in timing between the recognition of taxable income and the actual receipt of cash may occur. For example, we may acquire assets, including debt securities requiring us to accrue original issue discount or recognize market discount income, that generate taxable income in excess of economic income or in advance of the corresponding cash flow from the assets. In addition, if a borrower with respect to a particular debt instrument encounters financial difficulty rendering it unable to pay stated interest as due, we may nonetheless be required to continue to recognize the unpaid interest as taxable income with the effect that we will recognize income but will not have a corresponding amount of cash available for distribution to our stockholders.

As a result of the foregoing, we may generate less cash flow than taxable income in a particular year and find it difficult or impossible to meet the REIT distribution requirements in certain circumstances. In such circumstances, we may be required to (a) sell assets in adverse market conditions, (b) borrow on unfavorable terms, (c) distribute amounts that would otherwise be used for future acquisitions or used to repay debt, or (d) make a taxable distribution of our shares of common stock as part of a distribution in which stockholders may elect to receive shares of common stock or (subject to a limit measured as a percentage of the total distribution) cash, in order to comply with the REIT distribution requirements.

Moreover, we may acquire distressed debt investments that require subsequent modification by agreement with the borrower. If the amendments to the outstanding debt are “significant modifications” under the applicable Treasury Regulations, the modified debt may be considered to have been reissued to us in a debt-for-debt taxable exchange with the borrower. This deemed reissuance may prevent the modified debt from qualifying as a good REIT asset if the underlying security has declined in value and would cause us to recognize income to the extent the principal amount of the modified debt exceeds our adjusted tax basis in the unmodified debt.

The failure of a mezzanine loan to qualify as a real estate asset would adversely affect our ability to qualify as a REIT.

In general, in order for a loan to be treated as a qualifying real estate asset producing qualifying income for purposes of the REIT asset and income tests, the loan must be secured by real property or an interest in real property. We may acquire mezzanine loans that are not directly secured by real property or an interest in real property but instead secured by equity interests in a partnership or limited liability company that directly or indirectly owns real property or an interest in real property. In Revenue Procedure 2003-65, the IRS provided a safe harbor pursuant to which a mezzanine loan that is not secured by real estate would, if it meets each of the requirements contained in the Revenue Procedure, be treated by the IRS as a qualifying real estate asset. Although the Revenue Procedure provides a safe harbor on which taxpayers may rely, it does not prescribe rules of substantive tax law and in many cases it may not be possible for us to meet all the requirements of the safe harbor. We cannot provide assurance that any mezzanine loan in which we invest would be treated as a qualifying asset producing qualifying income for REIT qualification purposes. If any such loan fails either the REIT income or asset tests, we may be disqualified as a REIT.

41

We may choose to make distributions in our own stock, in which case stockholders may be required to pay U.S. federal income taxes in excess of the cash dividends stockholders receive.

In connection with our qualification as a REIT, we are required to distribute annually to our stockholders at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding net capital gain. In order to satisfy this requirement, we may make distributions that are payable in cash or shares of our common stock (which could account for up to 80% of the aggregate amount of such distributions) at the election of each stockholder. Taxable stockholders receiving such distributions will be required to include the full amount of such distributions as ordinary dividend income to the extent of our current or accumulated earnings and profits, as determined for U.S. federal income tax purposes. As a result, U.S. stockholders may be required to pay U.S. federal income taxes with respect to such distributions in excess of the cash portion of the distribution received.

Accordingly, U.S. stockholders receiving a distribution of our shares may be required to sell shares received in such distribution or may be required to sell other stock or assets owned by them, at a time that may be disadvantageous, in order to satisfy any tax imposed on such distribution. If a U.S. stockholder sells the stock that it receives as part of the distribution in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the distribution, depending on the market price of our stock at the time of the sale. Furthermore, with respect to certain non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such distribution, including in respect of all or a portion of such distribution that is payable in stock, by withholding or disposing of part of the shares included in such distribution and using the proceeds of such disposition to satisfy the withholding tax imposed. In addition, there is no established trading market for our shares, thus stockholders may not be able to sell shares of our common stock in order to pay taxes owed on dividend income.

Various tax aspects of such a taxable cash/stock distribution are uncertain and have not yet been addressed by the IRS. No assurance can be given that the IRS will not impose requirements in the future with respect to taxable cash/stock distributions, including on a retroactive basis, or assert that the requirements for such taxable cash/stock distributions have not been met.

The taxation of distributions to our stockholders can be complex; however, distributions that we make to our stockholders generally will be taxable as ordinary income, which may reduce our stockholders anticipated return from an investment in us.

Distributions that we make to our taxable stockholders out of current and accumulated earnings and profits (and not designated as capital gain dividends or qualified dividend income) generally will be taxable as ordinary income. However, a portion of our distributions may (1) be designated by us as capital gain dividends generally taxable as long-term capital gain to the extent that they are attributable to net capital gain recognized by us, (2) be designated by us as qualified dividend income generally to the extent they are attributable to dividends we receive from our taxable REIT subsidiaries, or (3) constitute a return of capital generally to the extent that they exceed our accumulated earnings and profits as determined for U.S. federal income tax purposes. A return of capital is not taxable, but has the effect of reducing the basis of a stockholder's investment in our common stock.

Our stockholders may have tax liability on distributions that they elect to reinvest in common stock, but they would not receive the cash from such distributions to pay such tax liability.

Stockholders who participate in the DRIP, will be deemed to have received, and for U.S. federal income tax purposes will be taxed on, the amount reinvested in shares of our common stock to the extent the amount reinvested was not a tax-free return of capital. In addition, our stockholders are treated for tax purposes as having received an additional distribution to the extent the shares are purchased at a discount to fair market value. As a result, unless a stockholder is a tax-exempt entity, it may have to use funds from other sources to pay its tax liability on the value of the shares of common stock received.

Dividends payable by REITs generally do not qualify for the reduced tax rates available for some dividends.

The maximum tax rate applicable to qualified dividend income payable to U.S. stockholders that are individuals, trusts and estates is 20%. Dividends payable by REITs, however, generally are not eligible for this reduced rate. Although this does not adversely affect the taxation of REITs or dividends payable by REITs, the more favorable rates applicable to regular corporate qualified dividends could cause investors who are individuals, trusts and estates to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could adversely affect the value of the shares of REITs, including our common stock. Tax rates could be changed in future legislation.

42

Complying with REIT requirements may limit our ability to hedge our liabilities effectively and may cause us to incur tax liabilities.

The REIT provisions of the Code may limit our ability to hedge our liabilities. Any income from a hedging transaction we enter into to manage risk of interest rate changes, price changes or currency fluctuations with respect to borrowings made or to be made to acquire or carry real estate assets, or in certain cases to hedge previously acquired hedges entered into to manage risks associated with property that has been disposed of or liabilities that have been extinguished, if properly identified under applicable Treasury Regulations, does not constitute "gross income" for purposes of the 75% or 95% gross income tests. To the extent that we enter into other types of hedging transactions, the income from those transactions will likely be treated as non-qualifying income for purposes of both of the gross income tests. As a result of these rules, we may need to limit our use of advantageous hedging techniques or implement those hedges through a taxable REIT subsidiary. This could increase the cost of our hedging activities because our taxable REIT subsidiaries would be subject to tax on gains or expose us to greater risks associated with changes in interest rates than we would otherwise want to bear. In addition, losses in a taxable REIT subsidiary generally will not provide any tax benefit, except for being carried forward against future taxable income of such taxable REIT subsidiary.

Complying with REIT requirements may force us to forgo and/or liquidate otherwise attractive investment opportunities.

To qualify as a REIT, we must ensure that we meet the REIT gross income tests annually and that at the end of each calendar quarter, at least 75% of the value of our assets consists of cash, cash items, government securities and qualified REIT real estate assets, including certain mortgage loans and certain kinds of mortgage-related securities. The remainder of our investment in securities (other than government securities and qualified real estate assets) generally cannot include more than 10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any one issuer. In addition, in general, no more than 5% of the value of our assets (other than government securities and qualified real estate assets) and no more than 25% (20% for taxable years beginning after December 31, 2017) of the value of our total assets can be represented by securities of one or more taxable REIT subsidiaries. If we fail to comply with these requirements at the end of any calendar quarter, we must correct the failure within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions to avoid losing our REIT qualification and suffering adverse tax consequences. As a result, we may be required to liquidate assets from our portfolio or not make otherwise attractive investments in order to maintain our qualification as a REIT. These actions could have the effect of reducing our income and amounts available for distribution to our stockholders.

The ability of our board of directors to revoke our REIT qualification without stockholder approval may subject us to U.S. federal income tax and reduce distributions to our stockholders.

Our charter provides that our board of directors may revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that it is no longer in our best interest to continue to qualify as a REIT. If we cease to be a REIT, we would become subject to U.S. federal income tax on our taxable income and would no longer be required to distribute most of our taxable income to our stockholders, which may have adverse consequences on the return earned on an investment in our shares.

We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability.

In recent years, numerous legislative, judicial and administrative changes have been made in the provisions of U.S. federal income tax laws applicable to investments similar to an investment in shares of our common stock. Additional changes to the tax laws are likely to continue to occur, and we cannot assure our stockholders that any such changes will not adversely affect the taxation of a stockholder. Any such changes could have an adverse effect on an investment in our shares or on the market value or the resale potential of our assets.

Although REITs generally receive better tax treatment than entities taxed as regular corporations, it is possible that future legislation would result in a REIT having fewer tax advantages, and it could become more advantageous for a company that invests in real estate to elect to be treated for U.S. federal income tax purposes as a corporation. As a result, our charter provides our board of directors with the power, under certain circumstances, to revoke or otherwise terminate our REIT election and cause us to be taxed as a regular corporation, without the vote of our stockholders. Our board of directors has fiduciary duties to us and our stockholders and could only cause such changes in our tax treatment if it determines in good faith that such changes are in the best interest of us and our stockholders.

43

The share ownership restrictions of the Code for REITs and the 9.8% share ownership limit in our charter may inhibit market activity in shares of stock and restrict our business combination opportunities.

In order to qualify as a REIT, five or fewer individuals, as defined in the Code, may not own, actually or constructively, more than 50% in value of our issued and outstanding shares of stock at any time during the last half of each taxable year, other than the first year for which a REIT election is made. Attribution rules in the Code determine if any individual or entity actually or constructively owns our shares of stock under this requirement. Additionally, at least 100 persons must beneficially own our shares of stock during at least 335 days of a taxable year for each taxable year, other than the first year for which a REIT election is made. To help ensure that we meet these tests, among other purposes, our charter restricts the acquisition and ownership of our shares of stock.

Our charter, with certain exceptions, authorizes our directors to take such actions as are necessary and desirable to preserve our qualification as a REIT while we so qualify. Unless exempted by our board of directors, for so long as we qualify as a REIT, our charter prohibits, among other limitations on ownership and transfer of shares of our stock, any person from beneficially or constructively owning (applying certain attribution rules under the Code) more than 9.8% in value of the aggregate of our outstanding shares of stock and more than 9.8% (in value or in number of shares, whichever is more restrictive) of any class or series of our shares of stock. Our board of directors may not grant an exemption from these restrictions to any proposed transferee whose ownership in excess of the 9.8% ownership limit would result in the termination of our qualification as a REIT. These restrictions on transferability and ownership will not apply, however, if our board of directors determines that it is no longer in our best interest to qualify as a REIT or that compliance with the restrictions is no longer required in order for us to so qualify as a REIT.

These ownership limits could delay or prevent a transaction or a change in control that might involve a premium price for our common stock or otherwise be in the best interest of the stockholders.

Non-U.S. stockholders will be subject to U.S. federal withholding tax and may be subject to U.S. federal income tax on distributions received from us and upon the disposition of our shares.

Subject to certain exceptions, distributions received from us will be treated as dividends of ordinary income to the extent of our current or accumulated earnings and profits. Such dividends ordinarily will be subject to U.S. withholding tax at a 30% rate, or such lower rate as may be specified by an applicable income tax treaty, unless the distributions are treated as "effectively connected" with the conduct by the non-U.S. stockholder of a U.S. trade or business. Pursuant to the Foreign Investment in Real Property Tax Act of 1980 ("FIRPTA"), capital gain distributions attributable to sales or exchanges of "U.S. real property interests" ("USRPIs") generally will be taxed to a non-U.S. stockholder (other than a qualified pension plan, entities wholly owned by a qualified pension plan and certain foreign publicly traded entities) as if such gain were effectively connected with a U.S. trade or business. However, a capital gain dividend will not be treated as effectively connected income if (a) the distribution is received with respect to a class of stock that is regularly traded on an established securities market located in the United States and (b) the non-U.S. stockholder does not own more than 10% of the class of our stock at any time during the one-year period ending on the date the distribution is received. We do not anticipate that our shares will be "regularly traded" on an established securities market for the foreseeable future, and therefore, this exception is not expected to apply.

Gain recognized by a non-U.S. stockholder upon the sale or exchange of our common stock generally will not be subject to U.S. federal income taxation unless such stock constitutes a USRPI under FIRPTA. Our common stock will not constitute a USRPI so long as we are a "domestically-controlled qualified investment entity." A domestically-controlled qualified investment entity includes a REIT if at all times during a specified testing period, less than 50% in value of such REIT's stock is held directly or indirectly by non-U.S. stockholders. There is no assurance that we will be a domestically-controlled qualified investment entity.

Even if we do not qualify as a domestically-controlled qualified investment entity at the time a non-U.S. stockholder sells or exchanges our common stock, gain arising from such a sale or exchange would not be subject to U.S. taxation under FIRPTA as a sale of a USRPI if: (a) our common stock is "regularly traded," as defined by applicable Treasury Regulations, on an established securities market, and (b) such non-U.S. stockholder owned, actually and constructively, 10% or less of our common stock at any time during the five-year period ending on the date of the sale. However, it is not anticipated that our common stock will be "regularly traded" on an established market.

Potential characterization of distributions or gain on sale may be treated as unrelated business taxable income to tax-exempt investors.

If (a) we are a "pension-held REIT," (b) a tax-exempt stockholder has incurred (or is deemed to have incurred) debt to purchase or hold our common stock, or (c) a holder of common stock is a certain type of tax-exempt stockholder, dividends on, and gains recognized on the sale of, common stock by such tax-exempt stockholder may be subject to U.S. federal income tax as unrelated business taxable income under the Code.

44

Item 1B. Unresolved Staff Comments.

None.

45

Item 2. Properties

The following table presents certain additional information about the properties we owned as of December 31, 2015:

Portfolio	Number of Properties	Rentable Square Feet	Occupancy	Remaining Lease Term	Gross Asset Value
					(In thousands)
Medical Office Buildings	81	3,168,089	91.4%	6.0	$	885,131
Triple-Net Leased Healthcare Facilities (1):
Seniors Housing — Triple Net Leased	20	646,532	100.0%	14.2	159,686
Hospitals	4	428,620	77.6%	10.4	87,621
Post Acute / Skilled Nursing	20	853,865	100.0%	13.7	218,894
Seniors Housing — Operating Properties	38	3,397,658	91.0%	N/A	954,965
Land	2	N/A	N/A	N/A	3,665
Construction in Progress	1	N/A	N/A	N/A	31,309
Portfolio, December 31, 2015	166	8,494,764			$	2,341,271

_______________

(1) Revenues for our triple-net leased healthcare facilities generally consist of fixed rental amounts (subject to annual contractual escalations) received from our tenants in accordance with the applicable lease terms and do not vary based on the underlying operating performance of the properties. As of December 31, 2015, properties leased to our seniors housing — triple net leased, hospital and post acute/skilled nursing tenants had operating occupancies of approximately 87.4%, 57.0% and 80.9%, respectively. While operating occupancy rates may affect the profitability of our tenants’ operations, they do not have a direct impact on our revenues or financial results. Operating occupancy statistics for our triple-net leased healthcare facilities are compiled through reports from tenants and have not been independently validated by us.

N/A Not applicable.

46

The following table details the geographic distribution, by state, of our portfolio as of December 31, 2015:

State	Number of Buildings	Annualized Rental Income (1)		Annualized Rental Income as a Percentage of the Total Portfolio		Rentable Square Feet	Percentage of Portfolio Rentable Square Feet
		(In thousands)
Alabama	1	$	159	0.2	%	5,564	0.1	%
Arizona	14	7,868		2.9	%	476,661	5.6	%
Arkansas	3	15,474		5.5	%	248,783	2.9	%
California	7	13,167		4.7	%	323,330	3.8	%
Colorado	2	1,467		0.5	%	59,366	0.7	%
Florida	14	52,638		18.6	%	1,096,472	12.9	%
Georgia	10	26,386		9.3	%	666,700	7.8	%
Idaho	1	2,596		0.9	%	55,846	0.7	%
Illinois	12	11,694		4.1	%	481,283	5.7	%
Indiana	5	3,660		1.3	%	163,035	1.9	%
Iowa	13	28,622		10.1	%	563,900	6.6	%
Kansas	1	4,223		1.5	%	49,360	0.6	%
Kentucky	1	2,734		1.0	%	58,216	0.7	%
Louisiana	1	601		0.2	%	17,830	0.2	%
Maryland	1	979		0.3	%	36,260	0.4	%
Michigan	16	18,538		6.6	%	607,417	7.2	%
Mississippi	3	1,405		0.5	%	73,859	0.9	%
Missouri	13	14,697		5.2	%	436,972	5.1	%
New York	6	4,807		1.7	%	245,861	2.9	%
North Carolina	2	1,292		0.5	%	68,122	0.8	%
Ohio	1	422		0.1	%	24,924	0.3	%
Oregon	3	11,008		3.9	%	288,774	3.4	%
Pennsylvania	10	32,290		11.4	%	1,303,717	15.3	%
South Carolina	2	948		0.3	%	52,527	0.6	%
Tennessee	3	3,169		1.1	%	175,652	2.1	%
Texas	9	10,788		3.8	%	423,854	5.0	%
Virginia	3	4,759		1.6	%	234,090	2.8	%
Washington	1	1,592		0.5	%	52,900	0.6	%
Wisconsin	8	4,958		1.7	%	203,489	2.4	%
Total	166	$	282,941	100.0	%	8,494,764	100.0	%

__________________________________________

(1) Annualized rental income as of December 31, 2015 for the leases in place in the property portfolio on a straight-line basis, which includes tenant concessions such as free rent, as applicable, as well as annualized revenue from our seniors housing — operating properties.

47

Future Minimum Lease Payments

The following table presents future minimum base rental cash payments due to us over the next ten years and thereafter as of December 31, 2015. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes, among other items.

(In thousands)	Future Minimum Base Rent Payments
2016	$	94,110
2017	94,232
2018	89,568
2019	83,333
2020	77,006
2021	71,603
2022	67,876
2023	61,866
2024	60,012
2025	56,724
Thereafter	192,015
	$	948,345

Future Lease Expirations Table

The following is a summary of lease expirations for the next ten years at the properties we owned as of December 31, 2015:

Year of Expiration	Number of Leases Expiring	Annualized Rental Income (1)		Annualized Rental Income as a Percentage of the Total Portfolio (2)	Leased Rentable Square Feet	Percent of Portfolio Rentable Square Feet Expiring (2)
		(In thousands)
2016	68	$	4,005	3.8%	177,364	3.7%
2017	53	5,588		5.3%	250,811	5.3%
2018	66	6,793		6.4%	292,308	6.2%
2019	38	7,224		6.8%	291,124	6.2%
2020	50	7,198		6.8%	320,557	6.8%
2021	34	6,427		6.1%	287,144	6.1%
2022	23	7,611		7.2%	316,784	6.7%
2023	19	3,129		2.9%	118,637	2.5%
2024	36	5,437		5.1%	260,820	5.5%
2025	8	1,031		1.0%	49,837	1.1%
Total	395	$	54,443	51.4%	2,365,386	50.1%

__________________________________________

(1) Annualized rental income as of December 31, 2015 for the leases in place in the property portfolio, excluding seniors housing — operating properties, on a straight-line basis, which includes tenant concessions such as free rent, as applicable.

(2) Excludes seniors housing — operating properties.

Tenant Concentration

As of December 31, 2015, we did not have any tenants (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or more of total annualized rental income for the portfolio on a straight-line basis.

48

Significant Property Portfolio

Wellington at Hershey's Mill represents 5% or more of our total portfolio's rentable square feet and annualized straight-line rental income. This property is summarized below:

Wellington at Hershey's Mill - West Chester, PA

In December 2014, we purchased Wellington at Hershey's Mill, a seniors housing community located in West Chester, Pennsylvania. Wellington at Hershey's Mill, which is managed on our behalf by an independent third-party manager, contains 491,710 rentable square feet and consists of 193 units dedicated to independent living patients, 64 units dedicated to assisted living patients and 40 units for patients requiring skilled nursing services. As of December 31, 2015, the facility was 96.1% occupied.

Property Financings

Our mortgage notes payable as of December 31, 2015 and 2014 consist of the following:

		Outstanding Loan Amount as of December 31,				Effective Interest Rate
Portfolio	Encumbered Properties	2015		2014					Interest Rate		Maturity
		(In thousands)		(In thousands)
Creekside Medical Office Building - Douglasville, GA	—	$	—	$	5,154	5.32	%		Fixed		Sep. 2015
Bowie Gateway Medical Center - Bowie, MD	1	5,969		6,055		6.18	%		Fixed		Sep. 2016
Medical Center of New Windsor - New Windsor, NY	1	8,720		8,832		6.39	%		Fixed		Sep. 2017
Plank Medical Center - Clifton Park, NY	1	3,461		3,506		6.39	%		Fixed		Sep. 2017
Cushing Center - Schenectady, NY	1	4,184		4,287		5.71	%		Fixed		Feb. 2016
Countryside Medical Arts - Safety Harbor, FL	1	5,992		6,076		6.07	%		Fixed	(1)	Apr. 2019
St. Andrews Medical Park - Venice, FL	3	6,623		6,716		6.07	%		Fixed	(1)	Apr. 2019
Campus at Crooks & Auburn Building C - Rochester Hills, MI	1	3,555		3,626		5.91	%		Fixed		Apr. 2016
Slingerlands Crossing Phase I - Bethlehem, NY	1	6,680		6,759		6.39	%		Fixed		Sep. 2017
Slingerlands Crossing Phase II - Bethlehem, NY	1	7,777		7,877		6.39	%		Fixed		Sep. 2017
Benedictine Cancer Center - Kingston, NY	1	6,811		6,898		6.39	%		Fixed		Sep. 2017
Aurora Healthcare Center Portfolio - WI	6	31,257		—		6.55	%		Fixed		Jan. 2018
Palm Valley Medical Plaza - Goodyear, AZ	1	3,525		—		4.21	%		Fixed		Jun. 2023
Medical Center V - Peoria, AZ	1	3,232		—		4.75	%		Fixed		Sep. 2023
Courtyard Fountains - Gresham, OR	1	24,999		—		3.82	%		Fixed	(2)	Jan. 2020
Fox Ridge Bryant - Bryant, AR	1	7,825		—		3.98	%		Fixed		May 2047
Fox Ridge Chenal - Little Rock, AR	1	17,800		—		3.98	%		Fixed		May 2049
Fox Ridge North Little Rock - North Little Rock, AR	1	11,045		—		3.98	%		Fixed		May 2047
Total	24	$	159,455	$	65,786	5.32	%	(3)

_______________

(1)    Fixed interest rate through May 10, 2017. Interest rate changes to variable rate starting in June 2017.

(2)    Interest only payments through July 1, 2016. Principal and interest payments starting in August 2016.

(3)    Calculated on a weighted average basis for all mortgages outstanding as of December 31, 2015.

Item 3. Legal Proceedings.

We are not a party to, and none of our properties are subject to, any material pending legal proceedings.

Item 4. Mine Safety Disclosures.

Not applicable.

49

PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

No established public market currently exists for our shares of common stock. On March 18, 2015, we announced the Listing during the third quarter of 2015. On September 24, 2015, we announced that our board of directors had determined that it was in our best interest to not pursue the Listing during the third quarter of 2015 and that our board of directors will continue to monitor market conditions and other factors with a view toward reevaluating the Listing decision when market conditions are more favorable. There can be no assurance that our shares of common stock will be listed. Until our shares are listed on a national exchange, if ever, our stockholders may not sell their shares unless the buyer meets the applicable suitability and minimum purchase requirements. In addition, our charter prohibits the ownership of more than 9.8% in value of the aggregate of our outstanding shares of stock or more than 9.8% (in value or in number of shares, whichever is more restrictive) of any class or series of shares of our stock by a single investor, unless exempted by our board of directors. Consequently, there is the risk that our stockholders may not be able to sell their shares at a time or price acceptable to them.

Unless we list our shares, we anticipate publishing an estimate of per share NAV in April 2016.

Holders

As of February 29, 2016, we had 86.7 million shares of common stock outstanding held by a total of 45,332 stockholders.

Distributions

We elected and qualified to be taxed as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2013. As a REIT, we are required to distribute at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard for the deduction for dividends paid and excluding net capital gains, to our stockholders annually. The amount of distributions payable to our stockholders is determined by our board of directors and is dependent on a number of factors, including funds available for distribution, financial condition, capital expenditure requirements, as applicable, and annual distribution requirements needed to maintain our status as a REIT under the Code.

The following table details the tax treatment of the distributions paid during the years ended December 31, 2015, 2014 and 2013:

	Years Ended December 31,
	2015				2014				2013
Return of capital	97.9	%	$	1.66	93.7	%	$	1.59	97.7	%	$	1.01
Capital gain dividend income	0.3	%	0.01		—	%	—		—	%	—
Ordinary dividend income	1.8	%	0.03		6.3	%	0.11		2.3	%	0.02
Total	100.0	%	$	1.70	100.0	%	$	1.70	100.0	%	$	1.03

50

We have paid distributions on a monthly basis to stockholders of record on a daily basis a rate equal to $0.0046575343 per day, or 6.8% per annum, based on a price of $25.00 per share of common stock. Distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. Our board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured. The following table reflects distributions declared and paid, excluding distributions related to Class B Units as these distributions are recorded as expenses in the consolidated statements of operations and comprehensive loss, during the years ended December 31, 2015 and 2014:

(In thousands)	Total Distributions Paid		Total Distributions Declared
1st Quarter, 2015	$	35,244	$	35,352
2nd Quarter, 2015	36,319		36,031
3rd Quarter, 2015	36,643		36,747
4th Quarter, 2015	36,509		37,007
Total 2015	$	144,715	$	145,137

(In thousands)	Total Distributions Paid		Total Distributions Declared
1st Quarter, 2014	$	3,972	$	5,811
2nd Quarter, 2014	11,542		15,209
3rd Quarter, 2014	26,462		31,064
4th Quarter, 2014	34,769		35,766
Total 2014	$	76,745	$	87,850

During the years ended December 31, 2015 and 2014, distributions paid to common stockholders totaled $144.7 million and $76.7 million, inclusive of $78.5 million and $41.6 million of distributions that were reinvested in share issued under the DRIP, respectively. During the years ended December 31, 2015 and 2014, cash used to pay distributions was generated from net cash flow from operations, proceeds received from common stock and common stock issued under the DRIP, the sale of investment securities and financings. The Property Manager elected to waive $1.2 million and $0.6 million of property management fees related to the years ended December 31, 2015 and 2014, respectively. These amounts were available to fund distribution payments.

As we continue to build our portfolio of investments, we expect that we will use funds received from operating activities to pay a greater proportion of our distributions and will be able to reduce and in the future eliminate the use of funds from the sale of common stock to pay distributions. Distribution payments are dependent on the availability of funds. Our board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured.

Equity Based Compensation

Restricted Share Plan

We have an employee and director incentive restricted share plan (the "RSP"), which provides for the automatic grant of 1,333 restricted shares of common stock to each of the independent directors, without any further approval by our board of directors or the stockholders, after initial election to the board of directors and after each annual stockholder meeting, with such shares vesting annually beginning with the one year anniversary of initial election to the board of directors and the date of the next annual meeting, respectively. Restricted stock issued to independent directors vests over a five-year period in increments of 20.0% per annum. The RSP provides us with the ability to grant awards of restricted shares to our directors, officers and employees (if we ever have employees), employees of the Advisor and its affiliates, employees of entities that provide services to us, directors of the Advisor or of entities that provide services to us, certain consultants to us and the Advisor and its affiliates or to entities that provide services to us. The total number of common shares granted under the RSP may not exceed 5.0% of our outstanding shares of common stock on a fully diluted basis at any time and in any event will not exceed 3.4 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events).

51

Restricted share awards entitle the recipient to receive shares of common stock from us under terms that provide for vesting over a specified period of time. For restricted share awards granted prior to July 1, 2015, such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient's employment or other relationship with us. For restricted share awards granted on or after July 1, 2015, such awards provide for accelerated vesting of the portion of the unvested shares scheduled to vest in the year of the recipient's voluntary termination or the failure to be re-elected to the board. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in shares of common stock are subject to the same restrictions as the underlying restricted shares. As of December 31, 2015 and 2014, there were 11,731 and 7,198 unvested restricted shares outstanding, respectively, that were granted to independent directors pursuant to the RSP which were issued at $22.50 per share.

Sales of Unregistered Securities

OP Units

In November 2014, we partially funded the purchase of an MOB with the issuance of 405,908 OP Units with a value of $10.1 million to an unaffiliated third party. These OP Units were issued pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. There were no OP Units issued to fund purchases during the years ended December 31, 2013 or 2015.

Restricted Shares

The following table details restricted shares issued to our independent directors that vest over a period of five years, pursuant to our RSP. No selling commissions or other consideration were paid in connection with such issuances, which were made without registration under the Securities Act in reliance upon the exemption from registration in Section 4(a)(2) of the Securities Act.

Issue Date	Number of Restricted Shares Issued
February 13, 2013	2,666
February 28, 2013	1,333
June 25, 2014	3,999
February 11, 2015	1,333
July 13, 2015	3,999
December 1, 2015	2,666
Total	15,996

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

In order to provide stockholders with interim liquidity, our board of directors has adopted a Share Repurchase Program (the "SRP") that enables our stockholders to sell their shares back to us after they have been held for at least one year, subject to significant conditions and limitations. Our Sponsor, Advisor, directors and affiliates are prohibited from receiving a fee on any share repurchases.

Only those stockholders who purchased their shares from us or received their shares from us (directly or indirectly) through one or more non-cash transactions may be able to participate in the SRP. In other words, once our shares are transferred for value by a stockholder, the transferee and all subsequent holders of the shares are not eligible to participate in the SRP.

Repurchases of shares of our common stock are at our sole discretion. Until the SRP Amendment (described below), we limited the number of shares repurchased during any calendar year to 5% of the weighted average number of shares of common stock outstanding on December 31st of the previous calendar year. In addition, we were only authorized to repurchase shares in a given quarter up to the amount of proceeds we received from our DRIP in that same quarter.

On January 26, 2016, our board of directors approved and amended the SRP (the "SRP Amendment") to supersede and replace the existing SRP. Under the SRP Amendment, repurchases of shares of our common stock generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding on December 31st of the previous calendar year. In addition, we are only authorized to repurchase shares in a given fiscal semester up to the amount of proceeds we receive from our DRIP in that same fiscal semester.

52

Unless the shares of our common stock are being repurchased in connection with a stockholder's death or disability a stockholder must have held the shares for at least one year prior to offering them for sale to us through the SRP. The purchase price for such shares repurchased under our SRP prior to the NAV pricing date, except for repurchases in connection with a stockholder's death or disability, will be as follows (as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock):

• the lower of $23.13 and 92.5% of the price paid to acquire the shares from us for stockholders who have continuously held their shares for at least one year;

• the lower of $23.75 and 95.0% of the price paid to acquire the shares from us for stockholders who have continuously held their shares for at least two years;

• the lower of $24.38 and 97.5% of the price paid to acquire the shares from us for stockholders who have continuously held their shares for at least three years; and

• the lower of $25.00 and 100% of the price paid to acquire the shares from us for stockholders who have continuously held their shares for at least four years.

No minimum holding period will apply to repurchase requests made following the death or qualifying disability of a stockholder. Shares repurchased in connection with the death or disability of a stockholder will be repurchased at a purchase price equal to the price actually paid for the shares during our IPO until the NAV pricing date, and then at a purchase price equal to the then-current NAV (as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock) on or after the NAV pricing date. Our board of directors has the discretion to exempt shares purchased pursuant to our DRIP from the one-year holding requirement, if a stockholder sells back all of his or her shares. In addition, we may waive the holding period in the event of a stockholder's bankruptcy or other exigent circumstances.

Under the SRP Amendment, other than death and disability and beginning with the NAV pricing date, the price per share that we will pay to repurchase our shares will be equal to our NAV multiplied by a percentage equal to (i) 92.5%, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95%, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5%, if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100%, if the person seeking repurchase has held his or her shares for a period greater than four years. Subject to limited exceptions, stockholders who redeem their shares of our common stock within the first four months from the date of purchase will be subject to a short-term trading fee of 2% of the aggregate NAV per share of the shares of common stock received.

Because our NAV per share will be calculated annually, the repurchase price may fluctuate between the redemption request day and the date on which the Company pays redemption proceeds.

The following table summarizes our SRP activity for the periods presented. The cost of the repurchased shares did not exceed DRIP proceeds during the periods presented. We funded share repurchases from proceeds received from common stock issued under the DRIP.

	Number of Shares Repurchased	Cost of Shares Repurchased		Average Price per Share
		(In thousands)
Period from October 15, 2012 (date of inception) to December 31, 2012	—	$	—	$	—
Year ended December 31, 2013	1,600	40		25.00
Year ended December 31, 2014	72,431	1,768		24.41
Year ended December 31, 2015	894,339	21,161		23.66
Cumulative repurchases as of December 31, 2015 (1)	968,370	22,969		$	23.72
Proceeds received from shares issued under the DRIP		121,426
Excess		$	98,457

_______________

(1) As permitted under the SRP, in January 2016, our board of directors authorized, with respect to redemption requests received during the three months ended December 31, 2015, the repurchase of shares validly submitted for repurchase in an amount equal to 1.0% of the weighted average number of shares of common stock outstanding during the fiscal year ended December 31, 2014, representing less than all the shares validly submitted for repurchase during the three months ended December 31, 2015. Accordingly, 512,408 shares at an average price per share of $23.45 (including all shares submitted for death or disability) were approved for repurchase and completed in February 2016, while 201,367 shares for $4.6 million at an average price per share of $23.04 were not fulfilled. There were no other unfulfilled share repurchases for the period from October 15, 2012 (date of inception) to December 31, 2015.

53

Until the SRP Amendment, we processed repurchases on a quarterly basis. The following table summarizes repurchase requests pursuant to our SRP for each quarter during the year ended December 31, 2015:

	Number of Shares Repurchased	Cost of Shares Repurchased		Average Price per Share
		(In thousands)
Quarter ended March 31, 2015	70,340	$	1,703	$	24.21
Quarter ended June 30, 2015	121,555	2,949		24.26
Quarter ended September 30, 2015	189,219	4,475		23.65
Quarter ended December 31, 2015(1)	513,225	12,034		23.45
	894,339	$	21,161	$	23.66

_______________

(1) As permitted under the SRP, in January 2016, our board of directors authorized, with respect to redemption requests received during the three months ended December 31, 2015, the repurchase of shares validly submitted for repurchase in an amount equal to 1.0% of the weighted average number of shares of common stock outstanding during the fiscal year ended December 31, 2014, representing less than all the shares validly submitted for repurchase during the three months ended December 31, 2015. Accordingly, 512,408 shares at an average price per share of $23.45 (including all shares submitted for death or disability) were approved for repurchase and completed in February 2016, while 201,367 shares for $4.6 million at an average price per share of $23.04 were not fulfilled. There were no other unfulfilled share repurchases for the period from October 15, 2012 (date of inception) to December 31, 2015.

Our board of directors may amend, suspend (in whole or in part) or terminate the SRP at any time upon 30 days’ prior written notice to our stockholders. Further, our board of directors reserves the right, in its sole discretion, to reject any requests for repurchases for any reason.

Item 6. Selected Financial Data.

The following selected financial data as of December 31, 2015, 2014, 2013 and 2012 and for the years ended December 31, 2015, 2014 and 2013 and the period from October 15, 2012 (date of inception) to December 31, 2012 should be read in conjunction with the accompanying consolidated financial statements and related notes thereto and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" below:

Balance sheet data (In thousands)	December 31,
	2015		2014		2013		2012
Total real estate investments, at cost	$	2,341,271	$	1,662,697	$	46,286	$	—
Total assets	2,271,992		1,857,710		160,206		810
Mortgage notes payable	159,455		65,786		—		—
Total liabilities	670,175		125,533		2,057		625
Total equity	1,601,817		1,732,177		158,149		185

54

	Years Ended									For the Period from October 15, 2012 (date of inception) to
	December 31,
Operating data(In thousands, except for share and per share data)	2015			2014			2013			December 31, 2012
Total revenues	$	247,490		$	58,439		$	1,817		$	—
Total expenses	283,100			92,770			2,033			15
Operating loss	(35,610		)	(34,331		)	(216		)	(15		)
Total other expenses	(9,328		)	(2,816		)	—			—
Loss before income taxes	(44,938		)	(37,147		)	(216		)	(15		)
Income tax benefit (expense)	2,978			(565		)	(5		)	—
Net loss	(41,960		)	(37,712		)	(221		)	(15		)
Net loss attributed to non-controlling interests	219			34			—			—
Net loss attributed to stockholders	$	(41,741	)	$	(37,678	)	$	(221	)	$	(15	)
Other data:
Cash flows provided by (used in) operations	$	65,811		$	(6,465	)	$	(764	)	$	—
Cash flows used in investing activities	(556,834		)	(1,531,134		)	(46,484		)	—
Cash flows provided by financing activities	332,880			1,608,383			159,078			3
Per share data:
Weighted-average number of common shares outstanding, basic and diluted	85,331,966			51,234,729			2,148,297			8.888
Distributions declared per common share	$	1.70		$	1.70		$	1.03		N/A
Net loss per common share, basic and diluted	$	(0.49	)	$	(0.74	)	$	(0.10	)	$	(1.69	)

_______________

N/A — Not Applicable

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements. The following information contains forward-looking statements, which are subject to risks and uncertainties. Should one or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements. Please see "Forward-Looking Statements" elsewhere in this Annual Report on Form 10-K for a description of these risks and uncertainties.

Overview

We invest in healthcare real estate, such as seniors housing and medical office buildings ("MOB"), located in the United States for investment purposes. As of December 31, 2015, we owned 166 properties located in 29 states and comprised of 8.5 million rentable square feet.

We were incorporated on October 15, 2012 as a Maryland corporation that elected and qualified to be taxed as a REIT beginning with our taxable year ended December 31, 2013. Substantially all of our business is conducted through Healthcare Trust Operating Partnership, LP (the "OP"), formerly known as American Realty Capital Healthcare Trust II Operating Partnership, LP.

In February 2013, we commenced our initial public offering ("IPO") on a "reasonable best efforts" basis of up to $1.7 billion of common stock, $0.01 par value per share, at a price of $25.00 per share, subject to certain volume and other discounts. We closed our IPO in November 2014, which resulted in net proceeds to us of $2.1 billion.

55

On March 18, 2015, we announced our intention to list our common stock on a national stock exchange under the symbol “HTI” (the "Listing") during the third quarter of 2015. On September 24, 2015, we announced that our board of directors had determined that it was in our best interest to not pursue the Listing during the third quarter of 2015. Our board of directors continues to monitor market conditions and other factors with a view toward reevaluating the Listing decision when market conditions are more favorable. There can be no assurance that our shares of common stock will be listed. We anticipate publishing an estimate of per share net asset value ("NAV") on or prior to April 11, 2016 (the "NAV pricing date"), and subsequent valuations will occur periodically, at the discretion of our board of directors, provided that such calculations will be made at least annually. In the interim, we will continue to offer shares pursuant to our distribution reinvestment plan ("DRIP") at $23.75 per share, and to repurchase shares pursuant to our share repurchase program (as amended, the "SRP"). Beginning with the NAV pricing date, the per share price for shares under the DRIP and SRP will vary periodically and will be based upon our NAV.

We have no direct employees. Healthcare Trust Advisors, LLC (the "Advisor"), formerly known as American Realty Capital Healthcare II Advisors, LLC, has been retained by us to manage our affairs on a day-to-day basis. We have retained Healthcare Trust Properties, LLC (the "Property Manager"), formerly known as American Realty Capital Healthcare II Properties, LLC, to serve as our property manager. The Advisor and Property Manager are under common control with AR Global Investments, LLC (the successor business to AR Capital, LLC, "AR Global"), the parent of our sponsor, American Realty Capital VII, LLC (the "Sponsor"), as a result of which they are related parties, and each have received or will receive compensation, fees and expense reimbursements for services related to managing of our business. The Advisor, Property Manager and our former dealer manager, Realty Capital Securities, LLC (the "Former Dealer Manager"), also have received or will receive compensation, fees and expense reimbursements from us related to the investment and management of our assets.

Our Former Dealer Manager served as the dealer manager of our IPO and, together with certain of its affiliates, continued to provide us with various services through December 31, 2015. RCS Capital Corporation, the parent company of the Former Dealer Manager and certain of its affiliates that provided us with services, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of our Sponsor.

Significant Accounting Estimates and Critical Accounting Policies

Set forth below is a summary of the significant accounting estimates and critical accounting policies that management believes are important to the preparation of our financial statements. Certain of our accounting estimates are particularly important for an understanding of our financial position and results of operations and require the application of significant judgment by our management. As a result, these estimates are subject to a degree of uncertainty. These significant accounting estimates and critical accounting policies include:

Revenue Recognition

Our rental income is primarily related to rent received from tenants in our medical office buildings ("MOB") and triple-net leased healthcare facilities. Rent from tenants in our MOB and triple-net leased healthcare facilities operating segments is recorded in accordance with the terms of each lease on a straight-line basis over the initial term of the lease. Because many of the leases provide for rental increases at specified intervals, accounting principles generally accepted in the United States ("GAAP") require us to record a receivable, and include in revenues on a straight-line basis, unbilled rent receivables that we will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. When we acquire a property, the acquisition date is considered to be the commencement date for purposes of this calculation.

Cost recoveries from tenants are included in operating expense reimbursement in the period the related costs are incurred, as applicable.

Resident services and fee income primarily relates to rent from residents in our seniors housing — operating properties ("SHOP") held using a structure permitted by the REIT Investment Diversification and Empowerment Act of 2007 and to fees for ancillary services performed for residents in our SHOPs. Rental income from residents of our SHOP operating segment is recognized as earned. Residents pay monthly rent that covers occupancy of their unit and basic services, including utilities, meals and some housekeeping services. The terms of the rent are short term in nature, primarily month-to-month. Fees for ancillary services are recorded in the period in which the services are performed.

We defer the revenue related to lease payments received from tenants and residents in advance of their due dates.

We continually review receivables related to rent and unbilled rent receivables and determine collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, we record an increase in the allowance for uncollectible accounts on the consolidated balance sheets or record a direct write-off of the receivable in the consolidated statements of operations and comprehensive loss.

56

Real Estate Investments

Investments in real estate are recorded at cost. Improvements and replacements are capitalized when they extend the useful life of the asset. Costs of repairs and maintenance are expensed as incurred.

We evaluate the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive loss. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets.

In business combinations, we allocate the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values. Tangible assets may include land, land improvements, buildings, fixtures and tenant improvements. Intangible assets may include the value of in-place leases and above- and below-market leases. In addition, any assumed mortgages receivable or payable and any assumed or issued non-controlling interests are recorded at their estimated fair values.

We generally determine the value of construction in progress based upon the replacement cost. During the construction period, we capitalize interest, insurance and real estate taxes until the development has reached substantial completion.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. The fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and our estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining term of the lease including any below-market fixed rate renewal options for below-market leases.

In making estimates of fair values for purposes of allocating purchase price, we utilize a number of sources, including real estate valuations prepared by independent valuation firms. We also consider information and other factors including market conditions, the industry that the tenant operates in, characteristics of the real estate, i.e. location, size, demographics, value and comparative rental rates, tenant credit profile and the importance of the location of the real estate to the operations of the tenant’s business.

In allocating the fair value to assumed mortgages, amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above- or below-market interest rates.

In allocating the fair value to non-controlling interests, amounts are recorded based on the fair value of units issued at the date of acquisition, as determined by the terms of the applicable agreement.

Real estate investments that are intended to be sold are designated as "held for sale" on the consolidated balance sheets at the lesser of the carrying amount or fair value less estimated selling costs when they meet specific criteria to be presented as held for sale. Real estate investments are no longer depreciated when they are classified as held for sale. If the disposal, or intended disposal, of certain real estate investments represents a strategic shift that has had or will have a major effect on our operations and financial results, the operations of such real estate investments would be presented as discontinued operations in the consolidated statements of operations and comprehensive loss for all applicable periods.

Depreciation and Amortization

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements, five years for fixtures and improvements, and the shorter of the useful life or the remaining lease term for tenant improvements and leasehold interests.

Construction in progress, including capitalized interest, insurance and real estate taxes, is not depreciated until the development has reached substantial completion.

Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market lease values are accreted as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods.

Capitalized above-market ground lease values are accreted as a reduction of property operating expense over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property operating expense over the remaining terms of the respective leases and expected below-market renewal option periods.

The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to expense over the remaining periods of the respective leases.

57

The assumed mortgage premiums or discounts are amortized as an increase or reduction to interest expense over the remaining term of the respective mortgages.

Impairment of Long Lived Assets

If circumstances indicate that the carrying value of a property may not be recoverable, we review the asset for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. We have not yet selected a transition method and are currently evaluating the impact of this new guidance.

In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to our financial position, results of operations and cash flows.

In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. We have elected to adopt this guidance effective January 1, 2016. We have assessed the impact from the adoption of this revised guidance and have determined that there will be no material impact to our financial position, results of operations and cash flows.

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. We have elected to adopt this guidance effective January 1, 2016. The adoption of this revised guidance will result in the reclassification of $2.2 million of deferred issuance costs related to our mortgage notes payable from deferred costs, net to mortgage notes payable in our consolidated balance sheet as of December 31, 2015.

In September 2015, the FASB issued an update that eliminates the requirement to adjust provisional amounts from a business combination and the related impact on earnings by restating prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of measurement period adjustments on current and prior periods, including the prior period impact on depreciation, amortization and other income statement items and their related tax effects, shall be recognized in the period the adjustment amount is determined. The cumulative adjustment would be reflected within the respective financial statement line items affected. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted. We elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to our consolidated financial position, results of operations and cash flows.

58

In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. We are currently evaluating the impact of this new guidance.

In February 2016, the FASB issued an update that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance is effective on January 1, 2019. Early adoption is permitted. We are currently evaluating the impact of this new guidance.

Results of Operations

On January 1, 2014, we owned seven properties (our "Same Store" properties). We acquired 159 properties during the period from January 1, 2014 through December 31, 2015 (our "Acquisitions"). Accordingly, our results of operations for the year ended December 31, 2015 as compared to the year ended December 31, 2014 reflect significant increases in most categories primarily due to our Acquisitions. Net loss attributable to stockholders was $41.7 million and $37.7 million for the years ended December 31, 2015 and 2014, respectively.

Comparison of the Year Ended December 31, 2015 to the Year Ended December 31, 2014

Rental Income

Rental income increased $70.2 million to $93.2 million for the year ended December 31, 2015 from $23.0 million for the year ended December 31, 2014. The increase was primarily due to our Acquisitions.

Operating Expense Reimbursements

Operating expense reimbursements increased $9.2 million to $12.8 million for the year ended December 31, 2015 from $3.6 million for the year ended December 31, 2014. Generally, operating expense reimbursements increase in proportion with the increase in property operating expenses in our MOB segment. Pursuant to many of our lease agreements, tenants are required to pay their pro rata share of property operating expenses, in addition to base rent, whereas under certain other lease agreements, the tenants are generally directly responsible for all operating costs of the respective properties. The increase in operating expense reimbursements was primarily related to our Acquisitions.

Resident Services and Fee Income

Resident services and fee income increased $109.1 million to $140.9 million for the year ended December 31, 2015 from $31.8 million for the year ended December 31, 2014. Resident services and fee income is generated in connection with rent and services offered to residents in our SHOPs depending on the level of care required, as well as fees associated with other ancillary services. This increase in resident services and fee income was directly related to our Acquisitions.

Contingent Purchase Price Consideration

During the year ended December 31, 2015, we recognized $0.6 million which primarily related to contingent purchase price consideration in connection with vacancy escrow arrangements associated with two acquisitions. Based on facts and circumstances that existed at the time of acquisition, we determined that it was not probable that we would recover certain amounts placed into escrow under vacancy escrow agreements. However, the vacant leasable space under the vacancy escrow agreements was not occupied as of the agreed upon dates, which resulted in the return of escrowed funds to us and the recognition of contingent purchase price consideration. No vacancy escrow agreements resulted in the recognition of income during the year ended December 31, 2014.

Property Operating and Maintenance Expenses

Property operating expenses increased $98.9 million to $125.6 million for the year ended December 31, 2015, from $26.7 million for the year ended December 31, 2014. These costs primarily related to the costs associated with our properties, including real estate taxes, utilities, repairs, maintenance, bad debt expense and unaffiliated third party property management fees, as well as costs relating to caring for the residents in our SHOPs. The increase was primarily due to our Acquisitions.

59

Operating Fees to Related Parties

We pay our Advisor and Property Manager for asset management and property management services, respectively. We incurred $10.9 million in fees for asset management services from our Advisor for the year ended December 31, 2015. Prior to April 1, 2015, these fees were paid by us causing the OP to issue restricted performance based Class B Units to the Advisor. On May 12, 2015, we entered into an amendment to our advisory agreement which, among other things, provided that, effective April 1, 2015, the asset management fee is payable to the Advisor or its assignees in cash, in shares, or a combination of both, the form of payment to be determined in the sole discretion of the Advisor, and is expensed as incurred. During the year ended December 31, 2015, we issued 251,365 Class B Units at an issue price of $22.50 per unit.

We incurred $1.3 million in fees for property management services from our Property Manager for the year ended December 31, 2015. Property management fees increase in direct correlation with gross revenues. The Property Manager elected to waive a portion of property management fees for the year ended December 31, 2015 and waived all property management fees for the year ended December 31, 2014. For the years ended December 31, 2015 and 2014, we would have incurred additional property management fees of $1.2 million and $0.6 million, respectively, had these fees not been waived.

Acquisition and Transaction Related Expenses

Acquisition and transaction related expenses of $14.7 million and $33.6 million for the years ended December 31, 2015 and 2014, respectively, related to our acquisition of 48 and 111 properties in each period. Acquisition and transaction related expenses generally increase or decrease in direct correlation with the number and contract purchase price of properties acquired during the period.

General and Administrative Expenses

General and administrative expenses increased $6.2 million to $9.7 million for the year ended December 31, 2015 from $3.5 million for the year ended December 31, 2014, including $4.6 million and $1.0 million, respectively, incurred from related parties. The increase was primarily driven by professional fees incurred to support a larger real estate portfolio. Prior to the end of the IPO, costs related to stockholder services were charged to additional paid-in capital in the accompanying consolidated balance sheet. At the time the IPO ended in November 2014, we began to expense, as incurred, professional fees related to stockholder services, because these costs no longer related to fulfilling subscriptions and offering costs.

Depreciation and Amortization Expenses

Depreciation and amortization expense increased $92.0 million to $120.9 million for the year ended December 31, 2015 from $28.9 million for the year ended December 31, 2014. The increase in depreciation and amortization expense was primarily related to our Acquisitions, which resulted in an increase of $91.2 million. Same Store depreciation and amortization increased $0.4 million due to our reallocation during the fourth quarter of 2014 of amounts that were provisionally allocated to land, buildings, fixtures and improvements and acquired lease intangible assets. During the year ended December 31, 2015, we placed into service internally developed corporate software, the depreciation on such software accounted for an increase in depreciation and amortization expense of $0.3 million.

Interest Expense

Interest expense increased $6.8 million to $10.4 million for the year ended December 31, 2015 from $3.6 million for the year ended December 31, 2014. Interest expense related to our mortgage notes payable increased $2.2 million related to our higher average mortgage notes payable balance of $96.6 million during the year ended of December 31, 2015, compared to the $38.0 million average balance during the year ended December 31, 2014, as well as the associated increases in amortization of deferred financing costs, partially offset by increased amortization of mortgage premiums.

We entered into a $50.0 million Credit Facility in March 2014. In April 2014, June 2015 and July 2015 we entered into amendments which increased available borrowings to $200.0 million, $500.0 million and $565.0 million respectively. Interest expense related to the Credit Facility increased $4.6 million primarily as a result of higher amortization of deferred financing costs and non-usage fees as a result of the amendments and increases to the Credit Facility, as well as higher interest payments due to an average outstanding balance on the Credit Facility of $118.5 million during the year ended December 31, 2015. There was no amount outstanding under the Credit Facility during the year ended December 31, 2014.

We view a mix of secured and unsecured financing sources as an efficient and accretive means to acquire properties and manage working capital. Our interest expense in future periods will vary based on our level of future borrowings, the cost of borrowings and the opportunity to acquire real estate assets which meet our investment objectives.

60

Interest and Other Income

Interest and other income decreased $0.1 million to $0.6 million for the year ended December 31, 2015 from $0.7 million for the year ended December 31, 2014. Interest and other income includes income from our investment securities and interest income earned on cash and cash equivalents held during the period. We purchased a majority of our investment securities during the three months ended September 30, 2014. During the year ended December 31, 2015, we sold all of our positions in common stock, real estate income funds and an investment in a senior note and sold a majority of our positions in preferred stock, which resulted in a decrease in dividend and interest income from our investment portfolio.

Gain on Sale of Investments

Gain on sale of investments for the year ended December 31, 2015 of $0.4 million related to selling certain investments in preferred stock, common stock, real estate income funds and an investment in a senior note. Gain on sale of investments for the year ended December 31, 2014 of approximately $8,000 resulted from selling certain investments in preferred stock.

Income Tax Benefit (Expense)

Income tax benefit of $3.0 million for the year ended December 31, 2015 related to deferred tax assets generated by current period net operating losses associated with our taxable REIT subsidiary ("TRS"). These deferred tax assets became realizable during the year ended December 31, 2015 and are partially offset by other income tax expenses incurred during the same period. Income tax expense of $0.6 million during the year ended December 31, 2014 related to income from our TRS. Such income was derived from our acquisition of 30 SHOP assets, the net income or loss of such assets are owned by our TRS. Income taxes generally relate to our SHOPs, which are leased by our TRS. We purchased our first SHOP asset during the three months ended September 30, 2014.

Net Loss Attributable to Non-Controlling Interests

Net loss attributable to non-controlling interests of $0.2 million for the year ended December 31, 2015 primarily represents losses allocated to OP Unit holders as well as losses allocated to an unaffiliated third party that owns an interest in certain of our property owning subsidiaries and is entitled to receive a proportionate share of the net operating cash flow derived from the subsidiaries' property. Net loss attributable to non-controlling interests of approximately $34,000 for the year ended December 31, 2014 related to losses allocated to unaffiliated OP Unit holders. We issued 0.4 million OP Units in connection with the acquisition of a property in November 2014 and 90 OP Units in December 31, 2012 in connection with our initial capitalization.

Comparison of the Year Ended December 31, 2014 to the Year Ended December 31, 2013

Rental Income

Rental income was $23.0 million for the year ended December 31, 2014, compared to $1.6 million for the year ended December 31, 2013. The increase in rental income was directly related to our acquisitions.

Operating Expense Reimbursements

Operating expense reimbursements were $3.6 million for the year ended December 31, 2014, compared to $0.3 million for the year ended December 31, 2013. Pursuant to many of our lease agreements, tenants are required to pay their pro rata share of property operating expenses, in addition to base rent, whereas under certain other lease agreements, the tenants are generally directly responsible for all operating costs of the respective properties. The increase in operating expense reimbursements was directly related to acquisitions.

Resident Services and Fee Income

Resident services and fee income of $31.8 million for the year ended December 31, 2014 is generated in connection with rent and services offered to residents in our seniors housing communities depending on the level of care required, as well as fees associated with other ancillary services. We did not own any seniors housing communities and therefore did not have any resident services and fee income in the year ended December 31, 2013.

Property operating expenses

Property operating expenses were $26.7 million for the year ended December 31, 2014, compared to $0.1 million for the year ended December 31, 2013. These costs primarily relate to the costs associated with maintaining our properties, including real estate taxes, utilities, repairs, maintenance and unaffiliated third party property management fees, as well as costs relating to caring for the residents in our seniors housing communities. Property operating expenses increased $26.4 million, which was directly related to acquisitions. In addition, the Advisor absorbed $0.2 million in property operating expenses during the year ended December 31, 2013. No property operating expense was absorbed by the Advisor during the year ended December 31, 2014.

61

Acquisition and Transaction Related Expenses

Acquisition and transaction related expenses of $33.6 million for the year ended December 31, 2014 related to our acquisition of 111 properties with an aggregate purchase price of $1.6 billion. Acquisition and transaction related expenses of $0.7 million for the year ended December 31, 2013, related to our acquisition of seven properties for an aggregate purchase price of $46.2 million.

General and Administrative Expenses

General and administrative expenses were $3.5 million for the year ended December 31, 2014, compared to approximately $0.1 million for the year ended December 31, 2013. Professional fees, board member compensation, franchise taxes and insurance costs increased $2.7 million in order to support our larger real estate portfolio. In addition, the Advisor absorbed $0.8 million in general and administrative expenses during the year ended December 31, 2013. No general and administrative expense was absorbed by the Advisor during the year ended December 31, 2014.

Depreciation and Amortization Expenses

Depreciation and amortization expense was $28.9 million for the year ended December 31, 2014, compared to $1.1 million for the year ended December 31, 2013. The increase in depreciation and amortization expense related to our acquisitions in 2014. The purchase price of acquired properties is allocated to tangible and identifiable intangible assets and depreciated or amortized over the estimated useful lives of the properties.

Interest Expense

Interest expense of $3.6 million for the year ended December 31, 2014 related to our mortgage notes payable balance of $65.8 million as of December 31, 2014, as well as non-usage fees on our senior secured credit facility and the related amortization of deferred financing costs and mortgage premiums. We did not have any debt and, therefore, did not have interest expense during the year ended December 31, 2013.

Income From Investment Securities and Interest Income

Income from investment securities and interest income of $0.7 million for the year ended December 31, 2014 includes income from our investment securities and interest income earned on cash and cash equivalents held during the period. We did not have any investment securities or interest bearing accounts during the year ended December 31, 2013 and, therefore, had no income from our investment securities or interest income.

Gain on sale of investments

Gain on sale of investments for the year ended December 31, 2014 of approximately $8,000 related to selling certain investments in preferred stock. We did not have any investment securities and therefore had no such sales during the year ended December 31, 2013.

Income tax expense

Income tax expenses were $0.6 million for the year ended December 31, 2014, compared to approximately $5,000 for the year ended December 31, 2013. The increase in tax expense during the year ended December 31, 2014 was primarily related to our acquisition of 30 SHOPs during the period. During the year ended December 31, 2013, income tax expense was comprised of state income taxes assessed from various state taxing authorities.

Net Loss Attributable to Non-Controlling Interests

Net loss attributable to non-controlling interests of approximately $34,000 for the year ended December 31, 2014 related to losses allocated to unaffiliated OP Unit holders. We issued 0.4 million OP Units in connection with the acquisition of a property in November 2014 and 90 OP Units in December 31, 2012 in connection with our initial capitalization.

62

Cash Flows for the Year Ended December 31, 2015

During the year ended December 31, 2015, net cash provided by operating activities was $65.8 million. The level of cash flows used in or provided by operating activities is affected by the number of properties owned, the performance of those properties, the timing of interest payments and the amount of borrowings outstanding during the period, as well as the receipt of scheduled rent payments and the level of operating expenses. Cash flows provided by operating activities during the year ended December 31, 2015 included $14.7 million of acquisition and transaction costs. Cash inflows related to a net loss adjusted for non-cash items of $87.6 million (net loss of $42.0 million adjusted for non-cash items including depreciation and amortization of tangible and identifiable intangible real estate assets, deferred financing costs and mortgage premiums and discount, equity based compensation, bad debt expense and gain on sale of investments of $129.5 million), an increase in accounts payable and accrued expenses of $5.2 million primarily related to accrued professional fees, real estate taxes and property operating expenses for our MOBs and SHOPs, as well as accrued related party property management fees and reimbursements and interest expense and an increase of $1.3 million in deferred rent. These cash inflows were partially offset by a net increase in prepaid and other assets of $12.9 million due to rent, other receivables, prepaid real estate taxes and insurance and utility deposits, as well as a net increase of $12.5 million in unbilled receivables recorded in accordance with straight-line basis accounting and a $2.9 million increase in restricted cash related to tenant deposits, real estate tax and insurance escrows on mortgaged properties.

Net cash used in investing activities during the year ended December 31, 2015 was $556.8 million. The cash used in investing activities primarily included $570.1 million to acquire 48 properties. Net cash used in investing activities also included $6.9 million of capital expenditures and $0.1 million for the purchase of investment securities, partially offset by $19.3 million in proceeds from the sale of investment securities and $1.0 million in returned deposits from unconsummated real estate acquisitions.

Net cash provided by financing activities of $332.9 million during the year ended December 31, 2015 related to proceeds from the Credit Facility of $440.0 million to fund acquisitions and contributions from non-controlling interest holders of $0.5 million. These cash inflows were partially offset by distributions to stockholders, net of proceeds received pursuant to the DRIP of $66.2 million, Credit Facility payments of $10.0 million, common stock repurchases of $10.4 million, payments of deferred financing costs of $13.3 million, mortgage payments of $6.4 million, offering costs paid of $0.6 million and distributions to non-controlling interest holders of $0.7 million.

Cash Flows for the Year Ended December 31, 2014

During the year ended December 31, 2014, net cash used in operating activities was $6.5 million. The level of cash flows used in or provided by operating activities is affected by the volume of acquisition activity, the timing of interest payments and the amount of borrowings outstanding during the period, as well as the receipt of scheduled rent payments and the level of operating expenses. Cash flows used in operating activities during the year ended December 31, 2014 included $33.6 million of acquisition and transaction costs. Cash outflows related to a net loss adjusted for non-cash items of $7.5 million (net loss of $37.7 million adjusted for non-cash items including depreciation and amortization of tangible and identifiable intangible real estate assets and mortgage premiums, share based compensation and gain on sale of investments of $30.2 million), increases in restricted cash of $1.8 million related to tenant deposits, real estate tax and insurance escrows on mortgaged properties and an increase in prepaid and other assets of $8.8 million due to rent and other receivables and prepaid real estate taxes and insurance, as well as a net increase of $2.2 million in unbilled receivables recorded in accordance with straight-line basis accounting. These cash outflows were partially offset by an increase in accounts payable and accrued expenses of $10.9 million primarily related to accrued professional fees, real estate taxes and property operating expenses for our MOBs and seniors housing communities as well as $3.0 million in deferred rent.

Net cash used in investing activities during the year ended December 31, 2014 was $1.5 billion. The cash used in investing activities included $1.5 billion to acquire 111 properties. Net cash used in investing activities also included $0.8 million of capital expenditures, $3.7 million for deposits on pending real estate acquisitions and $20.3 million for the purchase of investment securities, partially offset by $0.5 million in proceeds from the sale of investment securities.

Net cash provided by financing activities of $1.6 billion during the year ended December 31, 2014 related to proceeds, net of receivables, from the issuance of common stock of $1.9 billion, partially offset by payments made on mortgage notes payable of $0.5 million, payments of deferred financing costs of $5.4 million, payments for common stock repurchases of $0.5 million, payments related to offering costs of $202.7 million, distributions paid to stockholders of $35.2 million and payments to affiliates for advances to fund offering costs of $0.5 million.

63

Cash Flows for the Year Ended December 31, 2013

During the year ended December 31, 2013, net cash used in operating activities was $0.8 million. The level of cash flows used in or provided by operating activities is affected by the volume of acquisition activity and the receipt of scheduled rent payments. Cash flows used in operating activities during the year ended December 31, 2013 includes $0.7 million of acquisition and transaction costs. Cash outflows consisted of an increase in prepaid expenses of $1.9 million primarily related to professional fees associated with strategic advisory services from our Former Dealer Manager, rent receivable and an increase in due from affiliates associated with absorbed property operating and general and administrative expenses by the Advisor as well as a net increase of $0.1 million in unbilled rent receivables recorded in accordance with accounting for rental income on a straight-line basis. These cash outflows were partially offset by a net loss adjusted for non-cash items of $0.9 million (net loss of $0.2 million adjusted for non-cash items including depreciation and amortization of tangible and intangible real estate assets and share based compensation of $1.1 million), an increase in accounts payable and accrued expenses of $0.3 million related to accrued real estate taxes, state income taxes and professional fees.

The net cash used in investing activities during the year ended December 31, 2013 of $46.5 million related to the acquisition of seven properties with an aggregate purchase price of $46.2 million. Net cash used in investing activities also includes a deposit for a property acquisition of $0.4 million, which occurred in 2014.

Net cash provided by financing activities of $159.1 million during the year ended December 31, 2013 related to proceeds, net of receivables, from the issuance of common stock of $184.0 million and net advances from affiliates of $0.1 million, primarily to fund third party offering costs, partially offset by payments related to offering costs of $23.7 million and $1.3 million in distributions paid to stockholders.

Liquidity and Capital Resources

As of December 31, 2015, we had $24.5 million of cash and cash equivalents and investment securities, at fair value, of $1.1 million. We closed our IPO on November 17, 2014, which resulted in net proceeds of $2.1 billion.

We acquired our first property and commenced real estate operations in May 2013. As of December 31, 2015, we owned 166 properties with real estate investments, at cost, of $2.3 billion. Our principal demands for cash will be for acquisition costs, including the purchase price of any properties, loans and securities we acquire, improvement costs, the payment of our operating and administrative expenses, debt service obligations and distributions to our stockholders. We generally intend to acquire our assets with mortgage or other debt proceeds, such as proceeds from our Credit Facility.

We expect to fund our future short-term operating liquidity requirements through a combination of cash on hand, net cash provided by our current property operations and the operations of properties to be acquired in the future, proceeds from our Credit Facility and secured mortgage financings. 

We expect to utilize proceeds from secured financings and our Credit Facility to complete future property acquisitions. Specifically, we may incur mortgage debt and pledge all or some of our properties as security for that debt to obtain funds to acquire additional properties. Once we have used all the availability under our Credit Facility to acquire properties, we expect that cash flow from our properties will be sufficient to fund operating expenses and the payment of our monthly distributions. Other potential future sources of capital include proceeds from secured and unsecured financings from banks or other lenders, proceeds from public and private offerings, proceeds from the sale of properties and undistributed funds from operations. We may borrow if we need funds to satisfy the REIT tax qualifications requirement that we generally distribute annually to our stockholders at least 90% of our REIT taxable income (which does not equal net income, as calculated in accordance with GAAP, determined without regard to the deduction for dividends paid and excluding net capital gain). We also may borrow if we otherwise deem it necessary or advisable to assure that we maintain our qualification as a REIT.

As of December 31, 2015, the balance outstanding under the Credit Facility was $430.0 million. Our unused borrowing capacity was $135.0 million, based on assets assigned to the Credit Facility as of December 31, 2015. Availability of borrowings is based on a pool of eligible unencumbered real estate assets. As of December 31, 2015, we had the ability to borrow up to $565.0 million on a revolving basis under the Credit Facility and the Credit Facility also contains a subfacility for letters of credit of up to $25.0 million. Additionally, the Credit Facility contains an "accordion" feature to allow the Company, under certain circumstances, to increase the aggregate borrowings under the Credit Facility to a maximum of $750.0 million. The Credit Facility matures on March 21, 2019. As of December 31, 2015, our secured debt leverage ratio (total secured debt divided by total assets) was approximately 25.9% and we had total secured borrowings of $589.5 million and no unsecured borrowings.

To the extent that we maintain borrowing capacity under our Credit Facility, such available amount will be included in calculating our liquid assets. Our Advisor will consider various factors in determining the amount of liquid assets we should maintain, including, but not limited to, our receipt of proceeds from sales of additional shares, our cash flow from operations, available borrowing capacity under our Credit Facility, if any, our receipt of proceeds from any asset sale, and the use of cash to fund repurchases. The board of directors will review the amount and sources of liquid assets on a quarterly basis.

64

Our board of directors has adopted the SRP which enables our stockholders to sell their shares to us under limited circumstances. At the time a stockholder requests a repurchase, we may, subject to certain conditions, repurchase the shares presented for repurchase for cash. There are limits on the number of shares we may repurchase under this program during any calendar year. Further, during the year ended December 31, 2015, we were only authorized to repurchase shares using the proceeds secured from the DRIP in any given quarter. The following table reflects the number of shares repurchased under the SRP cumulatively through December 31, 2015:

	Number of Shares Repurchased	Average Price per Share
Cumulative repurchases as of December 31, 2014	74,031	$	24.42
Year ended December 31, 2015 (1)	894,339	23.66
Cumulative repurchases as of December 31, 2015 (1)	968,370	$	23.72

_______________

(1) As permitted under the SRP, in January 2016, our board of directors authorized, with respect to redemption requests received during the three months ended December 31, 2015, the repurchase of shares validly submitted for repurchase in an amount equal to 1.0% of the weighted average number of shares of common stock outstanding during the fiscal year ended December 31, 2014, representing less than all the shares validly submitted for repurchase during the three months ended December 31, 2015. Accordingly, 512,408 shares at an average price per share of $23.45 (including all shares submitted for death or disability) were approved for repurchase and completed in February 2016, while 201,367 shares for $4.6 million at an average price per share of $23.04 were not fulfilled. There were no other unfulfilled share repurchases for the period from October 15, 2012 (date of inception) to December 31, 2015.

Acquisitions

As of March 4, 2016, we owned 166 properties and had $49.0 million of assets under contract and executed letters of intent. Pursuant to the terms of the purchase and sale agreements and letters of intent, our obligation to close upon these acquisitions is subject to certain conditions customary to closing, including the successful completion of due diligence and fully negotiated binding agreements. There can be no assurance that we will complete these acquisitions. We intend to use advances from our Credit Facility to fund acquisitions.

Funds from Operations and Modified Funds from Operations

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings, improvements, and straight-line amortization of intangibles, which implies that the value of a real estate asset diminishes predictably over time. We believe that, because real estate values historically rise and fall with market conditions, including, but not limited to, inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using the historical accounting convention for depreciation and certain other items may be less informative.

Because of these factors, the National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has published a standardized measure of performance known as funds from operations ("FFO"), which is used in the REIT industry as a supplemental performance measure. We believe FFO, which excludes certain items such as real estate-related depreciation and amortization, is an appropriate supplemental measure of a REIT's operating performance. FFO is not equivalent to our net income or loss as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards set forth in the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in February 2004 (the "White Paper"). The White Paper defines FFO as net income or loss computed in accordance with GAAP, but excluding gains or losses from sales of property and real estate related impairments, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

We believe that the use of FFO provides a more complete understanding of our performance to investors and to management, and, when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income.

Changes in the accounting and reporting promulgations under GAAP that were put into effect in 2009 subsequent to the establishment of NAREIT's definition of FFO, such as the change to expense as incurred rather than capitalize and depreciate acquisition fees and expenses incurred for business combinations, have prompted an increase in cash-settled expenses, specifically acquisition fees and expenses, as items that are expensed under GAAP across all industries. These changes had a particularly significant impact on publicly registered, non-listed REITs, which typically have a significant amount of acquisition activity in the early part of their existence, particularly during the period when they are raising capital through ongoing initial public offerings.

65

Because of these factors, the Investment Program Association ("IPA"), an industry trade group, has published a standardized measure of performance known as modified funds from operations ("MFFO"), which the IPA has recommended as a supplemental measure for publicly registered, non-listed REITs. MFFO is designed to be reflective of the ongoing operating performance of publicly registered, non-listed REITs by adjusting for those costs that are more reflective of acquisitions and investment activity, along with other items the IPA believes are not indicative of the ongoing operating performance of a publicly registered, non-listed REIT, such as straight-lining of rents as required by GAAP. We believe it is appropriate to use MFFO as a supplemental measure of operating performance because we believe that, when compared year-over-year, both before and after we have deployed all of our offering proceeds and are no longer incurring a significant amount of acquisition fees or other related costs, it reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income. MFFO is not equivalent to our net income or loss as determined under GAAP.

We define MFFO, a non-GAAP measure, consistent with the IPA's Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations (the "Practice Guideline") issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for acquisition and transaction-related fees and expenses and other items. In calculating MFFO, we follow the Practice Guideline and exclude acquisition and transaction-related fees and expenses, amortization of above and below market and other intangible lease assets and liabilities, amounts relating to straight-line rents (which are adjusted in order to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the lease and rental payments), contingent purchase price consideration, accretion of discounts and amortization of premiums on debt investments, capitalized interest, mark-to-market adjustments included in net income, gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and adjustments for unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect MFFO on the same basis.

We believe that, because MFFO excludes costs that we consider more reflective of acquisition activities and other non-operating items, MFFO can provide, on a going-forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of our operating performance after the period in which we are acquiring properties and once our portfolio is stabilized. We also believe that MFFO is a recognized measure of sustainable operating performance by the non-listed REIT industry and allows for an evaluation of our performance against other publicly registered, non-listed REITs.

Not all REITs, including publicly registered, non-listed REITs, calculate FFO and MFFO the same way. Accordingly, comparisons with other REITs, including publicly registered, non-listed REITs, may not be meaningful. Furthermore, FFO and MFFO are not indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) or income (loss) from continuing operations as determined under GAAP as an indication of our performance, as an alternative to cash flows from operations as an indication of our liquidity, or indicative of funds available to fund our cash needs including our ability to make distributions to our stockholders. FFO and MFFO should be reviewed in conjunction with GAAP measurements as an indication of our performance. FFO and MFFO should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The methods utilized to evaluate the performance of a publicly registered, non-listed REIT under GAAP should be construed as more relevant measures of operational performance and considered more prominently than the non-GAAP measures, FFO and MFFO, and the adjustments to GAAP in calculating FFO and MFFO.

Neither the SEC, NAREIT, the IPA nor any other regulatory body or industry trade group has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, NAREIT, the IPA or another industry trade group may publish updates to the White Paper or the Practice Guideline or the SEC or another regulatory body could standardize the allowable adjustments across the publicly registered, non-listed REIT industry and we would have to adjust our calculation and characterization of FFO or MFFO accordingly.

66

The table below reflects the items deducted from or added to net loss attributable to stockholders in our calculation of FFO and MFFO for the periods indicated. In calculating our FFO and MFFO, we exclude the impact of amounts attributable to our non-controlling interests.

	Three Months Ended												Year Ended
(In thousands)	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015			December 31, 2015
Net loss attributable to stockholders (in accordance with GAAP)	$	(5,220	)	$	(13,421	)	$	(16,108	)	$	(6,992	)	$	(41,741	)
Depreciation and amortization	29,445			33,538			34,008			23,539			120,530
Adjustments for non-controlling interests(1)	(141		)	(167		)	(180		)	(122		)	(610		)
FFO attributable to stockholders(2)	24,084			19,950			17,720			16,425			78,179
Acquisition and transaction-related fees and expenses	1,999			3,187			3,317			6,176			14,679
Amortization of market lease and other lease intangibles, net	17			(80		)	(55		)	19			(99		)
Straight-line rent	(2,396		)	(2,131		)	(2,730		)	(1,828		)	(9,085		)
Amortization of mortgage premiums	(332		)	(534		)	(536		)	(531		)	(1,933		)
Gain on sale of investment	(286		)	—			(160		)	—			(446		)
Loss on debt extinguishment	—			548			—			—			548
Contingent purchase price consideration	—			(450		)	(37		)	(125		)	(612		)
Capitalized construction interest costs	—			—			(73		)	(136		)	(209		)
Adjustments for non-controlling interests(1)	5			(15		)	2			(16		)	(24		)
MFFO attributable to stockholders(2)	$	23,091		$	20,475		$	17,448		$	19,984		$	80,998

_______________

(1) Represents the portion of the adjustments allocable to non-controlling interests.

(2) During the fourth quarter of 2015, we identified certain immaterial errors impacting FFO attributable to stockholders and MFFO attributable to stockholders in our previously issued quarterly financial statements. FFO attributable to stockholders and MFFO attributable to stockholders were overstated by $0.1 million for each of the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015. Quarterly amounts in the table above have been revised to reflect the corrected amounts.

Distributions

On April 9, 2013, our board of directors authorized, and we declared, distributions payable to stockholders of record each day during the applicable period equal to $0.0046575343 per day, which is equivalent to $1.70 per annum, per share of common stock, beginning May 24, 2013. Distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month.

The amount of distributions payable to our stockholders is determined by our board of directors and is dependent on a number of factors, including funds available for distribution, our financial condition, capital expenditure requirements, as applicable, requirements of Maryland law and annual distribution requirements needed to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). Distribution payments are dependent on the availability of funds. Our board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured.

During the year ended December 31, 2015, distributions paid to common stockholders and OP Unit holders totaled $145.4 million, including $78.5 million which was reinvested through our DRIP.

67

The following table shows the sources for the payment of distributions to common stockholders, including distributions on unvested restricted stock and OP Units, but excluding distributions related to Class B Units as these distributions are recorded as expenses in the consolidated statement of operations and comprehensive loss, for the periods indicated:

	Three Months Ended																				Year Ended
	March 31, 2015					June 30, 2015					September 30, 2015					December 31, 2015					December 31, 2015
(In thousands)				Percentage of Distributions					Percentage of Distributions					Percentage of Distributions					Percentage of Distributions					Percentage of Distributions
Distributions:
Distributions to stockholders	$	35,244				$	36,319				$	36,643				$	36,509				$	144,715
Distributions on OP Units	178					175					173					172					698
Total distributions	$	35,422				$	36,494				$	36,816				$	36,681				$	145,413
Source of distribution coverage:
Cash flows provided by operations (1)	$	17,479		49.3	%	$	17,018		46.6	%	$	14,707		39.9	%	$	9,378		25.6	%	$	58,582		40.3	%
Offering proceeds from issuance of common stock	—			—	%	—			—	%	—			—	%	—			—	%	—			—	%
Proceeds received from common stock issued under the DRIP	17,943			50.7	%	17,687			48.5	%	17,296			47.0	%	15,162			41.3	%	68,088			46.8	%
Proceeds from the sale of investment securities	—			—	%	—			—	%	4,813			13.1	%	13,930			38.0	%	18,743			12.9	%
Proceeds from financings	—			—	%	1,789			4.9	%	—			—	%	(1,789		)	(4.9	)%	—			—	%
Total source of distribution coverage	$	35,422		100.0	%	$	36,494		100.0	%	$	36,816		100.0	%	$	36,681		100.0	%	$	145,413		100.0	%
Cash flows provided by operations (GAAP basis) (1)	$	24,531				$	17,195				$	14,707				$	9,378				$	65,811
Net loss attributed to stockholders (in accordance with GAAP)	$	(5,220	)			$	(13,421	)			$	(16,108	)			$	(6,992	)			$	(41,741	)

______________________________

(1) Cash flows provided by operations for the three months ended March 31, 2015, June 30, 2015, September 30, 2015 and December 31, 2015 and the year ended December 31, 2015 reflect acquisition and transaction related expenses of $2.0 million, $3.2 million, $3.3 million, $6.2 million and $14.7 million, respectively.

For the year ended December 31, 2015, cash flows provided by operations were $65.8 million. As shown in the table above, we funded distributions with cash flows provided by operations as well as proceeds received from common stock issued under our DRIP, the sale of investment securities and financings. To the extent we pay distributions in excess of cash flows provided by operations, our stockholders' investment may be adversely impacted. Since inception, our cumulative distributions have exceeded our cumulative FFO. Distributions paid from sources other than our cash flows from operations will result in us having fewer funds available for other needs such as property acquisitions and other real estate-related investments.

We may not generate sufficient cash flow from operations in 2016 to pay distributions at our current level and we may not generate sufficient cash flows from operations to pay future distributions. The amount of cash available for distributions is affected by many factors, such as rental income from acquired properties and our operating expense levels, as well as many other variables. Actual cash available for distributions may vary substantially from estimates. Since inception, our cumulative distributions have exceeded our cumulative FFO. We cannot give any assurance that future acquisitions of real properties, if any, will increase our cash available for distributions to stockholders. Our actual results may differ significantly from the assumptions used by our board of directors in establishing a distribution rate to stockholders.

If we do not generate sufficient cash flows from our operations, we expect to use a portion of our cash on hand and the proceeds from our DRIP to pay distributions. A decrease in the level of stockholder participation in our DRIP could have an adverse impact on our ability to meet these expectations. If these sources are insufficient, we may use other sources, such as from borrowings, the sale of additional securities, advances from our Advisor, and our Advisor's deferral, suspension or waiver of its fees and expense reimbursements, as to which it has no obligation, to fund distributions.

68

The following table compares cumulative distributions paid to cumulative net loss and cumulative cash flows provided by operations (in accordance with GAAP) for the period from October 15, 2012 (date of inception) through December 31, 2015:

	For the Period from October 15, 2012 (date of inception) to
(In thousands)	December 31, 2015
Distributions paid:
Common stockholders (1)	$	224,110
OP Units	698
Total distributions paid	$	224,808
Reconciliation of net loss:
Revenues	$	307,746
Acquisition and transaction related	(49,032		)
Depreciation and amortization	(150,890		)
Other operating expenses	(177,996		)
Other non-operating expenses	(12,144		)
Income tax benefit	2,408
Net income attributable to non-controlling interests	253
Net loss attributable to stockholders (in accordance with GAAP) (2)	$	(79,655	)
Net cash flows provided by operating activities	$	58,582
FFO attributable to stockholders	$	70,195

_____________________

(1) For the period from October 15, 2012 (date of inception) to December 31, 2015, we received $121.4 million of proceeds from common stock issued under the DRIP.

(2) Net loss as defined by GAAP includes the non-cash impact of depreciation and amortization expense as well as costs incurred relating to acquisitions and related transactions.

Loan Obligations

The payment terms of our mortgage notes payable generally require principal and interest amounts payable monthly with all unpaid principal and interest due at maturity. The payment terms of our Credit Facility require interest only amounts payable monthly with all unpaid principal and interest due at maturity. Our loan agreements require us to comply with specific reporting covenants. As of December 31, 2015, we were in compliance with the debt covenants under our loan agreements.

Our Advisor may cause us, with approval from our independent directors, to seek to borrow short-term capital that, combined with secured mortgage financing, exceeds our targeted leverage ratio.

69

Contractual Obligations

The following table reflects contractual debt obligations under our mortgage notes payable and Credit Facility and minimum base rental cash payments due for leasehold interests over the next five years and thereafter as of December 31, 2015. The minimum base rental cash payments due for leasehold interests amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes, among other items. As of December 31, 2015, the outstanding mortgage notes payable and loans under the Credit Facility had weighted-average effective interest rates of 5.3% and 1.8%, respectively.

					Years Ended December 31,
(In thousands)	Total		2016		2017 — 2018		2019 — 2020		Thereafter
Principal on mortgage notes payable	$	159,455	$	15,650	$	66,725	$	37,603	$	39,477
Interest on mortgage notes payable	45,849		7,923		10,526		4,522		22,878
Credit Facility	430,000		—		—		430,000		—
Interest on Credit Facility	27,072		8,426		16,804		1,842		—
Lease rental payments due (1)	91,539		719		1,486		1,506		87,828
Development project funding commitment(2)	50,909		50,909		—		—		—
Total	$	804,824	$	83,627	$	95,541	$	475,473	$	150,183

_______________________________

(1) Lease rental payments due includes $3.4 million of imputed interest related to our capital lease obligations.

(2) In August 2015, the Company entered into an asset purchase agreement and development agreement to acquire and subsequently fund the remaining construction of a skilled nursing facility in Jupiter, Florida for $82.0 million.

Election as a REIT

We elected and qualified to be taxed as a REIT under Sections 856 through 860 of the Code, effective for our taxable year ended December 31, 2013. Commencing with such taxable year, we were organized and operated in a manner so that we qualify for taxation as a REIT under the Code. We intend to continue to operate in such a manner but no assurance can be given that we will operate in a manner so as to remain qualified for taxation as a REIT. In order to continue to qualify for taxation as a REIT we must, among other things, distribute annually at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP) determined without regard to the deduction for dividends paid and excluding net capital gains, and must comply with a number of other organization and operational requirements. If we continue to qualify for taxation as a REIT, we generally will not be subject to federal corporate income tax on that portion of our REIT taxable income that we distribute to our stockholders. Even if we continue to qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and properties as well as federal income and excise taxes on our undistributed income.

Inflation

We may be adversely impacted by inflation on any leases that do not contain indexed escalation provisions. In addition, we may be required to pay costs for maintenance and operation of properties, which may adversely impact our results of operations due to potential increases in costs and operating expenses resulting from inflation.

70

Related-Party Transactions and Agreements

We have entered into agreements with affiliates of our Sponsor, whereby we have paid and/or may in the future pay certain fees or reimbursements to our Advisor, its affiliates and entities under common ownership with our Advisor in connection with items such as acquisition and financing activities, sales and maintenance of common stock under our IPO, which has closed, asset and property management services and reimbursement of operating and offering related costs. The predecessor to AR Global is a party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager (“RCS Advisory”), pursuant to which RCS Advisory and its affiliates provided us and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory. We are also party to a transfer agency agreement with American National Stock Transfer, LLC, a subsidiary of the parent company of the Former Dealer Manager (“ANST”), pursuant to which ANST provided us with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by a third-party transfer agent. AR Global received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. On February 26, 2016, the Company entered into a definitive agreement with DST Systems, Inc., its previous provider of sub-transfer agency services, to  provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services). See Note 9 — Related Party Transactions and Arrangements to our consolidated financial statements included in this Annual Report on Form 10-K and Item 13. Certain Relationships and Related Transactions, and Director Independence for a discussion of the various related party transactions, agreements and fees.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

The market risk associated with financial instruments and derivative financial instruments is the risk of loss from adverse changes in market prices or interest rates. Our long-term debt, which consists of secured financings and our Credit Facility, bears interest at fixed rates and variable rates. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as swaps, collars, and treasury lock agreements in order to mitigate our interest rate risk with respect to various debt instruments. We will not hold or issue these derivative contracts for trading or speculative purposes. As of December 31, 2015, we did not have any derivative financial instruments. We do not have any foreign operations and thus we are not exposed to foreign currency fluctuations.

As of December 31, 2015, our debt consisted of both fixed and variable-rate debt. We had fixed-rate secured mortgage financings with an aggregate carrying value of $161.9 million and a fair value of $162.7 million. Changes in market interest rates on our fixed-rate debt impact the fair value of the mortgage notes, but it has no impact on interest due on the mortgage notes. For instance, if interest rates rise 100 basis points and our fixed rate debt balance remains constant, we expect the fair value of our obligation to decrease, the same way the price of a bond declines as interest rates rise. The sensitivity analysis related to our fixed–rate debt assumes an immediate 100 basis point move in interest rates from their December 31, 2015 levels, with all other variables held constant. A 100 basis point increase in market interest rates would result in a decrease in the fair value of our fixed-rate debt by $6.3 million. A 100 basis point decrease in market interest rates would result in an increase in the fair value of our fixed-rate debt by $7.5 million.

At December 31, 2015, our variable-rate Credit Facility had a carrying and fair value of $430.0 million. Interest rate volatility associated with this variable-rate Credit Facility affects interest expense incurred and cash flow. The sensitivity analysis related to all other variable-rate debt assumes an immediate 100 basis point move in interest rates from their December 31, 2015 levels, with all other variables held constant. A 100 basis point increase or decrease in variable interest rates on our variable-rate Credit Facility would increase or decrease our interest expense by $4.3 million.

These amounts were determined by considering the impact of hypothetical interest rate changes on our borrowing costs, and assuming no other changes in our capital structure. The information presented above includes only those exposures that existed as of December 31, 2015 and does not consider exposures or positions arising after that date. The information represented herein has limited predictive value. Future actual realized gains or losses with respect to interest rate fluctuations will depend on cumulative exposures, hedging strategies employed and the magnitude of the fluctuations.

71

Item 8. Financial Statements and Supplementary Data.

The information required by this Item 8 is hereby incorporated by reference to our Consolidated Financial Statements beginning on page F-1 of this Annual Report on Form 10-K.

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

In accordance with Rule 13a-15(b) and Rule 15d-15(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), our management, under the supervision and with the participation of our Interim Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Annual Report on Form 10-K. Based on such evaluation, our Interim Chief Executive Officer and Chief Financial Officer have concluded, as of the end of such period, that our disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by us in our reports that we file or submit under the Exchange Act.

Management's Annual Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) promulgated under the Exchange Act and as set forth below. Under Rule 13a-15(c), management must evaluate, with the participation of the Interim Chief Executive Officer and Chief Financial Officer, the effectiveness, as of the end of each calendar year, of our internal control over financial reporting. The term internal control over financial reporting is defined as a process designed by, or under the supervision of, the issuer's principal executive and principal financial officers, or persons performing similar functions, and effected by the issuer's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the issuer;

2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the issuer; and

3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the issuer's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

In the course of preparing this Annual Report on Form 10-K and the consolidated financial statements included herein, our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2015 using the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the Internal Control-Integrated Framework (2013). Based on that evaluation, management concluded that our internal control over financial reporting was effective as of December 31, 2015.

KPMG LLP, an independent registered public accounting firm, was engaged to audit the consolidated financial statements included in this Annual Report on Form 10-K and their audit report is included on Page F-2 of this Annual Report on Form 10-K. The rules of the SEC do not require, and this Annual Report on Form 10-K does not include, an attestation report of our independent registered public accounting firm regarding internal control over financial reporting.

Changes in Internal Control Over Financial Reporting

We completed the execution of our remediation plan with respect to our material weaknesses identified in our Annual Report on Form 10-K for the year ended December 31, 2014 during the quarter ended June 30, 2015. No change occurred in our internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) of the Exchange Act) during the three months ended December 31, 2015 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

72

Item9B. Other Information.

On March 10, 2016, we entered into an indemnification agreement (the “Indemnification Agreement”) with Katie P. Kurtz (the “Indemnitee”) in connection with Ms. Kurtz’s appointment as our chief financial officer, treasurer and secretary. The Indemnification Agreement provides that we will indemnify the Indemnitee, to the fullest extent permitted by Maryland law and our charter and subject to the limitations set forth in the Indemnification Agreement, from and against all judgments, penalties, fines and amounts paid in settlement and expenses reasonably incurred by the Indemnitee that may result or arise in connection with the Indemnitee serving in her capacity as a present or former director, officer, employee or agent of us or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at our request. The Indemnification Agreement further provides that, subject to the limitations set forth in the Indemnification Agreement, we will, without requiring a preliminary determination of the Indemnitee’s ultimate entitlement of indemnification under the Indemnification Agreement, advance all reasonable expenses to the Indemnitee incurred by or on behalf of the Indemnitee in connection with any proceeding the Indemnitee is or is threatened to be made a party to.

The Indemnification Agreement provides that the Indemnitee is entitled to indemnification unless it is established that (a) the act or omission of the Indemnitee was material to the matter giving rise to the proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) the Indemnitee actually received an improper personal benefit in money, property or services or (c) in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that her conduct was unlawful. The Indemnification Agreement further limits the Indemnitee’s entitlement to indemnification in cases where (a) the proceeding was one by or in the right of us and the Indemnitee was adjudged to be liable to us, (b) the Indemnitee was adjudged to be liable on the basis that personal benefit was improperly received in any proceeding charging improper personal benefit to the Indemnitee or (c) the proceeding was brought by the Indemnitee, except in certain circumstances.

The Indemnification Agreement also provides that, except for a proceeding brought by the Indemnitee, we have the right to defend the Indemnitee in any proceeding which may give rise to indemnification under the Indemnification Agreement. The Indemnification Agreement grants the Indemnitee the right to separate counsel in certain proceedings involving separate defenses, counterclaims or other conflicts of interest and in proceedings in which we fail to assume the defense of the Indemnitee in a timely manner. The Indemnification Agreement further provides that we will use our reasonable best efforts to acquire directors and officers liability insurance covering the Indemnitee or any claim made against the Indemnitee by reason of her service to us.

The description of the Indemnification Agreement in this Annual Report on Form 10-K is a summary and is qualified in its entirety by the terms of the Indemnification Agreement attached as Exhibit 10.55 to this Annual Report on Form 10-K and incorporated herein by reference.

On March 10, 2016, our board of directors appointed W. Todd Jensen, currently the president of the Company, to serve as interim chief executive officer of the Company, effective as of that same date. Mr. Jensen will also serve as chief executive officer of our Advisor and Property Manager. Mr. Jensen will continue to serve in his capacities as president of the Company, the Advisor and the Property Manager and as chief investment officer of the Advisor.

Mr. Jensen, 50, has served as president of the Company since December 18, 2015 and was previously the chief investment officer of the Advisor since its formation in October 2012 and served as executive vice president and chief investment officer of the Property Manager from their formation in October 2012 until December 2015. Mr. Jensen has also served as the president of American Realty Capital Healthcare Trust III, Inc. (“HT III”) since December 2015; as chief investment officer of the HT III advisor since its formation in April 2014 and previously served as the executive vice president and chief investment officer of HT III and the HT III property manager from their formation in April 2014 until December 2015. Mr. Jensen has also served as the executive vice president and chief investment officer of American Realty Capital Healthcare Trust, Inc. (“HCT”), the HCT advisor and the HCT property manager from February 2011 until January 2015 when HCT closed its merger with Ventas, Inc. Mr. Jensen has almost 25 years of experience in the financing and development of commercial real estate, with more than 20 of those years focused exclusively on the development, leasing and capitalization of healthcare-related real estate. Mr. Jensen worked for The DASCO Companies, as a consultant from December 2008 to January 2009 and as senior vice president from January 2009 to February 2011, focusing on helping to grow its healthcare-related real estate development business. From August 2003 to September 2008, Mr. Jensen served as senior vice president for Lauth Property Group and started, grew and managed its Healthcare Group. Mr. Jensen received a B.A. in Economics and Mathematics from Kalamazoo College and an MBA from University of Pennsylvania’s Wharton School.

There are no related party transactions involving Mr. Jensen that are reportable under Item 404(a) of Regulation S-K except as described in our annual proxy statement filed with the U.S. Securities and Exchange Commission on April 30, 2015.

PART III

73

Item 10. Directors, Executive Officers and Corporate Governance.

We have adopted a Code of Ethics that applies to all of our executive officers and directors, including but not limited to, our principal executive officer and principal financial officer. A copy of our code of ethics may be obtained, free of charge, by sending a written request to our executive office – 405 Park Avenue – 14^th Floor, New York, NY 10022, Attention: Chief Financial Officer.

Our code of ethics is also publicly available on our website at www.healthcaretrustinc.com/corporate_governance.html. If we make any substantive amendments to the Code of Ethics or grant any waiver, including any implicit waiver, from a provision of the Code of Ethics to our chief executive officer, chief financial officer, chief accounting officer or controller or persons performing similar functions, we will disclose the nature of the amendment or waiver on that website or in a report on Form 8-K.

The information required by this Item is incorporated by reference to our definitive proxy statement to be filed with the SEC with respect to our 2016 annual meeting of stockholders.

Item 11. Executive Compensation.

The information required by this Item is incorporated by reference to our definitive proxy statement to be filed with the SEC with respect to our 2016 annual meeting of stockholders.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information required by this Item is incorporated by reference to our definitive proxy statement to be filed with the SEC with respect to our 2016 annual meeting of stockholders.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information required by this Item is incorporated by reference to our definitive proxy statement to be filed with the SEC with respect to our 2016 annual meeting of stockholders.

Item 14. Principal Accounting Fees and Services.

The information required by this Item is incorporated by reference to our definitive proxy statement to be filed with the SEC with respect to our 2016 annual meeting of stockholders.

PART IV

Item 15. Exhibits and Financial Statement Schedules.

(a) Financial Statements and Financial Statement Schedules

1.    Financial Statements:

See the Index to Consolidated Financial Statements at page F-1 of this Annual Report on Form 10-K.

2.    Financial Statement Schedules:

The following financial statement schedule is included herein at page F-38 of this Annual Report on Form 10-K:

Schedule III — Real Estate and Accumulated Depreciation

(b) Exhibits

See Exhibit Index below.

EXHIBIT INDEX

The following exhibits are included, or incorporated by reference, in this Annual Report on Form 10-K for the year ended December 31, 2015 (and are numbered in accordance with Item 601 of Regulation S-K):

Exhibit No.	Description
3.1 *	Articles of Amendment and Restatement for Healthcare Trust, Inc.
3.2 (2)	Bylaws of Healthcare Trust, Inc. (f/k/a American Realty Capital Healthcare Trust II, Inc.)
4.1 (1)	Agreement of Limited Partnership of American Realty Capital Healthcare Trust II Operating Partnership, L.P., dated as of February 14, 2013
4.2 (5)	First Amendment to the Agreement of Limited Partnership of American Realty Capital Healthcare Trust II, L.P., dated as of December 31, 2013
4.3 *	Second Amendment to the Agreement of Limited Partnership of American Realty Capital Healthcare Trust II, L.P., dated as of April 15, 2015
10.1 (12)	Amended and Restated Advisory Agreement, dated as of June 26, 2015, by and among the Company, American Realty Capital Healthcare Trust II Operating Partnership, L.P. and American Realty Capital Healthcare II Advisors, LLC
10.2 (1)	Property Management and Leasing Agreement, dated as of February 14, 2013, by and among the Company, American Realty Capital Healthcare Trust II Operating Partnership, L.P. and American Realty Capital Healthcare II Properties, LLC
10.3 (1)	Employee and Director Incentive Restricted Share Plan of the Company
10.4 (1)	Form of Restricted Share Award Agreement Pursuant to the Employee and Director Incentive Restricted Share Plan of the Company
10.5 (1)	Agreement for Purchase and Sale of Real Property, effective as of April 22, 2013, by and between AR Capital, LLC and TST Appleton South, LLC
10.6 (3)	Agreement for Purchase and Sale of Real Property by and between American Realty Capital VII, LLC and VETS Development LLC
10.7 (3)	Agreement for Purchase and Sale of Real Property by and between American Realty Capital V, LLC and Ouachita Medical Properties, L.C.
10.8 (3)	Second Amendment to Advisory Agreement, dated as of May 15, 2013, by and among American Realty Capital Healthcare Trust II, Inc., American Realty Capital Healthcare Trust II Operating Partnership, L.P. and American Realty Capital Healthcare II Advisors, LLC
10.9 (3)	Letter Agreement for Purchase and Sale of Real Property, dated as of June 19, 2013, by and between American Realty Capital V, LLC and Ouachita Medical Properties, L.C.
10.10 (3)	Letter Agreement for Purchase and Sale of Real Property, dated as of June 24, 2013, by and between American Realty Capital V, LLC and Ouachita Medical Properties, L.C.
10.11 (3)	Letter Agreement for Purchase and Sale of Real Property, dated as of July 1, 2013, by and between American Realty Capital V, LLC, as assigned to ARHC OCWMNLA01, LLC, and Ouachita Medical Properties, L.C.
10.12 (4)	Agreement for Purchase and Sale of Real Property, dated as of July 15, 2013, between American Realty Capital V, LLC and OLMC Partners, LLC
10.13 (4)	Letter Agreement No. 1, dated as of July 18, 2013, between American Realty Capital V, LLC and OLMC Partners, LLC
10.14 (4)	Letter Agreement No. 2, dated as of August 14, 2013, between American Realty Capital V, LLC and OLMC Partners, LLC
10.15 (4)	Letter Agreement No. 3, dated as of August 16, 2013, between American Realty Capital V, LLC and OLMC Partners, LLC
10.16 (5)	Agreement for Purchase and Sale, dated as of January 13, 2014 by and among American Realty Capital VII, LLC and LaSalle Medical Office Fund II.
10.17 (5)	First Amendment to Agreement for Purchase and Sale, dated as of February 13, 2014 by and among American Realty Capital VII, LLC and LaSalle Medical Office Fund II.
10.18 (5)	Second Amendment to Agreement for Purchase and Sale, dated as of February 18, 2014, by and among American Realty Capital VII, LLC and LaSalle Medical Office Fund II.
10.19 (5)	Third Amendment to Agreement for Purchase and Sale, dated as of February 28, 2014, by and among American Realty Capital VII, LLC and LaSalle Medical Office Fund II.
10.20 (6)	Senior Secured Revolving Credit Agreement dated as of March 21, 2014 by and among American Realty Capital Healthcare Trust II Operating Partnership, L.P., KeyBank National Association, the other lenders which are parties to this agreement and other lenders that may become parties to the agreement

75

Exhibit No.	Description
10.21 (7)	Increase Letter, dated April 15, 2014, with KeyBank National Association, relating to the Senior Secured Revolving Credit Agreement dated as of March 21, 2014 by and among American Realty Capital Healthcare Trust II Operating Partnership, L.P., KeyBank National Association and the lenders party thereto
10.22 *	Increase Letter, dated July 31, 2015, with KeyBank National Association, relating to the Senior Secured Revolving Credit Agreement dated as of March 21, 2014 by and among American Realty Capital Healthcare Trust II Operating Partnership, L.P., KeyBank National Association and the lenders party thereto
10.23 (7)	Agreement for Purchase and Sale of Real Property, effective as of April 14, 2014, by and among American Realty Capital VII, LLC, AW Countryside, LLC and AW St. Andrews, LLC
10.24 (7)	First Amendment to Agreement for Purchase and Sale of Real Property, dated as of May 14, 2014, by and among American Realty Capital VII, LLC, AW Countryside, LLC and AW St. Andrews, LLC
10.25 (7)	Agreement for Purchase and Sale of Real Property, effective as of June 5, 2014, by and among AR Capital, LLC, Jackson-Laguna, Jackson II, LLC and Jackson-Big Horn, LLC
10.26 (8)	Agreement for Lease of Real Property, dated as of June 14, 2014, by and between American Realty Capital VII, LLC and Pinnacle Health Hospitals
10.27 (8)	First Amendment to Agreement for Lease of Real Property, dated as of July 16, 2014, by and between American Realty Capital VII, LLC and Pinnacle Health Hospitals
10.28 (8)	Second Amendment to Agreement for Lease of Real Property, dated as of August 1, 2014, by and between American Realty Capital VII, LLC and Pinnacle Health Hospitals
10.29 (8)	Third Amendment to Agreement for Lease of Real Property, dated as of September 26, 2014, by and between American Realty Capital VII, LLC and Pinnacle Health Hospitals
10.30 (11)	Fourth Amendment to Agreement for Lease of Real Property, dated as of October 10, 2014, by and between American Realty Capital VII, LLC, ARHC BRHBGPA01, LLC, ARHC FOMBGPA01, LLC, ARHC LMHBGPA01, LLC, ARHC CHHBGPA01, LLC and Pinnacle Health Hospitals
10.31 (8)	Agreement of Sale, dated as of June 16, 2014, by and among American Realty Capital Healthcare Trust Operating Partnership, L.P., Leisure Living Properties - Holt, LLC, Leisure Living Properties - Dewitt, LLC, Lifehouse Crystal Manor Property, LLC, Lifehouse Waldon Woods Property, LLC, Lifehouse - Golden Acres Properties, LLC, Lifehouse - Golden Acres Properties II, LLC, Lifehouse Grand Blanc Properties, LLC, Lifehouse Clare Properties, LLC, Lifehouse Mt. Pleasant Properties, LLC, Lifehouse Mt. Pleasant Properties II, LLC, Lifehouse Prestige Commons Properties, LLC, Leisure Living Properties - Buchanan, LLC, Lifehouse Buchanan Property-II, LLC, Leisure Living Properties - Grand Rapids, LLC, Leisure Living Properties - Holland, LLC, Lifehouse - Oakridge Manor Dixon Properties, LLC, Lifehouse - Oakridge Manor Rockford Properties, LLC, (collectively, the “Lifehouse Sellers”), and Lifehouse Holdings, LLC, as representative of the Lifehouse Sellers
10.32 (8)	First Amendment to Agreement of Sale, dated as of July 20, 2014, by and among American Realty Capital Healthcare Trust Operating Partnership, L.P., the Lifehouse Sellers and Lifehouse Holdings, LLC, as representative of the Lifehouse Sellers
10.33 (8)	Second Amendment to Agreement of Sale, dated as of August 7, 2014, by and among American Realty Capital Healthcare Trust Operating Partnership, L.P., American Realty Capital Healthcare Trust II Operating Partnership, L.P., the Lifehouse Sellers and Lifehouse Holdings, LLC, as representative of the Lifehouse Sellers
10.34 (8)	Asset Purchase Agreement, dated as of July 2, 2014, by and between American Realty Capital Healthcare Trust II Operating Partnership, LP and PHBS REALTY, LLC, PHGG REALTY, LLC, PHCA REALTY, LLC, PHKC SWOPE REALTY, LLC, PHKC CLEVELAND REALTY, LLC, PHMC REALTY, LLC, PHDC REALTY, LLC, PHBC REALTY, LLC, PHGY REALTY, LLC and PHEM REALTY, LLC
10.35 (8)	First Amendment to Asset Purchase Agreement, dated as of July 30, 2014, by and between American Realty Capital Healthcare Trust II Operating Partnership, LP and PHBS REALTY, LLC, PHGG REALTY, LLC, PHCA REALTY, LLC, PHKC SWOPE REALTY, LLC, PHKC CLEVELAND REALTY, LLC, PHMC REALTY, LLC, PHDC REALTY, LLC, PHBC REALTY, LLC, PHGY REALTY, LLC and PHEM REALTY, LLC
10.36 (8)	Asset Purchase Agreement, dated as of August 1, 2014, by and among American Realty Capital Healthcare Trust II Operating Partnership, LP and ECI Acquisition I, LLC, Village Assisted Living, LLC, Mt. Pleasant Assisted Living, LLC, Burlington Assisted Living, LLC, Muscatine Assisted Living, LLC, Carroll Assisted Living, LLC, Ft. Madison Assisted Living, LLC and Burlington Independent Living, LLC
10.37 (8)	First Amendment to Asset Purchase Agreement, dated as of August 7, 2014, by and among American Realty Capital Healthcare Trust II Operating Partnership, LP and ECI Acquisition I, LLC, Village Assisted Living, LLC, Mt. Pleasant Assisted Living, LLC, Burlington Assisted Living, LLC, Muscatine Assisted Living, LLC, Carroll Assisted Living, LLC, Ft. Madison Assisted Living, LLC and Burlington Independent Living, LLC

76

Exhibit No.	Description
10.38 (8)	Second Amendment to Asset Purchase Agreement, dated as of August 8, 2014, by and among American Realty Capital Healthcare Trust II Operating Partnership, LP and ECI Acquisition I, LLC, Village Assisted Living, LLC, Mt. Pleasant Assisted Living, LLC, Burlington Assisted Living, LLC, Muscatine Assisted Living, LLC, Carroll Assisted Living, LLC, Ft. Madison Assisted Living, LLC and Burlington Independent Living, LLC
10.39 (8)	Third Amendment to Asset Purchase Agreement, dated as of August 26 2014, by and among American Realty Capital Healthcare Trust II Operating Partnership, LP and ECI Acquisition I, LLC, Village Assisted Living, LLC, Mt. Pleasant Assisted Living, LLC, Burlington Assisted Living, LLC, Muscatine Assisted Living, LLC, Carroll Assisted Living, LLC, Ft. Madison Assisted Living, LLC and Burlington Independent Living, LLC
10.40 (8)	Asset Purchase Agreement, dated as of August 25, 2014, by and among American Realty Capital VII, LLC, The Allegro at Abacoa, L.L.C., College Harbor Properties, L.L.C., The Allegro at Willoughby, L.L.C., The Allegro at East Lake, L.L.C. and Harbor Towers, L.L.C. and The Allegro at Helmwood, L.L.C.
10.41 (8)	First Amendment to Senior Secured Revolving Credit Agreement, dated September 18, 2014, to the Senior Secured Revolving Credit Agreement dated as of March 21, 2014, between American Realty Capital Healthcare Trust II Operating Partnership, LP, American Realty Capital Healthcare Trust II, Inc. and KeyBank National Association, individually and as agent for itself and the other lenders party from time to time
10.42 (11)	Fifth Amendment to Agreement for Lease of Real Property, dated as of October 22, 2014, by and between American Realty Capital VII, LLC, ARHC BRHBGPA01, LLC, ARHC FOMBGPA01, LLC, ARHC LMHBGPA01, LLC and ARHC CHHBGPA01, LLC and Pinnacle Health Hospitals
10.43 (11)	Sixth Amendment to Agreement for Lease of Real Property, dated as of October 31, 2014, by and between American Realty Capital VII, LLC, ARHC BRHBGPA01, LLC, ARHC FOMBGPA01, LLC, ARHC LMHBGPA01, LLC and ARHC CHHBGPA01, LLC and Pinnacle Health Hospitals
10.44 (11)	Seventh Amendment to Agreement for Lease of Real Property, dated as of November 12, 2014, by and between American Realty Capital VII, LLC, ARHC BRHBGPA01, LLC, ARHC FOMBGPA01, LLC, ARHC LMHBGPA01, LLC and ARHC CHHBGPA01, LLC and Pinnacle Health Hospitals
10.45 (11)	Eighth Amendment to Agreement for Lease of Real Property, dated as of November 21, 2014, by and between American Realty Capital VII, LLC, ARHC BRHBGPA01, LLC, ARHC FOMBGPA01, LLC, ARHC LMHBGPA01, LLC and ARHC CHHBGPA01, LLC and Pinnacle Health Hospitals
10.46 (11)	Ninth Amendment to Agreement for Lease of Real Property, dated as of December 5, 2014, by and between American Realty Capital VII, LLC, ARHC BRHBGPA01, LLC, ARHC FOMBGPA01, LLC, ARHC LMHBGPA01, LLC and ARHC CHHBGPA01, LLC and Pinnacle Health Hospitals
10.47 (11)	Tenth Amendment to Agreement for Lease of Real Property, dated as of December 12, 2014, by and between American Realty Capital VII, LLC, ARHC BRHBGPA01, LLC, ARHC FOMBGPA01, LLC, ARHC LMHBGPA01, LLC and ARHC CHHBGPA01, LLC and Pinnacle Health Hospitals
10.48 (11)	Indemnification Agreement, dated as of December 31, 2014, with Directors, Officers, Advisor and Dealer Manager
10.49 (9)	Asset Purchase Agreement by and among American Realty Capital VII, LLC, ARHC WHWCHPA01, LLC, ARHC WHWCHPA01 TRS, LLC and First Somerset, LLC
10.50 (9)	First Amendment to Asset Purchase Agreement by and among American Realty Capital VII, LLC, ARHC WHWCHPA01, LLC, ARHC WHWCHPA01 TRS, LLC and First Somerset, LLC
10.51 (9)	Second Amendment to Asset Purchase Agreement by and among American Realty Capital VII, LLC, ARHC WHWCHPA01, LLC, ARHC WHWCHPA01 TRS, LLC and First Somerset, LLC
10.52 (11)	Indemnification Agreement, dated April 14, 2015, with Mr. Randolph C. Read
10.53 (13)	Second Amendment to Senior Secured Revolving Credit Agreement, dated June 26, 2015, by and among American Realty Capital Healthcare Trust II Operating Partnership, L.P., American Realty Capital Healthcare Trust II, Inc., KeyBank National Association individually and as agent for itself and the other lenders party from time to time to the Senior Secured Revolving Credit Agreement by and among the same parties dated as of March 21, 2014
10.54 *	Indemnification Agreement, dated December 3, 2015, between the Company, Leslie D. Michelson and Edward G. Rendell
10.55 *	Third Amendment to Senior Secured Revolving Credit Agreement, dated February 17, 2016, by and among Healthcare Trust Operating Partnership, L.P., Healthcare Trust, Inc., KeyBank National Association individually and as agent for itself and the other lenders party from time to time to the Senior Secured Revolving Credit Agreement by and among the same parties dated as of March 21, 2014
10.56 *	Indemnification Agreement, dated March 10, 2016, between the Company and Katie P. Kurtz

77

Exhibit No.	Description
14.1 (1)	Code of Ethics
16.1 (10)	Letter from Grant Thornton LLP to the Securities and Exchange Commission dated January 28, 2015
21.1 *	List of Subsidiaries of Healthcare Trust, Inc.
23.1 *	Consent of KPMG LLP
31.1 *	Certification of the Principal Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 *	Certification of the Principal Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32 *	Written statements of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101 *	XBRL (eXtensible Business Reporting Language). The following materials from Healthcare Trust, Inc.'s Annual Report on Form 10-K for the annual period ended December 31, 2015, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive Loss, (iii) the Consolidated Statement of Changes in Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements.

____________________

* Filed herewith

1) Filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 filed with the Securities and Exchange Commission on May 13, 2013.

2) Filed as an exhibit to Pre-Effective Amendment No. 2 to the Company’s Registration Statement on Form S-11 filed with the SEC on January 10, 2013.

3) Filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 filed with the Securities and Exchange Commission on August 12, 2013.

4) Filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 filed with the Securities and Exchange Commission on November 12, 2013.

5) Filed as an exhibit to the Company’s Quarterly Report on Form 10-K for the fiscal year ended December 31, 2013 filed with the Securities and Exchange Commission on March 6, 2014.

6) Filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 filed with the Securities and Exchange Commission on May 14, 2014.

7) Filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 filed with the Securities and Exchange Commission on August 6, 2014.

8) Filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 filed with the Securities and Exchange Commission on November 14, 2014.

9) Filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on February 18, 2015.

10) Filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on January 28, 2015.

11) Filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on February 26, 2015.

12) Filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on June 26, 2015.

13) Filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 filed with the Securities and Exchange Commission on August 12, 2015.

78

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized this 11th day of March, 2016.

HEALTHCARE TRUST, INC.
By	/s/ W. TODD JENSEN
	W. TODD JENSEN
	INTERIM CHIEF EXECUTIVE OFFICER AND PRESIDENT (and Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name	Capacity	Date
/s/ Randolph C. Read	Non-Executive Chairman of the Board of Directors, Independent Director	March 11, 2016
Randolph C. Read
/s/ Katie P. Kurtz	Chief Financial Officer, Treasurer and Secretary	March 11, 2016
Katie P. Kurtz	(and Principal Financial Officer and Principal Accounting Officer)
/s/ William M. Kahane	Director	March 11, 2016
William M. Kahane
/s/ Dr. Robert J. Froehlich	Independent Director	March 11, 2016
Dr. Robert J. Froehlich
/s/ Elizabeth K. Tuppeny	Independent Director	March 11, 2016
Elizabeth K. Tuppeny
/s/ Edward G. Rendell	Independent Director	March 11, 2016
Edward G. Rendell
/s/ Leslie D. Michelson	Independent Director	March 11, 2016
Leslie D. Michelson

79

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	Page
Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets as of December 31, 2015 and 2014	F-3
Consolidated Statements of Operations and Comprehensive Loss for the Years Ended December 31, 2015, 2014 and 2013	F-4
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2015, 2014 and 2013	F-5
Consolidated Statements of Cash Flows for the Years Ended December 31, 2015, 2014 and 2013	F-6
Notes to Consolidated Financial Statements	F-8
Financial Statement Schedule:
Schedule III — Real Estate and Accumulated Depreciation	F-38

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

Healthcare Trust, Inc.

We have audited the accompanying consolidated balance sheets of Healthcare Trust, Inc. and subsidiaries (the "Company") as of December 31, 2015 and 2014, and the related consolidated statements of operations and comprehensive loss, changes in equity and cash flows for the years ended December 31, 2015, 2014 and 2013. In connection with our audits of the consolidated financial statements, we have audited the 2015 financial statement schedule III. These consolidated financial statements and financial statement schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Healthcare Trust, Inc. and subsidiaries as of December 31, 2015 and 2014, and the results of their operations and their cash flows for the years ended December 31, 2015, 2014 and 2013, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the related financial statement schedule, when considered in relation to the consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

/s/ KPMG LLP

Chicago, Illinois

March 11, 2016

F-2

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

	December 31,
	2015			2014
ASSETS
Real estate investments, at cost:
Land	$	192,790		$	113,461
Buildings, fixtures and improvements	1,885,713			1,362,387
Construction in progress	21,309			—
Acquired intangible assets	241,459			186,849
Total real estate investments, at cost	2,341,271			1,662,697
Less: accumulated depreciation and amortization	(146,669		)	(30,947		)
Total real estate investments, net	2,194,602			1,631,750
Cash and cash equivalents	24,474			182,617
Restricted cash	4,647			1,778
Investment securities, at fair value	1,078			20,286
Receivable for sale of common stock	—			6
Straight-line rent receivable, net	11,470			2,325
Prepaid expenses and other assets	21,707			14,711
Deferred costs, net	14,014			4,237
Total assets	$	2,271,992		$	1,857,710
LIABILITIES AND EQUITY
Mortgage notes payable	$	159,455		$	65,786
Mortgage premiums and discounts, net	2,403			2,844
Credit facility	430,000			—
Market lease intangible liabilities, net	22,994			19,535
Accounts payable and accrued expenses (including $536 and $970 due to related parties as of December 31, 2015 and 2014, respectively)	38,449			22,248
Deferred rent	4,356			3,023
Distributions payable	12,518			12,097
Total liabilities	670,175			125,533
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of December 31, 2015 and 2014	—			—
Common stock, $0.01 par value, 300,000,000 shares authorized, 86,135,411 and 83,718,853 shares of common stock issued and outstanding as of December 31, 2015 and 2014, respectively	861			837
Additional paid-in capital	1,907,549			1,850,169
Accumulated other comprehensive income (loss)	(6		)	463
Accumulated deficit	(316,284		)	(129,406		)
Total stockholders' equity	1,592,120			1,722,063
Non-controlling interests	9,697			10,114
Total equity	1,601,817			1,732,177
Total liabilities and equity	$	2,271,992		$	1,857,710

The accompanying notes are an integral part of these consolidated financial statements.

F-3

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except for share and per share data)

	Years Ended December 31,
	2015			2014			2013
Revenues:
Rental income	$	93,218		$	23,005		$	1,551
Operating expense reimbursements	12,759			3,585			266
Resident services and fee income	140,901			31,849			—
Contingent purchase price consideration	612			—			—
Total revenues	247,490			58,439			1,817
Expenses:
Property operating and maintenance	125,573			26,717			122
Operating fees to related parties	12,191			—			—
Acquisition and transaction related	14,679			33,623			730
General and administrative	9,733			3,541			104
Depreciation and amortization	120,924			28,889			1,077
Total expenses	283,100			92,770			2,033
Operating loss	(35,610		)	(34,331		)	(216		)
Other income (expense):
Interest expense	(10,356		)	(3,559		)	—
Interest and other income	582			735			—
Gain on sale of investment securities	446			8			—
Total other expenses	(9,328		)	(2,816		)	—
Loss before income tax and non-controlling interests	(44,938		)	(37,147		)	(216		)
Income tax benefit (expense)	2,978			(565		)	(5		)
Net loss	(41,960		)	(37,712		)	(221		)
Net loss attributable to non-controlling interests	219			34			—
Net loss attributable to stockholders	(41,741		)	(37,678		)	(221		)
Other comprehensive loss:
Unrealized loss on investment securities, net	(469		)	463			—
Comprehensive loss attributable to stockholders	$	(42,210	)	$	(37,215	)	$	(221	)
Basic and diluted weighted-average shares outstanding	85,331,966			51,234,729			2,148,297
Basic and diluted net loss per share	$	(0.49	)	$	(0.74	)	$	(0.10	)
Distributions declared per share	$	1.70		$	1.70		$	1.03

The accompanying notes are an integral part of these consolidated financial statements.

F-4

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands, except for share data)

	Common Stock								Accumulated Other Comprehensive Income
	Number of Shares		Par Value			Additional Paid-in Capital						Accumulated Deficit			Total Stockholders' Equity			Non-controlling Interests			Total Equity
Balance, December 31, 2012	8,888		$	—		$	200		$	—		$	(15	)	$	185		$	—		$	185
Issuance of common stock	7,461,884		74			185,218			—			—			185,292			—			185,292
Common stock offering costs, commissions and dealer manager fees	—		—			(24,786		)	—			—			(24,786		)	—			(24,786		)
Common stock issued through distribution reinvestment plan	56,618		1			1,344			—			—			1,345			—			1,345
Common stock repurchases	(1,600	)	—			(40		)	—			—			(40		)	—			(40		)
Equity-based compensation	3,999		—			16			—			—			16			—			16
Distributions declared	—		—			—			—			(3,642		)	(3,642		)	—			(3,642		)
Net loss	—		—			—			—			(221		)	(221		)	—			(221		)
Balance, December 31, 2013	7,529,789		75			161,952			—			(3,878		)	158,149			—			158,149
Issuance of common stock	74,504,754		745			1,851,206			—			—			1,851,951			—			1,851,951
Common stock offering costs, commissions and dealer manager fees	—		—			(202,857		)	—			—			(202,857		)	—			(202,857		)
Common stock issued through distribution reinvestment plan	1,750,705		18			41,562			—			—			41,580			—			41,580
Common stock repurchases	(72,431	)	(1		)	(1,767		)	—			—			(1,768		)	—			(1,768		)
Equity-based compensation	6,036		—			73			—			—			73			—			73
Distributions declared	—		—			—			—			(87,850		)	(87,850		)	—			(87,850		)
Contributions from non-controlling interest holders	—		—			—			—			—			—			10,148			10,148
Unrealized gain on investments	—		—			—			463			—			463			—			463
Net loss	—		—			—			—			(37,678		)	(37,678		)	(34		)	(37,712		)
Balance, December 31, 2014	83,718,853		837			1,850,169			463			(129,406		)	1,722,063			10,114			1,732,177
Common stock offering costs, commissions and dealer manager fees	—		—			2			—			—			2			—			2
Common stock issued through distribution reinvestment plan	3,305,297		33			78,469			—			—			78,502			—			78,502
Common stock repurchases	(894,338	)	(9		)	(21,151		)	—			—			(21,160		)	—			(21,160		)
Equity-based compensation, net	5,599		—			60			—			—			60			—			60
Distributions declared	—		—			—			—			(145,137		)	(145,137		)	—			(145,137		)
Contributions from non-controlling interest holders	—		—			—			—			—			—			500			500
Distributions to non-controlling interest holders	—		—			—			—			—			—			(698		)	(698		)
Unrealized loss on investments	—		—			—			(469		)	—			(469		)	—			(469		)
Net loss	—		—			—			—			(41,741		)	(41,741		)	(219		)	(41,960		)
Balance, December 31, 2015	86,135,411		$	861		$	1,907,549		$	(6	)	$	(316,284	)	$	1,592,120		$	9,697		$	1,601,817

The accompanying notes are an integral part of these consolidated financial statements.

F-5

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Years Ended December 31,
	2015			2014			2013
Cash flows from operating activities:
Net loss	$	(41,960	)	$	(37,712	)	$	(221	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	120,924			28,889			1,077
Amortization of deferred financing costs	3,737			1,313			—
Amortization of mortgage premiums and discounts, net	(1,933		)	(689		)	—
Amortization of market lease and other intangibles, net	(101		)	638			13
Bad debt expense	7,291			—			—
Equity-based compensation	60			73			16
Gain on sale of investment securities	(446		)	(8		)	—
Changes in assets and liabilities:
Straight-line rent receivable	(12,535		)	(2,208		)	(117		)
Prepaid expenses and other assets	(12,893		)	(8,837		)	(1,905		)
Accounts payable, accrued expenses and other liabilities	5,203			10,877			327
Deferred rent	1,333			2,977			46
Restricted cash	(2,869		)	(1,778		)	—
Net cash provided by (used in) operating activities	65,811			(6,465		)	(764		)
Cash flows from investing activities:
Investments in real estate	(570,134		)	(1,506,862		)	(46,134		)
Deposits returned (paid) for unconsummated acquisitions	1,000			(3,650		)	(350		)
Capital expenditures	(6,885		)	(807		)	—
Purchases of investment securities	(93		)	(20,328		)	—
Proceeds from sales of investment securities	19,278			513			—
Net cash used in investing activities	(556,834		)	(1,531,134		)	(46,484		)
Cash flows from financing activities:
Proceeds from credit facility	440,000			—			—
Payments of credit facility	(10,000		)	—			—
Payments of mortgage notes payable	(6,389		)	(535		)	—
Payments of deferred financing costs	(13,283		)	(5,408		)	(7		)
Proceeds from issuance of common stock	6			1,853,231			184,006
Common stock repurchases	(10,413		)	(541		)	—
Payments of offering costs and fees related to common stock issuances	(629		)	(202,715		)	(23,696		)
Distributions paid	(66,214		)	(35,165		)	(1,305		)
Contributions from non-controlling interest holders	500			—			—
Distributions to non-controlling interest holders	(698		)	—			—
Payments to related parties	—			(484		)	80
Net cash provided by financing activities	332,880			1,608,383			159,078
Net change in cash and cash equivalents	(158,143		)	70,784			111,830
Cash and cash equivalents, beginning of period	182,617			111,833			3
Cash and cash equivalents, end of period	$	24,474		$	182,617		$	111,833

F-6

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Years Ended December 31,
	2015		2014		2013
Supplemental disclosures of cash flow information:
Cash paid for interest	$	7,867	$	2,313	$	—
Cash paid for taxes	374		601		—
Non-cash investing and financing activities:
Payable and accrued offering costs	$	—	$	631	$	489
Accrued repurchases included in accounts payable and accrued expenses	12,014		1,267		40
Assumption of mortgage notes payable used to acquire investments in real estate	100,058		66,321		—
Premiums and discounts on assumed mortgage notes payable	1,492		3,533		1,345
Liabilities assumed in real estate acquisitions	882		9,040		91
Common stock issued through distribution reinvestment plan	78,502		41,580		1,345
Reclassification of deferred offering costs to equity	—		—		807

The accompanying notes are an integral part of these consolidated financial statements.

F-7

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Note 1 — Organization

Healthcare Trust, Inc. (including, as required by context, Healthcare Trust Operating Partnership, LP (the "OP"), formerly known as American Realty Capital Healthcare Trust II Operating Partnership, LP, and its subsidiaries, the "Company"), formerly known as American Realty Capital Healthcare Trust II, Inc., invests in healthcare real estate, such as seniors housing and medical office buildings ("MOB"), located in the United States for investment purposes. As of December 31, 2015, the Company owned 166 properties located in 29 states and comprised of 8.5 million rentable square feet.

The Company, which was incorporated on October 15, 2012, is a Maryland corporation that elected and qualified to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with its taxable year ended December 31, 2013. Substantially all of the Company's business is conducted through the OP.

In February 2013, the Company commenced its initial public offering (the "IPO") on a "reasonable best efforts" basis of up to $1.7 billion of common stock, $0.01 par value per share, at a price of $25.00 per share, subject to certain volume and other discounts. The Company closed its IPO in November 2014, which resulted in net proceeds of $2.1 billion.

On March 18, 2015, the Company announced its intention to list its common stock on a national stock exchange under the symbol “HTI” (the "Listing") during the third quarter of 2015. On September 24, 2015, the Company announced that its board of directors had determined that it was in the best interest of the Company to not pursue the Listing during the third quarter of 2015. The Company's board of directors continues to monitor market conditions and other factors with a view toward reevaluating the Listing decision when market conditions are more favorable. There can be no assurance that the Company's shares of common stock will be listed. The Company anticipates publishing an estimate of per share net asset value ("NAV") on or prior to April 11, 2016 (the "NAV Pricing Date"), and subsequent valuations will occur periodically, at the discretion of the Company's board of directors, provided that such calculations will be made at least annually. In the interim, the Company will continue to offer shares pursuant to a distribution reinvestment plan ("DRIP") at $23.75 per share, and to repurchase shares pursuant to a share repurchase program (as amended, the "SRP"). Beginning with the NAV Pricing Date, the per share price for shares under the DRIP and SRP will vary periodically and will be based upon the NAV.

The Company has no direct employees. Healthcare Trust Advisors, LLC (the "Advisor"), formerly known as American Realty Capital Healthcare II Advisors, LLC, has been retained by the Company to manage the Company's affairs on a day-to-day basis. The Company has retained Healthcare Trust Properties, LLC (the "Property Manager"), formerly known as American Realty Capital Healthcare II Properties, LLC, to serve as the Company's property manager. The Advisor and Property Manager are under common control with AR Global Investments, LLC (the successor business to AR Capital, LLC, "AR Global"), the parent of the Company's sponsor, American Realty Capital VII, LLC (the "Sponsor"), as a result of which they are related parties, and each have received or will receive compensation, fees and expense reimbursements from the Company for services related to managing its business. The Advisor, Property Manager and our former dealer manager, Realty Capital Securities, LLC (the "Former Dealer Manager"), also have received or will receive compensation, fees and expense reimbursements related to the investment and management of the Company's assets.

The Former Dealer Manager served as the dealer manager of the IPO and, together with certain of its affiliates, continued to provide the Company with various services through December 31, 2015. RCS Capital Corporation, the parent company of the Former Dealer Manager and certain of its affiliates that provided the Company with services, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of the Company's Sponsor.

Note 2 — Summary of Significant Accounting Policies

Basis of Accounting

The accompanying consolidated financial statements of the Company are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States ("GAAP").

F-8

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Reclassifications

Certain prior year amounts within straight-line rent receivable, net, prepaid expenses and other assets, rental income, resident services and fee income, cash flows from operating activities and cash flows from financing activities have been reclassified to conform with the current year presentation.

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and consolidated joint venture arrangements in which the Company has controlling financial interests. The portions of the consolidated joint venture arrangements not owned by the Company were presented as non-controlling interests as of and during the period consolidated. All inter-company accounts and transactions have been eliminated in consolidation.

The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity ("VIE"). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or (2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE's operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity.

The Company continually evaluates the need to consolidate joint ventures based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company is the primary beneficiary.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, real estate taxes, fair value measurements and income taxes, as applicable.

Real Estate Investments

Investments in real estate are recorded at cost. Improvements and replacements are capitalized when they extend the useful life of the asset. Costs of repairs and maintenance are expensed as incurred.

The Company evaluates the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statement of operations. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets.

In business combinations, the Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values. Tangible assets may include land, land improvements, buildings and fixtures. Intangible assets may include the value of in-place leases and above- and below-market leases and other identifiable intangible assets or liabilities based on lease or property specific characteristics. In addition, any assumed mortgages receivable or payable and any assumed or issued non-controlling interests are recorded at their estimated fair values.

F-9

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

The Company generally determines the value of construction in progress based upon the replacement cost. During the construction period, we capitalize interest, insurance and real estate taxes until the development has reached substantial completion.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. The fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the Company’s estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining term of the lease including any below-market fixed rate renewal options for below-market leases.

In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including real estate valuations prepared by independent valuation firms. The Company also considers information and other factors including market conditions, the industry that the tenant operates in, characteristics of the real estate, i.e. location, size, demographics, value and comparative rental rates, tenant credit profile and the importance of the location of the real estate to the operations of the tenant’s business.

In allocating the fair value to assumed mortgages, amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above- or below-market interest rates.

In allocating non-controlling interests, amounts are recorded based on the fair value of units issued or percentage of investment contributed at the date of acquisition, as determined by the terms of the applicable agreement.

Acquired intangible assets and liabilities consisted of the following as of the periods presented:

	December 31, 2015						December 31, 2014
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	202,608	$	82,390	$	120,218	$	150,953	$	18,104	$	132,849
Intangible market lease assets	28,262		3,393		24,869		25,307		1,008		24,299
Other intangible assets	10,589		309		10,280		10,589		44		10,545
Total acquired intangible assets	$	241,459	$	86,092	$	155,367	$	186,849	$	19,156	$	167,693
Intangible market lease liabilities	$	25,613	$	2,619	$	22,994	$	19,897	$	362	$	19,535

Real estate investments that are intended to be sold are designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount or fair value less estimated selling costs when they meet specific criteria to be presented as held for sale. Real estate investments are no longer depreciated when they are classified as held for sale. If the disposal, or intended disposal, of certain real estate investments represents a strategic shift that has had or will have a major effect on the Company's operations and financial results, the operations of such real estate investments would be presented as discontinued operations in the consolidated statements of operations and comprehensive loss for all applicable periods. The Company had not sold and did not intend to sell any properties as of December 31, 2015 and 2014.

Depreciation and Amortization

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements, five years for fixtures and improvements, and the shorter of the useful life or the remaining lease term for tenant improvements and leasehold interests.

Construction in progress, including capitalized interest, insurance and real estate taxes, is not depreciated until the development has reached substantial completion.

The assumed mortgage premiums or discounts are amortized as an increase or reduction to interest expense over the remaining term of the respective mortgages.

F-10

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market lease values are accreted as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods.

Capitalized above-market ground lease values are accreted as a reduction of property operating expense over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property operating expense over the remaining terms of the respective leases and expected below-market renewal option periods.

The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to expense over the remaining periods of the respective leases.

For the years ended December 31, 2015, 2014 and 2013, amortization of in-place leases and other intangible assets of $75.2 million, $17.9 million and $0.3 million, respectively, is included in depreciation and amortization expense on the consolidated statements of operations and comprehensive loss. For the years ended December 31, 20152014 and 2013, net amortization of intangible market lease assets and liabilities relating to assumed tenant leases of $0.4 million, $0.6 million and approximately $13,000 respectively, is deducted from rental income on the consolidated statements of operations and comprehensive loss. For the year ended December 31, 2015 and 2014, net amortization of intangible market lease assets and liabilities related to assumed leasehold interests of $0.2 million and approximately $29,000, respectively, is included in property operating and maintenance expense on the consolidated statements of operations and comprehensive loss. The Company did not have any intangible market lease assets or liabilities related to assumed leasehold interest and therefore did not have amortization of intangible market lease assets and liabilities related to assumed leasehold interests included in property operating and maintenance expense on the consolidated statements of operations and comprehensive loss during the year ended December 31, 2013.

The following table provides the projected amortization expense and adjustments to revenues for the next five years:

(In thousands)	2016			2017			2018			2019			2020
In-place lease assets	$	34,526		$	16,322		$	14,031		$	11,465		$	9,106
Other intangible assets	265			265			265			265			265
Total to be added to amortization expense	$	34,791		$	16,587		$	14,296		$	11,730		$	9,371
Above-market lease assets	$	(2,210	)	$	(1,888	)	$	(1,367	)	$	(1,079	)	$	(737	)
Below-market lease liabilities	2,430			2,115			1,886			1,605			1,450
Total to be added to rental income	$	220		$	227		$	519		$	526		$	713
Below-market ground lease assets	$	212		$	212		$	212		$	212		$	212
Above-market ground lease liabilities	(39		)	(39		)	(39		)	(39		)	(39		)
Total to be added to property operating and maintenance expense	$	173		$	173		$	173		$	173		$	173

Impairment of Long Lived Assets

If circumstances indicate that the carrying value of a property may not be recoverable, the Company reviews the asset for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. Impairment assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income.

Cash and Cash Equivalents

Cash and cash equivalents includes cash in bank accounts as well as investments in highly-liquid money market funds with original maturities of three months or less. As of December 31, 2015 and 2014, approximately $22,000 and $134.2 million was held in money market funds with the Company's financial institutions.

F-11

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company ("FDIC") up to an insurance limit. At December 31, 2015 and 2014, the Company had deposits of $24.5 million and $182.6 million, of which $12.2 million and $173.1 million, respectively, were in excess of the amount insured by the FDIC. Although the Company bears risk to amounts in excess of those insured by the FDIC, it does not anticipate any losses as a result.

Restricted Cash

Restricted cash generally consists of resident security deposits and reserves related to real estate taxes, maintenance, structural improvements, and debt service.

Investments in Securities

The Company classifies its investments in debt or equity securities into one of three classes: held-to-maturity, available-for-sale or trading, as applicable.  Investments in debt securities that the Company has the positive intent and ability to hold until maturity are classified as held-to-maturity and are reported at amortized cost. Debt and equity securities that are bought and held principally for the purposes of selling them in the near future are classified as trading securities. Debt and equity securities not classified as trading securities or as held-to-maturity securities are classified as available-for-sale securities and are reported at fair value, with unrealized holding gains and losses reported as a component of equity within accumulated other comprehensive income or loss. Gains or losses on securities sold are based on the specific identification method.

The Company evaluates its investments in securities for impairment or other-than-temporary impairment on a quarterly basis.  The Company reviews each investment individually and assesses factors that may include (i) if the carrying amount of an investment exceeds its fair value, (ii) if there has been any change in the market as a whole or in the investee’s market, (iii) if there are any plans to sell the investment in question or if the Company believes it may be forced to sell its investment, and (iv) if there have been any other factors that would indicate the possibility of the existence of an other-than-temporary impairment. The fair value of the Company’s investments in available-for-sale securities generally rise and fall based on current market conditions. If, after reviewing relevant factors surrounding an impaired security, the Company determines that it will not recover its full investment in an impaired security, the Company recognizes an other-than-temporary impairment charge in the consolidated statements of operations and comprehensive loss in the period in which the other-than-temporary impairment is determined, regardless of whether or not the Company plans to sell or believes it will be forced to sell the security in question. 

Deferred Costs, Net

Deferred costs, net, consists of deferred financing costs and deferred leasing costs. Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method and included in interest expense on the accompanying consolidated statements of operations and comprehensive loss. Unamortized deferred financing costs are expensed if the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close. As of December 31, 2015 and 2014, the Company had $13.6 million and $4.1 million of deferred financing costs, net of accumulated amortization of $4.0 million and $1.3 million, respectively.

Deferred leasing costs, consisting primarily of lease commissions and professional fees incurred in connection with new leases, are deferred and amortized over the term of the lease. As of December 31, 2015 and 2014, the Company had $0.4 million and $0.1 million in deferred leasing costs, net of accumulated amortization of $0.1 million and approximately $24,000.

Revenue Recognition

The Company's rental income is primarily related to rent received from tenants in MOBs and triple-net leased healthcare facilities. Rent from tenants in the Company's MOB and triple-net leased healthcare facilities operating segments (as discussed below) is recorded in accordance with the terms of each lease on a straight-line basis over the initial term of the lease. Because many of the leases provide for rental increases at specified intervals, GAAP requires the Company to record a receivable, and include in revenues on a straight-line basis, unbilled rent receivables that the Company will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. When the Company acquires a property, the acquisition date is considered to be the commencement date for purposes of this calculation.

Cost recoveries from tenants are included in operating expense reimbursement in the period the related costs are incurred, as applicable.

F-12

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Resident services and fee income primarily relates to rent from residents in the Company's seniors housing — operating properties ("SHOP") held using a structure permitted by the REIT Investment Diversification and Empowerment Act of 2007 and to fees for ancillary services performed for SHOP residents. Rental income from residents in the Company's SHOP operating segment is recognized as earned. Residents pay monthly rent that covers occupancy of their unit and basic services, including utilities, meals and some housekeeping services. The terms of the rent are short term in nature, primarily month-to-month. Fees for ancillary services are recorded in the period in which the services are performed.

The Company defers the revenue related to lease payments received from tenants and residents in advance of their due dates.

The Company continually reviews receivables related to rent and unbilled rent receivables and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, the Company records an increase in the allowance for uncollectible accounts on the consolidated balance sheets or records a direct write-off of the receivable in the consolidated statements of operations.

Offering and Related Costs

Offering and related costs include all expenses incurred in connection with the IPO. Offering costs of the Company (other than selling commissions and the dealer manager fee, as discussed in Note 9 — Related Party Transactions and Arrangements) may be paid by the Advisor, the Former Dealer Manager or their affiliates on behalf of the Company. Offering and related costs included (i) legal, accounting, printing, mailing, and filing fees; (ii) escrow service related fees; (iii) reimbursement of the Former Dealer Manager for amounts it paid to reimburse the itemized and detailed due diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for a portion of the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company was obligated to reimburse the Advisor or its affiliates, as applicable, for offering costs paid by them on behalf of the Company, provided that the Advisor was obligated to reimburse the Company to the extent offering costs (excluding selling commissions and the dealer manager fee) incurred by the Company in its offering exceed 2.0% of offering proceeds, net of repurchases and DRIP. As a result, these costs were only a liability of the Company to the extent aggregate selling commissions, the dealer manager fees and other organization and offering costs did not exceed 12.0% of the gross proceeds determined at the end of the IPO. As of the end of the IPO in November 2014, cumulative offering costs did not exceed 12.0% of the gross proceeds received in the IPO (See Note 9 — Related Party Transactions and Arrangements).

Equity-Based Compensation

The Company has a stock-based incentive award plan for its directors, which is accounted for under the guidance of share based payments. The expense for such awards is included in general and administrative expenses and is recognized over the vesting period or when the requirements for exercise of the award have been met (See Note 11 — Equity-Based Compensation).

Income Taxes

The Company elected and qualified to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986 (the "Code"), as amended, commencing with the taxable year ended December 31, 2013. If the Company continues to qualify for taxation as a REIT, it generally will not be subject to federal corporate income tax to the extent it distributes all of its REIT taxable income to its stockholders. REITs are subject to a number of organizational and operational requirements, including a requirement that the Company distribute annually at least 90% of the Company’s REIT taxable income to the Company’s stockholders. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates (including any applicable alternative minimum tax) beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. The Company distributed to its stockholders 100% of its REIT taxable income for each of the years ended December 31, 2015, 2014 and 2013. Accordingly, no provision for federal or state income taxes related to such REIT taxable income was recorded in the Company's financial statements. Even if the Company continues to qualify for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

F-13

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Certain limitations are imposed on REITs with respect to the ownership and operation of seniors housing communities.  Generally, to qualify as a REIT, the Company cannot directly or indirectly operate seniors housing communities.  Instead, such facilities may be either leased to a third party operator or leased to a taxable REIT subsidiary (“TRS”) and operated by a third party on behalf of the TRS.  Accordingly, the Company has formed a TRS entity under the OP to lease its SHOPs and the TRS has entered into management contracts with unaffiliated third party managers to operate the facilities on its behalf.

As of December 31, 2015, the Company, through its TRS entity, owned 38 seniors housing communities. The TRS entity is a wholly-owned subsidiary of the OP. A TRS is subject to federal, state and local income taxes. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event the Company determines that it would not be able to realize the deferred income tax assets in the future in excess of the net recorded amount, the Company establishes a valuation allowance which offsets the previously recognized income tax benefit. Deferred income taxes result from temporary differences between the carrying amounts of the TRS's assets and liabilities used for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred tax assets and liabilities as of December 31, 2015 consisted of deferred rent and depreciation. As of December 31, 2015, the Company had a deferred tax asset of $2.9 million with no valuation allowance. As of December 31, 2014, the Company had a deferred tax asset of $0.7 million and a valuation allowance of $0.7 million.

The following table details the composition of the Company's tax benefit (expense) for the years ended December 31, 2015, 2014 and 2013, which includes federal and state income taxes incurred by the Company's TRS entity. The Company estimated its income tax benefit (expense) relating to its TRS entity using a combined federal and state rate of approximately 40.2% and 39.6% for the years ended December 31, 2015 and 2014, respectively. These income taxes are reflected in income tax benefit (expense) on the accompanying consolidated statements of operations and comprehensive loss.

	Years Ended December 31,
	2015				2014					2013
(In thousands)	Current		Deferred		Current			Deferred		Current		Deferred
Federal benefit (expense)	$	1,667	$	762	$	(450	)	$	—	$	—	$	—
State benefit (expense)	358		191		(115		)	—		5		—
Total	$	2,025	$	953	$	(565	)	$	—	$	5	$	—

As of December 31, 2015 and 2014, the Company had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended December 31, 2012 remain open to examination by the major taxing jurisdictions to which the Company is subject.

The amount of distributions payable to the Company's stockholders is determined by the board of directors and is dependent on a number of factors, including funds available for distribution, financial condition, capital expenditure requirements, as applicable, and annual distribution requirements needed to qualify and maintain the Company's status as a REIT under the Code.

The following table details from a tax perspective the portion of distributions classified as a return of capital, capital gain dividend income and ordinary dividend income, per share per annum, for the years ended December 31, 2015, 2014 and 2013:

	Years Ended December 31,
	2015				2014				2013
Return of capital	97.9	%	$	1.66	93.7	%	$	1.59	97.7	%	$	1.01
Capital gain dividend income	0.3	%	0.01		—	%	—		—	%	—
Ordinary dividend income	1.8	%	0.03		6.3	%	0.11		2.3	%	0.02
Total	100.0	%	$	1.70	100.0	%	$	1.70	100.0	%	$	1.03

Per Share Data

Net income (loss) per basic share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock considers the effect of potentially dilutive shares of common stock outstanding during the period.

F-14

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Reportable Segments

The Company has determined that it has three reportable segments, with activities related to investing in MOBs, triple-net leased healthcare facilities, and seniors housing communities. Management evaluates the operating performance of the Company's investments in real estate and seniors housing communities on an individual property level.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of this new guidance.

In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to the Company's consolidated financial position, results of operations and cash flows.

In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company has elected to adopt this guidance effective January 1, 2016. The Company has assessed the impact from the adoption of this revised guidance and has determined that there will be no material impact to its financial position, results of operations and cash flows.

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendment requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company has elected to adopt this guidance effective January 1, 2016. The adoption of this revised guidance will result in the reclassification of $2.2 million of deferred issuance costs related to the Company's mortgage notes payable from deferred costs, net to mortgage notes payable in the Company's consolidated balance sheet as of December 31, 2015.

In September 2015, the FASB issued an update that eliminates the requirement to adjust provisional amounts from a business combination and the related impact on earnings by restating prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of measurement period adjustments on current and prior periods, including the prior period impact on depreciation, amortization and other income statement items and their related tax effects, shall be recognized in the period the adjustment amount is determined. The cumulative adjustment would be reflected within the respective financial statement line items affected. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted. The Company elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to the Company's financial position, results of operations and cash flows.

F-15

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of this new guidance.

In February 2016, the FASB issued an update that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance is effective on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

Note 3 — Real Estate Investments

The Company owned 166 properties as of December 31, 2015. The Company invests in MOBs, seniors housing communities and other healthcare-related facilities primarily to expand and diversify its portfolio and revenue base. The rentable square feet or annualized straight-line rental income of Wellington at Hershey's Mill ("Wellington") represented 5% or more of the Company's total portfolio's rentable square feet or annualized straight-line rental income as of December 31, 2015.

On December 3, 2014, the Company, through a wholly owned subsidiary of the OP, completed the acquisition of the fee simple interest in Wellington, a seniors housing community located in West Chester, Pennsylvania. The seller of Wellington was First Somerset, LLC, which had no preexisting relationship with the Company. The contract purchase price of Wellington was $95.0 million and was funded with proceeds from the Company's ongoing IPO. The Company accounted for the purchase of Wellington as a business combination and incurred acquisition related costs of $2.7 million, which are reflected in the acquisition and transaction related line item of the consolidated statements of operations and comprehensive loss.

F-16

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

The following table presents the allocation of the assets acquired during the years ended December 31, 2015, 2014 and 2013:

	Years Ended December 31,
(Dollar amounts in thousands)	2015			2014			2013
Real estate investments, at cost:
Land	$	79,329		$	109,679		$	3,782
Buildings, fixtures and improvements	519,185			1,325,721			35,996
Construction in progress	21,309			—			—
Total tangible assets	619,823			1,435,400			39,778
Acquired intangibles:
In-place leases (1)	62,584			145,464			5,489
Market lease and other intangible assets (1)	3,223			34,877			1,019
Market lease liabilities (1)	(10,064		)	(19,837		)	(61		)
Total assets and liabilities acquired, net	675,566			1,595,904			46,225
Mortgage notes payable assumed to acquire real estate investments	(100,058		)	(66,321		)	—
Premiums on mortgages assumed	(1,492		)	(3,533		)	—
Other assets and liabilities, net (2)	(882		)	(9,040		)	(91		)
Deposits for real estate acquisitions	(3,000		)	—			—
OP units issued to acquire real estate	—			(10,148		)	—
Cash paid for acquired real estate investments	$	570,134		$	1,506,862		$	46,134
Number of properties purchased	48			111			7

_______________

(1) Weighted-average remaining amortization periods for in-place leases, market lease and other intangible assets and market lease liabilities acquired during the years ended December 31, 2015 were 4.9, 6.1 and 14.1 years, respectively, as of each property's respective acquisition date.

(2) Other assets and liabilities, net includes $0.9 million in tenant security deposits assumed at acquisition for properties acquired during the year ended December 31, 2015. Other assets and liabilities, net includes $4.2 million in tenant security deposits assumed at acquisition for properties acquired and a $4.8 million capital lease obligation incurred in conjunction with the transaction described below for the year ended December 31, 2014. Other assets and liabilities, net includes $0.1 million in tenant security deposits assumed at acquisition for properties acquired during the year ended December 31, 2013.

During the year ended December 31, 2014, the Company acquired leasehold interests in eight properties and has accounted for such interests as capital leases. The Company allocated $144.4 million and $34.1 million of assets at cost associated with the building leasehold interests to buildings, fixtures and improvements and in-place leases, respectively, in the table above. Additionally, the Company entered into arrangements to sublease all or a portion of the eight properties back to the seller, and assumed in-place subleases with other third-party tenants. Future minimum base rental payments due to the Company under subleases to the seller and other third-party tenants as of December 31, 2015 totaled $128.6 million. See Note 16 — Commitments and Contingencies for minimum base cash rental payments due from the Company to the seller under these leasehold interests.

F-17

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

The following table presents unaudited pro forma information as if the acquisitions that were completed during the years ended December 31, 2015 had been consummated on January 1, 2013. Additionally, the unaudited pro forma net loss was adjusted to reclassify acquisition and transaction related expense of $14.6 million from the years ended December 31, 2015 to the years ended December 31, 2014.

	Years Ended December 31,
(In thousands)	2015			2014			2013
Pro forma revenues (1)	$	302,539		$	138,872		$	82,250
Pro forma net loss (1)	$	(38,284	)	$	(53,157	)	$	(30,293	)
Basic and diluted pro forma net loss per share	$	(0.45	)	$	(1.04	)	$	(14.10	)

___________________

(1) For the years ended December 31, 2015, aggregate revenues and net loss derived from the Company's 2015 acquisitions (for the Company's period of ownership) were $25.4 million and $(4.2) million, respectively.

The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter as of December 31, 2015.  These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes, among other items.

(In thousands)	Future Minimum Base Rent Payments
2016	$	94,110
2017	94,232
2018	89,568
2019	83,333
2020	77,006
Thereafter	510,096
Total	$	948,345

The following table lists the tenants (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income for all properties on a straight-line basis as of December 31, 2015, 2014 and 2013:

	December 31,
Tenant	2015	2014	2013
Adena Health System	*	*	10.8%
Advocate Health and Hospitals Corporation	*	*	10.9%
HH/Killeen Health System, LLC	*	*	12.8%
IASIS Healthcare, LLC	*	*	15.3%
National Mentor Holdings, Inc.	*	*	24.8%

_______________________________

* Tenant's annualized rental income on a straight-line basis was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.

F-18

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

The following table lists the states where the Company has a concentration of properties where annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis for all properties as of December 31, 2015, 2014 and 2013:

	December 31,
State	2015	2014	2013
Colorado	*	*	24.8%
Florida	18.6%	24.6%	*
Illinois	*	*	23.0%
Iowa	10.1%	13.9%	*
Louisiana	*	*	15.3%
Ohio	*	*	10.8%
Pennsylvania	11.4%	15.2%	*
Texas	*	*	12.8%

_______________________________

* State's annualized rental income on a straight-line basis was not 10% or more of total annualized rental income on a straight-line basis for all portfolio properties as of the period specified.

Note 4 — Investment Securities

As of December 31, 2015 and 2014, the Company had investments with an aggregate fair value of $1.1 million and $20.3 million, respectively. Investments as of December 31, 2014 included real estate income funds managed by an affiliate of the Sponsor (see Note 9 — Related Party Transactions and Arrangements), which were sold during the third quarter of 2015. These investments are considered available-for-sale securities and, therefore, increases or decreases in the fair value of these investments are recorded in accumulated other comprehensive income as a component of equity on the consolidated balance sheets unless the securities are considered to be other than temporarily impaired, at which time the losses would be reclassified to expense.

The following table details the unrealized gains and losses on investment securities as of December 31, 2015 and 2014.

(In thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2015
Equity securities	$	1,084	$	19	$	(25	)	$	1,078
December 31, 2014
Equity securities	$	19,397	$	477	$	(33	)	$	19,841
Debt security	426		19		—			445
Total	$	19,823	$	496	$	(33	)	$	20,286

The Company's investments in preferred stock have not been in a continuous unrealized loss position during the last twelve months. The Company believes that the decline in fair value is a factor of current market conditions and, as such, considers the unrealized losses as of December 31, 2015 to be temporary. Therefore no impairment was recorded during the year ended December 31, 2015.

During the year ended December 31, 2015, the Company sold certain of its investments in preferred stock, common stock, real estate income funds and its investment in a senior note with a cost of $18.8 million for $19.3 million, which resulted in a realized gain on sale of investment of $0.4 million. During the year ended December 31, 2014, the Company sold investments in preferred stock for proceeds of $0.5 million, which resulted in a gain on sale of investment of approximately $8,000.

The Company's preferred stock investments, with an aggregate fair value of $1.1 million as of December 31, 2015, are redeemable at the respective issuer's option five years after issuance.

F-19

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Note 5 — Credit Facility

On March 21, 2014, the Company entered into a senior secured credit facility in the amount of $50.0 million (the "Credit Facility"). On April 15, 2014 the amount available under the Credit Facility was increased to $200.0 million.

On June 26, 2015, the Company entered into an amendment to the Credit Facility which, among other things, allowed for borrowings of up to $500.0 million. On July 31, 2015, the available borrowings were increased to $565.0 million. The Credit Facility also contains a subfacility for letters of credit of up to $25.0 million. The Credit Facility contains an "accordion" feature to allow the Company, under certain circumstances, to increase the aggregate borrowings under the Credit Facility to a maximum of $750.0 million. The amendment to the Credit Facility included changes to amounts committed by each of the banks in the syndicate, which resulted in a write off of deferred financing costs of $0.5 million during the year ended December 31, 2015. There were no such writeoffs of deferred financings costs during the year ended December 31, 2014.

The Company has the option, based upon its leverage, to have the Credit Facility priced at either: (a) LIBOR, plus an applicable margin that ranges from 1.60% to 2.20%; or (b) the Base Rate, plus an applicable margin that ranges from 0.35% to 0.95%. Base Rate is defined in the Credit Facility as the greater of (i) the fluctuating annual rate of interest announced from time to time by the lender as its “prime rate,” (ii) 0.5% above the federal funds effective rate or (iii) the applicable one-month LIBOR plus 1.0%.

The Credit Facility provides for monthly interest payments for each Base Rate loan and periodic payments for each LIBOR loan, based upon the applicable LIBOR loan period, with all principal outstanding being due on the maturity date of March 21, 2019. The Credit Facility may be prepaid at any time, in whole or in part, without premium or penalty (subject to standard breakage costs). In the event of a default, the lender has the right to terminate its obligations under the Credit Facility and to accelerate the payment on any unpaid principal amount of all outstanding loans.

As of December 31, 2015, the balance outstanding under the Credit Facility was $430.0 million, with an effective interest rate of 1.8%. The Company's unused borrowing capacity was $135.0 million, based on assets assigned to the Credit Facility as of December 31, 2015. Availability of borrowings is based on a pool of eligible unencumbered real estate assets. There were no advances outstanding as of December 31, 2014.

The Credit Facility requires the Company to meet certain financial covenants, including the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) as well as the maintenance of a minimum net worth. As of December 31, 2015, the Company was in compliance with the financial covenants under the Credit Facility.

F-20

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Note 6 — Mortgage Notes Payable

The following table reflects the Company's mortgage notes payable as of December 31, 2015 and 2014:

		Outstanding Loan Amount as of December 31,				Effective Interest Rate
Portfolio	Encumbered Properties	2015		2014					Interest Rate		Maturity
		(In thousands)		(In thousands)
Creekside Medical Office Building - Douglasville, GA	—	$	—	$	5,154	5.32	%		Fixed		Sep. 2015
Bowie Gateway Medical Center - Bowie, MD	1	5,969		6,055		6.18	%		Fixed		Sep. 2016
Medical Center of New Windsor - New Windsor, NY	1	8,720		8,832		6.39	%		Fixed		Sep. 2017
Plank Medical Center - Clifton Park, NY	1	3,461		3,506		6.39	%		Fixed		Sep. 2017
Cushing Center - Schenectady, NY	1	4,184		4,287		5.71	%		Fixed		Feb. 2016
Countryside Medical Arts - Safety Harbor, FL	1	5,992		6,076		6.07	%		Fixed	(1)	Apr. 2019
St. Andrews Medical Park - Venice, FL	3	6,623		6,716		6.07	%		Fixed	(1)	Apr. 2019
Campus at Crooks & Auburn Building C - Rochester Hills, MI	1	3,555		3,626		5.91	%		Fixed		Apr. 2016
Slingerlands Crossing Phase I - Bethlehem, NY	1	6,680		6,759		6.39	%		Fixed		Sep. 2017
Slingerlands Crossing Phase II - Bethlehem, NY	1	7,777		7,877		6.39	%		Fixed		Sep. 2017
Benedictine Cancer Center - Kingston, NY	1	6,811		6,898		6.39	%		Fixed		Sep. 2017
Aurora Healthcare Center Portfolio - WI	6	31,257		—		6.55	%		Fixed		Jan. 2018
Palm Valley Medical Plaza - Goodyear, AZ	1	3,525		—		4.21	%		Fixed		Jun. 2023
Medical Center V - Peoria, AZ	1	3,232		—		4.75	%		Fixed		Sep. 2023
Courtyard Fountains - Gresham, OR	1	24,999		—		3.82	%		Fixed	(2)	Jan. 2020
Fox Ridge Bryant - Bryant, AR	1	7,825		—		3.98	%		Fixed		May 2047
Fox Ridge Chenal - Little Rock, AR	1	17,800		—		3.98	%		Fixed		May 2049
Fox Ridge North Little Rock - North Little Rock, AR	1	11,045		—		3.98	%		Fixed		May 2047
Total	24	$	159,455	$	65,786	5.32	%	(3)

_______________

(1)    Fixed interest rate through May 10, 2017. Interest rate changes to variable rate starting in June 2017.

(2)    Interest only payments through July 1, 2016. Principal and interest payments starting in August 2016.

(3)    Calculated on a weighted average basis for all mortgages outstanding as of December 31, 2015.

As of December 31, 2015 and December 31, 2014, the Company had pledged $301.7 million and $122.4 million, respectively, in real estate, at cost, as collateral for these mortgage notes payable. This real estate is not available to satisfy other debts and obligations unless first satisfying the mortgage notes payable on the properties. Except as noted above, the Company makes payments of principal and interest on all of its mortgage notes payable on a monthly basis.

The following table summarizes the scheduled aggregate principal payments on mortgage notes payable for the five years subsequent to December 31, 2015:

(In thousands)	Future Principal Payments
2016	$	15,650
2017	34,832
2018	31,893
2019	13,324
2020	24,279
Thereafter	39,477
Total	$	159,455

Some of the Company's mortgage note agreements require the compliance with certain property-level financial covenants including debt service coverage ratios. As of December 31, 2015, the Company was in compliance with the financial covenants under its mortgage note agreements.

F-21

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Note 7 — Fair Value of Financial Instruments

GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below:

Level 1 — Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3 — Unobservable inputs that reflect the entity's own assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare.

The Company has or had investments in common stock, redeemable preferred stock, real estate income funds and a senior note that are traded in active markets and therefore, due to the availability of quoted market prices in active markets, the Company has classified these investments as Level 1 in the fair value hierarchy.

The following table presents information about the Company's assets measured at fair value on a recurring basis as of December 31, 2015 and 2014, aggregated by the level in the fair value hierarchy within which those instruments fall.

(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
December 31, 2015
Investment securities	$	1,078	$	—	$	—	$	1,078
December 31, 2014
Investment securities	$	20,286	$	—	$	—	$	20,286

The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, receivable for sale of common stock, straight-line rent receivable, prepaid expenses and other assets, deferred costs, net, accounts payable and accrued expenses, deferred rent and distributions payable approximates their carrying value on the consolidated balance sheets due to their short-term nature. The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below:

		Carrying Amount (1) at		Fair Value at		Carrying Amount (1) at		Fair Value at
(In thousands)	Level	December 31, 2015		December 31, 2015		December 31, 2014		December 31, 2014
Mortgage notes payable and premiums, net	3	$	161,858	$	162,654	$	68,630	$	69,117
Credit Facility	3	$	430,000	$	430,000	$	—	$	—

_______________________________

(1) Carrying value includes mortgage notes payable of $159.5 million and $65.8 million and mortgage premiums, net of $2.4 million and $2.8 million as of December 31, 2015 and December 31, 2014, respectively.

F-22

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

The fair value of the mortgage notes payable is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of borrowing arrangements. Advances under the Credit Facility are considered to be reported at fair value, because the Credit Facility's interest rate varies with changes in LIBOR.

Note 8 — Common Stock

As of December 31, 2015 and December 31, 2014, the Company had 86.1 million and 83.7 million shares of common stock outstanding, respectively, including unvested restricted shares and shares issued pursuant to the DRIP and had received total proceeds of $2.1 billion, including proceeds from shares issued pursuant to the DRIP.

The Company has paid distributions on a monthly basis to stockholders of record on a daily basis at a rate equal to $0.0046575343 per day, which is equivalent to $1.70 per annum, per share of common stock, beginning on May 24, 2013. Distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured.

Share Repurchase Program

The Company's board of directors has adopted the SRP, which enables stockholders to sell their shares to the Company in limited circumstances. The SRP permits investors to sell their shares back to the Company after they have held them for at least one year, subject to the significant conditions and limitations described below.

Prior to the time that the Company’s shares are listed on a national securities exchange and until the Company begins to calculate its NAV, the repurchase price per share depends on the length of time investors have held such shares, as follows: after one year from the purchase date — the lower of $23.13 or 92.5% of the amount they actually paid for each share; after two years from the purchase date — the lower of $23.75 or 95.0% of the amount they actually paid for each share; after three years from the purchase date — the lower of $24.38 or 97.5% of the amount they actually paid for each share; and after four years from the purchase date — the lower of $25.00 or 100.0% of the amount they actually paid for each share (in each case, as adjusted for any stock distributions, combinations, splits and recapitalizations).

In accordance with the SRP Amendment (described below) and beginning with the NAV Pricing Date, the price per share that the Company will pay to repurchase its shares will be equal to its NAV multiplied by a percentage equal to (i) 92.5%, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95%, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5%, if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100%, if the person seeking repurchase has held his or her shares for a period greater than four years. Subject to limited exceptions, stockholders who redeem their shares of our common stock within the first four months from the date of purchase will be subject to a short-term trading fee of 2% of the aggregate NAV per share of the shares of common stock received.

Repurchases of shares of the Company's common stock, when requested, are at the sole discretion of the board of directors. Until the SRP Amendment (described below), the Company limited the number of shares repurchased during any calendar year to 5% of the weighted average number of shares of common stock outstanding on December 31st of the previous calendar year. In addition, the Company was only authorized to repurchase shares in a given quarter up to the amount of proceeds received from its DRIP in that same quarter.

On January 26, 2016, the Company's board of directors approved and amended the SRP (the "SRP Amendment") to supersede and replace the existing SRP. Under the SRP Amendment, repurchases of shares of the Company's common stock, when requested, are at the sole discretion of the board of directors and generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. In addition, the Company is only authorized to repurchase shares in a given fiscal semester up to the amount of proceeds received from its DRIP in that same fiscal semester.

F-23

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

When a stockholder requests redemption and the redemption is approved, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares purchased under the SRP will have the status of authorized but unissued shares. The following table reflects the number of shares repurchased cumulatively through December 31, 2015:

	Number of Shares Repurchased	Average Price per Share
Cumulative repurchases as of December 31, 2014	74,031	$	24.42
Year ended December 31, 2015 (1)	894,339	23.66
Cumulative repurchases as of December 31, 2015 (1)	968,370	$	23.72

_____________________________

(1) As permitted under the SRP, in January 2016, the Company's board of directors authorized, with respect to redemption requests received during the three months ended December 31, 2015, the repurchase of shares validly submitted for repurchase in an amount equal to 1.0% of the weighted average number of shares of common stock outstanding during the fiscal year ended December 31, 2014, representing less than all the shares validly submitted for repurchase during the three months ended December 31, 2015. Accordingly, 512,408 shares for $12.0 million at an average repurchase price per share of $23.45 (including all shares submitted for death or disability) were approved and completed in February 2016, while 201,367 shares for $4.6 million at an average price per share of $23.04 were not fulfilled. The accrual for these repurchases is reflected in the accounts payable and accrued expenses line of the accompanying consolidated balance sheets. There were no other unfulfilled share repurchases for the period from October 15, 2012 (date of inception) to December 31, 2015.

Distribution Reinvestment Plan

Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased under the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the IPO. The board of directors may designate that certain cash or other distributions be excluded from reinvestment pursuant to the DRIP. The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days' notice to participants. Shares issued under the DRIP are recorded as equity in the accompanying consolidated balance sheet in the period distributions are declared. During the years ended December 31, 2015 and 2014, the Company issued 3.3 million and 1.8 million shares of common stock pursuant to the DRIP, generating aggregate proceeds of $78.5 million and $41.6 million, respectively.

Note 9 — Related Party Transactions and Arrangements

As of December 31, 2015 and 2014, Healthcare Trust Special Limited Partnership, LLC (the "Special Limited Partner"), formerly known as American Realty Capital Healthcare II Special Limited Partnership, LLC, owned 8,888 shares of the Company's outstanding common stock. The Advisor and its affiliates may incur and pay costs and fees on behalf of the Company.

The Company owned shares in real estate income funds managed by an affiliate of the Sponsor during the years ended December 31, 2015 (see Note 4 — Investment Securities). The Company sold these shares during the three months ended September 30, 2015.

On January 14, 2015, the Company purchased the Acuity Specialty Hospital portfolio from American Realty Capital Healthcare Trust, Inc. ("HCT") for a contract purchase price of $39.4 million. At the time of such purchase, the Sponsor and Advisor and the sponsor and advisor of HCT were under common control.

The limited partnership agreement of the OP provides for a special allocation, solely for tax purposes, of excess depreciation deductions of up to $10.0 million to the Company's Advisor, a limited partner of the OP.  In connection with this special allocation, the Company's Advisor has agreed to restore a deficit balance in its capital account in the event of a liquidation of the OP and has agreed to provide a guaranty or indemnity of indebtedness of the OP.

F-24

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Fees Paid in Connection with the IPO

The Former Dealer Manager was paid fees in connection with the sale of the Company's common stock in the IPO. The Company paid the Former Dealer Manager a selling commission of up to 7.0% of the per share purchase price of offering proceeds before reallowance of commissions earned by participating broker-dealers. In addition, the Company paid the Former Dealer Manager up to 3.0% of the gross proceeds from the sale of shares, before reallowance to participating broker-dealers, as a dealer manager fee. The Former Dealer Manager was permitted to reallow its dealer manager fee to participating broker-dealers. A participating broker-dealer could elect to receive a fee equal to 7.5% of the gross proceeds from the sale of shares by such participating broker-dealer, with 2.5% thereof paid at the time of such sale and 1.0% thereof paid on each anniversary of the closing of such sale up to and including the fifth anniversary of the closing of such sale. If this option had been elected, the dealer manager fee would have been reduced to 2.5% of gross proceeds. The following table details total selling commissions and dealer manager fees incurred from and due to the Former Dealer Manager as of and for the periods presented:

	Years Ended December 31,							Payable as of December 31,
(In thousands)	2015			2014		2013		2015		2014
Total commissions and fees incurred from (reimbursed by) and due to the Former Dealer Manager	$	(2	)	$	175,575	$	17,481	$	—	$	1

The Advisor and its affiliates received compensation and reimbursement for services relating to the IPO, including transfer agent services provided by an affiliate of the Former Dealer Manager. All offering costs incurred by the Company or its affiliated entities on behalf of the Company were charged to additional paid-in capital on the accompanying balance sheet during the IPO. The following table details reimbursable offering costs incurred from and due to the Advisor and Former Dealer Manager as of and for the periods presented:

	Years Ended December 31,						Payable as of December 31,
(In thousands)	2015		2014		2013		2015		2014
Fees and expense reimbursements incurred from and due to the Advisor	$	—	$	21,767	$	3,807	$	—	$	—
Fees and expense reimbursements incurred from and due to the Former Dealer Manager	—		3,262		1,190		—		605
Total fees and expense reimbursements incurred from and due to the Advisor and Former Dealer Manager	$	—	$	25,029	$	4,997	$	—	$	605

The Company was responsible for paying offering and related costs from the IPO, excluding commissions and dealer manager fees, up to a maximum of 2.0% of gross proceeds received from the IPO, measured at the end of the IPO. Offering costs, excluding selling commissions and dealer manager fees, in excess of the 2.0% cap as of the end of the IPO were to be the Advisor's responsibility. As of the end of the IPO, offering and related costs, excluding selling commissions and dealer manager fees, did not exceed 2.0% of gross proceeds received from the IPO. In aggregate, offering costs including selling commissions and dealer manager fees were the Company's responsibility up to a maximum of 12.0% of the gross proceeds received from the IPO as determined at the end of the IPO. As of the end of the IPO in November 2014, offering costs were less than 12.0% of the gross proceeds received in the IPO.

Fees Paid in Connection With the Operations of the Company

The Advisor is paid an acquisition fee equal to 1.0% of the contract purchase price of each acquired property and 1.0% of the amount advanced for a loan or other investment. The Advisor is also reimbursed for services provided for which it incurs investment-related expenses, or insourced expenses. The amount reimbursed for insourced expenses may not exceed 0.5% of the contract purchase price of each acquired property and 0.5% of the amount advanced for a loan or other investment. Additionally, the Company reimburses the Advisor for third party acquisition expenses. The aggregate amount of acquisition fees and financing coordination fees (as described below) may not exceed 1.5% of the contract purchase price and the amount advanced for a loan or other investment for all the assets acquired. In no event will the total of all acquisition fees, acquisition expenses and any financing coordination fees payable with respect to the Company's portfolio of investments or reinvestments exceed 4.5% of the contract purchase price of the Company's portfolio to be measured at the close of the acquisition phase or 4.5% of the amount advanced for all loans or other investments.

F-25

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

If the Advisor provides services in connection with the origination or refinancing of any debt that the Company obtains and uses to acquire properties or to make other permitted investments, or that is assumed, directly or indirectly, in connection with the acquisition of properties, the Company will pay the Advisor a financing coordination fee equal to 0.75% of the amount available and/or outstanding under such financing, subject to certain limitations.

Until March 31, 2015, for its asset management services, the Company issued the Advisor an asset management subordinated participation by causing the OP to issue (subject to periodic approval by the board of directors) to the Advisor performance-based restricted, forfeitable partnership units of the OP designated as "Class B Units." The Class B Units were intended to be profits interests and vest, and are no longer subject to forfeiture, at such time as: (x) the value of the OP's assets plus all distributions made equals or exceeds the total amount of capital contributed by investors plus a 6.0% cumulative, pre-tax, non-compounded annual return thereon (the "economic hurdle"); (y) any one of the following occurs: (1) a listing; (2) an other liquidity event or (3) the termination of the advisory agreement by an affirmative vote of a majority of the Company's independent directors without cause; and (z) the Advisor is still providing advisory services to the Company (the "performance condition"). Unvested Class B Units will be forfeited immediately if: (a) the advisory agreement is terminated for any reason other than a termination without cause; or (b) the advisory agreement is terminated by an affirmative vote of a majority of the Company's independent directors without cause before the economic hurdle has been met.

When approved by the board of directors, the Class B Units were issued to the Advisor quarterly in arrears pursuant to the terms of the limited partnership agreement of the OP. The number of Class B Units issued in any quarter was equal to: (i) the excess of (A) the product of (y) the cost of assets multiplied by (z) 0.1875% over (B) any amounts payable as an oversight fee (as described below) for such calendar quarter; divided by (ii) the value of one share of common stock as of the last day of such calendar quarter, which is equal initially to $22.50 (the IPO price minus the selling commissions and dealer manager fees). The value of issued Class B Units will be determined and expensed when the Company deems the achievement of the performance condition to be probable. As of December 31, 2015, the Company cannot determine the probability of achieving the performance condition. The Advisor receives distributions on vested and unvested Class B Units equal to the distribution rate received on the Company's common stock. Such distributions on issued Class B Units are included in general and administrative expenses in the consolidated statement of operations and comprehensive loss until the performance condition is considered probable to occur. As of December 31, 2015, the Company's board of directors had approved the issuance of 359,250 Class B Units to the Advisor in connection with this arrangement.

On May 12, 2015, the Company, the OP and the Advisor entered into an amendment (the “Amendment”) to the advisory agreement, which, among other things, provides that the Company will cease causing the OP to issue Class B Units in the OP to the Advisor or its assignees related to any period ending after March 31, 2015. Effective April 1, 2015, the Company began paying an asset management fee to the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets. The asset management fee is payable on the first business day of each month in the amount of 0.0625% multiplied by the cost of assets for the preceding monthly period. The asset management fee is payable to the Advisor or its assignees in cash, in shares, or a combination of both, the form of payment to be determined in the sole discretion of the Advisor. For the purposes of the payment of any fees in shares (a) prior to the NAV Pricing Date, each share will be valued at $22.50, (b) after the NAV Pricing Date and prior to the Listing, each share will be valued at the then-current NAV per share and (c) at all other times, each share shall be valued by the board of directors in good faith at the fair market value.

Unless the Company contracts with a third party, the Company pays the Property Manager a property management fee of 1.5% of gross revenues from the Company's stand-alone single-tenant net leased properties and 2.5% of gross revenues from all other types of properties, respectively. The Company also reimburses the Property Manager for property level expenses. If the Company contracts directly with third parties for such services, the Company will pay them customary market fees and will pay the Property Manager an oversight fee of up to 1.0% of the gross revenues of the property managed. In no event will the Company pay the Property Manager or any affiliate of the Property Manager both a property management fee and an oversight fee with respect to any particular property.

F-26

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Effective June 1, 2013, the Company entered into an agreement with the Former Dealer Manager to provide strategic advisory services and investment banking services required in the ordinary course of the Company's business, such as performing financial analysis, evaluating publicly traded comparable companies and assisting in developing a portfolio composition strategy, a capitalization structure to optimize future liquidity options and structuring operations. Strategic advisory fees were amortized over the estimated remaining term of the IPO and, as such, have been fully amortized as of December 31, 2014. The Former Dealer Manager and its affiliates also provided transfer agency services, as well as transaction management and other professional services. These fees were included in general and administrative expenses in the accompanying consolidated statement of operations and comprehensive loss.

The following table details amounts incurred, forgiven and payable in connection with the Company's operations-related services described above as of and for the periods presented.

	Years Ended December 31,												Payable (Receivable) as of
	2015				2014				2013				December 31,
(In thousands)	Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven		2015			2014
One-time fees and reimbursements:
Acquisition fees	$	6,878	$	—	$	15,936	$	—	$	462	$	—	$	—		$	—
Acquisition cost reimbursements	3,439		—		7,968		—		144		—		—			—
Financing coordination fees	3,863		—		1,997		—		—		—		—			—
Ongoing fees:
Asset management fees (1)	10,889		—		—		—		—		—		(5		)	—
Property management fees	1,302		1,220		—		617		—		23		(10		)	—
Professional fees and reimbursements	4,558		—		364		—						499			364
Strategic advisory fees	—		—		605		—		315		—		—			—
Distributions on Class B Units	490		—		47		—		1		—		52			—
Total related party operation fees and reimbursements	$	31,419	$	1,220	$	26,917	$	617	$	922	$	23	$	536		$	364

_______________

(1) Prior to April 1, 2015, the Company caused the OP to issue (subject to periodic approval by the board of directors) to the Advisor restricted performance based Class B Units for asset management services. As of December 31, 2015, the Company's board of directors had approved the issuance of 359,250 Class B Units to the Advisor in connection with this arrangement. Effective April 1, 2015, in connection with the Amendment, the Company will pay an asset management fee to the Advisor or its assignees in cash, in shares, or a combination of both and will no longer issue any Class B Units.

The Company reimburses the Advisor's costs of providing administrative services, subject to the limitation that the Company did not reimburse the Advisor for any amount by which the Company's operating expenses at the end of the four preceding fiscal quarters exceeded the greater of (a) 2.0% of average invested assets and (b) 25.0% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash expenses and excluding any gain from the sale of assets for that period (the "2%/25% Limitation"), unless the Company's independent directors determined that such excess was justified based on unusual and nonrecurring factors which they deemed sufficient, in which case the excess amount could be reimbursed to the Advisor in subsequent periods. Additionally, the Company reimburses the Advisor for personnel costs; however, the Company may not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees, acquisition expenses or real estate commissions or for persons serving as executive officers of the Company. The 2%/25% Limitation was removed from the advisory agreement in connection with the amendment and restatement of to the advisory agreement in June 2015.

F-27

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to forgive and absorb certain fees. Because the Advisor may forgive or absorb certain fees, cash flow from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that are forgiven are not deferrals and, accordingly, will not be paid to the Advisor in the future. In certain instances, to improve the Company's working capital, the Advisor may elect to absorb a portion of the Company's property operating and general and administrative costs, which the Company will not repay. The following table reflects costs absorbed by the Advisor during the periods presented.

	Years Ended December 31,						Receivable as of December 31,
(In thousands)	2015		2014		2013		2015		2014
Property operating expenses absorbed	$	—	$	—	$	150	$	—	$	—
General and administrative expenses absorbed	—		—		843		—		—
Total expenses absorbed	$	—	$	—	$	993	$	—	$	—

The predecessor to AR Global is a party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager (“RCS Advisory”), pursuant to which RCS Advisory and its affiliates provided the Company and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory.

The Company is also party to a transfer agency agreement with American National Stock Transfer, LLC, a subsidiary of the parent company of the Former Dealer Manager (“ANST”), pursuant to which ANST provided the Company with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by a third-party transfer agent. AR Global received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. On February 26, 2016, the Company entered into a definitive agreement with DST Systems, Inc., its previous provider of sub-transfer agency services, to provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services).

Fees and Participations Paid in Connection with a Listing or the Liquidation of the Company's Real Estate Assets

Fees Incurred in Connection with the Listing

On March 17, 2015, the Company formally engaged KeyBanc Capital Markets Inc. ("KeyBanc") and RCS Capital ("RCS Capital"), the investment banking and capital markets division of the Former Dealer Manager, and on May 20, 2015, the Company formally engaged BMO Capital Markets Corp. ("BMO"), as financial advisors. Previously, the Company's board of directors determined, in consultation with KeyBanc and RCS Capital, that it was in the Company's best interests to proceed with a public listing application on a national securities exchange. On September 24, 2015, the Company announced that its board of directors had determined that it was in the best interest of the Company to not pursue the Listing during the third quarter of 2015 and that the board of directors will continue to monitor market conditions and other factors with a view toward reevaluating the Listing decision when market conditions are more favorable. Pursuant to the agreements with KeyBanc, BMO and RCS Capital, they each would have received a listing advisory fee equal to $1.5 million if the Company's shares were listed on a national securities exchange. In the event of a sale or acquisition transaction, KeyBanc, BMO and RCS Capital each would have received a proposed transaction fee equal to 0.25% of the value of the transaction.

While the Company's board of directors continues to monitor market conditions and other factors with respect to the Listing, the agreements with KeyBanc, RCS Capital and BMO were terminated in January 2016. No fees were incurred in connection with these agreements during the years ended December 31, 2015, 2014, or 2013.

Other Liquidation Related Fees and Participations

The Company will pay the Advisor an annual subordinated performance fee calculated on the basis of the Company's total return to stockholders, payable annually in arrears, such that for any year in which the Company's total return on stockholders' capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return but not to exceed 10.0% of the aggregate total return for such year. This fee will be paid only upon the sale of assets, distributions or other event which results in the return on stockholders' capital exceeding 6.0% per annum. No subordinated performance fees were incurred during the years ended December 31, 2015, 2014, or 2013.

F-28

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

The Company will pay the Advisor a brokerage commission on the sale of property, not to exceed the lesser of 2.0% of the contract sale price of the property and 50.0% of the total brokerage commission paid if a third party broker is also involved; provided, however, that in no event may the real estate commissions paid to the Advisor, its affiliates and unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a reasonable, customary and competitive real estate commission, in each case, payable to the Advisor if the Advisor or its affiliates, as determined by a majority of the independent directors, provided a substantial amount of services in connection with the sale. No such fees were incurred during the years ended December 31, 2015, 2014, or 2013.

The Special Limited Partner will be entitled to receive a subordinated participation in the net sales proceeds of the sale of real estate assets from the OP equal to 15.0% of remaining net sale proceeds after return of capital contributions to investors plus payment to investors of a 6.0% cumulative, pre-tax non-compounded annual return on the capital contributed by investors. The Special Limited Partner will not be entitled to the subordinated participation in net sale proceeds unless the Company's investors have received a 6.0% cumulative, pre-tax non-compounded annual return on their capital contributions. No such participation in net sales proceeds became due and payable during the years ended December 31, 2015, 2014, or 2013.

If the common stock of the Company is listed on a national exchange, the Special Limited Partner will be entitled to receive a subordinated incentive listing distribution from the OP equal to 15.0% of the amount by which the adjusted market value of real estate assets plus distributions exceeds the aggregate capital contributed by investors plus an amount equal to a 6.0% cumulative, pre-tax non-compounded annual return to investors. The Special Limited Partner will not be entitled to the subordinated incentive listing distribution unless investors have received a 6.0% cumulative, pre-tax non-compounded annual return on their capital contributions. No such distribution was incurred during the years ended December 31, 2015, 2014, or 2013. Neither the Special Limited Partner nor any of its affiliates can earn both the subordinated participation in the net sales proceeds and the subordinated incentive listing distribution.

Upon termination or non-renewal of the advisory agreement with the Advisor, with or without cause, the Special Limited Partner will be entitled to receive distributions from the OP equal to 15.0% of the amount by which the sum of the Company's market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to an annual 6.0% cumulative, pre-tax, non-compounded annual return to investors. The Special Limited Partner may elect to defer its right to receive a subordinated distribution upon termination until either a listing on a national securities exchange or other liquidity event occurs.

Note 10 — Economic Dependency

Under various agreements, the Company has engaged or will engage the Advisor, its affiliates and entities under common control with the Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company and asset acquisition and disposition decisions, as well as other administrative responsibilities for the Company including accounting services and investor relations.

As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that the Advisor and its affiliates are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.

Note 11 — Equity-Based Compensation

Restricted Share Plan

The Company has an employee and director incentive restricted share plan (the "RSP"), which provides for the automatic grant of 1,333 restricted shares of common stock to each of the independent directors, without any further approval by the Company's board of directors or the stockholders, after initial election to the board of directors and after each annual stockholder meeting, with such shares vesting annually beginning with the one year anniversary of initial election to the board of directors and the date of the next annual meeting, respectively. Restricted stock issued to independent directors will vest over a five-year period in increments of 20.0% per annum. The RSP provides the Company with the ability to grant awards of restricted shares to the Company's directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to entities that provide services to the Company. The total number of common shares granted under the RSP may not exceed 5.0% of the Company's outstanding shares of common stock on a fully diluted basis at any time and in any event will not exceed 3.4 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events).

F-29

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Restricted share awards entitle the recipient to receive shares of common stock from the Company under terms that provide for vesting over a specified period of time. For restricted share awards granted prior to July 1, 2015, such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient's employment or other relationship with the Company. For restricted share awards granted on or after July 1, 2015, such awards provide for accelerated vesting of the portion of the unvested shares scheduled to vest in the year of the recipient's voluntary termination or the failure to be re-elected to the board. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in shares of common stock shall be subject to the same restrictions as the underlying restricted shares. The following table reflects restricted share award activity for the period presented:

	Number of Common Shares		Weighted-Average Issue Price
Unvested, January 1, 2013	—		$	—
Granted	3,999		22.50
Vested	—		—
Forfeitures	—		—
Unvested, December 31, 2013	3,999		22.50
Granted	3,999		22.50
Vested	(800	)	22.50
Forfeitures	—		—
Unvested, December 31, 2014	7,198		22.50
Granted	7,998		22.50
Vested	(1,066	)	22.50
Forfeitures	(2,399	)	22.50
Unvested, December 31, 2015	11,731		$	22.50

As of December 31, 2015, the Company had $0.2 million of unrecognized compensation cost related to unvested restricted share awards granted under the Company's RSP. That cost is expected to be recognized over a weighted-average period of 3.6 years. Compensation expense related to restricted stock was $0.1 million, approximately $27,000 and $16,000 during the years ended December 31, 2015, 2014 and 2013, respectively. Compensation expense related to restricted stock is recorded as general and administrative expense in the accompanying consolidated statement of operations and comprehensive loss.

Other Share-Based Compensation

The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors at the respective director's election. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. During the year ended December 31, 2014, the Company issued 2,037 shares in lieu of approximately $46,000 in cash. No such shares were issued during the years ended December 31, 2015 and 2013.

F-30

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Note 12 — Accumulated Other Comprehensive Income

The following table illustrates the changes in accumulated other comprehensive income as of and for the period presented:

(In thousands)	Unrealized Gains on Available-for-Sale Securities
Balance, December 31, 2013	$	—
Other comprehensive income, before reclassifications	471
Amounts reclassified from accumulated other comprehensive income (1)	(8		)
Balance, December 31, 2014	463
Other comprehensive loss, before reclassifications	(23		)
Amounts reclassified from accumulated other comprehensive income (1)	(446		)
Balance, December 31, 2015	$	(6	)

__________________

(1) During the years ended December 31, 2015and 2014, the Company sold certain of its investments in preferred stock, common stock, real estate income funds and its investment in a senior note which resulted in a realized gain of $0.4 million and approximately $8,000, respectively, which is included in gain on sale of investment securities on the consolidated statement of operations and comprehensive loss.

Note 13 — Non-Controlling Interests

The Company is the sole general partner and holds substantially all of the units of limited partner interests in the OP ("OP Units"). As of December 31, 2015 and 2014, the Advisor held 90 OP Units, which represents a nominal percentage of the aggregate OP ownership.

In November 2014, the Company partially funded the purchase of an MOB with the issuance of 405,908 OP Units, with a value of $10.1 million or $25.00 per unit, from an unaffiliated third party.

A holder of OP Units has the right to distributions and has the right to convert OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, in accordance with the limited partnership agreement of the OP, provided, however, that such OP Units must have been outstanding for at least one year. The remaining rights of the limited partners in the OP are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets. During the year ended December 31, 2015, non-controlling interest holders were paid distributions of $0.7 million. No such distributions were paid during the years ended December 31, 2014 or 2013.

The Company has an investment arrangement with an unaffiliated third party whereby such investor receives an ownership interest in certain of the Company's property-owning subsidiaries and is entitled to receive a proportionate share of the net operating cash flow derived from the subsidiaries' property. Upon disposition of a property subject to non-controlling interest, the investor will receive a proportionate share of the net proceeds from the sale of the property. The investor has no recourse to any other assets of the Company. Due to the nature of the Company's involvement with the arrangement and the significance of its investment in relation to the investment of the third party, the Company has determined that it controls each entity in this arrangement and therefore the entities related to this arrangement are consolidated within the Company's financial statements. A non-controlling interest is recorded for the investor's ownership interest in the properties.

F-31

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

The following table summarizes the activity related to investment arrangements with the unaffiliated third party. The Company did not have any investment arrangements with unaffiliated third parties during the years ended December 31, 2014 or 2013 and therefore did not have any distributions to unaffiliated third parties for investment arrangements for the years ended December 31, 2014 or 2013.

						As of December 31, 2015
Property Name (Dollar amounts in thousands)	Investment Date	Third Party Net Investment Amount as of December 31, 2015		Non-Controlling Ownership Percentage as of December 31, 2015		Net Real Estate Assets Subject to Investment Arrangement		Mortgage Notes Payable Subject to Investment Arrangement	Distributions for the Year Ended December 31, 2015
Plaza Del Rio Medical Office Campus Portfolio - Peoria, AZ	May 2015	$	500	4.1	%	$	10,561	—	—

Note 14 — Net Loss Per Share

The following is a summary of the basic and diluted net loss per share computation for the years ended December 31, 2015, 2014 and 2013:

	Years Ended December 31,
	2015			2014			2013
Net loss attributable to stockholders (in thousands)	$	(41,741	)	$	(37,678	)	$	(221	)
Basic and diluted weighted-average shares outstanding	85,331,966			51,234,729			2,148,297
Basic and diluted net loss per share	$	(0.49	)	$	(0.74	)	$	(0.10	)

The Company had the following potentially dilutive securities as of December 31, 2015, 2014 and 2013, which were excluded from the calculation of diluted loss per share attributable to stockholders as the effect would have been antidilutive:

	December 31,
	2015	2014	2013
Unvested restricted stock	11,731	7,198	3,999
OP Units	405,998	405,998	90
Class B units	359,250	107,885	4,062
Total common share equivalents	776,979	521,081	8,151

Note 15 — Segment Reporting

During the year ended December 31, 2015 and 2014, the Company operated in three reportable business segments for management and internal financial reporting purposes: medical office buildings, triple-net leased healthcare facilities, and seniors housing — operating properties ("SHOP"). During the year ended December 31, 2013, the Company did not own any seniors housing communities and, therefore, operated in two reportable business segments.

F-32

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

These operating segments are the segments of the Company for which separate financial information is available and for which segment results are evaluated by the Company's executive officers in deciding how to allocate resources and in assessing performance. The medical office building segment primarily consists of MOBs leased to healthcare-related tenants under long-term leases, which may require such tenants to pay a pro rata share of property-related expenses. The triple-net leased healthcare facilities segment primarily consists of investments in seniors housing communities, hospitals, inpatient rehabilitation facilities and skilled nursing facilities under long-term leases, under which tenants are generally responsible to directly pay property-related expenses. The SHOP segment consists of direct investments in seniors housing communities, primarily providing assisted living, independent living and memory care services, which are operated through engaging independent third-party managers. The Company evaluates the performance of the combined properties in each segment based on net operating income. Net operating income is defined as total revenues less property operating and maintenance expenses. There are no intersegment sales or transfers. The Company uses net operating income to evaluate the operating performance of real estate investments and to make decisions concerning the operation of the properties. The Company believes that net operating income is useful to investors in understanding the value of income-producing real estate. Net income (loss) is the GAAP measure that is most directly comparable to net operating income; however, net operating income should not be considered as an alternative to net income as the primary indicator of operating performance as it excludes certain items such as operating fees to the Advisor, acquisition and transaction related expenses, general and administrative expenses, depreciation and amortization expense, interest expense, interest and other income, gain on sale of investment securities, and income tax expense. Additionally, net operating income as defined by the Company may not be comparable to net operating income as defined by other REITs or companies.

The following tables reconcile the segment activity to consolidated net loss for the years ended December 31, 2015, 2014 and 2013:

	Year Ended December 31, 2015
(In thousands)	Medical Office Buildings		Triple-Net Leased Healthcare Facilities		Seniors Housing — Operating Properties		Consolidated
Revenues:
Rental income	$	56,165	$	37,053	$	—	$	93,218
Operating expense reimbursements	12,611		148		—		12,759
Resident services and fee income	—		—		140,901		140,901
Contingent purchase price consideration	572		—		40		612
Total revenues	69,348		37,201		140,941		247,490
Property operating and maintenance	20,334		6,706		98,533		125,573
Net operating income	$	49,014	$	30,495	$	42,408	121,917
Operating fees to related parties							(12,191		)
Acquisition and transaction related							(14,679		)
General and administrative							(9,733		)
Depreciation and amortization							(120,924		)
Interest expense							(10,356		)
Interest and other income							582
Gain on sale of investment securities							446
Income tax benefit (expense)							2,978
Net loss attributable to non-controlling interests							219
Net loss attributable to stockholders							$	(41,741	)

F-33

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

	Year Ended December 31, 2014
(In thousands)	Medical Office Buildings		Triple-Net Leased Healthcare Facilities		Seniors Housing — Operating Properties		Consolidated
Revenues:
Rental income	$	13,955	$	9,050	$	—	$	23,005
Operating expense reimbursements	3,532		53		—		3,585
Resident services and fee income	—		—		31,849		31,849
Total revenues	17,487		9,103		31,849		58,439
Property operating and maintenance	4,765		79		21,873		26,717
Net operating income	$	12,722	$	9,024	$	9,976	31,722
Acquisition and transaction related							(33,623		)
General and administrative							(3,541		)
Depreciation and amortization							(28,889		)
Interest expense							(3,559		)
Interest and other income							735
Gain on sale of investment securities							8
Income tax benefit (expense)							(565		)
Net loss attributable to non-controlling interests							34
Net loss attributable to stockholders							$	(37,678	)

	Year Ended December 31, 2013
(In thousands)	Medical Office Buildings		Triple-Net Leased Healthcare Facilities		Seniors Housing — Operating Properties		Consolidated
Revenues:
Rental income	$	881	$	670	$	—	$	1,551
Operating expense reimbursements	236		30		—		266
Resident services and fee income	—		—		—		—
Total revenues	1,117		700		—		1,817
Property operating and maintenance	92		30		—		122
Net operating income	$	1,025	$	670	$	—	1,695
Acquisition and transaction related							(730		)
General and administrative							(104		)
Depreciation and amortization							(1,077		)
Income tax benefit (expense)							(5		)
Net loss attributable to stockholders							$	(221	)

F-34

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

The following table reconciles the segment activity to consolidated total assets as of the periods presented:

	December 31,
(In thousands)	2015		2014
ASSETS
Investments in real estate, net:
Medical office buildings	$	839,041	$	593,648
Triple-net leased healthcare facilities	447,893		355,962
Construction in progress	31,309		—
Seniors housing — operating properties	876,359		682,140
Total investments in real estate, net	2,194,602		1,631,750
Cash and cash equivalents	24,474		182,617
Restricted cash	4,647		1,778
Investment securities, at fair value	1,078		20,286
Receivable for sale of common stock	—		6
Straight-line rent receivable, net	11,470		2,325
Prepaid expenses and other assets	21,707		14,711
Deferred costs, net	14,014		4,237
Total assets	$	2,271,992	$	1,857,710

The following table reconciles capital expenditures by reportable business segment, excluding corporate non-real estate expenditures, for the periods presented:

	Years Ended December 31,
(In thousand)	2015		2014		2013
Medical office buildings	$	2,129	$	609	$	—
Triple-net leased healthcare facilities	540		—		—
Seniors housing — operating properties	2,701		134		—
Total capital expenditures	$	5,370	$	743	$	—

Note 16 — Commitments and Contingencies

The Company has entered into operating and capital lease agreements related to certain acquisitions under leasehold interests arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter under these arrangements, including the present value of the net minimum payment due under capital leases. These amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes among other items.

	Future Minimum Base Rent Payments
(In thousands)	Operating Leases		Capital Leases
2016	$	645	$	74
2017	664		76
2018	668		78
2019	673		80
2020	671		82
Thereafter	79,980		7,848
Total minimum lease payments	$	83,301	8,238
Less: amounts representing interest			(3,435		)
Total present value of minimum lease payments			$	4,803

F-35

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Total rental expense from operating leases was $0.4 million, $0.1 million and approximately $6,000 during the years ended December 31, 2015, 2014 and 2013, respectively. During the years ended December 31, 2015 and 2014, interest expense related to capital leases was $0.1 million and $0.2 million, respectively. There was no such expense during the year ended December 31, 2013.

Litigation and Regulatory Matters

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no material legal or regulatory proceedings pending or known to be contemplated against the Company or its properties.

Environmental Matters

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. As of December 31, 2015, the Company had not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on the results of operations.

Development Project Funding

In August 2015, the Company entered into an asset purchase agreement and development agreement to acquire land and construction in progress, and subsequently fund the remaining construction, of a skilled nursing facility in Jupiter, Florida for $82.0 million. As of December 31, 2015, the Company had funded $10.0 million and $21.3 million for the land and construction in progress, respectively. Concurrent with the acquisition, the Company entered into a loan agreement and lease agreement with an affiliate of the project developer. The loan agreement is intended to provide working capital to the tenant during the initial operating period of the facility and allows for borrowings of up to $2.7 million from the Company on a non-revolving basis. Any outstanding principal balances under the loan will bear interest at 7.0% per year, payable on the first day of each fiscal quarter. As of December 31, 2015, there were no amounts outstanding due to the Company pursuant to the loan agreement.

Note 17 — Quarterly Results (Unaudited)

Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2015, 2014 and 2013:

(In thousands, except for share and per share data)	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Total revenues	$	57,121		$	59,516		$	64,030		$	66,373
Net loss attributable to stockholders	$	(5,220	)	$	(13,421	)	$	(16,108	)	$	(6,992	)
Basic and diluted weighted average shares outstanding	84,250,503			84,992,633			85,705,595			86,351,934
Basic and diluted loss per share	$	(0.06	)	$	(0.16	)	$	(0.19	)	$	(0.08	)

(In thousands, except for share and per share data)	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Total revenues	$	1,387		$	2,869		$	11,818		$	42,365
Net income (loss)	$	(582	)	$	(4,147	)	$	(20,023	)	$	(12,926	)
Basic and diluted weighted average shares outstanding	13,623,545			35,127,969			71,813,126			83,381,570
Basic and diluted income (loss) per share	$	(0.04	)	$	(0.12	)	$	(0.28	)	$	(0.16	)

(In thousands, except for share and per share data)	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
Total revenues	$	—		$	27		$	652		$	1,138
Net income (loss)	$	(47	)	$	(116	)	$	(399	)	$	341
Basic weighted average shares outstanding	8,888			379,911			2,559,022			5,579,635
Basic income (loss) per share	$	(5.29	)	$	(0.31	)	$	(0.16	)	$	0.06
Diluted weighted average shares outstanding	8,888			379,911			2,559,022			5,624,600
Diluted income (loss) per share	$	(5.29	)	$	(0.31	)	$	(0.16	)	$	0.05

F-36

HEALTHCARE TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2015

Note 18 — Subsequent Events

The Company has evaluated subsequent events through the filing of this Annual Report on Form 10-K, and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following:

Amended and Restated SRP

On January 25, 2016, the board of directors of the Company unanimously approved an amended and restated share repurchase program (the “A&R SRP”). Effective February 28, 2016, beginning on and following the NAV Pricing Date, the repurchase price per share for requests other than for death or disability will be equal to the NAV, in each case multiplied by a percentage equal to (i) 92.5%, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95%, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5%, if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100%, if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the NAV at the time of repurchase beginning on and following the NAV Pricing Date.

Repurchases pursuant to the A&R SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the A&R SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any distribution reinvestment plan in effect from time to time; provided that the board of directors has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose.

Sponsor Transaction

In January 2016, AR Global became the successor business to AR Capital, LLC and became the parent of the Company's current Sponsor.

RCS Capital Corporation Bankruptcy

RCS Capital Corporation, the parent company of the Former Dealer Manager and certain of its affiliates that provided the Company with services, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of the Company's sponsor.

Termination of Listing Advisory Services Agreements

On March 17, 2015, the Company formally engaged KeyBanc and RCS Capital and on May 20, 2015, the Company formally engaged BMO as financial advisors in connection with the Listing. While the Company's board of directors continues to monitor market conditions and other factors with respect to the Listing, the agreements with KeyBanc, RCS Capital and BMO were terminated in January 2016.

American National Stock Transfer, LLC Termination

On February 10, 2016, AR Global received written notice from ANST, the Company's transfer agent and an affiliate of the Company's Former Dealer Manager, that it would wind down operations by the end of the month. ANST withdrew as the transfer agent effective February 29, 2016.

On February 26, 2016, the Company entered into a definitive agreement with DST Systems, Inc., its previous provider of sub-transfer agency services, to provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services).

F-37

Healthcare Trust, Inc. and Subsidiaries

Real Estate and Accumulated Depreciation

Schedule III

December 31, 2015

					Initial Costs				Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015		Land		Building and Improvements		Building and Improvements		Gross Amount at December 31,2015(1)(2)		Accumulated Depreciation(3)(4)
Fresenius Medical Care - Winfield(5)	AL	5/10/2013	$	—	$	151	$	1,568	$	—	$	1,719	$	123
Adena Health Center - Jackson(5)	OH	6/28/2013	—		242		4,494		—		4,736		291
Ouachita Community Hospital - West Monroe	LA	7/12/2013	—		633		5,304		—		5,937		350
CareMeridian - Littleton	CO	8/8/2013	—		976		8,900		—		9,876		948
Oak Lawn Medical Center - Oak Lawn(5)	IL	8/21/2013	—		835		7,477		—		8,312		566
Surgery Center of Temple - Temple(5)	TX	8/30/2013	—		225		5,208		—		5,433		315
Greenville Health System - Greenville(5)	SC	10/10/2013	—		720		3,045		—		3,765		176
Arrowhead Medical Plaza II - Glendale	AZ	2/21/2014	—		—		9,707		216		9,923		573
Village Center Parkway - Stockbridge	GA	2/21/2014	—		1,135		2,299		131		3,565		154
Stockbridge Family Medical - Stockbridge	GA	2/21/2014	—		823		1,799		11		2,633		98
Creekside MOB - Douglasville	GA	4/30/2014	—		2,709		5,320		169		8,198		290
Bowie Gateway Medical Center - Bowie	MD	5/7/2014	5,969		983		10,321		—		11,304		467
Campus at Crooks & Auburn Building D - Rochester Hills	MI	5/19/2014	—		640		4,107		—		4,747		185
Medical Center of New Windsor - New Windsor	NY	5/22/2014	8,720		—		10,566		323		10,889		483
Plank Medical Center - Clifton Park	NY	5/22/2014	3,461		749		3,559		25		4,333		171
Cushing Center - Schenectady	NY	5/23/2014	4,184		—		12,489		7		12,496		559
Berwyn Medical Center - Berwyn(5)	IL	5/29/2014	—		1,305		7,559		—		8,864		312
Countryside Medical Arts - Safety Harbor	FL	5/30/2014	5,992		915		7,663		60		8,638		344
St. Andrews Medical Park - Venice	FL	5/30/2014	6,623		1,666		9,944		36		11,646		455
Campus at Crooks & Auburn Building C - Rochester Hills	MI	6/3/2014	3,555		609		3,842		130		4,581		177
Slingerlands Crossing Phase I - Bethlehem	NY	6/13/2014	6,680		3,865		5,919		—		9,784		272
Slingerlands Crossing Phase II - Bethlehem	NY	6/13/2014	7,777		1,707		9,715		148		11,570		431
UC Davis MOB - Elk Grove(5)	CA	7/15/2014	—		1,138		7,242		—		8,380		306
Laguna Professional Center - Elk Grove(5)	CA	7/15/2014	—		1,811		14,598		—		16,409		608
Big Spring Care Center - Humansville	MO	7/31/2014	—		230		6,514		—		6,744		346
Buffalo Prairie Care Center - Buffalo	MO	7/31/2014	—		230		4,098		—		4,328		241
Cassville Health Care & Rehab - Cassville	MO	7/31/2014	—		250		3,774		—		4,024		190
Country Aire Retirement Estates - Lewistown	MO	7/31/2014	—		400		4,546		—		4,946		283
Edgewood Manor Nursing Home - Raytown	MO	7/31/2014	—		591		851		—		1,442		48
Georgian Gardens - Potosi	MO	7/31/2014	—		500		6,359		—		6,859		387
Gregory Ridge Living Center - Kansas City	MO	7/31/2014	—		590		4,043		—		4,633		276
Marshfield Care Center - Marshfield	MO	7/31/2014	—		310		4,052		—		4,362		251

F-38

Healthcare Trust, Inc. and Subsidiaries

Real Estate and Accumulated Depreciation

Schedule III

December 31, 2015

				Initial Costs		Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015	Land	Building and Improvements	Building and Improvements	Gross Amount at December 31,2015(1)(2)	Accumulated Depreciation(3)(4)
Parkway Health Care Center - Kansas City	MO	7/31/2014	—	630	4,229	—	4,859	232
Estate at Hyde Park - Tampa(5)	FL	7/31/2014	—	1,777	20,153	—	21,930	902
Autumn Ridge of Clarkston - Clarkston(5)	MI	8/12/2014	—	655	19,834	78	20,567	905
Sunnybrook of Burlington - Burlington(5)	IA	8/26/2014	—	518	16,651	16	17,185	722
Sunnybrook of Carroll - Carroll(5)	IA	8/26/2014	—	473	11,150	15	11,638	444
Sunnybrook of Fairfield - Fairfield(5)	IA	8/26/2014	—	340	14,028	37	14,405	621
Sunnybrook of Ft. Madison - Ft. Madison(5)	IA	8/26/2014	—	550	9,024	17	9,591	397
Sunnybrook of Mt. Pleasant - Mt. Pleasant(5)	IA	8/26/2014	—	205	10,811	115	11,131	397
Sunnybrook of Muscatine - Muscatine	IA	8/26/2014	—	302	13,752	16	14,070	553
Prairie Hills at Cedar Rapids -Cedar Rapids(5)	IA	8/26/2014	—	195	8,544	9	8,748	340
Prairie Hills at Clinton - Clinton(5)	IA	8/26/2014	—	890	18,801	24	19,715	771
Prairie Hills at Des Moines - Des Moines	IA	8/26/2014	—	647	13,645	31	14,323	612
Prairie Hills at Tipton - Tipton	IA	8/26/2014	—	306	10,370	—	10,676	382
Prairie Hills at Independence - Independence(5)	IA	8/26/2014	—	473	10,534	3	11,010	412
Prairie Hills at Ottumwa - Ottumwa(5)	IA	8/26/2014	—	538	9,100	24	9,662	382
Sunnybrook of Burlington - Land - Burlington	IA	8/26/2014	—	620	—	—	620	—
Benedictine Cancer Center - Kingston	NY	8/27/2014	6,811	—	13,274	—	13,274	462
Buchanan Meadows - Buchanan	MI	8/29/2014	—	288	6,988	—	7,276	304
Crystal Springs - Kentwood	MI	8/29/2014	—	661	14,507	—	15,168	696
Golden Orchards - Fennville	MI	8/29/2014	—	418	5,318	—	5,736	215
Lakeside Vista - Holland	MI	8/29/2014	—	378	12,196	—	12,574	518
Liberty Court - Dixon	IL	8/29/2014	—	119	1,957	—	2,076	93
Prestige Centre - Buchanan	MI	8/29/2014	—	297	2,207	—	2,504	112
Prestige Commons - Chesterfield Twp	MI	8/29/2014	—	318	5,346	—	5,664	216
Prestige Pines - Dewitt	MI	8/29/2014	—	476	3,065	—	3,541	176
Prestige Place - Clare	MI	8/29/2014	—	59	1,169	—	1,228	98
Prestige Point - Grand Blanc	MI	8/29/2014	—	268	3,037	—	3,305	156
Prestige Way - Holt	MI	8/29/2014	—	527	5,269	—	5,796	264
The Atrium - Rockford	IL	8/29/2014	—	367	4,385	—	4,752	202
Waldon Woods - Wyoming	MI	8/29/2014	—	527	5,696	—	6,223	332
Whispering Woods - Grand Rapids	MI	8/29/2014	—	806	12,204	—	13,010	596
Arrowhead Medical Plaza I - Glendale	AZ	9/10/2014	—	—	6,377	53	6,430	218

F-39

Healthcare Trust, Inc. and Subsidiaries

Real Estate and Accumulated Depreciation

Schedule III

December 31, 2015

				Initial Costs		Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015	Land	Building and Improvements	Building and Improvements	Gross Amount at December 31,2015(1)(2)	Accumulated Depreciation(3)(4)
Golden Years - Harrisonville	MO	9/11/2014	—	620	8,401	—	9,021	435
Cardiovascular Consultants of Cape Girardeau Medical Office Building- Cape Girardeau(5)	MO	9/18/2014	—	1,624	5,303	—	6,927	247
FOC Clinical - Mechanicsburg(5)	PA	9/26/2014	—	—	19,634	—	19,634	699
Brady MOB - Harrisburg(5)	PA	9/26/2014	—	—	22,485	—	22,485	709
Community Health MOB - Harrisburg(5)	PA	9/26/2014	—	—	6,170	—	6,170	199
FOC I - Mechanicsburg(5)	PA	9/26/2014	—	—	8,923	21	8,944	326
FOC II - Mechanicsburg(5)	PA	9/26/2014	—	—	16,473	—	16,473	591
Landis Memorial - Harrisburg(5)	PA	9/26/2014	—	—	32,484	—	32,484	1,028
Copper Springs Senior Living - Meridian(5)	ID	9/29/2014	—	498	7,053	71	7,622	376
Benton House - Brunswick - Brunswick(5)	GA	9/30/2014	—	1,509	14,385	7	15,901	608
Benton House - Dublin - Dublin(5)	GA	9/30/2014	—	403	9,254	20	9,677	425
Benton House - Johns Creek - Johns Creek(5)	GA	9/30/2014	—	997	11,849	51	12,897	512
Benton House - Lee's Summit - Lee's Summit(5)	MO	9/30/2014	—	2,734	24,970	15	27,719	975
Benton House - Roswell - Roswell(5)	GA	9/30/2014	—	1,000	8,509	69	9,578	413
Benton House - Titusville - Titusville(5)	FL	9/30/2014	—	1,379	13,827	70	15,276	626
Allegro at Elizabethtown - Elizabethtown(5)	KY	9/30/2014	—	317	7,261	124	7,702	351
Allegro at Jupiter - Jupiter(5)	FL	9/30/2014	—	3,741	49,413	49	53,203	1,938
Allegro at St Petersburg - St Petersburg(5)	FL	9/30/2014	—	3,791	7,950	143	11,884	483
Allegro at Stuart - Stuart(5)	FL	9/30/2014	—	5,018	60,505	102	65,625	2,423
Allegro at Tarpon - Tarpon Springs(5)	FL	9/30/2014	—	2,360	13,412	42	15,814	680
Allegro at St Petersburg - Land - St Petersburg	FL	9/30/2014	—	3,045	—	—	3,045	—
Gateway Medical Office Building - Clarksville	TN	10/3/2014	—	—	16,367	242	16,609	531
757 Building - Munster(5)	IN	10/17/2014	—	645	7,885	—	8,530	241
Dyer Building - Dyer(5)	IN	10/17/2014	—	601	8,867	67	9,535	269
759 Building - Munster(5)	IN	10/17/2014	—	1,101	8,899	—	10,000	279
761 Building - Munster(5)	IN	10/17/2014	—	1,436	8,580	—	10,016	279
Schererville Building - Schererville	IN	10/17/2014	—	1,260	750	96	2,106	42
Nuvista at Hillsborough - Lutz	FL	10/17/2014	—	913	17,176	—	18,089	896
Nuvista at Wellington Green - Wellington(5)	FL	10/17/2014	—	4,273	42,098	—	46,371	1,838
Mount Vernon Medical Office Building - Mount Vernon	WA	11/25/2014	—	—	18,519	—	18,519	544
Meadowbrook Senior Living - Agoura Hills(5)	CA	11/25/2014	—	8,821	48,454	10	57,285	1,523

F-40

Healthcare Trust, Inc. and Subsidiaries

Real Estate and Accumulated Depreciation

Schedule III

December 31, 2015

				Initial Costs		Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015	Land	Building and Improvements	Building and Improvements	Gross Amount at December 31,2015(1)(2)	Accumulated Depreciation(3)(4)
Hampton River Medical Arts Building - Hampton(5)	VA	12/3/2014	—	—	17,706	—	17,706	542
Careplex West Medical Office Building- Hampton(5)	VA	12/3/2014	—	2,628	16,098	—	18,726	465
Wellington at Hershey's Mill - West Chester(5)	PA	12/3/2014	—	8,531	78,409	334	87,274	2,431
Eye Specialty Group Medical Building - Memphis(5)	TN	12/5/2014	—	775	7,223	—	7,998	205
Benton House - Alpharetta	GA	12/10/2014	—	1,604	26,055	10	27,669	890
Benton House - Prairie Village - Prairie Village(5)	KS	12/10/2014	—	1,782	21,831	7	23,620	767
Medical Sciences Pavilion - Harrisburg(5)	PA	12/15/2014	—	—	22,309	—	22,309	612
Bloom MOB - Harrisburg(5)	PA	12/15/2014	—	—	15,928	20	15,948	450
Pinnacle Center - Southaven(5)	MS	12/16/2014	—	1,378	6,418	189	7,985	201
Wood Glen Nursing and Rehab Center - West Chicago	IL	12/16/2014	—	1,896	16,107	—	18,003	654
Paradise Valley Medical Plaza - Phoenix(5)	AZ	12/29/2014	—	—	25,187	358	25,545	671
Victory Medical Center at Craig Ranch - McKinney	TX	12/30/2014	—	1,596	40,389	4	41,989	1,031
Capitol Healthcare & Rehab Centre - Springfield	IL	12/31/2014	—	603	21,690	—	22,293	853
Colonial Healthcare & Rehab Centre- Princeton	IL	12/31/2014	—	173	5,872	—	6,045	301
Morton Terrace Healthcare & Rehab Centre - Morton	IL	12/31/2014	—	709	5,650	—	6,359	296
Morton Villa Healthcare & Rehab Centre - Morton	IL	12/31/2014	—	645	3,665	—	4,310	178
Rivershores Healthcare & Rehab Centre - Marseilles	IL	12/31/2014	—	1,276	6,869	—	8,145	296
The Heights Healthcare & Rehab Centre - Peoria Heights	IL	12/31/2014	—	213	7,952	—	8,165	359
Specialty Hospital - Mesa	AZ	1/14/2015	—	1,977	16,146	266	18,389	417
Specialty Hospital - Sun City	AZ	1/14/2015	—	2,329	15,795	274	18,398	411
Benton House - Shoal Creek - Kansas City(5)	MO	2/2/2015	—	3,723	22,206	10	25,939	650
Aurora Health Center - Green Bay(6)	WI	3/18/2015	—	1,130	1,678	—	2,808	41
Aurora Health Center - Greenville(6)	WI	3/18/2015	—	259	958	—	1,217	25
Aurora Health Center - Plymouth(6)	WI	3/18/2015	—	2,891	24,224	—	27,115	525
Aurora Health Center - Waterford(6)	WI	3/18/2015	—	590	6,452	—	7,042	135
Aurora Health Center - Wautoma(6)	WI	3/18/2015	—	1,955	4,361	—	6,316	95
Aurora Sheyboyan Clinic - Kiel(6)	WI	3/18/2015	—	676	2,214	—	2,890	48
Arbor View Assisted Living and Memory Care - Burlington	WI	3/31/2015	—	367	7,815	—	8,182	226
Advanced Orthopedic Medical Center - Richmond(5)	VA	4/7/2015	—	1,523	19,229	—	20,752	383
Palm Valley Medical Plaza - Goodyear	AZ	4/7/2015	3,525	1,890	4,876	29	6,795	109
Physicians Plaza of Roane County - Harriman(5)	TN	4/27/2015	—	1,746	7,813	—	9,559	147
Adventist Health Lacey Medical Plaza - Hanford(5)	CA	4/29/2015	—	328	13,267	—	13,595	225

F-41

Healthcare Trust, Inc. and Subsidiaries

Real Estate and Accumulated Depreciation

Schedule III

December 31, 2015

				Initial Costs		Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015	Land	Building and Improvements	Building and Improvements	Gross Amount at December 31,2015(1)(2)	Accumulated Depreciation(3)(4)
Commercial Center - Peoria	AZ	5/15/2015	—	959	1,076	31	2,066	24
Medical Center I - Peoria	AZ	5/15/2015	—	807	1,077	231	2,115	36
Medical Center II - Peoria	AZ	5/15/2015	—	945	1,304	41	2,290	31
Medical Center III - Peoria	AZ	5/15/2015	—	673	1,597	48	2,318	32
Dental Arts Building - Peoria	AZ	5/15/2015	—	156	152	6	314	3
Redwood Radiology and Outpatient Center - Santa Rosa(5)	CA	6/17/2015	—	3,701	11,314	—	15,015	152
Morrow Medical Center - Morrow	GA	6/24/2015	—	1,155	5,618	6	6,779	77
Belmar Medical Building - Lakewood	CO	6/29/2015	—	819	4,273	—	5,092	58
Addington Place of Northville - Northville	MI	6/30/2015	—	440	14,975	6	15,421	241
Medical Center V - Peoria	AZ	7/10/2015	3,231	1,089	3,145	37	4,271	44
Legacy Medical Village - Plano(5)	TX	7/10/2015	—	3,755	31,021	—	34,776	417
Conroe Medical Arts and Surgery Center - Conroe(5)	TX	7/10/2015	—	1,965	12,032	—	13,997	175
Scripps Cedar Medical Center - Vista(5)	CA	8/6/2015	—	1,213	14,531	—	15,744	157
NuVista Institute for Healthy Living - Jupiter	FL	8/7/2015	—	10,000	—	—	10,000	—
Ocean Park of Brookings - Brookings	OR	9/1/2015	—	861	8,367	—	9,228	92
Ramsey Woods - Cudahy	WI	10/2/2015	—	930	4,990	—	5,920	44
East Coast Square North - Morehead City	NC	10/15/2015	—	899	4,761	—	5,660	32
East Coast Square West - Cedar Point	NC	10/15/2015	—	1,535	4,803	—	6,338	33
Eastside Cancer Institute - Greenville	SC	10/22/2015	—	1,498	6,637	—	8,135	30
Sassafras Medical Building - Erie	PA	10/22/2015	—	928	4,538	—	5,466	20
Sky Lakes Klamath Medical Clinic - Klamath Falls	OR	10/22/2015	—	433	2,604	—	3,037	12
Courtyard Fountains - Gresham	OR	12/1/2015	24,999	2,476	50,534	—	53,010	130
Presence Healing Arts Pavilion - New Lenox	IL	12/4/2015	—	—	6,761	—	6,761	15
Mainland Medical Arts Pavilion - Texas City	TX	12/4/2015	—	320	7,823	—	8,143	18
Renaissance on Peachtree - Atlanta	GA	12/15/2015	—	4,535	68,605	9	73,149	171
Fox Ridge Senior Living at Bryant - Bryant	AR	12/29/2015	7,825	1,687	12,862	—	14,549	—
Fox Ridge Senior Living at Chenal - Little Rock	AR	12/29/2015	17,801	6,896	20,484	—	27,380	—
Fox Ridge Senior Living at Parkstone - North Little Rock	AR	12/29/2015	11,045	—	19,190	—	19,190	—

F-42

Healthcare Trust, Inc. and Subsidiaries

Real Estate and Accumulated Depreciation

Schedule III

December 31, 2015

					Initial Costs				Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015		Land		Building and Improvements		Building and Improvements		Gross Amount at December 31,2015(1)(2)		Accumulated Depreciation(3)(4)
Autumn Leaves of Clear Lake - Houston	TX	12/31/2015	—		1,599		13,194		—		14,793		—
Autumn Leaves of Cy-Fair - Houston	TX	12/31/2015	—		1,225		11,335		—		12,560		—
Autumn Leaves of Meyerland- Houston	TX	12/31/2015	—		2,033		13,410		—		15,443		—
Autumn Leaves of the Woodlands - The Woodlands	TX	12/31/2015	—		2,413		9,140		—		11,553		—
Encumbrances allocated based on note below (6)			31,257
Total			$	159,455	$	192,790	$	1,880,904	$	4,809	$	2,078,503	$	60,575

___________________________________

(1) Acquired intangible lease assets allocated to individual properties in the amount of $241.5 million are not reflected in the table above.

(2) The tax basis of aggregate land, buildings and improvements as of December 31, 2015 is $2.2 billion (unaudited).

(3) The accumulated depreciation column excludes $86.1 million of amortization associated with acquired intangible lease assets.

(4) Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements and five years for fixtures.

(5) These unencumbered properties collateralize a Credit Facility of up to $565.0 million, which had $430.0 million of outstanding borrowings as of December 31, 2015.

(6) These properties cross collateralize a mortgage note payable of $31.3 million as of December 31, 2015.

A summary of activity for real estate and accumulated depreciation for the years ended December 31, 2015, 2014 and 2013:

	December 31,
(In thousands)	2015		2014		2013
Real estate investments, at cost:
Balance at beginning of year	$	1,475,848	$	39,778	$	—
Additions-Acquisitions	602,655		1,436,070		39,778
Disposals	—		—		—
Balance at end of the year	$	2,078,503	$	1,475,848	$	39,778
Accumulated depreciation and amortization:
Balance at beginning of year	$	11,791	$	814	$	—
Depreciation expense	48,784		10,977		814
Disposals	—		—		—
Balance at end of the year	$	60,575	$	11,791	$	814

See accompanying report of independent registered public accounting firm.

F-43

EX-3.1

Exhibit 3.1

ARTICLES OF
AMENDMENT AND RESTATEMENT
FOR
HEALTHCARE TRUST, INC.
a Maryland Corporation

HEALTHCARE TRUST, INC.ARTICLES OF AMENDMENT AND RESTATEMENT

FIRST:  Healthcare Trust, Inc., a Maryland corporation (the “Company”), desires to amend and restate its charter as currently in effect and as hereinafter amended.

SECOND:  The following provisions are all the provisions of the charter currently in effect and as hereinafter amended:

ARTICLE I.
NAME

The name of the Company is Healthcare Trust, Inc.

ARTICLE II.
PURPOSES AND POWERS

The purposes for which the Company is formed are to engage in any lawful act or activity (including, without limitation or obligation, qualifying and engaging in business as a real estate investment trust under Sections 856 through 860, or any successor sections, of the Internal Revenue Code of 1986, as amended (the “Code”)), for which corporations may be organized under the MGCL and the general laws of the State of Maryland as now or hereafter in force.

ARTICLE III.
RESIDENT AGENT AND PRINCIPAL OFFICE

The name and address of the resident agent for service of process of the Company in the State of Maryland are The Corporation Trust Incorporated, 351 West Camden Street, Baltimore, Maryland 21202. The address of the Company’s principal office in the State of Maryland is c/o The Corporation Trust Incorporated, 351 West Camden Street, Baltimore, Maryland 21202. The Company may have such other offices and places of business within or outside the State of Maryland as the Board may from time to time determine.

ARTICLE IV.
DEFINITIONS

As used in the Charter, the following terms shall have the following meanings unless the context otherwise requires:

“BOARD” means the Board of Directors of the Company.

“BYLAWS” means the Bylaws of the Company, as amended from time to time.

“CHARTER” means the charter of the Company, as amended from time to time.

“CODE” shall have the meaning as provided in Article II herein.

1

“COMMON SHARES” shall have the meaning as provided in Section 5.1 herein.

“COMPANY” shall have the meaning as provided in Article I herein.

“DIRECTOR” means a member of the Board of Directors of the Company that manages the Company.

“DISTRIBUTIONS” means any distributions (as such term is defined in Section 2-301 of the MGCL) pursuant to Section 5.2(iii) hereof, by the Company to owners of Shares, including distributions that may constitute a return of capital for federal income tax purposes.

“MGCL” means the Maryland General Corporation Law, as in effect from time to time.

“PERSON” means an individual, corporation, partnership, estate, trust (including a trust qualified under Sections 401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other legal entity and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, and a group to which an Excepted Holder Limit (as defined in Section 5.9(i) hereof) applies.

“PREFERRED SHARES” shall have the meaning as provided in Section 5.1 herein.

“REIT” means a corporation, trust, association or other legal entity (other than a real estate syndication) that is engaged primarily in investing in equity interests in Real Estate (including fee ownership and leasehold interests) or in loans secured by Real Estate or both, as defined pursuant to the REIT Provisions of the Code.

“REIT PROVISIONS OF THE CODE” means Sections 856 through 860 of the Code and any successor or other provisions of the Code relating to real estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the regulations promulgated thereunder.

“SECURITIES” means any of the following issued by the Company, as the context requires: Shares, any other stock, shares or other evidences of equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in, temporary or interim certificates for, receipts for, guarantees of, or warrants, options or rights to subscribe to, purchase or acquire, any of the foregoing.

“SHARES” means shares of stock of the Company of any class or series, including Common Shares or Preferred Shares.

“STOCKHOLDERS” means the holders of record of the Shares as maintained in the books and records of the Company or its transfer agent.

ARTICLE V.
STOCK

SECTION 5.1 AUTHORIZED SHARES.  The total number of Shares that the Company shall have authority to issue is 350,000,000 Shares, of which (i) 300,000,000 shall be designated as common stock, $0.01 par value per share (the “Common Shares”); and (ii) 50,000,000 shall be designated as preferred stock, $0.01 par value per share (the “Preferred Shares”). The aggregate par value of all authorized Shares having par value is $3,500,000. If Shares of one class are classified or reclassified into Shares of another class pursuant to Section 5.2(ii) or Section 5.3 of this Article V, the number of authorized Shares of the former class shall be automatically decreased and the number of authorized Shares of the latter class shall be automatically increased, in each case by the number of Shares so classified or reclassified, as the case may be, so that the aggregate number of Shares

2

of all classes that the Company has authority to issue shall not be more than the total number of Shares set forth in the first sentence of this Section 5.1. The Board, with the approval of a majority of the entire Board and without any action by the Stockholders, may amend the Charter from time to time to increase or decrease the aggregate number of Shares or the number of any class or series that the Company has authority to issue.

SECTION 5.2 COMMON SHARES.

(i) COMMON SHARES SUBJECT TO TERMS OF PREFERRED SHARES.  The Common Shares shall be subject to the express terms of any series of Preferred Shares.

(ii) DESCRIPTION.  Subject to Section 5.7 hereof and except as may otherwise be specified in the Charter, each Common Share shall entitle the holder thereof to one vote. The Board may classify or reclassify any unissued Common Shares from time to time into one or more classes or series of Shares.

(iii) DISTRIBUTION RIGHTS.  The Board from time to time may authorize the Company to declare and pay to Stockholders such dividends or other Distributions in cash or other assets of the Company or in Securities, including Shares of one class payable to holders of Shares of another class, or from any other source as the Board in its discretion shall determine. The Board shall endeavor to authorize the Company to declare and pay such dividends and other Distributions as shall be necessary for the Company to qualify as a REIT under the REIT Provisions of the Code unless the Board has determined, in its sole discretion, that qualification as a REIT is not in the best interests of the Company; provided, however, Stockholders shall have no right to any dividend or other Distribution unless and until authorized by the Board and declared by the Company. The exercise of the powers and rights of the Board pursuant to this section shall be subject to the provisions of any class or series of Shares at the time outstanding. The receipt by any Person in whose name any Shares are registered on the records of the Company or by his or her duly authorized agent shall be a sufficient discharge for all dividends or other Distributions payable or deliverable in respect of such Shares and from all liability to see to the application thereof.

(iv) RIGHTS UPON LIQUIDATION.  In the event of any voluntary or involuntary liquidation, dissolution or winding up, or any distribution of the assets of the Company, the aggregate assets available for distribution to holders of the Common Shares shall be determined in accordance with applicable law. Each holder of Common Shares of a particular class shall be entitled to receive, ratably with each other holder of Common Shares of such class, that portion of such aggregate assets available for distribution as the number of outstanding Common Shares of such class held by such holder bears to the total number of outstanding Common Shares of such class then outstanding.

(v) VOTING RIGHTS.  Except as may be provided otherwise in the Charter, and subject to the express terms of any class or series of Preferred Shares, the holders of the Common Shares shall have the exclusive right to vote on all matters (as to which a common Stockholder shall be entitled to vote pursuant to applicable law) at all meetings of the Stockholders.

SECTION 5.3 PREFERRED SHARES.  The Board may classify any unissued Preferred Shares and reclassify any previously classified but unissued Preferred Shares of any series from time to time, into one or more classes or series of Shares.

SECTION 5.4 CLASSIFIED OR RECLASSIFIED SHARES.  Prior to issuance of classified or reclassified Shares of any class or series, the Board by resolution shall: (i) designate that class or series to distinguish it from all other classes and series of Shares; (ii) specify the number of Shares to be included in the class or series; (iii) set or change, subject to the provisions of Section 5.7 and subject to the express terms of any class or series of shares outstanding at the time, the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other Distributions, qualifications and terms and conditions of redemption for each class or series; and (iv) cause the Company to file articles supplementary with the State Department of Assessments and Taxation of Maryland. Any of the terms of any class or series of Shares set or changed pursuant to clause (iii) of this Section 5.4 may be made dependent upon facts or events ascertainable outside the Charter (including

3

determinations by the Board or other facts or events within the control of the Company) and may vary among holders thereof, provided that the manner in which such facts, events or variations shall operate upon the terms of such class or series of Shares is clearly and expressly set forth in the articles supplementary or other Charter document.

SECTION 5.5 STOCKHOLDERS’ CONSENT IN LIEU OF MEETING.  Any action required or permitted to be taken at any meeting of the Stockholders may be taken without a meeting by consent, in writing or by electronic transmission, in any manner and by the vote permitted by the MGCL and set forth in the Bylaws.

SECTION 5.6 CHARTER AND BYLAWS.  The rights of all Stockholders and the terms of all Shares are subject to the provisions of the Charter and the Bylaws. The Board shall have the exclusive power to adopt, alter or repeal any provision of the Bylaws and to make new Bylaws.

SECTION 5.7 RESTRICTIONS ON OWNERSHIP AND TRANSFER.

(i) DEFINITIONS.  For purposes of this Section 5.7, the following terms shall have the following meanings:

“AGGREGATE SHARE OWNERSHIP LIMIT” means 9.8% in value of the aggregate of the outstanding shares of Capital Stock and 9.8% (in value or in number of shares, whichever is more restrictive) of any class or series of shares of Capital Stock, or such other percentage determined by the Board in accordance with Section 5.7(ii)(h) hereof.

“BENEFICIAL OWNERSHIP” means ownership of Capital Stock by a Person, whether the interest in the Capital Stock is held directly or indirectly (including by a nominee), and shall include interests that would be treated as owned through the application of Section 544 of the Code, as modified by Section 856(h)(1)(B) of the Code. The terms “Beneficial Owner,” “Beneficially Owns” and “Beneficially Owned” shall have the correlative meanings.

“BUSINESS DAY” means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions in New York City are authorized or required by law, regulation or executive order to close.

“CAPITAL STOCK” means all classes or series of stock of the Company, including, without limitation, Common Shares and Preferred Shares.

“CHARITABLE BENEFICIARY” means one or more beneficiaries of the Trust as determined pursuant to Section 5.7(iii)(f), provided that each such organization must be described in Section 501(c)(3) of the Code and contributions to each such organization must be eligible for deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code.

“CONSTRUCTIVE OWNERSHIP” means ownership of Capital Stock by a Person, whether the interest in the Capital Stock is held directly or indirectly (including by a nominee), and shall include interests that would be treated as owned through the application of Section 318(a) of the Code, as modified by Section 856(d)(5) of the Code. The terms “Constructive Owner,” “Constructively Owns,” “Constructively Owning” and “Constructively Owned” shall have the correlative meanings.

“EXCEPTED HOLDER” means a Stockholder for whom an Excepted Holder Limit is created by the Board pursuant to Section 5.7(ii)(g).

“EXCEPTED HOLDER LIMIT” means, provided that the affected Excepted Holder agrees to comply with the requirements established by the Board pursuant to Section 5.7(ii)(g), and subject to adjustment pursuant to Section 5.7(ii)(h), the percentage limit established by the Board pursuant to Section 5.7(ii)(g).

4

“MARKET PRICE” on any date means, with respect to any class or series of outstanding shares of Capital Stock, the Closing Price for such Capital Stock on such date. The “Closing Price” on any date shall mean the last sale price for such Capital Stock, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, for such Capital Stock, in either case as reported on the principal national securities exchange on which such Capital Stock is listed or admitted to trading or, if such Capital Stock is not listed or admitted to trading on any national securities exchange, the last quoted price or, if such Capital Stock is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in such Capital Stock selected by the Board or, in the event that no trading price is available for such Capital Stock, the fair market value of the Capital Stock, as determined by the Board.

“PROHIBITED OWNER” means, with respect to any purported Transfer, any Person who, but for the provisions of Section 5.7(ii)(a), would Beneficially Own or Constructively Own shares of Capital Stock in violation of Section 5.7(ii)(a), and if appropriate in the context, shall also mean any Person who would have been the record owner of the shares that the Prohibited Owner would have so owned.

“RESTRICTION TERMINATION DATE” means the first day on which the Board determines pursuant to Section 7.4 hereof that it is no longer in the best interests of the Company to attempt to, or continue to, qualify as a REIT or that compliance with the restrictions and limitations on Beneficial Ownership, Constructive Ownership and Transfers of Capital Stock set forth herein is no longer required in order for the Company to qualify as a REIT.

“TRANSFER” means any issuance, sale, transfer, gift, assignment, devise or other disposition, as well as any other event that causes any Person to acquire Beneficial Ownership or Constructive Ownership of Capital Stock or the right to vote or receive dividends on Capital Stock, or any agreement to take any such actions or cause any such events, including (a) the granting or exercise of any option (or any disposition of any option), (b) any disposition of any securities or rights convertible into or exchangeable for Capital Stock or any interest in Capital Stock or any exercise of any such conversion or exchange right and (c) Transfers of interests in other entities that result in changes in Beneficial Ownership or Constructive Ownership of Capital Stock; in each case, whether voluntary or involuntary, whether owned of record, Constructively Owned or Beneficially Owned and whether by operation of law or otherwise. The terms “Transferring” and “Transferred” shall have the correlative meanings.

“TRUST” means any trust provided for in Section 5.7(iii)(a).

“TRUSTEE” means the Person unaffiliated with the Company and a Prohibited Owner, that is appointed by the Company to serve as trustee of the Trust.

(ii) SHARES.

(a) OWNERSHIP LIMITATIONS.  Prior to the Restriction Termination Date, but subject to Section 5.8:

(I) BASIC RESTRICTIONS.

(A) (1) Except as set forth in any articles supplementary creating any class or series of shares of Capital Stock, no Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own shares of Capital Stock in excess of the Aggregate Share Ownership Limit and (2) no Excepted Holder shall Beneficially Own or Constructively Own shares of Capital Stock in excess of the Excepted Holder Limit for such Excepted Holder.

(B) No Person shall Beneficially Own or Constructively Own shares of Capital Stock to the extent that such Beneficial or Constructive Ownership of Shares would result in the Company being “closely held” within the meaning of Section 856(h) of the Code (without regard to whether the ownership interest is held during the last half of a taxable year), or otherwise failing to qualify as

5

a REIT (including, but not limited to, Beneficial Ownership or Constructive Ownership that would result in the Company owning (actually or Constructively) an interest in a tenant that is described in Section 856(d)(2)(B) of the Code if the income derived by the Company from such tenant would cause the Company to fail to satisfy any of the gross income requirements of Section 856(c) of the Code).

(C) Any Transfer of shares of Capital Stock that, if effective, would result in the Capital Stock being beneficially owned by fewer than 100 Persons (as determined under the principles of Section 856(a)(5) of the Code) shall be void ab initio, and the intended transferee shall acquire no rights in such shares of Capital Stock.

(II) TRANSFER IN TRUST.  If any Transfer of shares of Capital Stock occurs which, if effective, would result in any Person Beneficially Owning or Constructively Owning shares of Capital Stock in violation of Section 5.7(ii)(a)(I)(A) or (B),

(A) then that number of shares of Capital Stock the Beneficial Ownership or Constructive Ownership of which otherwise would cause such Person to violate Section 5.7(ii)(a)(I)(A) or (B) (rounded up to the nearest whole share) shall be automatically transferred to a Trust for the benefit of a Charitable Beneficiary, as described in Section 5.7(iii), effective as of the close of business on the Business Day prior to the date of such Transfer, and such Person shall acquire no rights in such shares; or

(B) if the transfer to the Trust described in clause (A) of this sentence would not be effective for any reason to prevent the violation of Section 5.7(ii)(a)(I)(A) or (B) then the Transfer of that number of shares of Capital Stock that otherwise would cause any Person to violate Section 5.7(ii)(a)(I)(A) or (B) shall be void ab initio, and the intended transferee shall acquire no rights in such shares.

(III) To the extent that, upon a transfer of shares of Capital Stock pursuant to Section 5.7(ii)(a)(II), a violation of any provision of this Section 5.7 would nonetheless be continuing (for example, where the ownership of shares of Capital Stock by a single Trust would violate the 100 stockholder requirement applicable to REITs), then shares of Capital Stock shall be transferred to the number of Trusts, each having a distinct Trustee and one or more Charitable Beneficiaries that are distinct from those of each other Trust, such that there is not violation of any provisions of this Section 5.7.

(b) REMEDIES FOR BREACH.  If the Board shall at any time determine that a Transfer or other event has taken place that results in a violation of Section 5.7(ii)(a) or that a Person intends to acquire or has attempted to acquire Beneficial Ownership or Constructive Ownership of any shares of Capital Stock in violation of Section 5.7(ii)(a) (whether or not such violation is intended), the Board shall take such action as it deems advisable to refuse to give effect to or to prevent such Transfer or other event, including, without limitation, causing the Company to redeem shares, refusing to give effect to such Transfer on the books of the Company or instituting proceedings to enjoin such Transfer or other event; provided, however, that any Transfer or attempted Transfer or other event in violation of Section 5.7(ii)(a) shall automatically result in the transfer to the Trust described above, and, where applicable, such Transfer (or other event) shall be void ab initio as provided above irrespective of any action (or non-action) by the Board.

(c) NOTICE OF RESTRICTED TRANSFER.  Any Person who acquires or attempts or intends to acquire Beneficial Ownership or Constructive Ownership of shares of Capital Stock that will or may violate Section 5.7(ii)(a)(I)(A) or (B) or any Person who would have owned shares of Capital Stock that resulted in a transfer to the Trust pursuant to the provisions of Section 5.7(ii)(a)(II), in either case, shall immediately give written notice to the Company of such event, or in the case of such a proposed or attempted transaction, give at least 15 days prior written notice to the Company, and shall provide to the

6

Company such other information as the Company may request in order to determine the effect, if any, of such Transfer on the Company’s status as a REIT.

(d) OWNERS REQUIRED TO PROVIDE INFORMATION.  Prior to the Restriction Termination Date:

(I) every owner of more than five percent (or such lower percentage as required by the Code or the Treasury Regulations promulgated thereunder) of the outstanding shares of Capital Stock, within 30 days after the end of each taxable year, shall give written notice to the Company stating the name and address of such owner, the number of shares of Capital Stock Beneficially Owned and a description of the manner in which such shares are held. Each such owner shall provide to the Company such additional information as the Company may request in order to determine the effect, if any, of such Beneficial Ownership on the Company’s status as a REIT and to ensure compliance with the Aggregate Share Ownership Limit; and

(II) each Person who is a Beneficial Owner or Constructive Owner of Capital Stock and each Person (including the stockholder of record) who is holding Capital Stock for a Beneficial Owner or a Constructive Owner shall provide to the Company such information as the Company may request in order to determine the Company’s status as a REIT and to comply with requirements of any taxing authority or governmental authority or to determine such compliance.

(e) REMEDIES NOT LIMITED.  Subject to Section 7.4 hereof, nothing contained in this Section 5.7(ii)(e) shall limit the authority of the Board to take such other action as it deems necessary or advisable to protect the Company and the interests of the Stockholders in preserving the Company’s status as a REIT.

(f) AMBIGUITY.  In the case of an ambiguity in the application of any of the provisions of this Section 5.7(ii), Section 5.7(iii), or any definition contained in Section 5.7(i), the Board shall have the power to determine the application of the provisions of this Section 5.7(ii) or Section 5.7(iii) or any such definition with respect to any situation based on the facts known to it. In the event Section 5.7(ii) or (iii) requires an action by the Board and the Charter fails to provide specific guidance with respect to such action, the Board shall have the power to determine the action to be taken so long as such action is not contrary to the provisions of Section 5.7. Absent a decision to the contrary by the Board (which the Board may make in its sole and absolute discretion), if a Person would have (but for the remedies set forth in Section 5.7(ii)(b)) acquired Beneficial Ownership or Constructive Ownership of shares of Capital Stock in violation of Section 5.7(ii)(a), such remedies (as applicable) shall apply first to the shares of Capital Stock which, but for such remedies, would have been Beneficially Owned or Constructively Owned (but not actually owned) by such Person, pro rata among the Persons who actually own such shares of Capital Stock based upon the relative number of the shares held by each such Person.

(g) EXCEPTIONS.

(I) Subject to Section 5.7(ii)(a)(I)(B), the Board, in its sole discretion, may (prospectively or retroactively) exempt a Person from the Aggregate Share Ownership Limit and may establish or increase an Excepted Holder Limit for such Person if:

(A) the Board obtains such representations and undertakings from such Person as are reasonably necessary to ascertain that no individual’s Beneficial Ownership or Constructive Ownership of such shares of Capital Stock will violate Section 5.7(ii)(a)(I)(B); such Person does not and represents that it will not, actually own or Constructively Own an interest in a tenant of the Company (or a tenant of any entity owned or controlled by the Company) that would cause the Company to actually own or Constructively Own more than a 9.9% interest (as set forth in Section 856(d)(2)(B) of the Code) in such tenant and the Board obtains such representations and undertakings from such Person as are reasonably necessary to ascertain this fact (for this purpose, a tenant from whom the Company (or an entity owned or controlled by the Company) derives (and is expected to continue to derive) a sufficiently small amount of revenue such that, in the

7

opinion of the Board, rent from such tenant would not adversely affect the Company’s ability to qualify as a REIT, shall not be treated as a tenant of the Company); and

(B) such Person agrees that any violation or attempted violation of such representations or undertakings (or other action which is contrary to the restrictions contained in Section 5.7(ii)(a) through Section 5.7(ii)(f)) will result in such shares of Capital Stock being automatically Transferred to a Trust in accordance with Section 5.7(ii)(A)(II) and Section 5.7(iii).

(II) Prior to granting any exception pursuant to Section 5.7(ii)(g)(I), the Board may require a ruling from the Internal Revenue Service, or an opinion of counsel, in either case in form and substance satisfactory to the Board in its sole discretion, as it may deem necessary or advisable in order to determine or ensure the Company’s status as a REIT. Notwithstanding the receipt of any ruling or opinion, the Board may impose such conditions or restrictions as it deems appropriate in connection with granting such exception.

(III) Subject to Section 5.7(ii)(a)(I)(B), an underwriter which participates in an Offering or a private placement of shares of Capital Stock (or Securities convertible into or exchangeable for shares of Capital Stock) may Beneficially Own or Constructively Own shares of Capital Stock (or Securities convertible into or exchangeable for shares of Capital Stock) in excess of the Aggregate Share Ownership Limit but only to the extent necessary to facilitate such Offering or private placement.

(IV) The Board may only reduce the Excepted Holder Limit for an Excepted Holder: (1) with the written consent of such Excepted Holder at any time, or (2) pursuant to the terms and conditions of the agreements and undertakings entered into with such Excepted Holder in connection with the establishment of the Excepted Holder Limit for that Excepted Holder. No Excepted Holder Limit shall be reduced to a percentage that is less than the Aggregate Share Ownership Limit.

(h) INCREASE OR DECREASE IN AGGREGATE SHARE OWNERSHIP LIMIT.  Subject to Section 5.7(ii)(a)(I)(B), the Board may from time to time increase the Aggregate Share Ownership Limit for one or more Persons and decrease the Aggregate Share Ownership Limit for all other Persons; provided, however, that the decreased Aggregate Share Ownership Limit will not be effective for any Person whose percentage ownership of Capital Stock is in excess of such decreased Aggregate Share Ownership Limit until such time as such Person’s percentage of Capital Stock equals or falls below the decreased Aggregate Share Ownership Limit, but any further acquisition of Capital Stock in excess of such percentage ownership of Capital Stock will be in violation of the Aggregate Share Ownership Limit and, provided further, that the new Aggregate Share Ownership Limit would not allow five or fewer Persons to Beneficially Own or Constructively Own more than 49.9% in value of the outstanding shares of Capital Stock.

(i) NOTICE TO STOCKHOLDERS UPON ISSUANCE OR TRANSFER.  Upon issuance or Transfer of shares of Capital Stock prior to the Restriction Termination Date, the Company shall provide the recipient with a notice containing information about the shares of Capital Stock purchased or otherwise Transferred, in lieu of issuance of a share certificate, in a form substantially similar to the following:

The securities of Healthcare Trust, Inc.  (the “Company”) are subject to restrictions on Beneficial Ownership and Constructive Ownership and Transfer for the purpose, among others, of the Company’s maintenance of its status as a real estate investment trust under the Internal Revenue Code of 1986, as amended (the “Code”). Subject to certain further restrictions and except as expressly provided in the Charter, (i) no Person may Beneficially Own or Constructively Own shares of Capital Stock in excess of 9.8% in value of the aggregate of the outstanding shares of Capital Stock or 9.8% (in value or in number of shares of Capital Stock, whichever is more restrictive) of any class or series of shares of Capital Stock unless such Person is an Excepted Holder (in which case the Excepted Holder Limit shall be applicable); (ii) no Person may Beneficially Own or Constructively Own shares of Capital Stock that would result in the Company being “closely held” under Section 856(h) of the Code or otherwise cause the Company to fail to qualify as a REIT; and (iii) any Transfer of shares

8

of Capital Stock that, if effective, would result in the Capital Stock being beneficially owned by fewer than 100 Persons (as determined under the principles of Section 856(a)(5) of the Code) shall be void ab initio and the intended transferee shall acquire no rights in such shares. Any Person who Beneficially Owns or Constructively Owns or attempts to Beneficially Own or Constructively Own shares of Capital Stock which causes or will cause a Person to Beneficially Own or Constructively Own shares of Capital Stock in excess or in violation of the above limitations must immediately give written notice (or, in the case of an attempted transaction, give at least 15 days prior written notice) to the Company. If any of the restrictions on Transfer or ownership as set forth in (i) and (ii) above are violated, the shares of Capital Stock in excess or in violation of the above limitations will be automatically transferred to a Trustee of a Trust for the benefit of one or more Charitable Beneficiaries. In addition, the Company may redeem shares of Capital Stock upon the terms and conditions specified by the Board in its sole discretion if the Board determines that ownership or a Transfer or other event may violate the restrictions described in (i) and (ii) above. Furthermore, upon the occurrence of certain events, attempted Transfers in violation of the restrictions described above may be void ab initio. All capitalized terms in this notice have the meanings defined in the Charter, as the same may be amended from time to time, a copy of which, including the restrictions on Transfer and ownership, will be furnished to each holder of Capital Stock on request and without charge. Requests for such a copy may be directed to the Secretary of the Company at its principal office.

(iii) TRANSFER OF SHARES IN TRUST.

(a) OWNERSHIP IN TRUST.  Upon any purported Transfer or other event described in Section 5.7(ii)(a)(II) that would result in a transfer of shares of Capital Stock to a Trust, such shares shall be transferred to the Trustee as trustee of a Trust for the exclusive benefit of one or more Charitable Beneficiaries. Such transfer to the Trustee shall be effective as of the close of business on the Business Day prior to the purported Transfer or other event that results in the transfer to the Trust pursuant to Section 5.7(ii)(a)(II). The Trustee shall be appointed by the Company and shall be a Person unaffiliated with the Company and any Prohibited Owner. Each Charitable Beneficiary shall be designated by the Company as provided in Section 5.7(iii)(f).

(b) STATUS OF SHARES HELD BY THE TRUSTEE.  Shares of Capital Stock held by the Trustee shall be issued and outstanding shares of Capital Stock. The Prohibited Owner shall have no rights in the shares held by the Trustee. The Prohibited Owner shall not benefit economically from ownership of any shares held in trust by the Trustee, shall have no rights to dividends or other Distributions and shall not possess any rights to vote or other rights attributable to the shares held in the Trust.

(c) DIVIDEND AND VOTING RIGHTS.  The Trustee shall have all voting rights and rights to dividends or other Distributions with respect to shares of Capital Stock held in the Trust, which rights shall be exercised for the exclusive benefit of the Charitable Beneficiary. Any dividend or other Distribution paid prior to the discovery by the Company that the shares have been transferred to the Trustee shall be paid by the recipient of such dividend or other Distribution to the Trustee upon demand and any dividend or other Distribution authorized but unpaid shall be paid when due to the Trustee. Any dividend or other Distribution so paid to the Trustee shall be held in trust for the Charitable Beneficiary. The Prohibited Owner shall have no voting rights with respect to shares held in the Trust and, subject to Maryland law, effective as of the date that the shares have been transferred to the Trustee, the Trustee shall have the authority (at the Trustee’s sole discretion) (i) to rescind as void any vote cast by a Prohibited Owner prior to the discovery by the Company that the shares have been transferred to the Trustee and (ii) to recast such vote in accordance with the desires of the Trustee acting for the benefit of the Charitable Beneficiary; provided, however, that if the Company has already taken irreversible corporate action, then the Trustee shall not have the authority to rescind and recast such vote. Notwithstanding the provisions of this Section 5.7, until the Company has received notification that shares have been transferred into a Trust, the Company shall be entitled to rely on its stock transfer and other stockholder records for purposes of preparing lists of Stockholders entitled to vote at meetings, determining the validity and authority of proxies and otherwise conducting votes of Stockholders.

9

(d) SALE OF SHARES BY TRUSTEE.  Within 20 days of receiving notice from the Company that shares of Capital Stock have been transferred to the Trust, the Trustee shall sell the shares held in the Trust to a person, designated by the Trustee, whose ownership of the shares will not violate the ownership limitations set forth in Section 5.7(ii)(a)(I) or (II). Upon such sale, the interest of the Charitable Beneficiary in the shares sold shall terminate and the Trustee shall distribute the net proceeds of the sale to the Prohibited Owner and to the Charitable Beneficiary as provided in this Section 5.7(iii)(d). The Prohibited Owner shall receive the lesser of (1) the price paid by the Prohibited Owner for the shares or, if the Prohibited Owner did not give value for the shares in connection with the event causing the shares to be held in the Trust (e.g., in the case of a gift, devise or other such transaction), the Market Price of the shares on the day of the event causing the shares to be held in the Trust and (2) the price per share received by the Trustee from the sale or other disposition of the shares held in the Trust. The Trustee may reduce the amount payable to the Prohibited Owner by the amount of dividends and other Distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Trustee pursuant to Section 5.7(iii)(c). Any net sales proceeds in excess of the amount payable to the Prohibited Owner shall be immediately paid to the Charitable Beneficiary. If, prior to the discovery by the Company that shares of Capital Stock have been transferred to the Trustee, such shares are sold by a Prohibited Owner, then (i) such shares shall be deemed to have been sold on behalf of the Trust and (ii) to the extent that the Prohibited Owner received an amount for such shares that exceeds the amount that such Prohibited Owner was entitled to receive pursuant to this Section 5.7, such excess shall be paid to the Trustee upon demand.

(e) PURCHASE RIGHT IN STOCK TRANSFERRED TO THE TRUSTEE.  Shares of Capital Stock transferred to the Trustee shall be deemed to have been offered for sale to the Company, or its designee, at a price per share equal to the lesser of (i) the price per share in the transaction that resulted in such transfer to the Trust (or, in the case of a devise or gift, the Market Price at the time of such devise or gift) and (ii) the Market Price on the date the Company, or its designee, accepts such offer. The Company may reduce the amount payable to the Prohibited Owner by the amount of dividends and other Distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Trustee pursuant to Section 5.7(iii)(c). The Company may pay the amount of such reduction to the Trustee for the benefit of the Charitable Beneficiary. The Company shall have the right to accept such offer until the Trustee has sold the shares held in the Trust pursuant to Section 5.7(iii)(d). Upon such a sale to the Company, the interest of the Charitable Beneficiary in the shares sold shall terminate and the Trustee shall distribute the net proceeds of the sale to the Prohibited Owner.

(f) DESIGNATION OF CHARITABLE BENEFICIARIES.  By written notice to the Trustee, the Company shall designate one or more nonprofit organizations to be the Charitable Beneficiary of the interest in the Trust such that (i) the shares of Capital Stock held in the Trust would not violate the restrictions set forth in Section 5.7(ii)(a)(I) or (II) in the hands of such Charitable Beneficiary and (ii) each such organization must be described in Section 501(c)(3) of the Code and contributions to each such organization must be eligible for deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code.

SECTION 5.8 SETTLEMENTS.  Nothing in Section 5.7 shall preclude the settlement of any transaction entered into through the facilities of any national securities exchange or automated inter-dealer quotation system. The fact that the settlement of any transaction occurs shall not negate the effect of any provision of Sections 5.7, and any transfer in such a transaction shall be subject to all of the provisions and limitations set forth in Section 5.7.

SECTION 5.9 SEVERABILITY.  If any provision of Section 5.7 or any application of any such provision is determined to be void, invalid or unenforceable by any court having jurisdiction over the issue, the validity and enforceability of the remaining provisions of Section 5.7 shall not be affected and other applications of such provision shall be affected only to the extent necessary to comply with the determination of such court.

10

SECTION 5.10 ENFORCEMENT.  The Company is authorized specifically to seek equitable relief, including injunctive relief, to enforce the provisions of Section 5.7.

SECTION 5.11 NON-WAIVER.  No delay or failure on the part of the Company or the Board in exercising any right hereunder shall operate as a waiver of any right of the Company or the Board, as the case may be, except to the extent specifically waived in writing.

SECTION 5.12 PREEMPTIVE AND APPRAISAL RIGHTS.  Except as may be provided by the Board in setting the terms of classified or reclassified Shares pursuant to Section 5.4 or as may otherwise be provided by contract approved by the Board, no holder of Shares shall, as such holder, have any preemptive right to purchase or subscribe for any additional Shares or any other Security of the Company which it may issue or sell. Holders of Shares shall not be entitled to exercise any rights of an objecting stockholder provided for under Title 3, Subtitle 2 of the MGCL or any successor statute unless the Board, upon the affirmative vote of a majority of the Board, shall determine that such rights apply, with respect to all or any classes or series of Shares, to one or more transactions occurring after the date of such determination in connection with which holders of such Shares would otherwise be entitled to exercise such rights.

ARTICLE VI.
BOARD OF DIRECTORS

SECTION 6.1 NUMBER OF DIRECTORS.  The number of Directors shall be six, which number may be increased or decreased from time to time pursuant to the Bylaws; but shall never be less than the minimum required by the MGCL. The Company elects, except as may be provided by the Board in setting the terms of any class or series of Preferred Shares, that any and all vacancies on the Board, other than those resulting from the unexpired term of another Director, may be filled only by the affirmative vote of a majority of the remaining Directors in office, even if the remaining Directors do not constitute a quorum, and any Director elected to fill a vacancy shall serve for the remainder of the full term of the directorship in which such vacancy occurred. No reduction in the number of Directors shall cause the removal of any Director from office prior to the expiration of his term. For the purposes of voting for Directors, each Share may be voted for as many individuals as there are Directors to be elected and for whose election the Share is entitled to be voted. Cumulative voting for Directors is prohibited.

The names of the Directors who shall serve on the Board until the next annual meeting of the Stockholders and until their successors are duly elected and qualify, are:

William M. Kahane
Randolph C. Read
Elizabeth K. Tuppeny
Dr. Robert J. Froehlich

Leslie D. Michelson

Edward G. Rendell

or such other Directors as appointed in accordance with the Charter.

SECTION 6.2 RESIGNATION, REMOVAL OR DEATH.  Any Director may resign by delivering notice to the Board, effective upon receipt by the Board of such notice or upon any future date specified in the notice. Subject to the rights of holders of one or more classes or series of Preferred Shares, any Director or the entire Board may be removed from office at any time, but only for cause, and then only by the affirmative vote of Stockholders entitled to cast at least two-thirds of the votes entitled to be cast generally in the election of Directors. For the purpose of this paragraph, “cause” shall mean, with respect to any particular Director, conviction of a felony or a final judgment of a court of competent jurisdiction holding that such director caused demonstrable, material harm to the Company through bad faith or active and deliberate dishonesty.

11

ARTICLE VII.
POWERS OF THE BOARD OF DIRECTORS

SECTION 7.1 GENERAL.  The business and affairs of the Company shall be managed under the direction of the Board. In accordance with the policies on investments and borrowing set forth in this Article VII and Article IX hereof, the Board shall monitor the administrative procedures, investment operations and performance of the Company and the Advisor to assure that such policies are carried out. The Board may take any action that, in its sole judgment and discretion, is necessary or desirable to conduct the business of the Company. The Charter shall be construed with a presumption in favor of the grant of power and authority to the Board. Any construction of the Charter or determination made by the Board concerning its powers and authority hereunder shall be conclusive. The enumeration and definition of particular powers of the Board included in this Article VII shall in no way be limited or restricted by reference to or inference from the terms of this or any other provision of the Charter or construed or deemed by inference or otherwise in any manner to exclude or limit the powers conferred upon the Board under the general laws of the State of Maryland as now or hereafter in force.

SECTION 7.2 AUTHORIZATION BY BOARD OF STOCK ISSUANCE.  The Board may authorize the issuance from time to time of Shares of any class or series, whether now or hereafter authorized, or securities or rights convertible into Shares of any class or series, whether now or hereafter authorized, for such consideration as the Board may deem advisable (including as compensation for the Independent Directors or without consideration in the case of a stock split or stock dividend), subject to such restrictions or limitations, if any, as may be set forth in the Charter or the Bylaws.

SECTION 7.3 FINANCINGS.  The Board shall have the power and authority to cause the Company to borrow or, in any other manner, raise money for the purposes and on the terms it determines, which terms may (i) include evidencing the same by issuance of Securities of the Company and (ii) have such provisions as the Board may determine (a) to reacquire such Securities; (b) to enter into other contracts or obligations on behalf of the Company; (c) to guarantee, indemnify or act as surety with respect to payment or performance of obligations of any Person; (d) to mortgage, pledge, assign, grant security interests in or otherwise encumber the Company’s assets to secure any such Securities of the Company, contracts or obligations (including guarantees, indemnifications and suretyships); and (e) to renew, modify, release, compromise, extend, consolidate or cancel, in whole or in part, any obligation to or of the Company or participate in any reorganization of obligors to the Company.

SECTION 7.4 REIT QUALIFICATION.  The Board shall use its reasonable best efforts to take such actions as are necessary or appropriate to preserve the status of the Company as a REIT; provided, however, if the Board determines that it is no longer in the best interests of the Company to continue to be qualified as a REIT, the Board may revoke or otherwise terminate the Company’s REIT election pursuant to Section 856(g) of the Code. The Board also may determine that compliance with any restriction or limitation on stock ownership and transfers set forth in Section 5.7 hereof is no longer required for REIT qualification.

SECTION 7.5 DETERMINATIONS BY BOARD.  The determination as to any of the following matters, made by or pursuant to the direction of the Board, shall be final and conclusive and shall be binding upon the Company and every Stockholder: the amount of the net income of the Company for any period and the amount of assets at any time legally available for the payment of dividends, redemption of Shares or the payment of other Distributions on Shares; the amount of paid-in surplus, net assets, other surplus, annual or other cash flow, funds from operations, adjusted or modified funds from operations (and any variation thereof), net profit, net assets in excess of capital, undivided profits or excess of profits over losses on sales of assets; the amount, purpose, time of creation, increase or decrease, alteration or cancellation of any reserves or charges and the propriety thereof (whether or not any obligation or liability for which such reserves or charges shall have been created shall have been paid or discharged); any interpretation or resolution of any ambiguity with respect to any provision of the Charter (including the terms, preferences, conversion or other rights, voting powers or rights, restrictions, limitations as to dividends or other Distributions, qualifications or terms or conditions of redemption of any class or series of Shares) or the Bylaws; the fair value, or any sale, bid or asked price to be applied in determining the fair value, of any asset owned or held by the Company or any Shares; the number of Shares of

12

any class of the Company; any matter relating to the acquisition, holding and disposition of any assets by the Company; any interpretation of the terms and conditions of one or more of the agreements with any Person; or any other matter relating to the business and affairs of the Company or required or permitted by applicable law, the Charter or Bylaws or otherwise to be determined by the Board; provided, however, that any determination by the Board as to any of the preceding matters shall not render invalid or improper any action taken or omitted prior to such determination and no Director shall be liable for making or failing to make such a determination.

ARTICLE VIII.
EXTRAORDINARY ACTIONS

Except as specifically provided in Section 6.2 hereof (relating to removal of Directors) and in the last sentence of Article X, notwithstanding any provision of law permitting or requiring any action to be taken or approved by the affirmative vote of the holders of Shares entitled to cast a greater number of votes, any such action shall be effective and valid if declared advisable by the Board and taken or approved by the affirmative vote of holders of Shares entitled to cast a majority of all the votes entitled to be cast on the matter.

ARTICLE IX.
LIABILITY OF STOCKHOLDERS, DIRECTORS AND OFFICERS

SECTION 9.1 LIMITATION OF STOCKHOLDER LIABILITY.  No Stockholder shall be liable for any debt, claim, demand, judgment or obligation of any kind of, against or with respect to the Company by reason of being a Stockholder, nor shall any Stockholder be subject to any personal liability whatsoever, in tort, contract or otherwise, to any Person in connection with the Company’s assets or the affairs of the Company by reason of being a Stockholder.

SECTION 9.2 LIMITATION OF DIRECTOR AND OFFICER LIABILITY; INDEMNIFICATION.

(a) To the maximum extent that Maryland law in effect from time to time permits limitation of the liability of directors and officers of a corporation, no present or former Director or officer of the Company shall be liable to the Company or the Stockholders for money damages. Neither the amendment nor repeal of this Section 9.2(a), nor the adoption or amendment of any other provision of the Charter or Bylaws inconsistent with this Section 9.2(a), shall apply to or affect in any respect the applicability of the preceding sentence with respect to any act or failure to act which occurred prior to such amendment, repeal or adoption.

(b) The Company shall have the power, to the maximum extent permitted by Maryland law in effect from time to time, to obligate itself to indemnify, and to pay or reimburse reasonable expenses in advance of final disposition of a proceeding to (i) any individual who is a present or former Director or officer of the Company or (ii) any individual who, while a Director or officer of the Company and at the request of the Company, serves or has served as a director, officer, partner, member, manager or trustee of another corporation, real estate investment trust, partnership, limited liability company, joint venture, trust or employee benefit plan or any other enterprise from and against any claim or liability to which such person may become subject or which such person may incur by reason of his or her service in that capacity. The Company shall have the power, with the approval of the Board, to provide such indemnification and advancement of expenses to a person who served a predecessor of the Company in any of the capacities described in (i) or (ii) above and to any employee or agent of the Company or a predecessor of the Company.

SECTION 9.3 EXPRESS EXCULPATORY CLAUSES IN INSTRUMENTS.  Neither the Stockholders nor the Directors, officers, employees or agents of the Company shall be liable under any written instrument creating an obligation of the Company by reason of their being Stockholders, Directors, officers, employees or agents of the Company, and all Persons shall look solely to the Company’s assets for the payment of any claim under or for the performance of that instrument. The omission of the foregoing exculpatory language from any instrument shall not affect the validity or enforceability of such instrument and shall not render any Stockholder, Director,

13

officer, employee or agent of the Company liable thereunder to any third party, nor shall the Directors or any officer, employee or agent of the Company be liable to anyone as a result of such omission.

ARTICLE X.
AMENDMENTS

The Company reserves the right from time to time to make any amendment to the Charter, now or hereafter authorized by law, including any amendment altering the terms or contract rights, as expressly set forth in the Charter, of any outstanding Shares. All rights and powers conferred by the Charter on Stockholders, Directors and officers are granted subject to this reservation. Except as otherwise provided in the next sentence and except for those amendments permitted to be made without Stockholder approval under Maryland law or by specific provision in the Charter, any amendment to the Charter shall be valid only if declared advisable by the Board and approved by the affirmative vote of Stockholders entitled to cast a majority of all the votes entitled to be cast on the matter. However, any amendment to the second sentence of Section 6.2 hereof or to this sentence of the Charter shall be valid only if declared advisable by the Board and approved by the affirmative vote of Stockholders entitled to cast at least two-thirds of all votes entitled to be cast on the matter.

THIRD:  The amendment and restatement of the charter as hereinabove set forth have been duly advised by the Board of Directors of the Company and approved by the stockholders of the Company as required by law.

FOURTH:  The current address of the principal office of the Company is as set forth in Article III of the foregoing amendment and restatement of the charter.

FIFTH:  The name and address of the Company’s current resident agent are as set forth in Article III of the foregoing amendment and restatement of the charter.

SIXTH:  The number of directors of the Company and the names of the directors currently in office are as set forth in Section 6.1 of Article VI of the foregoing amendment and restatement of the charter.

SEVENTH:  The undersigned acknowledges these Articles of Amendment and Restatement to be the corporate act of the Company and, as to all matters or facts required to be verified under oath, the undersigned acknowledges that, to the best of his or her knowledge, information and belief, these matters and facts are true in all material respects and that this statement is made under the penalties for perjury.

[SIGNATURES ON FOLLOWING PAGE]

14

IN WITNESS WHEREOF, Healthcare Trust, Inc. has caused these Articles of Amendment and Restatement to be signed in its name and on its behalf by its President, and attested by its Chief Financial Officer, Treasurer and Secretary, on this 18^th day of February, 2016.

ATTEST:	COMPANY
/s/ Katie P. Kurtz	/s/ W. Todd Jensen(SEAL)
Name: Katie P. Kurtz Title: Chief Financial Officer, Treasurer and Secretary	Name: W. Todd Jensen Title: President

15

EX-4.3

Exhibit 4.3

SECOND AMENDMENT

TO

AGREEMENT OF LIMITED PARTNERSHIP

OF

AMERICAN REALTY CAPITAL HEALTHCARE TRUST II OPERATING PARTNERSHIP, L.P.

This SECOND AMENDMENT TO AGREEMENT OF LIMITED PARTNERSHIP OF AMERICAN REALTY CAPITAL HEALTHCARE TRUST II OPERATING PARTNERSHIP, L.P. (this “Amendment”), is made as of April 15, 2015 by and among American Realty Capital Healthcare Trust II, Inc., a Maryland corporation, in its capacity as the general partner (the “General Partner”) of American Realty Capital Healthcare Trust II Operating Partnership, L.P., a Delaware limited partnership (the “Partnership”), and American Realty Capital Healthcare II Advisors, LLC, the initial limited partner of the partnership, a Delaware limited liability company (the “Initial Limited Partner”). Capitalized terms used but not otherwise defined in this Amendment shall have the meanings given to such terms in the Agreement of Limited Partnership of the Partnership, dated as of February 14, 2013, as amended (the “Partnership Agreement”).

RECITALS:

WHEREAS, pursuant to Section 14.1 of the Partnership Agreement, the parties hereto desire to amend the Partnership Agreement in order to clarify a prior amendment to the Partnership Agreement and to have this amendment apply for purposes of allocating income and losses of the Partnership for its 2014 tax year;

NOW THEREFORE, in consideration of the premises made hereunder, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

a. Subparagraph 1(c)(iv) of Exhibit B of the Partnership Agreement is hereby deleted in its entirety and the following new subparagraph 1(c)(iv) is substituted in its place:

“(ii)    Special Allocation of Depreciation. After giving effect to the allocations in subparagraph 1(c)(i) and paragraph 2, but prior to any allocation under subparagraph 1(a), 1(b), 1(c)(ii) or 1(c)(iii), the Initial Limited Partner shall be entitled to allocations of Depreciation until the cumulative amount of Depreciation allocated to the Initial Limited Partner pursuant to this subparagraph 1(c)(iv) for all years equals $10,000,000; provided, that (A) the Initial Limited Partner shall notify the Partnership in writing, within fifteen (15) days after the end of the year to which the allocation of Depreciation relates, of the amount of Depreciation the Initial Limited Partner elects to have allocated to it for such year, (B) the amount of Depreciation the Initial Limited Partner may elect to be allocated pursuant to this subparagraph 1(c)(iv) for any year shall not exceed $10,000,000 minus the amount of Depreciation specially allocated pursuant to this subparagraph 1(c)(iv) to the Initial Limited Partner for all prior years, and (C) if the amount of Depreciation the Partnership is able to allocate in a year is less than the amount the Initial Limited Partner has elected for such year, the Partnership shall notify the Initial Limited Partner as early as reasonably practicable but in no event later than five (5) days prior to the date it issues K-1’s for such year.”

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed this Agreement as of the date and year first aforesaid.

GENERAL PARTNER:

AMERICAN REALTY CAPITAL HEALTHCARE TRUST II, INC.

By:     /s/ Thomas P. D’Arcy

Name:    Thomas P. D’Arcy

Title: Chief Executive Officer, President and Secretary

INITIAL LIMITED PARTNER:

AMERICAN REALTY CAPITAL HEALTHCARE II ADVISORS, LLC

By: American Realty Capital Healthcare II Special Limited Partnership, LLC,

its Member

By:     American Realty Capital VII, LLC,

its Member

By:     AR Capital, LLC,

its Member

By:     /s/ William M. Kahane

Name:    William M. Kahane

Title:     Manager

EX-10.22

Exhibit 10.22

July 31, 2015

KeyBank National Association,

individually and as Agent

4910 Tiedeman Road, 3^rd Floor

Brooklyn, Ohio 44114

Attn: Amy L. MacLearie

KeyBank National Association,

individually and as Agent

127 Public Square, 8^th Floor

Cleveland, Ohio 44114

Attn: Wayne Horvath, SVP

Ladies and Gentlemen:

Pursuant to the provisions of Section 2.11 of the Senior Secured Revolving Credit Agreement dated as of March 21, 2014, as amended by that certain First Amendment to Senior Secured Revolving Credit Agreement dated as of September 18, 2014, and that certain Second Amendment to Senior Secured Revolving Credit Agreement and Other Loan Documents dated as of June 26, 2015, as from time to time in effect (as the same may be varied, extended, supplemented, consolidated, replaced, increased, renewed, modified or amended from time to time, the “Credit Agreement”), by and among American Realty Capital Healthcare Trust II Operating Partnership, L.P., a Delaware limited partnership (“Borrower”), KeyBank National Association (“KeyBank”), as Agent, and each of the financial institutions initially a signatory to the Credit Agreement together with their assignees pursuant to Section 18 of the Credit Agreement (collectively, the “Existing Lenders” and each individually a “Existing Lender”), the Borrower hereby requests an increase in the Total Commitment (as defined in the Credit Agreement) as further set forth below.

1.In connection with the request for such increase, the Borrower hereby certifies as follows:

(a)    Request for Increase. The Borrower hereby requests an increase of the Total Commitment from $500,000,000.00 to $565,000,000.00 pursuant to Section 2.11 of the Credit Agreement (the “Increase”).

(b)    Certifications. In connection with the Increase, the Borrower and each Guarantor certifies that:

(i)As of the date hereof and as of the effective date of the Increase, both immediately before and after giving effect to the Increase, there exists and shall exist no Default or Event of Default;

(ii)As of the date hereof, the representations and warranties made by the Borrower and the Guarantors in the Loan Documents or otherwise made by or on behalf of the Borrower or the Guarantors in connection therewith or after the date thereof were true and correct in all material respects when made, are true and correct in all material respects as of the date hereof, and shall be true and correct in all material respects as of the effective date of the Increase, both immediately before and after giving effect to the Increase, as though such representations and warranties were made on and as of that date except that if any representation and warranty is as of

a specific date, such representations and warranty shall be true and correct in all material respects as of such date; and

(iii)Borrower has paid all fees required by the Agreement Regarding Fees and §2.11(d)(i) of the Credit Agreement.

(c)    Commitments. Borrower hereby acknowledges and agrees that as of the effective date of the Increase and following satisfaction of all conditions thereto as provided in Section 2.11 of the Credit Agreement, the amount of each Lender’s Commitment shall be the amount set forth on Schedule 1.1 attached hereto and the Total Commitment under the Credit Agreement will include the Increase. In connection with the Increase, Synovus Bank (“Synovus”) and Comerica Bank (“Comerica”; Synovus and Comerica are hereinafter sometimes referred to individually as a “New Lender” and collectively as the “New Lenders”) shall each be issued a Revolving Credit Note as described in the following sentence. Synovus shall be issued a Revolving Credit Note in the principal face amount of $25,000,000.00 and Comerica shall be issued a Revolving Credit Note in the principal face amount of $40,000,000.00; and upon acceptance of such notes by the New Lenders, such notes will each be a “Note” under the Credit Agreement.

(d)    Other Conditions. All other conditions to the Increase set forth in Section 2.11 of the Credit Agreement have been satisfied.

2.    New Lender Agreements, Acknowledgements and Representations. By its signature below, each of the New Lenders, subject to the terms and conditions hereof, hereby agrees to perform all obligations with respect to its respective Commitment as if such New Lender were an original Lender under and signatory to the Credit Agreement having a Commitment, as set forth above, equal to its respective Commitment, which obligations shall include, but shall not be limited to, the obligation of such New Lender to make Revolving Credit Loans to the Borrower with respect to its Commitment as required under Section 2.1 of the Credit Agreement, the obligation to pay amounts due in respect of the Swing Loans as set forth in Section 2.5 of the Credit Agreement, the obligation to pay amounts due in respect of draws under Letters of Credit as required by Section 2.10 of the Credit Agreement, and in any case the obligation to indemnify the Agent as provided therein. Each of the New Lenders makes and confirms to the Agent and the other Lenders all of the representations, warranties and covenants of a Lender under Sections 14 and 18 of the Credit Agreement. Further, each New Lender acknowledges that it has, independently and without reliance upon the Agent, any Titled Agent, or any other Lender or on any affiliate or subsidiary of any thereof and based on the financial statements supplied by the Borrower and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to become a Lender under the Credit Agreement. Except as expressly provided in the Credit Agreement, the Agent shall have no duty or responsibility whatsoever, either initially or on a continuing basis, to provide any of the New Lenders with any credit or other information with respect to the Borrower, the Guarantors or any of their respective Subsidiaries, or the Collateral or any other assets of the Borrower, the Guarantors or any of their respective Subsidiaries, or to notify any of the New Lenders of any Default or Event of Default. The New Lenders have not relied on the Agent, any Titled Agent, any other Lender or any affiliate or subsidiary of any thereof as to any legal or factual matter in connection therewith or in connection with the transactions contemplated thereunder. Each of the New Lenders (i) represents and warrants as to itself that it is (1) legally authorized to, and has full power and authority to, enter into this agreement and perform its obligations hereunder and under the Credit Agreement and the other Loan Documents, and (2) an “accredited investor” (as such term is used in Regulation D of the Securities Act of 1933, as amended); (ii) confirms that it has received copies of such documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this agreement and become a party to the Credit Agreement; (iii) agrees that it has and will, independently and without reliance upon any Lender, the Agent, any Titled Agent or any affiliate or subsidiary of any thereof and based upon such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in evaluating the Revolving Credit Loans, the Loan Documents, the creditworthiness of the Borrower and the Guarantors and the value of the Collateral and other assets of the Borrower and the Guarantors, and taking or not taking action under the Loan Documents; (iv) appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers as are reasonably incidental

thereto pursuant to the terms of the Loan Documents; (v) agrees that, by this agreement, it has become a party to and will perform in accordance with their terms all the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender; and (vi) represents and warrants that such New Lender is not a Person controlling, controlled by or under common control with, or which is not otherwise free from influence or control by, any of the Borrower or any Guarantor and is not a Defaulting Lender or an Affiliate of a Defaulting Lender. Each of the New Lenders acknowledges and confirms that its address for notices and Lending Office for Revolving Credit Loans are as set forth on the signature pages hereto.

3.    Definitions. Terms defined in the Credit Agreement are used herein with the meanings so defined.

[Signatures Begin on the Following Page]

IN WITNESS WHEREOF, we have hereunto set our hands this31^stday of July, 2015.

BORROWER:

AMERICAN REALTY CAPITAL HEALTHCARE TRUST II OPERATING PARTNERSHIP, L.P., a Delaware limited partnership

By:AMERICAN REALTY CAPITAL HEALTHCARE TRUST II,INC., a Maryland corporation, its general partner

By: /s/ Thomas D’Arcy

Name: Thomas D’Arcy

Title: President, Secretary & CEO

REIT:

AMERICAN REALTY CAPITAL HEALTHCARE TRUST II, INC., a Maryland corporation

By: /s/ Thomas D’Arcy
Name: Thomas D’Arcy
Title: President, Secretary & CEO

[Signatures Continued on Next Page]

SUBSIDIARY GUARANTORS:

ARHC BMBWNIL01, LLC;
ARHC LPELKCA01, LLC;
ARHC SCCRLIA01, LLC;
ARHC SFFLDIA01, LLC;
ARHC SBBURIA01, LLC;
ARHC FOMBGPA01, LLC;
ARHC ARCLRMI01, LLC;
ARHC LSSMTMO01, LLC;
ARHC ALTSPFL01, LLC;
ARHC FMWEDAL01, LLC;
ARHC AHJACOH01, LLC;
ARHC OLOLNIL01, LLC;
ARHC LMHBGPA01, LLC;
ARHC PHCTNIA01, LLC;
ARHC BRHBGPA01, LLC;
ARHC HBTPAFL01, LLC;
ARHC ALJUPFL01, LLC;
ARHC ALSTUFL01, LLC;
ARHC SCTEMTX01, LLC;
ARHC GHGVLSC01, LLC;
ARHC TRS HOLDCO II, LLC;
ARHC SCCRLIA01 TRS, LLC;
ARHC SFFLDIA01 TRS, LLC;
ARHC SBBURIA01 TRS, LLC;
ARHC ARCLRMI01 TRS, LLC;
ARHC LSSMTMO01 TRS, LLC;
ARHC ALTSPFL01 TRS, LLC;
ARHC PHCTNIA01 TRS, LLC;
ARHC HBTPAFL01 TRS, LLC;
ARHC ALJUPFL01 TRS, LLC; and
ARHC ALSTUFL01 TRS, LLC, each a Delaware limited liability company

By: /s/ Jesse C. Glloway
Name: Jesse C. Galloway
Title: Authorized Signatory

[Signatures Continued on Next Page]

SYNOVUS:

SYNOVUS BANK, as a Lender

By: /s/ David W. Bowman

Name: David W. Bowman

Title: Director

(SEAL)

Lending Office (all Types of Loans):

Synovus Bank

3280 Peachtree Road, NE

Atlanta, Georgia 30305

Attention: Brenda Herman

Telecopy Number: (888) 856-2456

Telephone Number: (678) 784-7136

[Signatures Continued on Next Page]

COMERICA:

COMERICA BANK, as a Lender

By: /s/ Charles Weddell

Name: Charles Weddell

Title: Vice President

(SEAL)

Lending Office (all Types of Loans):

Comerica Bank

3351 Hamlin Road MC2390

Auburn Hills, Michigan 48326

Attention: Charles Weddell

Telecopy Number: 248-371-7920

Telephone Number: 248-371-6283

[Signatures Continued on Next Page]

ACKNOWLEDGED:

KEYBANK NATIONAL ASSOCIATION, as Agent

By: /s/ Wayne D. Horvath

Name: Wayne D. Horvath

Title: Senior Vice President

SCHEDULE 1.1

LENDERS AND COMMITMENTS

Name and Address	Commitment	Commitment Percentage
KeyBank National Association 127 Public Square Cleveland, Ohio 44114-1306 Attention: Wayne Horvath Telephone: 216-689-3808 Facsimile: 216-689-5970	$125,000,000.00	22.123893810%
LIBOR Lending Office Same as Above
BMO Harris Bank N.A. 100 High Street, 26th Floor Boston, Massachusetts 02110 Attention: Lloyd Baron Telephone: 617-960-2372 Facsimile:	$125,000,000.00	22.123893810%
LIBOR Lending Office Same as Above
Citizens Bank, National Association 1215 Superior Avenue Cleveland, Ohio 44114 Attention: Don Woods Telephone: 216-277-0199 Facsimile:	$125,000,000.00	22.123893810%
LIBOR Lending Office Same as Above
Capital One, National Association 4445 Willard Avenue, 6th Floor Chevy Chase, Maryland 20815 Attention: Danny Moore and Michael Mastronikolas Telephone: 301-280-2596;                     301-280-0244 Facsimile: 301-280-0299	$75,000,000.00	13.274336283
LIBOR Lending Office Same as Above
Regions Bank 1900 5th Avenue North Birmingham, Alabama 35203 Attention: David Blevins Telephone: 205-264-7504 Facsimile: 205-801-0343	$50,000,000.00	8.849557522
LIBOR Lending Office Same as Above
Comerica Bank 3351 Hamlin Road MC2390 Auburn Hills, Michigan 48326 Attention: Charles Weddell Telephone: 248-371-6283 Facsimile: 248-371-7920	$40,000,000.00	7.079646018
LIBOR Lending Office Same as Above

SCHEDULE 1.1 – Page 1 of 2

Name and Address	Commitment	Commitment Percentage
Synovus Bank 3280 Peachtree Road, NE Atlanta, Georgia 30305 Attention: Brenda Herman Telephone: 678-784-7136 Facsimile: 888-856-2456	$25,000,000.00	4.424778761
LIBOR Lending Office Same as Above
TOTAL	$565,000,000.00	100%

SCHEDULE 1.1 – Page 2 of 2

EX-10.54

Exhibit 10.54

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT (“Agreement”) is made and entered into as of the 3rd day of December, 2015, by and between Healthcare Trust, Inc., a Maryland corporation (the “Company”), and Leslie D. Michelson and Edward G. Rendell (each, an “Indemnitee”).

WHEREAS, at the request of the Company, Indemnitee currently serves as a director, officer or service provider of the Company and may, therefore, be subjected to claims, suits or proceedings arising as a result of his or her service; and

WHEREAS, as an inducement to Indemnitee to continue to serve as such director, officer or service provider, the Company has agreed to indemnify and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings; and

WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification and advance of expenses;

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

Section 1.Definitions. For purposes of this Agreement:

(a)“Applicable Legal Rate” means a fixed rate of interest equal to the applicable federal rate for mid-term debt instruments as of the day that it is determined that Indemnitee must repay any advanced expenses.

(b)“Change in Control” means a change in control of the Company occurring after the Effective Date of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if, after the Effective Date (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of all of the Company’s then-outstanding securities entitled to vote generally in the election of directors without the prior approval of at least two-thirds of the members of the Board of Directors in office immediately prior to such person’s attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board of Directors then in office, as a consequence of which members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter; or (iii) at any time, a majority of the members of the Board of Directors are not individuals (A) who were directors as of the Effective Date or (B) whose

election by the Board of Directors or nomination for election by the Company’s stockholders was approved by the affirmative vote of at least two-thirds of the directors then in office who were directors as of the Effective Date or whose election for nomination for election was previously so approved.

(c)“Corporate Status” means the status of a person as a present or former director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company. As a clarification and without limiting the circumstances in which Indemnitee may be serving at the request of the Company, service by Indemnitee shall be deemed to be at the request of the Company if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise (i) of which a majority of the voting power or equity interest is owned directly or indirectly by the Company or (ii) the management of which is controlled directly or indirectly by the Company.

(d)“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of Expenses is sought by Indemnitee.

(e)“Effective Date” means the date set forth in the first paragraph of this Agreement.

(f)“Expenses” means any and all reasonable and out-of-pocket attorneys’ fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in or otherwise participating in a Proceeding. Expenses shall also include Expenses incurred in connection with any appeal resulting from any Proceeding including, without limitation, the premium for, security for and other costs relating to any cost bond supersedeas bond or other appeal bond or its equivalent.

(g)“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements), or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim for indemnification or advance of Expenses hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have

-2-

a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

(h)“Proceeding” means any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other proceeding, whether brought by or in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature, including any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Company and Indemnitee. If Indemnitee reasonably believes that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding.

Section 2.Services by Indemnitee. Indemnitee will serve as a director, officer or service provider of the Company. However, this Agreement shall not impose any independent obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company. This Agreement shall not be deemed an employment contract between the Company (or any other entity) and Indemnitee.

Section 3.General. Subject to the limitations in Section 5, the Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) as otherwise permitted by Maryland law in effect on the Effective Date and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the Effective Date. Subject to the limitations in Section 5, the rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the other sections of this Agreement, including any additional indemnification permitted by Section 2-418(g) of the Maryland General Corporation Law (the “MGCL”).

Section 4.Standard for Indemnification. Subject to the limitations in Section 5, if, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall indemnify Indemnitee against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with any such Proceeding unless it is established by clear and convincing evidence that (a) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

Section 5.Certain Limits on Indemnification. Notwithstanding any other provision of this Agreement (other than Section 6), Indemnitee shall not be entitled to:

(a)    indemnification for any loss or liability unless all of the following conditions are met: (i) Indemnitee has determined, in good faith, that the course of conduct that caused the loss or liability was in the best interests of the Company; (ii) Indemnitee was acting

-3-

on behalf of or performing services for the Company; (iii) such loss or liability was not the result of (A) gross negligence or willful misconduct, in the case that the Indemnitee is an independent director of the Company or (B) negligence or misconduct, in the case that the Indemnitee is not an independent director of the Company; and (iv) such indemnification is recoverable only out of the Company’s net assets and not from the Company’s stockholders;

(b)    indemnification for any loss or liability arising from an alleged violation of federal or state securities laws unless one or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving alleged material securities law violations as to Indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to Indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against Indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised of the position of the Securities and Exchange Commission and of the published position of any state securities regulatory authority in which securities of the Company were offered or sold as to indemnification for violations of securities laws;

(c)    indemnification hereunder if the Proceeding was one by or in the right of the Company and Indemnitee is adjudged to be liable to the Company;

(d)    indemnification hereunder if Indemnitee is adjudged to be liable on the basis that personal benefit was improperly received in any Proceeding charging improper personal benefit to Indemnitee, whether or not involving action in the Indemnitee’s Corporate Status; or

(e)    indemnification or advance of Expenses hereunder if the Proceeding was brought by Indemnitee, unless: (i) the Proceeding was brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as authorized by Section 12 of this Agreement, or (ii) the Company’s charter or Bylaws, a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise.

Section 6.Court-Ordered Indemnification. Subject to the limitations in Section 5(a) and (b), a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require, may order indemnification of Indemnitee by the Company in the following circumstances:

(a)if such determines that Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in which case Indemnitee shall be entitled to recover the Expenses of securing such reimbursement; or

(b)if such court determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court

-4-

may order such indemnification as the court shall deem proper. However, indemnification with respect to any Proceeding by or in the right of the Company or in which liability shall have been adjudged in the circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses.

Section 7.Indemnification for Expenses of an Indemnitee Who is Wholly or Partly Successful. Subject to the limitations in Section 5, to the extent that Indemnitee was or is, by reason of his or her Corporate Status, made a party to (or otherwise becomes a participant in) any Proceeding and is successful, on the merits or otherwise, in the defense of such Proceeding, Indemnitee shall be indemnified for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with each such claim, issue or matter, allocated on a reasonable and proportionate basis. For purposes of this Section 7, and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

Section 8.Advance of Expenses for an Indemnitee. If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall, without requiring a preliminary determination of Indemnitee’s ultimate entitlement to indemnification hereunder, advance all reasonable Expenses incurred by or on behalf of Indemnitee in connection with (a) such Proceeding which is initiated by a third party who is not a stockholder of the Company, or (b) such Proceeding which is initiated by a stockholder of the Company acting in his or her capacity as such and for which a court of competent jurisdiction specifically approves such advancement, and which relates to acts or omissions with respect to the performance of duties or services on behalf of the Company, within ten days after the receipt by the Company of a statement or statements requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Company as authorized by law and by this Agreement has been met and a written undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses advanced to Indemnitee, together with the Applicable Legal Rate of interest thereon, relating to claims, issues or matters in the Proceeding as to which it shall ultimately be established, by clear and convincing evidence, that the standard of conduct has not been met by Indemnitee and which have not been successfully resolved as described in Section 7 of this Agreement. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without

-5-

reference to Indemnitee’s financial ability to repay such advanced Expenses and without any requirement to post security therefor.

Section 9.Indemnification and Advance of Expenses as a Witness or Other Participant. Subject to the limitations in Section 5, to the extent that Indemnitee is or may be, by reason of Indemnitee’s Corporate Status, made a witness or otherwise asked to participate in any Proceeding, whether instituted by the Company or any other party, and to which Indemnitee is not a party, Indemnitee shall be advanced all reasonable Expenses and indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith within ten days after the receipt by the Company of a statement or statements requesting any such advance or indemnification from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee.

Section 10.Procedure for Determination of Entitlement to Indemnification.

(a)To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate in Indemnitee’s sole discretion. The officer of the Company receiving any such request from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

(b)Upon written request by Indemnitee for indemnification pursuant to Section 10(a) above, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control shall have occurred, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, which Independent Counsel shall be selected by Indemnitee and approved by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL, which approval shall not be unreasonably withheld; or (ii) if a Change in Control shall not have occurred, (A) by the Board of Directors by a majority vote of a quorum consisting of Disinterested Directors or, if such a quorum cannot be obtained, then by a majority vote of a duly authorized committee of the Board of Directors consisting solely of one or more Disinterested Directors, (B) if Independent Counsel has been selected by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL and approved by Indemnitee, which approval shall not be unreasonably withheld, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee or (C) if so directed by a majority of the members of the Board of Directors, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from

-6-

disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination in the discretion of the Board of Directors or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 10(b). Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.

(c)The Company shall pay the reasonable fees and expenses of Independent Counsel, if one is appointed.

Section 11.Presumptions and Effect of Certain Proceedings.

(a)In making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making of any determination contrary to that presumption.

(b)The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, upon a plea of nolocontendere or its equivalent, or entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification.

(c)The knowledge and/or actions, or failure to act, of any other director, officer, employee or agent of the Company or any other director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement.

Section 12.Remedies of Indemnitee.

(a)If (i) a determination is made pursuant to Section 10(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Sections 8 or 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(b) of this Agreement within 60 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 7 or 9 of this Agreement within ten days after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to any other section of this Agreement or the charter or Bylaws of the Company is not made within ten days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the State of Maryland, or in any other court of competent jurisdiction, of Indemnitee’s entitlement to such indemnification or advance of Expenses. Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted by a single arbitrator

-7-

pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence a proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce his or her rights under Section 7 of this Agreement. Except as set forth herein, the provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

(b)In any judicial proceeding or arbitration commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 8 of this Agreement until a final determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all of the provisions of this Agreement.

(c)If a determination shall have been made pursuant to Section 10(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification.

(d)In the event that Indemnitee is successful in seeking, pursuant to this Section 12, a judicial adjudication of or an award in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably incurred by him or her in such judicial adjudication or arbitration. If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated.

(e)Interest shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial Proceedings Article of the Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period (i) commencing with either the tenth day after the date on which the Company was requested to advance Expenses in accordance with Sections 8 or 9 of this Agreement or the 60^th

-8-

day after the date on which the Company was requested to make the determination of entitlement to indemnification under Section 10(b) of this Agreement, as applicable, and (ii) and ending on the date such payment is made to Indemnitee by the Company.

Section 13.Defense of the Underlying Proceeding.

(a)Indemnitee shall notify the Company promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding. The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company’s ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced.

(b)Subject to the provisions of the last sentence of this Section 13(b) and of Section 13(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any such decision to defend within 15 calendar days following receipt of notice of any such Proceeding under Section 13(a) above. The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee, or (iii) would impose any Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 13(b) shall not apply to a Proceeding brought by Indemnitee under Section 12 of this Agreement.

(c)Notwithstanding the provisions of Section 13(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that Indemnitee may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld, at the expense of the Company. In addition, if the Company fails to comply with any of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any

-9-

Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld, at the expense of the Company (subject to Section 12(d) of this Agreement), to represent Indemnitee in connection with any such matter.

Section 14.Non-Exclusivity; Survival of Rights; Subrogation.

(a)The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors, or otherwise. Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent to such amendment, alteration or repeal. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion of any right or remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy.

(b)In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

Section 15.Insurance. The Company will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate by the Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of his or her Corporate Status and covering the Company for any indemnification or advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee by reason of his or her Corporate Status. Without in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in the previous sentence. The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Company or Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company and Indemnitee shall not in any way limit or affect the rights or obligations of the Company under any such insurance policies. If, at the time the Company receives notice from any source of a Proceeding to which Indemnitee is a party or a

-10-

participant (as a witness or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.

Section 16.Coordination of Payments. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

Section 17.Reports to Stockholders. To the extent required by the MGCL, the Company shall report in writing to its stockholders the payment of any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Company with the notice of the meeting of stockholders of the Company next following the date of the payment of any such indemnification or advance of Expenses or prior to such meeting.

Section 18.Duration of Agreement; Binding Effect.

(a)This Agreement shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company and (ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement).

(b)The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company, and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

(c)The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

-11-

(d)The Company and Indemnitee agree that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled. Indemnitee shall further be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertakings in connection therewith. The Company acknowledges that, in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of such a bond or undertaking.

Section 19.Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 20.Identical Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.

Section 21.Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

Section 22.Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

Section 23.Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by

-12-

hand and receipted for by the party to whom said notice or other communication shall have been directed, on the day of such delivery, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

(a)If to Indemnitee, to the address set forth on the signature page hereto.

(b)If to the Company, to:

Healthcare Trust, Inc.

405 Park Avenue, 14th Floor

New York, NY 10022

Attn: General Counsel

or to such other address as may have been furnished in writing to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

Section 24.Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules.

-13-

[SIGNATURE PAGE FOLLOWS]

-14-

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

HEALTHCARE TRUST, INC.

By: /s/ Thomas P. D’Arcy

Name: Thomas P. D’Arcy

Title: Chief Executive Officer, President and Secretary

INDEMNITEE

/s/ Leslie D. Michelson

Name: Leslie D. Michelson

INDEMNITEE

/s/ Edward G. Rendell

Name: Edward G. Rendell

-15-

EXHIBIT A

AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED

To: The Board of Directors of Healthcare Trust, Inc.

Re: Affirmation and Undertaking

Ladies and Gentlemen:

This Affirmation and Undertaking is being provided pursuant to that certain Indemnification Agreement, dated the 3rd day of December, 2015, by and between Healthcare Trust, Inc., a Maryland corporation (the “Company”), and the undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I am entitled to advance of Expenses in connection with [Description of Proceeding] (the “Proceeding”).

Terms used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement.

I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged actions or omissions by me in such capacity. I hereby affirm my good faith belief that at all times, insofar as I was involved as a director of the Company, in any of the facts or events giving rise to the Proceeding, I (1) did not act with bad faith or active or deliberate dishonesty, (2) did not receive any improper personal benefit in money, property or services and (3) in the case of any criminal proceeding, had no reasonable cause to believe that any act or omission by me was unlawful.

In consideration of the advance of Expenses by the Company for reasonable attorneys’ fees and related Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in connection with the Proceeding, it is established that (1) an act or omission by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money, property or services or (3) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses, together with the Applicable Legal Rate of interest thereon, relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.

IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this _____ day of _______________, 20____.

_____________________________

Name:

EX-10.55

Exhibit 10.55

THIRD AMENDMENT TO SENIOR SECUREDREVOLVING CREDIT AGREEMENT

THIS THIRD AMENDMENT TO SENIOR SECURED REVOLVING CREDIT AGREEMENT (this “Amendment”) made as of the 17^th day of February, 2016, by and among HEALTHCARE TRUST OPERATING PARTNERSHIP, L.P. (formerly known as American Realty Capital Healthcare Trust II Operating Partnership, L.P.), a Delaware limited partnership (“Borrower”), HEALTHCARE TRUST, INC. (formerly known as American Realty Capital Healthcare Trust II, Inc.), a Maryland corporation (“REIT”), the parties executing below as Subsidiary Guarantors (the “Subsidiary Guarantors”; REIT and the Subsidiary Guarantors, collectively the “Guarantors”), KEYBANK NATIONAL ASSOCIATION (“KeyBank”), individually and as Agent for itself and the other Lenders from time to time a party to the Credit Agreement (as hereinafter defined) (KeyBank, in its capacity as Agent, is hereinafter referred to as “Agent”), and THE OTHER “LENDERS” WHICH ARE SIGNATORIES HERETO (KeyBank and such Lenders hereinafter referred to collectively as the “Lenders”).

W I T N E S S E T H:

WHEREAS, Borrower, Agent and certain of the Lenders entered into that certain Senior Secured Revolving Credit Agreement dated as of March 21, 2014, as amended by that certain First Amendment to Senior Secured Revolving Credit Agreement dated as of September 18, 2014, and that certain Second Amendment to Senior Secured Revolving Credit Agreement and Other Loan Documents dated as of June 26, 2015 (collectively, the “Credit Agreement”); and

WHEREAS, Borrower has requested that the Agent and the Lenders make certain modifications to the terms of the Credit Agreement; and

WHEREAS, the Agent and the Lenders have agreed to make such modifications subject to the execution and delivery by Borrower and Guarantors of this Amendment.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby covenant and agree as follows:

1.Definitions. All the terms used herein which are not otherwise defined herein shall have the meanings set forth in the Credit Agreement.

2.Modification of the Credit Agreement. Borrower, the Lenders and Agent do hereby modify and amend the Credit Agreement by deleting in its entirety subparagraph (g) of the definition of "Change of Control" appearing in §1.1 of the Credit Agreement, and inserting in lieu thereof the following:

"(g)    at any time any of Randolph C. Read, Katie P. Kurtz, Todd Jensen or Elizabeth K. Tuppeny, shall die or become disabled or otherwise cease to be active on a daily basis in the management of the REIT or serve as board members of the REIT, and such event results in fewer than three (3) of such individuals, being active on a daily basis in the management of the REIT or serving as board members of the REIT; provided that if fewer than

three (3) of such individuals shall continue to be active on a daily basis in the management of the REIT or serve as board members of the REIT, it shall not be a “Change of Control” if a replacement executive of comparable experience and reasonably satisfactory to the Majority Lenders shall have been retained within six (6) months of such event such that there are not fewer than three (3) such individuals active in the daily management of REIT or serving as board members of the REIT."

3.References to Loan Documents. All references in the Loan Documents to the Credit Agreement shall be deemed a reference to the Credit Agreement as modified and amended herein.

4.Consent and Acknowledgment of Borrower and Guarantors. By execution of this Amendment, the Guarantors hereby expressly consent to the modifications and amendments relating to the Credit Agreement as set forth herein and any other agreements or instruments executed in connection herewith, and Borrower and Guarantors hereby acknowledge, represent and agree that (a) the Credit Agreement, as modified and amended herein, and the other Loan Documents remains in full force and effect and constitutes the valid and legally binding obligation of Borrower and Guarantors, as applicable, enforceable against such Persons in accordance with their respective terms, (b) that the Guaranty extends to and applies to the Credit Agreement as modified and amended herein, and (c) that the execution and delivery of this Amendment and any other agreements or instruments executed in connection herewith does not constitute, and shall not be deemed to constitute, a release, waiver or satisfaction of Borrower’s or any Guarantor’s obligations under the Loan Documents.

5.Representations and Warranties. Borrower and Guarantors represent and warrant to Agent and the Lenders as follows:

(a)Authorization. The execution, delivery and performance of this Amendment and any other agreements or instruments executed in connection herewith and the transactions contemplated hereby and thereby (i) are within the authority of Borrower and Guarantors, (ii) have been duly authorized by all necessary proceedings on the part of the Borrower and Guarantors, (iii) do not and will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which Borrower or any Guarantor is subject or any judgment, order, writ, injunction, license or permit applicable to Borrower or any Guarantor, (iv) do not and will not conflict with or constitute a default (whether with the passage of time or the giving of notice, or both) under any provision of the partnership agreement, articles of incorporation or other charter documents or bylaws of, or any agreement or other instrument binding upon, Borrower or any Guarantor or any of their respective properties, (v) do not and will not result in or require the imposition of any lien or other encumbrance on any of the properties, assets or rights of Borrower or any Guarantor and (vi) do not require the approval or consent of any Person other than those already obtained and delivered to the Agent.

(b)Enforceability. This Amendment and any other agreements or instruments executed in connection herewith to which Borrower or any Guarantor is a party are the valid and legally binding obligations of Borrower and Guarantors enforceable in accordance with the respective terms and provisions hereof, except as enforceability is limited by bankruptcy, insolvency,

2

reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and the effect of general principles of equity.

(c)Governmental Approvals. The execution, delivery and performance of this Amendment and any other agreements or instruments executed in connection herewith and the transactions contemplated hereby and thereby do not require the approval or consent of, or any filing or registration with, or the giving of any notice to, any court, department, board, governmental agency or authority other than those already obtained, and filings after the date hereof of disclosures with the SEC, or as may be required hereafter with respect to tenant improvements, repairs or other work with respect to any Real Estate.

(d)Reaffirmation of Representations and Warranties. Each of the representations and warranties made by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries contained in the Credit Agreement, the other Loan Documents or in any document or instrument delivered pursuant to or in connection with the Credit Agreement or this Amendment is true and correct in all material respects as of the date hereof, with the same effect as if made at and as of the date hereof, except to the extent of changes resulting from transactions permitted by the Loan Documents (it being understood and agreed that, with respect to any representation or warranty which by its terms is made as of a specified date, such representation or warranty is reaffirmed hereby only as of such specified date). To the extent that any of the representations and warranties contained in the Credit Agreement, any other Loan Document or in any document or instrument delivered pursuant to or in connection with the Credit Agreement or this Amendment is qualified by “Material Adverse Effect” or any other materiality qualifier, then the qualifier “in all material respects” contained in this Paragraph 10(d) shall not apply with respect to any such representations and warranties.

6.No Default. By execution hereof, the Borrower and the Guarantors certify that, immediately after giving effect to this Amendment, there exists no Default or Event of Default as of the date of this Amendment.

7.Waiver of Claims. Borrower and Guarantors acknowledge, represent and agree that none of such Persons has any defenses, setoffs, claims, counterclaims or causes of action of any kind or nature whatsoever arising on or before the date hereof with respect to the Loan Documents, the administration or funding of the Loan or the Letters of Credit or with respect to any acts or omissions of Agent or any Lender, or any past or present officers, agents or employees of Agent or any Lender pursuant to or relating to the Loan Documents, and each of such Persons does hereby expressly waive, release and relinquish any and all such defenses, setoffs, claims, counterclaims and causes of action arising on or before the date hereof, if any.

8.Ratification. Except as hereinabove set forth, all terms, covenants and provisions of the Credit Agreement remain unaltered and in full force and effect, and the parties hereto do hereby expressly ratify and confirm the Credit Agreement as modified and amended herein. Nothing in this Amendment or any other document delivered in connection herewith shall be deemed or construed to constitute, and there has not otherwise occurred, a novation, cancellation, satisfaction, release, extinguishment or substitution of the indebtedness evidenced by the Notes or the other obligations of Borrower and Guarantors under the Loan Documents.

3

9.Effective Date. This Amendment shall be deemed effective and in full force and effect (the “Effective Date”) upon confirmation by the Agent of the satisfaction of the following conditions:

(a)the execution and delivery of this Amendment by Borrower, Guarantors, Agent and the Majority Lenders;

(b)receipt by Agent of evidence that the Borrower shall have paid all fees due and payable with respect to this Amendment, if any; and

(c)the Borrower shall have paid the reasonable fees and expenses of Agent in connection with this Amendment.

10.Amendment as Loan Document. This Amendment shall constitute a Loan Document.

11.Counterparts. This Amendment may be executed in any number of counterparts which shall together constitute but one and the same agreement.

12.MISCELLANEOUS. THIS AMENDMENT SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted successors, successors-in-title and assigns as provided in the Credit Agreement.

[Signatures Begin On Next Page]

4

IN WITNESS WHEREOF, the parties hereto have hereto set their hands and affixed their seals as of the day and year first above written.

BORROWER:

HEALTHCARE TRUST OPERATING PARTNERSHIP, L.P. (formerly known as American Realty Capital Healthcare Trust II Operating Partnership, L.P.), a Delaware limited partnership

By: HEALTHCARE TRUST, INC. (formerly known as American Realty Capital Healthcare Trust II, Inc.), a Maryland corporation, its general partner

By: /s/ Katie P. Kurtz    

Name: Katie P. Kurtz    

Title: Chief Financial Officer    

REIT:

HEALTHCARE TRUST, INC. (formerly known as American Realty Capital Healthcare Trust II, Inc.), a Maryland corporation

By: /s/ Katie P. Kurtz    

Name: Katie P. Kurtz    

Title: Chief Financial Officer    

[Signatures Continue on Following Page]

SUBSIDIARY GUARANTORS:

ARHC BMBWNIL01, LLC;
ARHC LPELKCA01, LLC;
ARHC SCCRLIA01, LLC;
ARHC SFFLDIA01, LLC;
ARHC SBBURIA01, LLC;
ARHC FOMBGPA01, LLC;
ARHC ARCLRMI01, LLC;
ARHC LSSMTMO01, LLC;
ARHC ALTSPFL01, LLC;
ARHC FMWEDAL01, LLC;
ARHC AHJACOH01, LLC;
ARHC OLOLNIL01, LLC;
ARHC LMHBGPA01, LLC;
ARHC PHCTNIA01, LLC;
ARHC BRHBGPA01, LLC;
ARHC HBTPAFL01, LLC;
ARHC ALJUPFL01, LLC;
ARHC ALSTUFL01, LLC;
ARHC SCTEMTX01, LLC;
ARHC GHGVLSC01, LLC;
ARHC TRS HOLDCO II, LLC;
ARHC SCCRLIA01 TRS, LLC;
ARHC SFFLDIA01 TRS, LLC;
ARHC SBBURIA01 TRS, LLC;
ARHC ARCLRMI01 TRS, LLC;
ARHC LSSMTMO01 TRS, LLC;
ARHC ALTSPFL01 TRS, LLC;
ARHC PHCTNIA01 TRS, LLC;
ARHC HBTPAFL01 TRS, LLC;
ARHC ALJUPFL01 TRS, LLC; and
ARHC ALSTUFL01 TRS, LLC, each a Delaware limited liability company

By: /s/ Jesse C. Galloway    

Name: Jesse C. Galloway    

Title: Authorized Signatory    

[Signatures Continue on Following Page]

ARHC UCELKCA01, LLC;

ARHC CHHBGPA01, LLC;

ARHC DFDYRIN01, LLC;

ARHC ESMEMTN01, LLC;

ARHC MSHBGPA01, LLC;

ARHC FMMUNIN01, LLC;

ARHC FMMUNIN02, LLC;

ARHC FMMUNIN03, LLC;

ARHC CPHAMVA01, LLC;

ARHC HRHAMVA01, LLC;

ARHC BLHBGPA01, LLC;

ARHC PCSHVMS01, LLC;

ARHC PVPHXAZ01, LLC;

ARHC NVWELFL01, LLC;

ARHC SMMDSIA01, LLC;

ARHC SPPLSIA01, LLC;

ARHC PSINDIA01, LLC;

ARHC PHOTTIA01, LLC;

ARHC PHCRPIA01, LLC;

ARHC DVMERID01, LLC;

ARHC ALELIKY01, LLC;

ARHC TVTITFL01, LLC;

ARHC ALSPGFL01, LLC;

ARHC JCCRKGA01, LLC;

ARHC DBDUBGA01, LLC;

ARHC BWBRUGA01, LLC;

ARHC RWROSGA01, LLC;

ARHC MBAGHCA01, LLC;

ARHC WHWCHPA01, LLC;

ARHC PVVLGKS01, LLC;

ARHC SCKCYMO01, LLC; and

ARHC PPHRNTN01, LLC, each a Delaware limited

liability company

By: /s/ Jesse C. Galloway    

Name: Jesse C. Galloway    

Title: Authorized Signatory    

[Signatures Continue on Following Page]

ARHC SMMDSIA01 TRS, LLC;

ARHC SPPLSIA01 TRS, LLC;

ARHC PSINDIA01 TRS, LLC;

ARHC PHOTTIA1 TRS, LLC;

ARHC PHCRPIA01 TRS, LLC;

ARHC DVMERID01 TRS, LLC;

ARHC ALELIKY01 TRS, LLC;

ARHC TVTITFL01 TRS, LLC;

ARHC ALSPGFL01 TRS, LLC;

ARHC JCCRKGA01 TRS, LLC;

ARHC DBDUBGA01 TRS, LLC;

ARHC BWBRUGA01 TRS, LLC;

ARHC RWROSGA01 TRS, LLC;

ARHC MBAGHCA01 TRS, LLC;

ARHC WHWCHPA01 TRS, LLC;

ARHC PVVLGKS01 TRS, LLC;

ARHC SCKCYMO01 TRS, LLC;

ARHC CCCGRMO01, LLC;

ARHC AORMDVA01, LLC;

ARHC AHHFDCA01, LLC;

ARHC RWSRSCA01, LLC;

ARHC SCVSTCA01, LLC;

ARHC CMCNRTX01, LLC; and

ARHC LMPLNTX01, LLC, each a Delaware limited

liability company

By: /s/ Jesse C. Galloway    

Name: Jesse C. Galloway    

Title: Authorized Signatory    

[Signatures Continue on Following Page]

LENDERS:

KEYBANK NATIONAL ASSOCIATION, individually as a Lender and as the Agent

By: /s/ Wayne D. Horvath    

Name: Wayne D. Horvath    

Title: Senior Vice President    

REGIONS BANK

By: /s/ Michael R. Mellott    

Name: Michael R. Mellott    

Title: Director    

CAPITAL ONE, NATIONAL ASSOCIATION

By: /s/ Alicia Cook    

Name: Alicia Cook    

Title: Authorized Signatory    

BMO HARRIS BANK N.A.

By: /s/ Lloyd Baron    

Name: Lloyd Baron    

Title: Director    

CITIZENS BANK, NATIONAL ASSOCIATION

By: /s/ Michelle M. Dawson    

Name: Michelle M. Dawson    

Title: Vice President    

SYNOVUS BANK

By: /s/ David W. Bowman    

Name: David W. Bowman    

Title: Director    

COMERCIA BANK

By: /s/ Charles Weddell    

Name: Charles Weddell    

Title: Vice President    

EX-10.56

Exhibit 10.56

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT (“Agreement”) is made and entered into as of the 10^th day of March, 2016, by and between Healthcare Trust, Inc., a Maryland corporation (the “Company”), and Katie P. Kurtz (“Indemnitee”).

WHEREAS, at the request of the Company, Indemnitee currently serves as a director, officer or service provider of the Company and may, therefore, be subjected to claims, suits or proceedings arising as a result of his or her service; and

WHEREAS, as an inducement to Indemnitee to continue to serve as such director, officer or service provider, the Company has agreed to indemnify and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings; and

WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification and advance of expenses;

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

Section 1.Definitions. For purposes of this Agreement:

(a)“Applicable Legal Rate” means a fixed rate of interest equal to the applicable federal rate for mid-term debt instruments as of the day that it is determined that Indemnitee must repay any advanced expenses.

(b)“Change in Control” means a change in control of the Company occurring after the Effective Date of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if, after the Effective Date (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of all of the Company’s then-outstanding securities entitled to vote generally in the election of directors without the prior approval of at least two-thirds of the members of the Board of Directors in office immediately prior to such person’s attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board of Directors then in office, as a consequence of which members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter; or (iii) at any time, a majority of the members of the Board of Directors are not individuals (A) who were directors as of the Effective Date or (B) whose election by the Board of Directors or nomination for election by the Company’s stockholders was

approved by the affirmative vote of at least two-thirds of the directors then in office who were directors as of the Effective Date or whose election for nomination for election was previously so approved.

(c)“Corporate Status” means the status of a person as a present or former director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company. As a clarification and without limiting the circumstances in which Indemnitee may be serving at the request of the Company, service by Indemnitee shall be deemed to be at the request of the Company if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise (i) of which a majority of the voting power or equity interest is owned directly or indirectly by the Company or (ii) the management of which is controlled directly or indirectly by the Company.

(d)“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of Expenses is sought by Indemnitee.

(e)“Effective Date” means the date set forth in the first paragraph of this Agreement.

(f)“Expenses” means any and all reasonable and out-of-pocket attorneys’ fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in or otherwise participating in a Proceeding. Expenses shall also include Expenses incurred in connection with any appeal resulting from any Proceeding including, without limitation, the premium for, security for and other costs relating to any cost bond supersedeas bond or other appeal bond or its equivalent.

(g)“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements), or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim for indemnification or advance of Expenses hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

-2-

(h)“Proceeding” means any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other proceeding, whether brought by or in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature, including any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Company and Indemnitee. If Indemnitee reasonably believes that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding.

Section 2.Services by Indemnitee. Indemnitee will serve as a director, officer or service provider of the Company. However, this Agreement shall not impose any independent obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company. This Agreement shall not be deemed an employment contract between the Company (or any other entity) and Indemnitee.

Section 3.General. Subject to the limitations in Section 5, the Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) as otherwise permitted by Maryland law in effect on the Effective Date and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the Effective Date. Subject to the limitations in Section 5, the rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the other sections of this Agreement, including any additional indemnification permitted by Section 2-418(g) of the Maryland General Corporation Law (the “MGCL”).

Section 4.Standard for Indemnification. Subject to the limitations in Section 5, if, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall indemnify Indemnitee against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with any such Proceeding unless it is established by clear and convincing evidence that (a) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

Section 5.Certain Limits on Indemnification. Notwithstanding any other provision of this Agreement (other than Section 6), Indemnitee shall not be entitled to:

(a)    indemnification for any loss or liability unless all of the following conditions are met: (i) Indemnitee has determined, in good faith, that the course of conduct that caused the loss or liability was in the best interests of the Company; (ii) Indemnitee was acting on behalf of or performing services for the Company; (iii) such loss or liability was not the result of (A) gross negligence or willful misconduct, in the case that the Indemnitee is an independent director of the Company or (B) negligence or misconduct, in the case that the Indemnitee is not

-3-

an independent director of the Company; and (iv) such indemnification is recoverable only out of the Company’s net assets and not from the Company’s stockholders;

(b)    indemnification for any loss or liability arising from an alleged violation of federal or state securities laws unless one or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving alleged material securities law violations as to Indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to Indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against Indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised of the position of the Securities and Exchange Commission and of the published position of any state securities regulatory authority in which securities of the Company were offered or sold as to indemnification for violations of securities laws;

(c)    indemnification hereunder if the Proceeding was one by or in the right of the Company and Indemnitee is adjudged to be liable to the Company;

(d)    indemnification hereunder if Indemnitee is adjudged to be liable on the basis that personal benefit was improperly received in any Proceeding charging improper personal benefit to Indemnitee, whether or not involving action in the Indemnitee’s Corporate Status; or

(e)    indemnification or advance of Expenses hereunder if the Proceeding was brought by Indemnitee, unless: (i) the Proceeding was brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as authorized by Section 12 of this Agreement, or (ii) the Company’s charter or Bylaws, a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise.

Section 6.Court-Ordered Indemnification. Subject to the limitations in Section 5(a) and (b), a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require, may order indemnification of Indemnitee by the Company in the following circumstances:

(a)if such determines that Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in which case Indemnitee shall be entitled to recover the Expenses of securing such reimbursement; or

(b)if such court determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification as the court shall deem proper. However, indemnification with respect to any Proceeding by or in the right of the Company or in which liability shall have been

-4-

adjudged in the circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses.

Section 7.Indemnification for Expenses of an Indemnitee Who is Wholly or Partly Successful. Subject to the limitations in Section 5, to the extent that Indemnitee was or is, by reason of his or her Corporate Status, made a party to (or otherwise becomes a participant in) any Proceeding and is successful, on the merits or otherwise, in the defense of such Proceeding, Indemnitee shall be indemnified for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with each such claim, issue or matter, allocated on a reasonable and proportionate basis. For purposes of this Section 7, and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

Section 8.Advance of Expenses for an Indemnitee. If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall, without requiring a preliminary determination of Indemnitee’s ultimate entitlement to indemnification hereunder, advance all reasonable Expenses incurred by or on behalf of Indemnitee in connection with (a) such Proceeding which is initiated by a third party who is not a stockholder of the Company, or (b) such Proceeding which is initiated by a stockholder of the Company acting in his or her capacity as such and for which a court of competent jurisdiction specifically approves such advancement, and which relates to acts or omissions with respect to the performance of duties or services on behalf of the Company, within ten days after the receipt by the Company of a statement or statements requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Company as authorized by law and by this Agreement has been met and a written undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses advanced to Indemnitee, together with the Applicable Legal Rate of interest thereon, relating to claims, issues or matters in the Proceeding as to which it shall ultimately be established, by clear and convincing evidence, that the standard of conduct has not been met by Indemnitee and which have not been successfully resolved as described in Section 7 of this Agreement. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee’s financial ability to repay such advanced Expenses and without any requirement to post security therefor.

-5-

Section 9.Indemnification and Advance of Expenses as a Witness or Other Participant. Subject to the limitations in Section 5, to the extent that Indemnitee is or may be, by reason of Indemnitee’s Corporate Status, made a witness or otherwise asked to participate in any Proceeding, whether instituted by the Company or any other party, and to which Indemnitee is not a party, Indemnitee shall be advanced all reasonable Expenses and indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith within ten days after the receipt by the Company of a statement or statements requesting any such advance or indemnification from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee.

Section 10.Procedure for Determination of Entitlement to Indemnification.

(a)To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate in Indemnitee’s sole discretion. The officer of the Company receiving any such request from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

(b)Upon written request by Indemnitee for indemnification pursuant to Section 10(a) above, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control shall have occurred, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, which Independent Counsel shall be selected by Indemnitee and approved by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL, which approval shall not be unreasonably withheld; or (ii) if a Change in Control shall not have occurred, (A) by the Board of Directors by a majority vote of a quorum consisting of Disinterested Directors or, if such a quorum cannot be obtained, then by a majority vote of a duly authorized committee of the Board of Directors consisting solely of one or more Disinterested Directors, (B) if Independent Counsel has been selected by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL and approved by Indemnitee, which approval shall not be unreasonably withheld, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee or (C) if so directed by a majority of the members of the Board of Directors, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination in the discretion of the Board of Directors or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 10(b). Any Expenses incurred by Indemnitee in so

-6-

cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.

(c)The Company shall pay the reasonable fees and expenses of Independent Counsel, if one is appointed.

Section 11.Presumptions and Effect of Certain Proceedings.

(a)In making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making of any determination contrary to that presumption.

(b)The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, upon a plea of nolocontendere or its equivalent, or entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification.

(c)The knowledge and/or actions, or failure to act, of any other director, officer, employee or agent of the Company or any other director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement.

Section 12.Remedies of Indemnitee.

(a)If (i) a determination is made pursuant to Section 10(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Sections 8 or 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(b) of this Agreement within 60 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 7 or 9 of this Agreement within ten days after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to any other section of this Agreement or the charter or Bylaws of the Company is not made within ten days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the State of Maryland, or in any other court of competent jurisdiction, of Indemnitee’s entitlement to such indemnification or advance of Expenses. Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence a proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such

-7-

proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce his or her rights under Section 7 of this Agreement. Except as set forth herein, the provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

(b)In any judicial proceeding or arbitration commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 8 of this Agreement until a final determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all of the provisions of this Agreement.

(c)If a determination shall have been made pursuant to Section 10(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification.

(d)In the event that Indemnitee is successful in seeking, pursuant to this Section 12, a judicial adjudication of or an award in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably incurred by him or her in such judicial adjudication or arbitration. If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated.

(e)Interest shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial Proceedings Article of the Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period (i) commencing with either the tenth day after the date on which the Company was requested to advance Expenses in accordance with Sections 8 or 9 of this Agreement or the 60^th day after the date on which the Company was requested to make the determination of entitlement to indemnification under Section 10(b) of this Agreement, as applicable, and (ii) and ending on the date such payment is made to Indemnitee by the Company.

-8-

Section 13.Defense of the Underlying Proceeding.

(a)Indemnitee shall notify the Company promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding. The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company’s ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced.

(b)Subject to the provisions of the last sentence of this Section 13(b) and of Section 13(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any such decision to defend within 15 calendar days following receipt of notice of any such Proceeding under Section 13(a) above. The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee, or (iii) would impose any Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 13(b) shall not apply to a Proceeding brought by Indemnitee under Section 12 of this Agreement.

(c)Notwithstanding the provisions of Section 13(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that Indemnitee may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld, at the expense of the Company. In addition, if the Company fails to comply with any of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not be unreasonably

-9-

withheld, at the expense of the Company (subject to Section 12(d) of this Agreement), to represent Indemnitee in connection with any such matter.

Section 14.Non-Exclusivity; Survival of Rights; Subrogation.

(a)The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors, or otherwise. Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent to such amendment, alteration or repeal. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion of any right or remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy.

(b)In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

Section 15.Insurance. The Company will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate by the Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of his or her Corporate Status and covering the Company for any indemnification or advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee by reason of his or her Corporate Status. Without in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in the previous sentence. The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Company or Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company and Indemnitee shall not in any way limit or affect the rights or obligations of the Company under any such insurance policies. If, at the time the Company receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.

-10-

Section 16.Coordination of Payments. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

Section 17.Reports to Stockholders. To the extent required by the MGCL, the Company shall report in writing to its stockholders the payment of any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Company with the notice of the meeting of stockholders of the Company next following the date of the payment of any such indemnification or advance of Expenses or prior to such meeting.

Section 18.Duration of Agreement; Binding Effect.

(a)This Agreement shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company and (ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement).

(b)The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company, and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

(c)The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

(d)The Company and Indemnitee agree that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties

-11-

hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled. Indemnitee shall further be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertakings in connection therewith. The Company acknowledges that, in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of such a bond or undertaking.

Section 19.Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 20.Identical Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.

Section 21.Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

Section 22.Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

Section 23.Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, on the day of such delivery, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

-12-

(a)If to Indemnitee, to the address set forth on the signature page hereto.

(b)If to the Company, to:

Healthcare Trust, Inc.

405 Park Avenue, 14th Floor

New York, NY 10022

Attn: General Counsel

or to such other address as may have been furnished in writing to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

Section 24.Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules.

-13-

[SIGNATURE PAGE FOLLOWS]

-14-

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

HEALTHCARE TRUST, INC.

By: /s/ W. Todd Jensen

Name: W. Todd Jensen

Title: President

INDEMNITEE

/s/ Katie P. Kurtz

Name: Katie P. Kurtz

-15-

EXHIBIT A

AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED

To: The Board of Directors of Healthcare Trust, Inc.

Re: Affirmation and Undertaking

Ladies and Gentlemen:

This Affirmation and Undertaking is being provided pursuant to that certain Indemnification Agreement, dated the ___ day of December, 2015, by and between Healthcare Trust, Inc., a Maryland corporation (the “Company”), and the undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I am entitled to advance of Expenses in connection with [Description of Proceeding] (the “Proceeding”).

Terms used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement.

I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged actions or omissions by me in such capacity. I hereby affirm my good faith belief that at all times, insofar as I was involved as a director of the Company, in any of the facts or events giving rise to the Proceeding, I (1) did not act with bad faith or active or deliberate dishonesty, (2) did not receive any improper personal benefit in money, property or services and (3) in the case of any criminal proceeding, had no reasonable cause to believe that any act or omission by me was unlawful.

In consideration of the advance of Expenses by the Company for reasonable attorneys’ fees and related Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in connection with the Proceeding, it is established that (1) an act or omission by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money, property or services or (3) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses, together with the Applicable Legal Rate of interest thereon, relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.

IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this _____ day of _______________, 20____.

_____________________________

Name:

EX-21.1

Exhibit 21.1

Subsidiaries of Healthcare Trust, Inc.

Entity	Jurisdiction of Incorporation
Healthcare Trust Operating Partnership, L.P.	Delaware
ARHC TRS HOLDCO II, LLC	Delaware
ARHC FMWEDAL01, LLC	Delaware
ARHC AHJACOH01, LLC	Delaware
ARHC OCWMNLA01, LLC	Delaware
ARHC CMLITCO01, LLC	Delaware
ARHC OLOLNIL01, LLC	Delaware
ARHC SCTEMTX01, LLC	Delaware
ARHC GHGVLSC01, LLC	Delaware
ARHC AMGLNAZ01, LLC	Delaware
ARHC CSDOUGA01, LLC	Delaware
ARHC VCSTOGA01, LLC	Delaware
ARHC SFSTOGA01, LLC	Delaware
ARHC BGBOWMD01, LLC	Delaware
ARHC SCBTHNY01, LLC	Delaware
ARHC SCBTHNY02, LLC	Delaware
ARHC PMCPKNY01, LLC	Delaware
ARHC BCKNGNY01, LLC	Delaware
ARHC MCNWDNY01, LLC	Delaware
ARHC CCSCNNY01, LLC	Delaware
ARHC CAROCMI01, LLC	Delaware
ARHC CAROCMI02, LLC	Delaware
ARHC BMBWNIL01, LLC	Delaware
ARHC CSCLWFL01, LLC	Delaware
ARHC SAVENFL01, LLC	Delaware
ARHC LPELKCA01, LLC	Delaware

ARHC UCELKCA01, LLC	Delaware
ARHC BPBUFMO01, LLC	Delaware
ARHC CHCASMO01, LLC	Delaware
ARHC GYHSVMO01, LLC	Delaware
ARHC BSHUMMO01, LLC	Delaware
ARHC GRKCYMO01, LLC	Delaware
ARHC PHKCYMO01, LLC	Delaware
ARHC CALEWMO01, LLC	Delaware
ARHC MCMSHMO01, LLC	Delaware
ARHC GGPOTMO01, LLC	Delaware
ARHC EMRAYMO01, LLC	Delaware
ARHC HBTPAFL01, LLC	Delaware
ARHC HBTPAFL01 TRS, LLC	Delaware
ARHC ARCLRMI01, LLC	Delaware
ARHC ARCLRMI01 TRS, LLC	Delaware
ARHC SBBURIA01, LLC	Delaware
ARHC SCCRLIA01, LLC	Delaware
ARHC SFFLDIA01, LLC	Delaware
ARHC SMMDSIA01, LLC	Delaware
ARHC SPPLSIA01, LLC	Delaware
ARHC SMMTEIA01, LLC	Delaware
ARHC PHCRPIA01, LLC	Delaware
ARHC PHCTNIA01, LLC	Delaware
ARHC PHDESIA01, LLC	Delaware
ARHC PHTIPIA01, LLC	Delaware
ARHC PSINDIA01, LLC	Delaware
ARHC PHOTTIA01, LLC	Delaware
ARHC SBBURIA01 TRS, LLC	Delaware

ARHC SCCRLIA01 TRS, LLC	Delaware
ARHC SFFLDIA01 TRS, LLC	Delaware
ARHC SMMDSIA01 TRS, LLC	Delaware
ARHC SPPLSIA01 TRS, LLC	Delaware
ARHC SMMTEIA01 TRS, LLC	Delaware
ARHC PHCRPIA01 TRS, LLC	Delaware
ARHC PHCTNIA01 TRS, LLC	Delaware
ARHC PHDESIA01 TRS, LLC	Delaware
ARHC PHTIPIA01 TRS, LLC	Delaware
ARHC PSINDIA01 TRS, LLC	Delaware
ARHC PHOTTIA01 TRS, LLC	Delaware
ARHC BMBUCMI01, LLC	Delaware
ARHC CSKENMI01, LLC	Delaware
ARHC GOFENMI01, LLC	Delaware
ARHC LVHLDMI01, LLC	Delaware
ARHC LCDIXIL01, LLC	Delaware
ARHC PCPLSMI01, LLC	Delaware
ARHC PCCHEMI01, LLC	Delaware
ARHC PPDWTMI01, LLC	Delaware
ARHC PPCLRMI01, LLC	Delaware
ARHC PPGBLMI01, LLC	Delaware
ARHC PWHLTMI01, LLC	Delaware
ARHC ATROCIL01, LLC	Delaware
ARHC WWWYGMI01, LLC	Delaware
ARHC WWGDRMI01, LLC	Delaware
ARHC AMGLNAZ02, LLC	Delaware
ARHC CCCGRMO01, LLC	Delaware
ARHC BRHBGPA01, LLC	Delaware

ARHC CHHBGPA01, LLC	Delaware
ARHC FOMBGPA01, LLC	Delaware
ARHC LMHBGPA01, LLC	Delaware
ARHC BLHBGPA01, LLC	Delaware
ARHC MSHBGPA01, LLC	Delaware
ARHC DVMERID01, LLC	Delaware
ARHC DVMERID01, TRS, LLC	Delaware
ARHC TVTITFL01, LLC	Delaware
ARHC ALALPGA01, LLC	Delaware
ARHC BWBRUGA01, LLC	Delaware
ARHC DBDUBGA01, LLC	Delaware
ARHC JCCRKGA01, LLC	Delaware
ARHC RWROSGA01, LLC	Delaware
ARHC PVVLGKS01, LLC	Delaware
ARHC LSSMTMO01, LLC	Delaware
ARHC SCKCYMO01, LLC	Delaware
ARHC TVTITFL01 TRS, LLC	Delaware
ARHC ALALPGA01 TRS, LLC	Delaware
ARHC BWBRUGA01 TRS, LLC	Delaware
ARHC DBDUBGA01 TRS, LLC	Delaware
ARHC JCCRKGA01 TRS, LLC	Delaware
ARHC RWROSGA01 TRS, LLC	Delaware
ARHC PVVLGKS01 TRS, LLC	Delaware
ARHC LSSMTMO01 TRS, LLC	Delaware
ARHC SCKCYMO01 TRS, LLC	Delaware
ARHC ALJUPFL01, LLC	Delaware
ARHC ALSPGFL01, LLC	Delaware
ARHC LDSPGFL01, LLC	Delaware

ARHC ALSTUFL01, LLC	Delaware
ARHC ALTSPFL01, LLC	Delaware
ARHC ALELIKY01, LLC	Delaware
ARHC ALJUPFL01 TRS, LLC	Delaware
ARHC ALSPGFL01 TRS, LLC	Delaware
ARHC ALSTUFL01 TRS, LLC	Delaware
ARHC ALTSPFL01 TRS, LLC	Delaware
ARHC ALELIKY01 TRS, LLC	Delaware
ARHC GMCLKTN01, LLC	Delaware
ARHC NVLTZFL01, LLC	Delaware
ARHC NVWELFL01, LLC	Delaware
ARHC FMMUNIN01, LLC	Delaware
ARHC FMMUNIN02, LLC	Delaware
ARHC FMMUNIN03, LLC	Delaware
ARHC DFDYRIN01, LLC	Delaware
ARHC SFSCHIN01, LLC	Delaware
ARHC MVMVNWA01, LLC	Delaware
ARHC MBAGHCA01, LLC	Delaware
ARHC MBAGHCA01 TRS, LLC	Delaware
ARHC HRHAMVA01, LLC	Delaware
ARHC CPHAMVA01 LLC	Delaware
ARHC WHWCHPA01, LLC	Delaware
ARHC WHWCHPA01 TRS, LLC	Delaware
ARHC ESMEMTN01, LLC	Delaware
ARHC WGWCHIL01, LLC	Delaware
ARHC PCSHVMS01, LLC	Delaware
ARHC PVPHXAZ01, LLC	Delaware
ARHC VSMCKTX01, LLC	Delaware

ARHC CHSGDIL01, LLC	Delaware
ARHC CHPTNIL01, LLC	Delaware
ARHC MTMTNIL01, LLC	Delaware
ARHC MVMTNIL01, LLC	Delaware
ARHC RHMARIL01, LLC	Delaware
ARHC HHPEOIL01, LLC	Delaware
ARHC RHMESAZ01, LLC	Delaware
ARHC RHSUNAZ01, LLC	Delaware
ARHC Restora Participant, LLC	Delaware
ARHC AHGBYWI01, LLC	Delaware
ARHC AHGVLWI01, LLC	Delaware
ARHC AHPLYWI01, LLC	Delaware
ARHC AHWTFWI01, LLC	Delaware
ARHC AHWTMWI01, LLC	Delaware
ARHC AHKIEWI01, LLC	Delaware
ARHC AVBURWI01, LLC	Delaware
ARHC AORMDVA01, LLC	Delaware
ARHC PVGYRAZ01, LLC	Delaware
ARHC PPHRNTN01, LLC	Delaware
ARHC AHHFDCA01, LLC	Delaware
ARHC PRPEOAZ05 TRS, LLC	Delaware
ARHC PRPEOAZ01, LLC	Delaware
ARHC PRPEOAZ02, LLC	Delaware
ARHC PRPEOAZ03, LLC	Delaware
ARHC PRPEOAZ04, LLC	Delaware
ARHC Plaza Del Rio Medical Office Campus Member 1, LLC	Delaware
ARHC Plaza Del Rio Medical Office Campus Member 2, LLC	Delaware

ARHC RWSRSCA01, LLC	Delaware
ARHC MRMRWGA01, LLC	Delaware
ARHC BMLKWCO01, LLC	Delaware
ARHC APNVLMI01, LLC	Delaware
ARHC APNVLMI01 TRS, LLC	Delaware
ARHC PMPEOAZ01, LLC	Delaware
ARHC LMPLNTX01, LLC	Delaware
ARHC CMCNRTX01, LLC	Delaware
ARHC SCVSTCA01, LLC	Delaware
ARHC NVJUPFL01, LLC	Delaware
ARHC OPBROOR01, LLC	Delaware
ARHC OPBROOR01 TRS, LLC	Delaware
ARHC RWCUDWI01, LLC	Delaware
ARHC ECMCYNC01 LLC	Delaware
ARHC ECCPTNC01, LLC	Delaware
ARHC ECGVLSC01, LLC	Delaware
ARHC SMERIPA01, LLC	Delaware
ARHC SLKLAOR01, LLC	Delaware
ARHC CFGREOR01, LLC	Delaware
ARHC CFGREOR01 TRS, LLC	Delaware
ARHC PHNLXIL01, LLC	Delaware
ARHC MMTCTTX01, LLC	Delaware
ARHC RPATLGA01, LLC	Delaware
ARHC RPATLGA01 TRS, LLC	Delaware
ARHC FRBRYAR01, LLC	Delaware
ARHC FRLTRAR01, LLC	Delaware
ARHC FRNLRAR01, LLC	Delaware
ARHC FRBRYAR01 TRS, LLC	Delaware

ARHC FRLTRAR01 TRS, LLC	Delaware
ARHC FRNLRAR01 TRS, LLC	Delaware
ARHC Fox Ridge MT, LLC	Delaware
ARHC ALCLKTX01, LLC	Delaware
ARHC ALCFBTX01, LLC	Delaware
ARHC ALMEYTX01, LLC	Delaware
ARHC ALWOOTX01, LLC	Delaware
ARHC AHHINMA01, LLC	Delaware
ARHC AHHINMA01 TRS, LLC	Delaware
ARHC AHWEYMA01, LLC	Delaware
ARHC AHWEYMA01 TRS, LLC	Delaware

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

The Board of DirectorsHealthcare Trust, Inc.

We consent to the incorporation by reference in the registration statement (No. 333-197802) on Form S-3 of Healthcare Trust, Inc. of our report dated March 11, 2016, with respect to the consolidated balance sheets of Healthcare Trust, Inc. and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of operations and comprehensive loss, changes in equity, and cash flows for the years ended December 31, 2015, 2014 and 2013 and the related 2015 financial statement schedule III, which report appears in the December 31, 2015 annual report on Form 10-K of Healthcare Trust, Inc. and subsidiaries.

/s/KPMG LLP

Chicago, IllinoisMarch 11, 2016

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a) UNDER

THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, W. Todd Jensen, certify that:

1. I have reviewed this Annual Report on Form 10-K of Healthcare Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 11th day of March, 2016	/s/ W. Todd Jensen
	W. Todd Jensen
	Interim Chief Executive Officer and President
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a) UNDER

THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Katie P. Kurtz, certify that:

1. I have reviewed this Annual Report on Form 10-K of Healthcare Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 11th day of March, 2016	/s/ Katie P. Kurtz
	Katie P. Kurtz
	Chief Financial Officer, Treasurer and Secretary
	(Principal Financial Officer and Principal Accounting Officer)

EX-32

Exhibit 32

SECTION 1350 CERTIFICATIONS

This Certificate is being delivered pursuant to the requirements of Section 1350 of Chapter 63 (Mail Fraud) of Title 18 (Crimes and Criminal Procedures) of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

The undersigned, who are the Interim Chief Executive Officer and Chief Financial Officer of Healthcare Trust, Inc. (the “Company”), each hereby certify as follows:

The annual report on Form 10-K of the Company, which accompanies this Certificate, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and all information contained in this annual report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 11th day of March, 2016

/s/ W. Todd Jensen

W. Todd Jensen

Interim Chief Executive Officer and President

(Principal Executive Officer)

/s/ Katie P. Kurtz

Katie P. Kurtz

Chief Financial Officer, Treasurer and Secretary

(Principal Financial Officer and Principal Accounting Officer)

XML

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2015	Feb. 29, 2016	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Healthcare Trust, Inc.
Entity Central Index Key	0001561032
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		86,681,390
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 0.0

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Real estate investments, at cost:
Land	$ 192,790	$ 113,461
Buildings, fixtures and improvements	1,885,713	1,362,387
Construction in progress	21,309	0
Acquired intangible assets	241,459	186,849
Total real estate investments, at cost	2,341,271	1,662,697
Less: accumulated depreciation and amortization	(146,669)	(30,947)
Total real estate investments, net	2,194,602	1,631,750
Cash and cash equivalents	24,474	182,617
Restricted cash	4,647	1,778
Investment securities, at fair value	1,078	20,286
Receivable for sale of common stock	0	6
Straight-line rent receivable, net	11,470	2,325
Prepaid expenses and other assets	21,707	14,711
Deferred costs, net	14,014	4,237
Total assets	2,271,992	1,857,710
LIABILITIES AND EQUITY
Mortgage notes payable	159,455	65,786
Mortgage premiums, net	2,403	2,844
Credit facility	430,000	0
Market lease intangible liabilities, net	22,994	19,535
Accounts payable and accrued expenses (including $536 and $970 due to related parties as of December 31, 2015 and 2014, respectively)	38,449	22,248
Deferred rent	4,356	3,023
Distributions payable	12,518	12,097
Total liabilities	670,175	125,533
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of December 31, 2015 and 2014	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized, 86,135,411 and 83,718,853 shares of common stock issued and outstanding as of December 31, 2015 and 2014, respectively	861	837
Additional paid-in capital	1,907,549	1,850,169
Accumulated other comprehensive income (loss)	(6)	463
Accumulated deficit	(316,284)	(129,406)
Total stockholders' equity	1,592,120	1,722,063
Non-controlling interest	9,697	10,114
Total equity	1,601,817	1,732,177
Total liabilities and equity	$ 2,271,992	$ 1,857,710

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value, in dollars per share	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	86,135,411	83,718,853
Common stock, shares outstanding	86,135,411	83,718,853
Due to affiliates	$ 536	$ 970

XML

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Rental income	$ 93,218	$ 23,005	$ 1,551
Operating expense reimbursements	12,759	3,585	266
Resident services and fee income	140,901	31,849	0
Contingent purchase price consideration	612	0	0
Total revenues	247,490	58,439	1,817
Expenses:
Property operating and maintenance	125,573	26,717	122
Operating fees to related parties	12,191	0	0
Acquisition and transaction related	14,679	33,623	730
General and administrative	9,733	3,541	104
Depreciation and amortization	120,924	28,889	1,077
Total expenses	283,100	92,770	2,033
Operating loss	(35,610)	(34,331)	(216)
Other income (expense):
Interest expense	(10,356)	(3,559)	0
Interest and other income	582	735	0
Gain on sale of investment securities	446	8	0
Total other expense	(9,328)	(2,816)	0
Loss before income tax and non-controlling interests	(44,938)	(37,147)	(216)
Income tax benefit (expense)	2,978	(565)	(5)
Net loss	(41,960)	(37,712)	(221)
Net loss attributable to non-controlling interests	219	34	0
Net loss attributable to stockholders	(41,741)	(37,678)	(221)
Other comprehensive loss:
Unrealized loss on investment securities, net	(469)	463	0
Comprehensive loss attributable to stockholders	$ (42,210)	$ (37,215)	$ (221)
Basic and diluted weighted average shares outstanding (in shares)	85,331,966	51,234,729	2,148,297
Basic and diluted net loss per share (in usd per share)	$ (0.49)	$ (0.74)	$ (0.10)
Dividends declared (in usd per share)	$ 1.70	$ 1.70	$ 1.03

XML

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Total Stockholders' Equity	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Non-controlling Interest
Beginning Balance (in shares) at Dec. 31, 2012			8,888
Beginning Balance at Dec. 31, 2012	$ 185	$ 185	$ 0	$ 200	$ 0	$ (15)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			7,461,884
Issuance of common stock	185,292	185,292	$ 74	185,218
Common stock offering costs, commissions and dealer manager fees	(24,786)	(24,786)		(24,786)
Common stock issued through distribution reinvestment plan (in shares)			56,618
Common stock issued through distribution reinvestment plan	$ 1,345	1,345	$ 1	1,344
Common stock repurchases (in shares)	(1,600)
Common stock repurchases	$ (40)	(40)		(40)
Share-based compensation (in shares)			3,999
Equity-based compensation	16	16		16
Distributions declared	(3,642)	(3,642)				(3,642)
Net loss	(221)	(221)				(221)
Ending Balance (in shares) at Dec. 31, 2013			7,529,789
Ending Balance at Dec. 31, 2013	158,149	158,149	$ 75	161,952	0	(3,878)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			74,504,754
Issuance of common stock	1,851,951	1,851,951	$ 745	1,851,206
Common stock offering costs, commissions and dealer manager fees	$ (202,857)	(202,857)		(202,857)
Common stock issued through distribution reinvestment plan (in shares)	1,800,000		1,750,705
Common stock issued through distribution reinvestment plan	$ 41,580	41,580	$ 18	41,562
Common stock repurchases (in shares)			(72,431)
Common stock repurchases	(1,768)	(1,768)	$ (1)	(1,767)
Share-based compensation (in shares)			6,036
Equity-based compensation	73	73		73
Distributions declared	(87,850)	(87,850)				(87,850)
Contributions from non-controlling interest holders	10,148						10,148
Unrealized gain on investments	463	463			463
Net loss	(37,712)	(37,678)				(37,678)	(34)
Ending Balance (in shares) at Dec. 31, 2014			83,718,853
Ending Balance at Dec. 31, 2014	1,732,177	1,722,063	$ 837	1,850,169	463	(129,406)	10,114
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock offering costs, commissions and dealer manager fees	$ 2	2		2
Common stock issued through distribution reinvestment plan (in shares)	3,300,000		3,305,297
Common stock issued through distribution reinvestment plan	$ 78,502	78,502	$ 33	78,469
Common stock repurchases (in shares)			(894,338)
Common stock repurchases	(21,160)	(21,160)	$ (9)	(21,151)
Share-based compensation (in shares)			5,599
Equity-based compensation	60	60		60
Distributions declared	(145,137)	(145,137)				(145,137)
Unrealized gain on investments	(469)	(469)			(469)
Contributions from non-controlling interest holders	500						500
Distributions to non-controlling interest holders	(698)						(698)
Net loss	(41,960)	(41,741)				(41,741)	(219)
Ending Balance (in shares) at Dec. 31, 2015			86,135,411
Ending Balance at Dec. 31, 2015	$ 1,601,817	$ 1,592,120	$ 861	$ 1,907,549	$ (6)	$ (316,284)	$ 9,697

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Cash Flows [Abstract]
Net loss	$ (41,960,000)	$ (37,712,000)	$ (221,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	120,924,000	28,889,000	1,077,000
Amortization of deferred financing costs	3,737,000	1,313,000	0
Amortization of mortgage premiums	(1,933,000)	(689,000)	0
Amortization of market lease and other intangibles, net	(101,000)	638,000	13,000
Bad debt expense	7,291,000	0	0
Equity-based compensation	60,000	73,000	16,000
Gain on sale of investment securities	(446,000)	(8,000)	0
Changes in assets and liabilities:
Straight-line rent receivable	(12,535,000)	(2,208,000)	(117,000)
Prepaid expenses and other assets	(12,893,000)	(8,837,000)	(1,905,000)
Accounts payable, accrued expenses and other liabilities	5,203,000	10,877,000	327,000
Deferred rent	1,333,000	2,977,000	46,000
Restricted cash	(2,869,000)	(1,778,000)	0
Net cash provided by (used in) operating activities	65,811,000	(6,465,000)	(764,000)
Cash flows from investing activities:
Investment in real estate and other assets	(570,134,000)	(1,506,862,000)	(46,134,000)
Deposits for real estate acquisitions	1,000,000	(3,650,000)	(350,000)
Capital expenditures	(6,885,000)	(807,000)	0
Purchase of investment securities	(93,000)	(20,328,000)	0
Proceeds from sale of investment securities	19,278,000	513,000	0
Net cash used in investing activities	(556,834,000)	(1,531,134,000)	(46,484,000)
Cash flows from financing activities:
Proceeds from credit facility	440,000,000	0	0
Payments of credit facility	(10,000,000)	0	0
Payments of mortgage notes payable	(6,389,000)	(535,000)	0
Payments of deferred financing costs	(13,283,000)	(5,408,000)	(7,000)
Proceeds from issuance of common stock	6,000	1,853,231,000	184,006,000
Common stock repurchases	(10,413,000)	(541,000)	0
Payments of offering costs and fees related to common stock issuances	(629,000)	(202,715,000)	(23,696,000)
Distributions paid	(66,214,000)	(35,165,000)	(1,305,000)
Contributions from non-controlling interest holders	500,000	0	0
Distributions to non-controlling interest holders	(698,000)	0	0
Payments to related parties	0	(484,000)	80,000
Net cash provided by financing activities	332,880,000	1,608,383,000	159,078,000
Net change in cash and cash equivalents	(158,143,000)	70,784,000	111,830,000
Cash and cash equivalents, beginning of period	182,617,000	111,833,000	3,000
Cash and cash equivalents, end of period	24,474,000	182,617,000	111,833,000
Supplemental disclosures of cash flow information:
Cash paid for interest	7,867,000	2,313,000	0
Cash paid for taxes	374,000	601,000	0
Non-cash investing and financing activities:
Payable and accrued offering costs	0	631,000	489,000
Accrued repurchases included in accounts payable and accrued expenses	12,014,000	1,267,000	40,000
Assumption of mortgage notes payable used to acquire investments in real estate	100,058,000	66,321,000	0
Premiums on assumed mortgage notes payable	1,492,000	3,533,000	1,345,000
Liabilities assumed in real estate acquisitions	882,000	9,040,000	91,000
Common stock issued through distribution reinvestment plan	78,502,000	41,580,000	1,345,000
Reclassification of deferred offering costs to equity	$ 0	$ 0	$ 807,000

XML

Organization

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Note 1 — Organization

Healthcare Trust, Inc. (including, as required by context, Healthcare Trust Operating Partnership, LP (the "OP"), formerly known as American Realty Capital Healthcare Trust II Operating Partnership, LP, and its subsidiaries, the "Company"), formerly known as American Realty Capital Healthcare Trust II, Inc., invests in healthcare real estate, such as seniors housing and medical office buildings ("MOB"), located in the United States for investment purposes. As of December 31, 2015, the Company owned 166 properties located in 29 states and comprised of 8.5 million rentable square feet.

The Company, which was incorporated on October 15, 2012, is a Maryland corporation that elected and qualified to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with its taxable year ended December 31, 2013. Substantially all of the Company's business is conducted through the OP.

In February 2013, the Company commenced its initial public offering (the "IPO") on a "reasonable best efforts" basis of up to $1.7 billion of common stock, $0.01 par value per share, at a price of $25.00 per share, subject to certain volume and other discounts. The Company closed its IPO in November 2014, which resulted in net proceeds of $2.1 billion.

On March 18, 2015, the Company announced its intention to list its common stock on a national stock exchange under the symbol “HTI” (the "Listing") during the third quarter of 2015. On September 24, 2015, the Company announced that its board of directors had determined that it was in the best interest of the Company to not pursue the Listing during the third quarter of 2015. The Company's board of directors continues to monitor market conditions and other factors with a view toward reevaluating the Listing decision when market conditions are more favorable. There can be no assurance that the Company's shares of common stock will be listed. The Company anticipates publishing an estimate of per share net asset value ("NAV") on or prior to April 11, 2016 (the "NAV Pricing Date"), and subsequent valuations will occur periodically, at the discretion of the Company's board of directors, provided that such calculations will be made at least annually. In the interim, the Company will continue to offer shares pursuant to a distribution reinvestment plan ("DRIP") at $23.75 per share, and to repurchase shares pursuant to a share repurchase program (as amended, the "SRP"). Beginning with the NAV Pricing Date, the per share price for shares under the DRIP and SRP will vary periodically and will be based upon the NAV.

The Company has no direct employees. Healthcare Trust Advisors, LLC (the "Advisor"), formerly known as American Realty Capital Healthcare II Advisors, LLC, has been retained by the Company to manage the Company's affairs on a day-to-day basis. The Company has retained Healthcare Trust Properties, LLC (the "Property Manager"), formerly known as American Realty Capital Healthcare II Properties, LLC, to serve as the Company's property manager. The Advisor and Property Manager are under common control with AR Global Investments, LLC (the successor business to AR Capital, LLC, "AR Global"), the parent of the Company's sponsor, American Realty Capital VII, LLC (the "Sponsor"), as a result of which they are related parties, and each have received or will receive compensation, fees and expense reimbursements from the Company for services related to managing its business. The Advisor, Property Manager and our former dealer manager, Realty Capital Securities, LLC (the "Former Dealer Manager"), also have received or will receive compensation, fees and expense reimbursements related to the investment and management of the Company's assets.

The Former Dealer Manager served as the dealer manager of the IPO and, together with certain of its affiliates, continued to provide the Company with various services through December 31, 2015. RCS Capital Corporation, the parent company of the Former Dealer Manager and certain of its affiliates that provided the Company with services, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of the Company's Sponsor.

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 — Summary of Significant Accounting Policies

Basis of Accounting

The accompanying consolidated financial statements of the Company are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States ("GAAP").

Reclassifications

Certain prior year amounts within straight-line rent receivable, net, prepaid expenses and other assets, rental income, resident services and fee income, cash flows from operating activities and cash flows from financing activities have been reclassified to conform with the current year presentation.

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and consolidated joint venture arrangements in which the Company has controlling financial interests. The portions of the consolidated joint venture arrangements not owned by the Company were presented as non-controlling interests as of and during the period consolidated. All inter-company accounts and transactions have been eliminated in consolidation.

The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity ("VIE"). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or (2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE's operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity.

The Company continually evaluates the need to consolidate joint ventures based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company is the primary beneficiary.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, real estate taxes, fair value measurements and income taxes, as applicable.

Real Estate Investments

Investments in real estate are recorded at cost. Improvements and replacements are capitalized when they extend the useful life of the asset. Costs of repairs and maintenance are expensed as incurred.

The Company evaluates the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statement of operations. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets.

In business combinations, the Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values. Tangible assets may include land, land improvements, buildings and fixtures. Intangible assets may include the value of in-place leases and above- and below-market leases and other identifiable intangible assets or liabilities based on lease or property specific characteristics. In addition, any assumed mortgages receivable or payable and any assumed or issued non-controlling interests are recorded at their estimated fair values.

The Company generally determines the value of construction in progress based upon the replacement cost. During the construction period, we capitalize interest, insurance and real estate taxes until the development has reached substantial completion.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. The fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the Company’s estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining term of the lease including any below-market fixed rate renewal options for below-market leases.

In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including real estate valuations prepared by independent valuation firms. The Company also considers information and other factors including market conditions, the industry that the tenant operates in, characteristics of the real estate, i.e. location, size, demographics, value and comparative rental rates, tenant credit profile and the importance of the location of the real estate to the operations of the tenant’s business.

In allocating the fair value to assumed mortgages, amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above- or below-market interest rates.

In allocating non-controlling interests, amounts are recorded based on the fair value of units issued or percentage of investment contributed at the date of acquisition, as determined by the terms of the applicable agreement.

Acquired intangible assets and liabilities consisted of the following as of the periods presented:

	December 31, 2015						December 31, 2014
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	202,608	$	82,390	$	120,218	$	150,953	$	18,104	$	132,849
Intangible market lease assets	28,262		3,393		24,869		25,307		1,008		24,299
Other intangible assets	10,589		309		10,280		10,589		44		10,545
Total acquired intangible assets	$	241,459	$	86,092	$	155,367	$	186,849	$	19,156	$	167,693
Intangible market lease liabilities	$	25,613	$	2,619	$	22,994	$	19,897	$	362	$	19,535

Real estate investments that are intended to be sold are designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount or fair value less estimated selling costs when they meet specific criteria to be presented as held for sale. Real estate investments are no longer depreciated when they are classified as held for sale. If the disposal, or intended disposal, of certain real estate investments represents a strategic shift that has had or will have a major effect on the Company's operations and financial results, the operations of such real estate investments would be presented as discontinued operations in the consolidated statements of operations and comprehensive loss for all applicable periods. The Company had not sold and did not intend to sell any properties as of December 31, 2015 and 2014.

Depreciation and Amortization

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements, five years for fixtures and improvements, and the shorter of the useful life or the remaining lease term for tenant improvements and leasehold interests.

Construction in progress, including capitalized interest, insurance and real estate taxes, is not depreciated until the development has reached substantial completion.

The assumed mortgage premiums or discounts are amortized as an increase or reduction to interest expense over the remaining term of the respective mortgages.

Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market lease values are accreted as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods.

Capitalized above-market ground lease values are accreted as a reduction of property operating expense over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property operating expense over the remaining terms of the respective leases and expected below-market renewal option periods.

The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to expense over the remaining periods of the respective leases.

For the years ended December 31, 2015, 2014 and 2013, amortization of in-place leases and other intangible assets of $75.2 million, $17.9 million and $0.3 million, respectively, is included in depreciation and amortization expense on the consolidated statements of operations and comprehensive loss. For the years ended December 31, 20152014 and 2013, net amortization of intangible market lease assets and liabilities relating to assumed tenant leases of $0.4 million, $0.6 million and approximately $13,000 respectively, is deducted from rental income on the consolidated statements of operations and comprehensive loss. For the year ended December 31, 2015 and 2014, net amortization of intangible market lease assets and liabilities related to assumed leasehold interests of $0.2 million and approximately $29,000, respectively, is included in property operating and maintenance expense on the consolidated statements of operations and comprehensive loss. The Company did not have any intangible market lease assets or liabilities related to assumed leasehold interest and therefore did not have amortization of intangible market lease assets and liabilities related to assumed leasehold interests included in property operating and maintenance expense on the consolidated statements of operations and comprehensive loss during the year ended December 31, 2013.

The following table provides the projected amortization expense and adjustments to revenues for the next five years:

(In thousands)	2016			2017			2018			2019			2020
In-place lease assets	$	34,526		$	16,322		$	14,031		$	11,465		$	9,106
Other intangible assets	265			265			265			265			265
Total to be added to amortization expense	$	34,791		$	16,587		$	14,296		$	11,730		$	9,371
Above-market lease assets	$	(2,210	)	$	(1,888	)	$	(1,367	)	$	(1,079	)	$	(737	)
Below-market lease liabilities	2,430			2,115			1,886			1,605			1,450
Total to be added to rental income	$	220		$	227		$	519		$	526		$	713
Below-market ground lease assets	$	212		$	212		$	212		$	212		$	212
Above-market ground lease liabilities	(39		)	(39		)	(39		)	(39		)	(39		)
Total to be added to property operating and maintenance expense	$	173		$	173		$	173		$	173		$	173

Impairment of Long Lived Assets

If circumstances indicate that the carrying value of a property may not be recoverable, the Company reviews the asset for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. Impairment assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income.

Cash and Cash Equivalents

Cash and cash equivalents includes cash in bank accounts as well as investments in highly-liquid money market funds with original maturities of three months or less. As of December 31, 2015 and 2014, approximately $22,000 and $134.2 million was held in money market funds with the Company's financial institutions.

The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company ("FDIC") up to an insurance limit. At December 31, 2015 and 2014, the Company had deposits of $24.5 million and $182.6 million, of which $12.2 million and $173.1 million, respectively, were in excess of the amount insured by the FDIC. Although the Company bears risk to amounts in excess of those insured by the FDIC, it does not anticipate any losses as a result.

Restricted Cash

Restricted cash generally consists of resident security deposits and reserves related to real estate taxes, maintenance, structural improvements, and debt service.

Investments in Securities

The Company classifies its investments in debt or equity securities into one of three classes: held-to-maturity, available-for-sale or trading, as applicable.  Investments in debt securities that the Company has the positive intent and ability to hold until maturity are classified as held-to-maturity and are reported at amortized cost. Debt and equity securities that are bought and held principally for the purposes of selling them in the near future are classified as trading securities. Debt and equity securities not classified as trading securities or as held-to-maturity securities are classified as available-for-sale securities and are reported at fair value, with unrealized holding gains and losses reported as a component of equity within accumulated other comprehensive income or loss. Gains or losses on securities sold are based on the specific identification method.

The Company evaluates its investments in securities for impairment or other-than-temporary impairment on a quarterly basis.  The Company reviews each investment individually and assesses factors that may include (i) if the carrying amount of an investment exceeds its fair value, (ii) if there has been any change in the market as a whole or in the investee’s market, (iii) if there are any plans to sell the investment in question or if the Company believes it may be forced to sell its investment, and (iv) if there have been any other factors that would indicate the possibility of the existence of an other-than-temporary impairment. The fair value of the Company’s investments in available-for-sale securities generally rise and fall based on current market conditions. If, after reviewing relevant factors surrounding an impaired security, the Company determines that it will not recover its full investment in an impaired security, the Company recognizes an other-than-temporary impairment charge in the consolidated statements of operations and comprehensive loss in the period in which the other-than-temporary impairment is determined, regardless of whether or not the Company plans to sell or believes it will be forced to sell the security in question. 

Deferred Costs, Net

Deferred costs, net, consists of deferred financing costs and deferred leasing costs. Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method and included in interest expense on the accompanying consolidated statements of operations and comprehensive loss. Unamortized deferred financing costs are expensed if the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close. As of December 31, 2015 and 2014, the Company had $13.6 million and $4.1 million of deferred financing costs, net of accumulated amortization of $4.0 million and $1.3 million, respectively.

Deferred leasing costs, consisting primarily of lease commissions and professional fees incurred in connection with new leases, are deferred and amortized over the term of the lease. As of December 31, 2015 and 2014, the Company had $0.4 million and $0.1 million in deferred leasing costs, net of accumulated amortization of $0.1 million and approximately $24,000.

Revenue Recognition

The Company's rental income is primarily related to rent received from tenants in MOBs and triple-net leased healthcare facilities. Rent from tenants in the Company's MOB and triple-net leased healthcare facilities operating segments (as discussed below) is recorded in accordance with the terms of each lease on a straight-line basis over the initial term of the lease. Because many of the leases provide for rental increases at specified intervals, GAAP requires the Company to record a receivable, and include in revenues on a straight-line basis, unbilled rent receivables that the Company will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. When the Company acquires a property, the acquisition date is considered to be the commencement date for purposes of this calculation.

Cost recoveries from tenants are included in operating expense reimbursement in the period the related costs are incurred, as applicable.

Resident services and fee income primarily relates to rent from residents in the Company's seniors housing — operating properties ("SHOP") held using a structure permitted by the REIT Investment Diversification and Empowerment Act of 2007 and to fees for ancillary services performed for SHOP residents. Rental income from residents in the Company's SHOP operating segment is recognized as earned. Residents pay monthly rent that covers occupancy of their unit and basic services, including utilities, meals and some housekeeping services. The terms of the rent are short term in nature, primarily month-to-month. Fees for ancillary services are recorded in the period in which the services are performed.

The Company defers the revenue related to lease payments received from tenants and residents in advance of their due dates.

The Company continually reviews receivables related to rent and unbilled rent receivables and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, the Company records an increase in the allowance for uncollectible accounts on the consolidated balance sheets or records a direct write-off of the receivable in the consolidated statements of operations.

Offering and Related Costs

Offering and related costs include all expenses incurred in connection with the IPO. Offering costs of the Company (other than selling commissions and the dealer manager fee, as discussed in Note 9 — Related Party Transactions and Arrangements) may be paid by the Advisor, the Former Dealer Manager or their affiliates on behalf of the Company. Offering and related costs included (i) legal, accounting, printing, mailing, and filing fees; (ii) escrow service related fees; (iii) reimbursement of the Former Dealer Manager for amounts it paid to reimburse the itemized and detailed due diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for a portion of the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company was obligated to reimburse the Advisor or its affiliates, as applicable, for offering costs paid by them on behalf of the Company, provided that the Advisor was obligated to reimburse the Company to the extent offering costs (excluding selling commissions and the dealer manager fee) incurred by the Company in its offering exceed 2.0% of offering proceeds, net of repurchases and DRIP. As a result, these costs were only a liability of the Company to the extent aggregate selling commissions, the dealer manager fees and other organization and offering costs did not exceed 12.0% of the gross proceeds determined at the end of the IPO. As of the end of the IPO in November 2014, cumulative offering costs did not exceed 12.0% of the gross proceeds received in the IPO (See Note 9 — Related Party Transactions and Arrangements).

Equity-Based Compensation

The Company has a stock-based incentive award plan for its directors, which is accounted for under the guidance of share based payments. The expense for such awards is included in general and administrative expenses and is recognized over the vesting period or when the requirements for exercise of the award have been met (See Note 11 — Equity-Based Compensation).

Income Taxes

The Company elected and qualified to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986 (the "Code"), as amended, commencing with the taxable year ended December 31, 2013. If the Company continues to qualify for taxation as a REIT, it generally will not be subject to federal corporate income tax to the extent it distributes all of its REIT taxable income to its stockholders. REITs are subject to a number of organizational and operational requirements, including a requirement that the Company distribute annually at least 90% of the Company’s REIT taxable income to the Company’s stockholders. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates (including any applicable alternative minimum tax) beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. The Company distributed to its stockholders 100% of its REIT taxable income for each of the years ended December 31, 2015, 2014 and 2013. Accordingly, no provision for federal or state income taxes related to such REIT taxable income was recorded in the Company's financial statements. Even if the Company continues to qualify for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

Certain limitations are imposed on REITs with respect to the ownership and operation of seniors housing communities.  Generally, to qualify as a REIT, the Company cannot directly or indirectly operate seniors housing communities.  Instead, such facilities may be either leased to a third party operator or leased to a taxable REIT subsidiary (“TRS”) and operated by a third party on behalf of the TRS.  Accordingly, the Company has formed a TRS entity under the OP to lease its SHOPs and the TRS has entered into management contracts with unaffiliated third party managers to operate the facilities on its behalf.

As of December 31, 2015, the Company, through its TRS entity, owned 38 seniors housing communities. The TRS entity is a wholly-owned subsidiary of the OP. A TRS is subject to federal, state and local income taxes. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event the Company determines that it would not be able to realize the deferred income tax assets in the future in excess of the net recorded amount, the Company establishes a valuation allowance which offsets the previously recognized income tax benefit. Deferred income taxes result from temporary differences between the carrying amounts of the TRS's assets and liabilities used for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred tax assets and liabilities as of December 31, 2015 consisted of deferred rent and depreciation. As of December 31, 2015, the Company had a deferred tax asset of $2.9 million with no valuation allowance. As of December 31, 2014, the Company had a deferred tax asset of $0.7 million and a valuation allowance of $0.7 million.

The following table details the composition of the Company's tax benefit (expense) for the years ended December 31, 2015, 2014 and 2013, which includes federal and state income taxes incurred by the Company's TRS entity. The Company estimated its income tax benefit (expense) relating to its TRS entity using a combined federal and state rate of approximately 40.2% and 39.6% for the years ended December 31, 2015 and 2014, respectively. These income taxes are reflected in income tax benefit (expense) on the accompanying consolidated statements of operations and comprehensive loss.

	Years Ended December 31,
	2015				2014					2013
(In thousands)	Current		Deferred		Current			Deferred		Current		Deferred
Federal benefit (expense)	$	1,667	$	762	$	(450	)	$	—	$	—	$	—
State benefit (expense)	358		191		(115		)	—		5		—
Total	$	2,025	$	953	$	(565	)	$	—	$	5	$	—

As of December 31, 2015 and 2014, the Company had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended December 31, 2012 remain open to examination by the major taxing jurisdictions to which the Company is subject.

The amount of distributions payable to the Company's stockholders is determined by the board of directors and is dependent on a number of factors, including funds available for distribution, financial condition, capital expenditure requirements, as applicable, and annual distribution requirements needed to qualify and maintain the Company's status as a REIT under the Code.

The following table details from a tax perspective the portion of distributions classified as a return of capital, capital gain dividend income and ordinary dividend income, per share per annum, for the years ended December 31, 2015, 2014 and 2013:

	Years Ended December 31,
	2015				2014				2013
Return of capital	97.9	%	$	1.66	93.7	%	$	1.59	97.7	%	$	1.01
Capital gain dividend income	0.3	%	0.01		—	%	—		—	%	—
Ordinary dividend income	1.8	%	0.03		6.3	%	0.11		2.3	%	0.02
Total	100.0	%	$	1.70	100.0	%	$	1.70	100.0	%	$	1.03

Per Share Data

Net income (loss) per basic share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock considers the effect of potentially dilutive shares of common stock outstanding during the period.

Reportable Segments

The Company has determined that it has three reportable segments, with activities related to investing in MOBs, triple-net leased healthcare facilities, and seniors housing communities. Management evaluates the operating performance of the Company's investments in real estate and seniors housing communities on an individual property level.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of this new guidance.

In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to the Company's consolidated financial position, results of operations and cash flows.

In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company has elected to adopt this guidance effective January 1, 2016. The Company has assessed the impact from the adoption of this revised guidance and has determined that there will be no material impact to its financial position, results of operations and cash flows.

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendment requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company has elected to adopt this guidance effective January 1, 2016. The adoption of this revised guidance will result in the reclassification of $2.2 million of deferred issuance costs related to the Company's mortgage notes payable from deferred costs, net to mortgage notes payable in the Company's consolidated balance sheet as of December 31, 2015.

In September 2015, the FASB issued an update that eliminates the requirement to adjust provisional amounts from a business combination and the related impact on earnings by restating prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of measurement period adjustments on current and prior periods, including the prior period impact on depreciation, amortization and other income statement items and their related tax effects, shall be recognized in the period the adjustment amount is determined. The cumulative adjustment would be reflected within the respective financial statement line items affected. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted. The Company elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to the Company's financial position, results of operations and cash flows.

In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of this new guidance.

In February 2016, the FASB issued an update that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance is effective on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

XML

Real Estate Investments

12 Months Ended

Dec. 31, 2015

Real Estate Investments, Net [Abstract]

Real Estate Investments

Note 3 — Real Estate Investments

The Company owned 166 properties as of December 31, 2015. The Company invests in MOBs, seniors housing communities and other healthcare-related facilities primarily to expand and diversify its portfolio and revenue base. The rentable square feet or annualized straight-line rental income of Wellington at Hershey's Mill ("Wellington") represented 5% or more of the Company's total portfolio's rentable square feet or annualized straight-line rental income as of December 31, 2015.

On December 3, 2014, the Company, through a wholly owned subsidiary of the OP, completed the acquisition of the fee simple interest in Wellington, a seniors housing community located in West Chester, Pennsylvania. The seller of Wellington was First Somerset, LLC, which had no preexisting relationship with the Company. The contract purchase price of Wellington was $95.0 million and was funded with proceeds from the Company's ongoing IPO. The Company accounted for the purchase of Wellington as a business combination and incurred acquisition related costs of $2.7 million, which are reflected in the acquisition and transaction related line item of the consolidated statements of operations and comprehensive loss.

The following table presents the allocation of the assets acquired during the years ended December 31, 2015, 2014 and 2013:

	Years Ended December 31,
(Dollar amounts in thousands)	2015			2014			2013
Real estate investments, at cost:
Land	$	79,329		$	109,679		$	3,782
Buildings, fixtures and improvements	519,185			1,325,721			35,996
Construction in progress	21,309			—			—
Total tangible assets	619,823			1,435,400			39,778
Acquired intangibles:
In-place leases (1)	62,584			145,464			5,489
Market lease and other intangible assets (1)	3,223			34,877			1,019
Market lease liabilities (1)	(10,064		)	(19,837		)	(61		)
Total assets and liabilities acquired, net	675,566			1,595,904			46,225
Mortgage notes payable assumed to acquire real estate investments	(100,058		)	(66,321		)	—
Premiums on mortgages assumed	(1,492		)	(3,533		)	—
Other assets and liabilities, net (2)	(882		)	(9,040		)	(91		)
Deposits for real estate acquisitions	(3,000		)	—			—
OP units issued to acquire real estate	—			(10,148		)	—
Cash paid for acquired real estate investments	$	570,134		$	1,506,862		$	46,134
Number of properties purchased	48			111			7

_______________

(1) Weighted-average remaining amortization periods for in-place leases, market lease and other intangible assets and market lease liabilities acquired during the years ended December 31, 2015 were 4.9, 6.1 and 14.1 years, respectively, as of each property's respective acquisition date.

(2) Other assets and liabilities, net includes $0.9 million in tenant security deposits assumed at acquisition for properties acquired during the year ended December 31, 2015. Other assets and liabilities, net includes $4.2 million in tenant security deposits assumed at acquisition for properties acquired and a $4.8 million capital lease obligation incurred in conjunction with the transaction described below for the year ended December 31, 2014. Other assets and liabilities, net includes $0.1 million in tenant security deposits assumed at acquisition for properties acquired during the year ended December 31, 2013.

During the year ended December 31, 2014, the Company acquired leasehold interests in eight properties and has accounted for such interests as capital leases. The Company allocated $144.4 million and $34.1 million of assets at cost associated with the building leasehold interests to buildings, fixtures and improvements and in-place leases, respectively, in the table above. Additionally, the Company entered into arrangements to sublease all or a portion of the eight properties back to the seller, and assumed in-place subleases with other third-party tenants. Future minimum base rental payments due to the Company under subleases to the seller and other third-party tenants as of December 31, 2015 totaled $128.6 million. See Note 16 — Commitments and Contingencies for minimum base cash rental payments due from the Company to the seller under these leasehold interests.

The following table presents unaudited pro forma information as if the acquisitions that were completed during the years ended December 31, 2015 had been consummated on January 1, 2013. Additionally, the unaudited pro forma net loss was adjusted to reclassify acquisition and transaction related expense of $14.6 million from the years ended December 31, 2015 to the years ended December 31, 2014.

	Years Ended December 31,
(In thousands)	2015			2014			2013
Pro forma revenues (1)	$	302,539		$	138,872		$	82,250
Pro forma net loss (1)	$	(38,284	)	$	(53,157	)	$	(30,293	)
Basic and diluted pro forma net loss per share	$	(0.45	)	$	(1.04	)	$	(14.10	)

___________________

(1) For the years ended December 31, 2015, aggregate revenues and net loss derived from the Company's 2015 acquisitions (for the Company's period of ownership) were $25.4 million and $(4.2) million, respectively.

The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter as of December 31, 2015.  These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes, among other items.

(In thousands)	Future Minimum Base Rent Payments
2016	$	94,110
2017	94,232
2018	89,568
2019	83,333
2020	77,006
Thereafter	510,096
Total	$	948,345

The following table lists the tenants (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income for all properties on a straight-line basis as of December 31, 2015, 2014 and 2013:

	December 31,
Tenant	2015	2014	2013
Adena Health System	*	*	10.8%
Advocate Health and Hospitals Corporation	*	*	10.9%
HH/Killeen Health System, LLC	*	*	12.8%
IASIS Healthcare, LLC	*	*	15.3%
National Mentor Holdings, Inc.	*	*	24.8%

_______________________________

* Tenant's annualized rental income on a straight-line basis was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.

The following table lists the states where the Company has a concentration of properties where annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis for all properties as of December 31, 2015, 2014 and 2013:

	December 31,
State	2015	2014	2013
Colorado	*	*	24.8%
Florida	18.6%	24.6%	*
Illinois	*	*	23.0%
Iowa	10.1%	13.9%	*
Louisiana	*	*	15.3%
Ohio	*	*	10.8%
Pennsylvania	11.4%	15.2%	*
Texas	*	*	12.8%

_______________________________

* State's annualized rental income on a straight-line basis was not 10% or more of total annualized rental income on a straight-line basis for all portfolio properties as of the period specified.

XML

Investment Securities

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 4 — Investment Securities

As of December 31, 2015 and 2014, the Company had investments with an aggregate fair value of $1.1 million and $20.3 million, respectively. Investments as of December 31, 2014 included real estate income funds managed by an affiliate of the Sponsor (see Note 9 — Related Party Transactions and Arrangements), which were sold during the third quarter of 2015. These investments are considered available-for-sale securities and, therefore, increases or decreases in the fair value of these investments are recorded in accumulated other comprehensive income as a component of equity on the consolidated balance sheets unless the securities are considered to be other than temporarily impaired, at which time the losses would be reclassified to expense.

The following table details the unrealized gains and losses on investment securities as of December 31, 2015 and 2014.

(In thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2015
Equity securities	$	1,084	$	19	$	(25	)	$	1,078
December 31, 2014
Equity securities	$	19,397	$	477	$	(33	)	$	19,841
Debt security	426		19		—			445
Total	$	19,823	$	496	$	(33	)	$	20,286

The Company's investments in preferred stock have not been in a continuous unrealized loss position during the last twelve months. The Company believes that the decline in fair value is a factor of current market conditions and, as such, considers the unrealized losses as of December 31, 2015 to be temporary. Therefore no impairment was recorded during the year ended December 31, 2015.

During the year ended December 31, 2015, the Company sold certain of its investments in preferred stock, common stock, real estate income funds and its investment in a senior note with a cost of $18.8 million for $19.3 million, which resulted in a realized gain on sale of investment of $0.4 million. During the year ended December 31, 2014, the Company sold investments in preferred stock for proceeds of $0.5 million, which resulted in a gain on sale of investment of approximately $8,000.

The Company's preferred stock investments, with an aggregate fair value of $1.1 million as of December 31, 2015, are redeemable at the respective issuer's option five years after issuance.

XML

Credit Facility

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Credit Facility

Note 5 — Credit Facility

On March 21, 2014, the Company entered into a senior secured credit facility in the amount of $50.0 million (the "Credit Facility"). On April 15, 2014 the amount available under the Credit Facility was increased to $200.0 million.

On June 26, 2015, the Company entered into an amendment to the Credit Facility which, among other things, allowed for borrowings of up to $500.0 million. On July 31, 2015, the available borrowings were increased to $565.0 million. The Credit Facility also contains a subfacility for letters of credit of up to $25.0 million. The Credit Facility contains an "accordion" feature to allow the Company, under certain circumstances, to increase the aggregate borrowings under the Credit Facility to a maximum of $750.0 million. The amendment to the Credit Facility included changes to amounts committed by each of the banks in the syndicate, which resulted in a write off of deferred financing costs of $0.5 million during the year ended December 31, 2015. There were no such writeoffs of deferred financings costs during the year ended December 31, 2014.

The Company has the option, based upon its leverage, to have the Credit Facility priced at either: (a) LIBOR, plus an applicable margin that ranges from 1.60% to 2.20%; or (b) the Base Rate, plus an applicable margin that ranges from 0.35% to 0.95%. Base Rate is defined in the Credit Facility as the greater of (i) the fluctuating annual rate of interest announced from time to time by the lender as its “prime rate,” (ii) 0.5% above the federal funds effective rate or (iii) the applicable one-month LIBOR plus 1.0%.

The Credit Facility provides for monthly interest payments for each Base Rate loan and periodic payments for each LIBOR loan, based upon the applicable LIBOR loan period, with all principal outstanding being due on the maturity date of March 21, 2019. The Credit Facility may be prepaid at any time, in whole or in part, without premium or penalty (subject to standard breakage costs). In the event of a default, the lender has the right to terminate its obligations under the Credit Facility and to accelerate the payment on any unpaid principal amount of all outstanding loans.

As of December 31, 2015, the balance outstanding under the Credit Facility was $430.0 million, with an effective interest rate of 1.8%. The Company's unused borrowing capacity was $135.0 million, based on assets assigned to the Credit Facility as of December 31, 2015. Availability of borrowings is based on a pool of eligible unencumbered real estate assets. There were no advances outstanding as of December 31, 2014.

The Credit Facility requires the Company to meet certain financial covenants, including the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) as well as the maintenance of a minimum net worth. As of December 31, 2015, the Company was in compliance with the financial covenants under the Credit Facility.

XML

Mortgage Notes Payable

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Mortgage Notes Payable

Note 6 — Mortgage Notes Payable

The following table reflects the Company's mortgage notes payable as of December 31, 2015 and 2014:

		Outstanding Loan Amount as of December 31,				Effective Interest Rate
Portfolio	Encumbered Properties	2015		2014					Interest Rate		Maturity
		(In thousands)		(In thousands)
Creekside Medical Office Building - Douglasville, GA	—	$	—	$	5,154	5.32	%		Fixed		Sep. 2015
Bowie Gateway Medical Center - Bowie, MD	1	5,969		6,055		6.18	%		Fixed		Sep. 2016
Medical Center of New Windsor - New Windsor, NY	1	8,720		8,832		6.39	%		Fixed		Sep. 2017
Plank Medical Center - Clifton Park, NY	1	3,461		3,506		6.39	%		Fixed		Sep. 2017
Cushing Center - Schenectady, NY	1	4,184		4,287		5.71	%		Fixed		Feb. 2016
Countryside Medical Arts - Safety Harbor, FL	1	5,992		6,076		6.07	%		Fixed	(1)	Apr. 2019
St. Andrews Medical Park - Venice, FL	3	6,623		6,716		6.07	%		Fixed	(1)	Apr. 2019
Campus at Crooks & Auburn Building C - Rochester Hills, MI	1	3,555		3,626		5.91	%		Fixed		Apr. 2016
Slingerlands Crossing Phase I - Bethlehem, NY	1	6,680		6,759		6.39	%		Fixed		Sep. 2017
Slingerlands Crossing Phase II - Bethlehem, NY	1	7,777		7,877		6.39	%		Fixed		Sep. 2017
Benedictine Cancer Center - Kingston, NY	1	6,811		6,898		6.39	%		Fixed		Sep. 2017
Aurora Healthcare Center Portfolio - WI	6	31,257		—		6.55	%		Fixed		Jan. 2018
Palm Valley Medical Plaza - Goodyear, AZ	1	3,525		—		4.21	%		Fixed		Jun. 2023
Medical Center V - Peoria, AZ	1	3,232		—		4.75	%		Fixed		Sep. 2023
Courtyard Fountains - Gresham, OR	1	24,999		—		3.82	%		Fixed	(2)	Jan. 2020
Fox Ridge Bryant - Bryant, AR	1	7,825		—		3.98	%		Fixed		May 2047
Fox Ridge Chenal - Little Rock, AR	1	17,800		—		3.98	%		Fixed		May 2049
Fox Ridge North Little Rock - North Little Rock, AR	1	11,045		—		3.98	%		Fixed		May 2047
Total	24	$	159,455	$	65,786	5.32	%	(3)

_______________

(1)    Fixed interest rate through May 10, 2017. Interest rate changes to variable rate starting in June 2017.

(2)    Interest only payments through July 1, 2016. Principal and interest payments starting in August 2016.

(3)    Calculated on a weighted average basis for all mortgages outstanding as of December 31, 2015.

As of December 31, 2015 and December 31, 2014, the Company had pledged $301.7 million and $122.4 million, respectively, in real estate, at cost, as collateral for these mortgage notes payable. This real estate is not available to satisfy other debts and obligations unless first satisfying the mortgage notes payable on the properties. Except as noted above, the Company makes payments of principal and interest on all of its mortgage notes payable on a monthly basis.

The following table summarizes the scheduled aggregate principal payments on mortgage notes payable for the five years subsequent to December 31, 2015:

(In thousands)	Future Principal Payments
2016	$	15,650
2017	34,832
2018	31,893
2019	13,324
2020	24,279
Thereafter	39,477
Total	$	159,455

Some of the Company's mortgage note agreements require the compliance with certain property-level financial covenants including debt service coverage ratios. As of December 31, 2015, the Company was in compliance with the financial covenants under its mortgage note agreements.

XML

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 7 — Fair Value of Financial Instruments

GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below:

Level 1 — Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3 — Unobservable inputs that reflect the entity's own assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare.

The Company has or had investments in common stock, redeemable preferred stock, real estate income funds and a senior note that are traded in active markets and therefore, due to the availability of quoted market prices in active markets, the Company has classified these investments as Level 1 in the fair value hierarchy.

The following table presents information about the Company's assets measured at fair value on a recurring basis as of December 31, 2015 and 2014, aggregated by the level in the fair value hierarchy within which those instruments fall.

(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
December 31, 2015
Investment securities	$	1,078	$	—	$	—	$	1,078
December 31, 2014
Investment securities	$	20,286	$	—	$	—	$	20,286

The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, receivable for sale of common stock, straight-line rent receivable, prepaid expenses and other assets, deferred costs, net, accounts payable and accrued expenses, deferred rent and distributions payable approximates their carrying value on the consolidated balance sheets due to their short-term nature. The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below:

		Carrying Amount (1) at		Fair Value at		Carrying Amount (1) at		Fair Value at
(In thousands)	Level	December 31, 2015		December 31, 2015		December 31, 2014		December 31, 2014
Mortgage notes payable and premiums, net	3	$	161,858	$	162,654	$	68,630	$	69,117
Credit Facility	3	$	430,000	$	430,000	$	—	$	—

_______________________________

(1) Carrying value includes mortgage notes payable of $159.5 million and $65.8 million and mortgage premiums, net of $2.4 million and $2.8 million as of December 31, 2015 and December 31, 2014, respectively.

The fair value of the mortgage notes payable is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of borrowing arrangements. Advances under the Credit Facility are considered to be reported at fair value, because the Credit Facility's interest rate varies with changes in LIBOR.

XML

Common Stock

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Common Stock

Note 8 — Common Stock

As of December 31, 2015 and December 31, 2014, the Company had 86.1 million and 83.7 million shares of common stock outstanding, respectively, including unvested restricted shares and shares issued pursuant to the DRIP and had received total proceeds of $2.1 billion, including proceeds from shares issued pursuant to the DRIP.

The Company has paid distributions on a monthly basis to stockholders of record on a daily basis at a rate equal to $0.0046575343 per day, which is equivalent to $1.70 per annum, per share of common stock, beginning on May 24, 2013. Distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured.

Share Repurchase Program

The Company's board of directors has adopted the SRP, which enables stockholders to sell their shares to the Company in limited circumstances. The SRP permits investors to sell their shares back to the Company after they have held them for at least one year, subject to the significant conditions and limitations described below.

Prior to the time that the Company’s shares are listed on a national securities exchange and until the Company begins to calculate its NAV, the repurchase price per share depends on the length of time investors have held such shares, as follows: after one year from the purchase date — the lower of $23.13 or 92.5% of the amount they actually paid for each share; after two years from the purchase date — the lower of $23.75 or 95.0% of the amount they actually paid for each share; after three years from the purchase date — the lower of $24.38 or 97.5% of the amount they actually paid for each share; and after four years from the purchase date — the lower of $25.00 or 100.0% of the amount they actually paid for each share (in each case, as adjusted for any stock distributions, combinations, splits and recapitalizations).

In accordance with the SRP Amendment (described below) and beginning with the NAV Pricing Date, the price per share that the Company will pay to repurchase its shares will be equal to its NAV multiplied by a percentage equal to (i) 92.5%, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95%, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5%, if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100%, if the person seeking repurchase has held his or her shares for a period greater than four years. Subject to limited exceptions, stockholders who redeem their shares of our common stock within the first four months from the date of purchase will be subject to a short-term trading fee of 2% of the aggregate NAV per share of the shares of common stock received.

Repurchases of shares of the Company's common stock, when requested, are at the sole discretion of the board of directors. Until the SRP Amendment (described below), the Company limited the number of shares repurchased during any calendar year to 5% of the weighted average number of shares of common stock outstanding on December 31st of the previous calendar year. In addition, the Company was only authorized to repurchase shares in a given quarter up to the amount of proceeds received from its DRIP in that same quarter.

On January 26, 2016, the Company's board of directors approved and amended the SRP (the "SRP Amendment") to supersede and replace the existing SRP. Under the SRP Amendment, repurchases of shares of the Company's common stock, when requested, are at the sole discretion of the board of directors and generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. In addition, the Company is only authorized to repurchase shares in a given fiscal semester up to the amount of proceeds received from its DRIP in that same fiscal semester.

When a stockholder requests redemption and the redemption is approved, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares purchased under the SRP will have the status of authorized but unissued shares. The following table reflects the number of shares repurchased cumulatively through December 31, 2015:

	Number of Shares Repurchased	Average Price per Share
Cumulative repurchases as of December 31, 2014	74,031	$	24.42
Year ended December 31, 2015 (1)	894,339	23.66
Cumulative repurchases as of December 31, 2015 (1)	968,370	$	23.72

_____________________________

(1) As permitted under the SRP, in January 2016, the Company's board of directors authorized, with respect to redemption requests received during the three months ended December 31, 2015, the repurchase of shares validly submitted for repurchase in an amount equal to 1.0% of the weighted average number of shares of common stock outstanding during the fiscal year ended December 31, 2014, representing less than all the shares validly submitted for repurchase during the three months ended December 31, 2015. Accordingly, 512,408 shares for $12.0 million at an average repurchase price per share of $23.45 (including all shares submitted for death or disability) were approved and completed in February 2016, while 201,367 shares for $4.6 million at an average price per share of $23.04 were not fulfilled. The accrual for these repurchases is reflected in the accounts payable and accrued expenses line of the accompanying consolidated balance sheets. There were no other unfulfilled share repurchases for the period from October 15, 2012 (date of inception) to December 31, 2015.

Distribution Reinvestment Plan

Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased under the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the IPO. The board of directors may designate that certain cash or other distributions be excluded from reinvestment pursuant to the DRIP. The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days' notice to participants. Shares issued under the DRIP are recorded as equity in the accompanying consolidated balance sheet in the period distributions are declared. During the years ended December 31, 2015 and 2014, the Company issued 3.3 million and 1.8 million shares of common stock pursuant to the DRIP, generating aggregate proceeds of $78.5 million and $41.6 million, respectively.

Note 12 — Accumulated Other Comprehensive Income

The following table illustrates the changes in accumulated other comprehensive income as of and for the period presented:

(In thousands)	Unrealized Gains on Available-for-Sale Securities
Balance, December 31, 2013	$	—
Other comprehensive income, before reclassifications	471
Amounts reclassified from accumulated other comprehensive income (1)	(8		)
Balance, December 31, 2014	463
Other comprehensive loss, before reclassifications	(23		)
Amounts reclassified from accumulated other comprehensive income (1)	(446		)
Balance, December 31, 2015	$	(6	)

__________________

(1) During the years ended December 31, 2015and 2014, the Company sold certain of its investments in preferred stock, common stock, real estate income funds and its investment in a senior note which resulted in a realized gain of $0.4 million and approximately $8,000, respectively, which is included in gain on sale of investment securities on the consolidated statement of operations and comprehensive loss.

XML

Related Party Transactions and Arrangements

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions and Arrangements

Note 9 — Related Party Transactions and Arrangements

As of December 31, 2015 and 2014, Healthcare Trust Special Limited Partnership, LLC (the "Special Limited Partner"), formerly known as American Realty Capital Healthcare II Special Limited Partnership, LLC, owned 8,888 shares of the Company's outstanding common stock. The Advisor and its affiliates may incur and pay costs and fees on behalf of the Company.

The Company owned shares in real estate income funds managed by an affiliate of the Sponsor during the years ended December 31, 2015 (see Note 4 — Investment Securities). The Company sold these shares during the three months ended September 30, 2015.

On January 14, 2015, the Company purchased the Acuity Specialty Hospital portfolio from American Realty Capital Healthcare Trust, Inc. ("HCT") for a contract purchase price of $39.4 million. At the time of such purchase, the Sponsor and Advisor and the sponsor and advisor of HCT were under common control.

The limited partnership agreement of the OP provides for a special allocation, solely for tax purposes, of excess depreciation deductions of up to $10.0 million to the Company's Advisor, a limited partner of the OP.  In connection with this special allocation, the Company's Advisor has agreed to restore a deficit balance in its capital account in the event of a liquidation of the OP and has agreed to provide a guaranty or indemnity of indebtedness of the OP.

Fees Paid in Connection with the IPO

The Former Dealer Manager was paid fees in connection with the sale of the Company's common stock in the IPO. The Company paid the Former Dealer Manager a selling commission of up to 7.0% of the per share purchase price of offering proceeds before reallowance of commissions earned by participating broker-dealers. In addition, the Company paid the Former Dealer Manager up to 3.0% of the gross proceeds from the sale of shares, before reallowance to participating broker-dealers, as a dealer manager fee. The Former Dealer Manager was permitted to reallow its dealer manager fee to participating broker-dealers. A participating broker-dealer could elect to receive a fee equal to 7.5% of the gross proceeds from the sale of shares by such participating broker-dealer, with 2.5% thereof paid at the time of such sale and 1.0% thereof paid on each anniversary of the closing of such sale up to and including the fifth anniversary of the closing of such sale. If this option had been elected, the dealer manager fee would have been reduced to 2.5% of gross proceeds. The following table details total selling commissions and dealer manager fees incurred from and due to the Former Dealer Manager as of and for the periods presented:

	Years Ended December 31,							Payable as of December 31,
(In thousands)	2015			2014		2013		2015		2014
Total commissions and fees incurred from (reimbursed by) and due to the Former Dealer Manager	$	(2	)	$	175,575	$	17,481	$	—	$	1

The Advisor and its affiliates received compensation and reimbursement for services relating to the IPO, including transfer agent services provided by an affiliate of the Former Dealer Manager. All offering costs incurred by the Company or its affiliated entities on behalf of the Company were charged to additional paid-in capital on the accompanying balance sheet during the IPO. The following table details reimbursable offering costs incurred from and due to the Advisor and Former Dealer Manager as of and for the periods presented:

	Years Ended December 31,						Payable as of December 31,
(In thousands)	2015		2014		2013		2015		2014
Fees and expense reimbursements incurred from and due to the Advisor	$	—	$	21,767	$	3,807	$	—	$	—
Fees and expense reimbursements incurred from and due to the Former Dealer Manager	—		3,262		1,190		—		605
Total fees and expense reimbursements incurred from and due to the Advisor and Former Dealer Manager	$	—	$	25,029	$	4,997	$	—	$	605

The Company was responsible for paying offering and related costs from the IPO, excluding commissions and dealer manager fees, up to a maximum of 2.0% of gross proceeds received from the IPO, measured at the end of the IPO. Offering costs, excluding selling commissions and dealer manager fees, in excess of the 2.0% cap as of the end of the IPO were to be the Advisor's responsibility. As of the end of the IPO, offering and related costs, excluding selling commissions and dealer manager fees, did not exceed 2.0% of gross proceeds received from the IPO. In aggregate, offering costs including selling commissions and dealer manager fees were the Company's responsibility up to a maximum of 12.0% of the gross proceeds received from the IPO as determined at the end of the IPO. As of the end of the IPO in November 2014, offering costs were less than 12.0% of the gross proceeds received in the IPO.

Fees Paid in Connection With the Operations of the Company

The Advisor is paid an acquisition fee equal to 1.0% of the contract purchase price of each acquired property and 1.0% of the amount advanced for a loan or other investment. The Advisor is also reimbursed for services provided for which it incurs investment-related expenses, or insourced expenses. The amount reimbursed for insourced expenses may not exceed 0.5% of the contract purchase price of each acquired property and 0.5% of the amount advanced for a loan or other investment. Additionally, the Company reimburses the Advisor for third party acquisition expenses. The aggregate amount of acquisition fees and financing coordination fees (as described below) may not exceed 1.5% of the contract purchase price and the amount advanced for a loan or other investment for all the assets acquired. In no event will the total of all acquisition fees, acquisition expenses and any financing coordination fees payable with respect to the Company's portfolio of investments or reinvestments exceed 4.5% of the contract purchase price of the Company's portfolio to be measured at the close of the acquisition phase or 4.5% of the amount advanced for all loans or other investments.

If the Advisor provides services in connection with the origination or refinancing of any debt that the Company obtains and uses to acquire properties or to make other permitted investments, or that is assumed, directly or indirectly, in connection with the acquisition of properties, the Company will pay the Advisor a financing coordination fee equal to 0.75% of the amount available and/or outstanding under such financing, subject to certain limitations.

Until March 31, 2015, for its asset management services, the Company issued the Advisor an asset management subordinated participation by causing the OP to issue (subject to periodic approval by the board of directors) to the Advisor performance-based restricted, forfeitable partnership units of the OP designated as "Class B Units." The Class B Units were intended to be profits interests and vest, and are no longer subject to forfeiture, at such time as: (x) the value of the OP's assets plus all distributions made equals or exceeds the total amount of capital contributed by investors plus a 6.0% cumulative, pre-tax, non-compounded annual return thereon (the "economic hurdle"); (y) any one of the following occurs: (1) a listing; (2) an other liquidity event or (3) the termination of the advisory agreement by an affirmative vote of a majority of the Company's independent directors without cause; and (z) the Advisor is still providing advisory services to the Company (the "performance condition"). Unvested Class B Units will be forfeited immediately if: (a) the advisory agreement is terminated for any reason other than a termination without cause; or (b) the advisory agreement is terminated by an affirmative vote of a majority of the Company's independent directors without cause before the economic hurdle has been met.

When approved by the board of directors, the Class B Units were issued to the Advisor quarterly in arrears pursuant to the terms of the limited partnership agreement of the OP. The number of Class B Units issued in any quarter was equal to: (i) the excess of (A) the product of (y) the cost of assets multiplied by (z) 0.1875% over (B) any amounts payable as an oversight fee (as described below) for such calendar quarter; divided by (ii) the value of one share of common stock as of the last day of such calendar quarter, which is equal initially to $22.50 (the IPO price minus the selling commissions and dealer manager fees). The value of issued Class B Units will be determined and expensed when the Company deems the achievement of the performance condition to be probable. As of December 31, 2015, the Company cannot determine the probability of achieving the performance condition. The Advisor receives distributions on vested and unvested Class B Units equal to the distribution rate received on the Company's common stock. Such distributions on issued Class B Units are included in general and administrative expenses in the consolidated statement of operations and comprehensive loss until the performance condition is considered probable to occur. As of December 31, 2015, the Company's board of directors had approved the issuance of 359,250 Class B Units to the Advisor in connection with this arrangement.

On May 12, 2015, the Company, the OP and the Advisor entered into an amendment (the “Amendment”) to the advisory agreement, which, among other things, provides that the Company will cease causing the OP to issue Class B Units in the OP to the Advisor or its assignees related to any period ending after March 31, 2015. Effective April 1, 2015, the Company began paying an asset management fee to the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets. The asset management fee is payable on the first business day of each month in the amount of 0.0625% multiplied by the cost of assets for the preceding monthly period. The asset management fee is payable to the Advisor or its assignees in cash, in shares, or a combination of both, the form of payment to be determined in the sole discretion of the Advisor. For the purposes of the payment of any fees in shares (a) prior to the NAV Pricing Date, each share will be valued at $22.50, (b) after the NAV Pricing Date and prior to the Listing, each share will be valued at the then-current NAV per share and (c) at all other times, each share shall be valued by the board of directors in good faith at the fair market value.

Unless the Company contracts with a third party, the Company pays the Property Manager a property management fee of 1.5% of gross revenues from the Company's stand-alone single-tenant net leased properties and 2.5% of gross revenues from all other types of properties, respectively. The Company also reimburses the Property Manager for property level expenses. If the Company contracts directly with third parties for such services, the Company will pay them customary market fees and will pay the Property Manager an oversight fee of up to 1.0% of the gross revenues of the property managed. In no event will the Company pay the Property Manager or any affiliate of the Property Manager both a property management fee and an oversight fee with respect to any particular property.

Effective June 1, 2013, the Company entered into an agreement with the Former Dealer Manager to provide strategic advisory services and investment banking services required in the ordinary course of the Company's business, such as performing financial analysis, evaluating publicly traded comparable companies and assisting in developing a portfolio composition strategy, a capitalization structure to optimize future liquidity options and structuring operations. Strategic advisory fees were amortized over the estimated remaining term of the IPO and, as such, have been fully amortized as of December 31, 2014. The Former Dealer Manager and its affiliates also provided transfer agency services, as well as transaction management and other professional services. These fees were included in general and administrative expenses in the accompanying consolidated statement of operations and comprehensive loss.

The following table details amounts incurred, forgiven and payable in connection with the Company's operations-related services described above as of and for the periods presented.

	Years Ended December 31,												Payable (Receivable) as of
	2015				2014				2013				December 31,
(In thousands)	Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven		2015			2014
One-time fees and reimbursements:
Acquisition fees	$	6,878	$	—	$	15,936	$	—	$	462	$	—	$	—		$	—
Acquisition cost reimbursements	3,439		—		7,968		—		144		—		—			—
Financing coordination fees	3,863		—		1,997		—		—		—		—			—
Ongoing fees:
Asset management fees (1)	10,889		—		—		—		—		—		(5		)	—
Property management fees	1,302		1,220		—		617		—		23		(10		)	—
Professional fees and reimbursements	4,558		—		364		—						499			364
Strategic advisory fees	—		—		605		—		315		—		—			—
Distributions on Class B Units	490		—		47		—		1		—		52			—
Total related party operation fees and reimbursements	$	31,419	$	1,220	$	26,917	$	617	$	922	$	23	$	536		$	364

_______________

(1) Prior to April 1, 2015, the Company caused the OP to issue (subject to periodic approval by the board of directors) to the Advisor restricted performance based Class B Units for asset management services. As of December 31, 2015, the Company's board of directors had approved the issuance of 359,250 Class B Units to the Advisor in connection with this arrangement. Effective April 1, 2015, in connection with the Amendment, the Company will pay an asset management fee to the Advisor or its assignees in cash, in shares, or a combination of both and will no longer issue any Class B Units.

The Company reimburses the Advisor's costs of providing administrative services, subject to the limitation that the Company did not reimburse the Advisor for any amount by which the Company's operating expenses at the end of the four preceding fiscal quarters exceeded the greater of (a) 2.0% of average invested assets and (b) 25.0% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash expenses and excluding any gain from the sale of assets for that period (the "2%/25% Limitation"), unless the Company's independent directors determined that such excess was justified based on unusual and nonrecurring factors which they deemed sufficient, in which case the excess amount could be reimbursed to the Advisor in subsequent periods. Additionally, the Company reimburses the Advisor for personnel costs; however, the Company may not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees, acquisition expenses or real estate commissions or for persons serving as executive officers of the Company. The 2%/25% Limitation was removed from the advisory agreement in connection with the amendment and restatement of to the advisory agreement in June 2015.

In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to forgive and absorb certain fees. Because the Advisor may forgive or absorb certain fees, cash flow from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that are forgiven are not deferrals and, accordingly, will not be paid to the Advisor in the future. In certain instances, to improve the Company's working capital, the Advisor may elect to absorb a portion of the Company's property operating and general and administrative costs, which the Company will not repay. The following table reflects costs absorbed by the Advisor during the periods presented.

	Years Ended December 31,						Receivable as of December 31,
(In thousands)	2015		2014		2013		2015		2014
Property operating expenses absorbed	$	—	$	—	$	150	$	—	$	—
General and administrative expenses absorbed	—		—		843		—		—
Total expenses absorbed	$	—	$	—	$	993	$	—	$	—

The predecessor to AR Global is a party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager (“RCS Advisory”), pursuant to which RCS Advisory and its affiliates provided the Company and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory.

The Company is also party to a transfer agency agreement with American National Stock Transfer, LLC, a subsidiary of the parent company of the Former Dealer Manager (“ANST”), pursuant to which ANST provided the Company with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by a third-party transfer agent. AR Global received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. On February 26, 2016, the Company entered into a definitive agreement with DST Systems, Inc., its previous provider of sub-transfer agency services, to provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services).

Fees and Participations Paid in Connection with a Listing or the Liquidation of the Company's Real Estate Assets

Fees Incurred in Connection with the Listing

On March 17, 2015, the Company formally engaged KeyBanc Capital Markets Inc. ("KeyBanc") and RCS Capital ("RCS Capital"), the investment banking and capital markets division of the Former Dealer Manager, and on May 20, 2015, the Company formally engaged BMO Capital Markets Corp. ("BMO"), as financial advisors. Previously, the Company's board of directors determined, in consultation with KeyBanc and RCS Capital, that it was in the Company's best interests to proceed with a public listing application on a national securities exchange. On September 24, 2015, the Company announced that its board of directors had determined that it was in the best interest of the Company to not pursue the Listing during the third quarter of 2015 and that the board of directors will continue to monitor market conditions and other factors with a view toward reevaluating the Listing decision when market conditions are more favorable. Pursuant to the agreements with KeyBanc, BMO and RCS Capital, they each would have received a listing advisory fee equal to $1.5 million if the Company's shares were listed on a national securities exchange. In the event of a sale or acquisition transaction, KeyBanc, BMO and RCS Capital each would have received a proposed transaction fee equal to 0.25% of the value of the transaction.

While the Company's board of directors continues to monitor market conditions and other factors with respect to the Listing, the agreements with KeyBanc, RCS Capital and BMO were terminated in January 2016. No fees were incurred in connection with these agreements during the years ended December 31, 2015, 2014, or 2013.

Other Liquidation Related Fees and Participations

The Company will pay the Advisor an annual subordinated performance fee calculated on the basis of the Company's total return to stockholders, payable annually in arrears, such that for any year in which the Company's total return on stockholders' capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return but not to exceed 10.0% of the aggregate total return for such year. This fee will be paid only upon the sale of assets, distributions or other event which results in the return on stockholders' capital exceeding 6.0% per annum. No subordinated performance fees were incurred during the years ended December 31, 2015, 2014, or 2013.

The Company will pay the Advisor a brokerage commission on the sale of property, not to exceed the lesser of 2.0% of the contract sale price of the property and 50.0% of the total brokerage commission paid if a third party broker is also involved; provided, however, that in no event may the real estate commissions paid to the Advisor, its affiliates and unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a reasonable, customary and competitive real estate commission, in each case, payable to the Advisor if the Advisor or its affiliates, as determined by a majority of the independent directors, provided a substantial amount of services in connection with the sale. No such fees were incurred during the years ended December 31, 2015, 2014, or 2013.

The Special Limited Partner will be entitled to receive a subordinated participation in the net sales proceeds of the sale of real estate assets from the OP equal to 15.0% of remaining net sale proceeds after return of capital contributions to investors plus payment to investors of a 6.0% cumulative, pre-tax non-compounded annual return on the capital contributed by investors. The Special Limited Partner will not be entitled to the subordinated participation in net sale proceeds unless the Company's investors have received a 6.0% cumulative, pre-tax non-compounded annual return on their capital contributions. No such participation in net sales proceeds became due and payable during the years ended December 31, 2015, 2014, or 2013.

If the common stock of the Company is listed on a national exchange, the Special Limited Partner will be entitled to receive a subordinated incentive listing distribution from the OP equal to 15.0% of the amount by which the adjusted market value of real estate assets plus distributions exceeds the aggregate capital contributed by investors plus an amount equal to a 6.0% cumulative, pre-tax non-compounded annual return to investors. The Special Limited Partner will not be entitled to the subordinated incentive listing distribution unless investors have received a 6.0% cumulative, pre-tax non-compounded annual return on their capital contributions. No such distribution was incurred during the years ended December 31, 2015, 2014, or 2013. Neither the Special Limited Partner nor any of its affiliates can earn both the subordinated participation in the net sales proceeds and the subordinated incentive listing distribution.

Upon termination or non-renewal of the advisory agreement with the Advisor, with or without cause, the Special Limited Partner will be entitled to receive distributions from the OP equal to 15.0% of the amount by which the sum of the Company's market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to an annual 6.0% cumulative, pre-tax, non-compounded annual return to investors. The Special Limited Partner may elect to defer its right to receive a subordinated distribution upon termination until either a listing on a national securities exchange or other liquidity event occurs.

XML

Economic Dependency

12 Months Ended

Dec. 31, 2015

Economic Dependency [Abstract]

Economic Dependency

Note 10 — Economic Dependency

Under various agreements, the Company has engaged or will engage the Advisor, its affiliates and entities under common control with the Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company and asset acquisition and disposition decisions, as well as other administrative responsibilities for the Company including accounting services and investor relations.

As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that the Advisor and its affiliates are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.

XML

Equity-Based Compensation

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation

Note 11 — Equity-Based Compensation

Restricted Share Plan

The Company has an employee and director incentive restricted share plan (the "RSP"), which provides for the automatic grant of 1,333 restricted shares of common stock to each of the independent directors, without any further approval by the Company's board of directors or the stockholders, after initial election to the board of directors and after each annual stockholder meeting, with such shares vesting annually beginning with the one year anniversary of initial election to the board of directors and the date of the next annual meeting, respectively. Restricted stock issued to independent directors will vest over a five-year period in increments of 20.0% per annum. The RSP provides the Company with the ability to grant awards of restricted shares to the Company's directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to entities that provide services to the Company. The total number of common shares granted under the RSP may not exceed 5.0% of the Company's outstanding shares of common stock on a fully diluted basis at any time and in any event will not exceed 3.4 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events).

Restricted share awards entitle the recipient to receive shares of common stock from the Company under terms that provide for vesting over a specified period of time. For restricted share awards granted prior to July 1, 2015, such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient's employment or other relationship with the Company. For restricted share awards granted on or after July 1, 2015, such awards provide for accelerated vesting of the portion of the unvested shares scheduled to vest in the year of the recipient's voluntary termination or the failure to be re-elected to the board. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in shares of common stock shall be subject to the same restrictions as the underlying restricted shares. The following table reflects restricted share award activity for the period presented:

	Number of Common Shares		Weighted-Average Issue Price
Unvested, January 1, 2013	—		$	—
Granted	3,999		22.50
Vested	—		—
Forfeitures	—		—
Unvested, December 31, 2013	3,999		22.50
Granted	3,999		22.50
Vested	(800	)	22.50
Forfeitures	—		—
Unvested, December 31, 2014	7,198		22.50
Granted	7,998		22.50
Vested	(1,066	)	22.50
Forfeitures	(2,399	)	22.50
Unvested, December 31, 2015	11,731		$	22.50

As of December 31, 2015, the Company had $0.2 million of unrecognized compensation cost related to unvested restricted share awards granted under the Company's RSP. That cost is expected to be recognized over a weighted-average period of 3.6 years. Compensation expense related to restricted stock was $0.1 million, approximately $27,000 and $16,000 during the years ended December 31, 2015, 2014 and 2013, respectively. Compensation expense related to restricted stock is recorded as general and administrative expense in the accompanying consolidated statement of operations and comprehensive loss.

Other Share-Based Compensation

The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors at the respective director's election. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. During the year ended December 31, 2014, the Company issued 2,037 shares in lieu of approximately $46,000 in cash. No such shares were issued during the years ended December 31, 2015 and 2013.

XML

Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Accumulated Other Comprehensive Income

Note 8 — Common Stock

As of December 31, 2015 and December 31, 2014, the Company had 86.1 million and 83.7 million shares of common stock outstanding, respectively, including unvested restricted shares and shares issued pursuant to the DRIP and had received total proceeds of $2.1 billion, including proceeds from shares issued pursuant to the DRIP.

The Company has paid distributions on a monthly basis to stockholders of record on a daily basis at a rate equal to $0.0046575343 per day, which is equivalent to $1.70 per annum, per share of common stock, beginning on May 24, 2013. Distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured.

Share Repurchase Program

The Company's board of directors has adopted the SRP, which enables stockholders to sell their shares to the Company in limited circumstances. The SRP permits investors to sell their shares back to the Company after they have held them for at least one year, subject to the significant conditions and limitations described below.

Prior to the time that the Company’s shares are listed on a national securities exchange and until the Company begins to calculate its NAV, the repurchase price per share depends on the length of time investors have held such shares, as follows: after one year from the purchase date — the lower of $23.13 or 92.5% of the amount they actually paid for each share; after two years from the purchase date — the lower of $23.75 or 95.0% of the amount they actually paid for each share; after three years from the purchase date — the lower of $24.38 or 97.5% of the amount they actually paid for each share; and after four years from the purchase date — the lower of $25.00 or 100.0% of the amount they actually paid for each share (in each case, as adjusted for any stock distributions, combinations, splits and recapitalizations).

In accordance with the SRP Amendment (described below) and beginning with the NAV Pricing Date, the price per share that the Company will pay to repurchase its shares will be equal to its NAV multiplied by a percentage equal to (i) 92.5%, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95%, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5%, if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100%, if the person seeking repurchase has held his or her shares for a period greater than four years. Subject to limited exceptions, stockholders who redeem their shares of our common stock within the first four months from the date of purchase will be subject to a short-term trading fee of 2% of the aggregate NAV per share of the shares of common stock received.

Repurchases of shares of the Company's common stock, when requested, are at the sole discretion of the board of directors. Until the SRP Amendment (described below), the Company limited the number of shares repurchased during any calendar year to 5% of the weighted average number of shares of common stock outstanding on December 31st of the previous calendar year. In addition, the Company was only authorized to repurchase shares in a given quarter up to the amount of proceeds received from its DRIP in that same quarter.

On January 26, 2016, the Company's board of directors approved and amended the SRP (the "SRP Amendment") to supersede and replace the existing SRP. Under the SRP Amendment, repurchases of shares of the Company's common stock, when requested, are at the sole discretion of the board of directors and generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. In addition, the Company is only authorized to repurchase shares in a given fiscal semester up to the amount of proceeds received from its DRIP in that same fiscal semester.

When a stockholder requests redemption and the redemption is approved, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares purchased under the SRP will have the status of authorized but unissued shares. The following table reflects the number of shares repurchased cumulatively through December 31, 2015:

	Number of Shares Repurchased	Average Price per Share
Cumulative repurchases as of December 31, 2014	74,031	$	24.42
Year ended December 31, 2015 (1)	894,339	23.66
Cumulative repurchases as of December 31, 2015 (1)	968,370	$	23.72

_____________________________

(1) As permitted under the SRP, in January 2016, the Company's board of directors authorized, with respect to redemption requests received during the three months ended December 31, 2015, the repurchase of shares validly submitted for repurchase in an amount equal to 1.0% of the weighted average number of shares of common stock outstanding during the fiscal year ended December 31, 2014, representing less than all the shares validly submitted for repurchase during the three months ended December 31, 2015. Accordingly, 512,408 shares for $12.0 million at an average repurchase price per share of $23.45 (including all shares submitted for death or disability) were approved and completed in February 2016, while 201,367 shares for $4.6 million at an average price per share of $23.04 were not fulfilled. The accrual for these repurchases is reflected in the accounts payable and accrued expenses line of the accompanying consolidated balance sheets. There were no other unfulfilled share repurchases for the period from October 15, 2012 (date of inception) to December 31, 2015.

Distribution Reinvestment Plan

Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased under the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the IPO. The board of directors may designate that certain cash or other distributions be excluded from reinvestment pursuant to the DRIP. The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days' notice to participants. Shares issued under the DRIP are recorded as equity in the accompanying consolidated balance sheet in the period distributions are declared. During the years ended December 31, 2015 and 2014, the Company issued 3.3 million and 1.8 million shares of common stock pursuant to the DRIP, generating aggregate proceeds of $78.5 million and $41.6 million, respectively.

Note 12 — Accumulated Other Comprehensive Income

The following table illustrates the changes in accumulated other comprehensive income as of and for the period presented:

(In thousands)	Unrealized Gains on Available-for-Sale Securities
Balance, December 31, 2013	$	—
Other comprehensive income, before reclassifications	471
Amounts reclassified from accumulated other comprehensive income (1)	(8		)
Balance, December 31, 2014	463
Other comprehensive loss, before reclassifications	(23		)
Amounts reclassified from accumulated other comprehensive income (1)	(446		)
Balance, December 31, 2015	$	(6	)

__________________

(1) During the years ended December 31, 2015and 2014, the Company sold certain of its investments in preferred stock, common stock, real estate income funds and its investment in a senior note which resulted in a realized gain of $0.4 million and approximately $8,000, respectively, which is included in gain on sale of investment securities on the consolidated statement of operations and comprehensive loss.

XML

Non-Controlling Interests

12 Months Ended

Dec. 31, 2015

Noncontrolling Interest [Abstract]

Non-Controlling Interests

Note 13 — Non-Controlling Interests

The Company is the sole general partner and holds substantially all of the units of limited partner interests in the OP ("OP Units"). As of December 31, 2015 and 2014, the Advisor held 90 OP Units, which represents a nominal percentage of the aggregate OP ownership.

In November 2014, the Company partially funded the purchase of an MOB with the issuance of 405,908 OP Units, with a value of $10.1 million or $25.00 per unit, from an unaffiliated third party.

A holder of OP Units has the right to distributions and has the right to convert OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, in accordance with the limited partnership agreement of the OP, provided, however, that such OP Units must have been outstanding for at least one year. The remaining rights of the limited partners in the OP are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets. During the year ended December 31, 2015, non-controlling interest holders were paid distributions of $0.7 million. No such distributions were paid during the years ended December 31, 2014 or 2013.

The Company has an investment arrangement with an unaffiliated third party whereby such investor receives an ownership interest in certain of the Company's property-owning subsidiaries and is entitled to receive a proportionate share of the net operating cash flow derived from the subsidiaries' property. Upon disposition of a property subject to non-controlling interest, the investor will receive a proportionate share of the net proceeds from the sale of the property. The investor has no recourse to any other assets of the Company. Due to the nature of the Company's involvement with the arrangement and the significance of its investment in relation to the investment of the third party, the Company has determined that it controls each entity in this arrangement and therefore the entities related to this arrangement are consolidated within the Company's financial statements. A non-controlling interest is recorded for the investor's ownership interest in the properties.

The following table summarizes the activity related to investment arrangements with the unaffiliated third party. The Company did not have any investment arrangements with unaffiliated third parties during the years ended December 31, 2014 or 2013 and therefore did not have any distributions to unaffiliated third parties for investment arrangements for the years ended December 31, 2014 or 2013.

						As of December 31, 2015
Property Name (Dollar amounts in thousands)	Investment Date	Third Party Net Investment Amount as of December 31, 2015		Non-Controlling Ownership Percentage as of December 31, 2015		Net Real Estate Assets Subject to Investment Arrangement		Mortgage Notes Payable Subject to Investment Arrangement	Distributions for the Year Ended December 31, 2015
Plaza Del Rio Medical Office Campus Portfolio - Peoria, AZ	May 2015	$	500	4.1	%	$	10,561	—	—

XML

Net Loss Per Share

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Net Loss Per Share

Note 14 — Net Loss Per Share

The following is a summary of the basic and diluted net loss per share computation for the years ended December 31, 2015, 2014 and 2013:

	Years Ended December 31,
	2015			2014			2013
Net loss attributable to stockholders (in thousands)	$	(41,741	)	$	(37,678	)	$	(221	)
Basic and diluted weighted-average shares outstanding	85,331,966			51,234,729			2,148,297
Basic and diluted net loss per share	$	(0.49	)	$	(0.74	)	$	(0.10	)

The Company had the following potentially dilutive securities as of December 31, 2015, 2014 and 2013, which were excluded from the calculation of diluted loss per share attributable to stockholders as the effect would have been antidilutive:

	December 31,
	2015	2014	2013
Unvested restricted stock	11,731	7,198	3,999
OP Units	405,998	405,998	90
Class B units	359,250	107,885	4,062
Total common share equivalents	776,979	521,081	8,151

XML

Segment Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

Note 15 — Segment Reporting

During the year ended December 31, 2015 and 2014, the Company operated in three reportable business segments for management and internal financial reporting purposes: medical office buildings, triple-net leased healthcare facilities, and seniors housing — operating properties ("SHOP"). During the year ended December 31, 2013, the Company did not own any seniors housing communities and, therefore, operated in two reportable business segments.

These operating segments are the segments of the Company for which separate financial information is available and for which segment results are evaluated by the Company's executive officers in deciding how to allocate resources and in assessing performance. The medical office building segment primarily consists of MOBs leased to healthcare-related tenants under long-term leases, which may require such tenants to pay a pro rata share of property-related expenses. The triple-net leased healthcare facilities segment primarily consists of investments in seniors housing communities, hospitals, inpatient rehabilitation facilities and skilled nursing facilities under long-term leases, under which tenants are generally responsible to directly pay property-related expenses. The SHOP segment consists of direct investments in seniors housing communities, primarily providing assisted living, independent living and memory care services, which are operated through engaging independent third-party managers. The Company evaluates the performance of the combined properties in each segment based on net operating income. Net operating income is defined as total revenues less property operating and maintenance expenses. There are no intersegment sales or transfers. The Company uses net operating income to evaluate the operating performance of real estate investments and to make decisions concerning the operation of the properties. The Company believes that net operating income is useful to investors in understanding the value of income-producing real estate. Net income (loss) is the GAAP measure that is most directly comparable to net operating income; however, net operating income should not be considered as an alternative to net income as the primary indicator of operating performance as it excludes certain items such as operating fees to the Advisor, acquisition and transaction related expenses, general and administrative expenses, depreciation and amortization expense, interest expense, interest and other income, gain on sale of investment securities, and income tax expense. Additionally, net operating income as defined by the Company may not be comparable to net operating income as defined by other REITs or companies.

The following tables reconcile the segment activity to consolidated net loss for the years ended December 31, 2015, 2014 and 2013:

	Year Ended December 31, 2015
(In thousands)	Medical Office Buildings		Triple-Net Leased Healthcare Facilities		Seniors Housing — Operating Properties		Consolidated
Revenues:
Rental income	$	56,165	$	37,053	$	—	$	93,218
Operating expense reimbursements	12,611		148		—		12,759
Resident services and fee income	—		—		140,901		140,901
Contingent purchase price consideration	572		—		40		612
Total revenues	69,348		37,201		140,941		247,490
Property operating and maintenance	20,334		6,706		98,533		125,573
Net operating income	$	49,014	$	30,495	$	42,408	121,917
Operating fees to related parties							(12,191		)
Acquisition and transaction related							(14,679		)
General and administrative							(9,733		)
Depreciation and amortization							(120,924		)
Interest expense							(10,356		)
Interest and other income							582
Gain on sale of investment securities							446
Income tax benefit (expense)							2,978
Net loss attributable to non-controlling interests							219
Net loss attributable to stockholders							$	(41,741	)

	Year Ended December 31, 2014
(In thousands)	Medical Office Buildings		Triple-Net Leased Healthcare Facilities		Seniors Housing — Operating Properties		Consolidated
Revenues:
Rental income	$	13,955	$	9,050	$	—	$	23,005
Operating expense reimbursements	3,532		53		—		3,585
Resident services and fee income	—		—		31,849		31,849
Total revenues	17,487		9,103		31,849		58,439
Property operating and maintenance	4,765		79		21,873		26,717
Net operating income	$	12,722	$	9,024	$	9,976	31,722
Acquisition and transaction related							(33,623		)
General and administrative							(3,541		)
Depreciation and amortization							(28,889		)
Interest expense							(3,559		)
Interest and other income							735
Gain on sale of investment securities							8
Income tax benefit (expense)							(565		)
Net loss attributable to non-controlling interests							34
Net loss attributable to stockholders							$	(37,678	)

	Year Ended December 31, 2013
(In thousands)	Medical Office Buildings		Triple-Net Leased Healthcare Facilities		Seniors Housing — Operating Properties		Consolidated
Revenues:
Rental income	$	881	$	670	$	—	$	1,551
Operating expense reimbursements	236		30		—		266
Resident services and fee income	—		—		—		—
Total revenues	1,117		700		—		1,817
Property operating and maintenance	92		30		—		122
Net operating income	$	1,025	$	670	$	—	1,695
Acquisition and transaction related							(730		)
General and administrative							(104		)
Depreciation and amortization							(1,077		)
Income tax benefit (expense)							(5		)
Net loss attributable to stockholders							$	(221	)

The following table reconciles the segment activity to consolidated total assets as of the periods presented:

	December 31,
(In thousands)	2015		2014
ASSETS
Investments in real estate, net:
Medical office buildings	$	839,041	$	593,648
Triple-net leased healthcare facilities	447,893		355,962
Construction in progress	31,309		—
Seniors housing — operating properties	876,359		682,140
Total investments in real estate, net	2,194,602		1,631,750
Cash and cash equivalents	24,474		182,617
Restricted cash	4,647		1,778
Investment securities, at fair value	1,078		20,286
Receivable for sale of common stock	—		6
Straight-line rent receivable, net	11,470		2,325
Prepaid expenses and other assets	21,707		14,711
Deferred costs, net	14,014		4,237
Total assets	$	2,271,992	$	1,857,710

The following table reconciles capital expenditures by reportable business segment, excluding corporate non-real estate expenditures, for the periods presented:

	Years Ended December 31,
(In thousand)	2015		2014		2013
Medical office buildings	$	2,129	$	609	$	—
Triple-net leased healthcare facilities	540		—		—
Seniors housing — operating properties	2,701		134		—
Total capital expenditures	$	5,370	$	743	$	—

XML

Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 16 — Commitments and Contingencies

The Company has entered into operating and capital lease agreements related to certain acquisitions under leasehold interests arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter under these arrangements, including the present value of the net minimum payment due under capital leases. These amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes among other items.

	Future Minimum Base Rent Payments
(In thousands)	Operating Leases		Capital Leases
2016	$	645	$	74
2017	664		76
2018	668		78
2019	673		80
2020	671		82
Thereafter	79,980		7,848
Total minimum lease payments	$	83,301	8,238
Less: amounts representing interest			(3,435		)
Total present value of minimum lease payments			$	4,803

Total rental expense from operating leases was $0.4 million, $0.1 million and approximately $6,000 during the years ended December 31, 2015, 2014 and 2013, respectively. During the years ended December 31, 2015 and 2014, interest expense related to capital leases was $0.1 million and $0.2 million, respectively. There was no such expense during the year ended December 31, 2013.

Litigation and Regulatory Matters

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no material legal or regulatory proceedings pending or known to be contemplated against the Company or its properties.

Environmental Matters

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. As of December 31, 2015, the Company had not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on the results of operations.

Development Project Funding

In August 2015, the Company entered into an asset purchase agreement and development agreement to acquire land and construction in progress, and subsequently fund the remaining construction, of a skilled nursing facility in Jupiter, Florida for $82.0 million. As of December 31, 2015, the Company had funded $10.0 million and $21.3 million for the land and construction in progress, respectively. Concurrent with the acquisition, the Company entered into a loan agreement and lease agreement with an affiliate of the project developer. The loan agreement is intended to provide working capital to the tenant during the initial operating period of the facility and allows for borrowings of up to $2.7 million from the Company on a non-revolving basis. Any outstanding principal balances under the loan will bear interest at 7.0% per year, payable on the first day of each fiscal quarter. As of December 31, 2015, there were no amounts outstanding due to the Company pursuant to the loan agreement.

XML

Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results (Unaudited)

Note 17 — Quarterly Results (Unaudited)

Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2015, 2014 and 2013:

(In thousands, except for share and per share data)	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Total revenues	$	57,121		$	59,516		$	64,030		$	66,373
Net loss attributable to stockholders	$	(5,220	)	$	(13,421	)	$	(16,108	)	$	(6,992	)
Basic and diluted weighted average shares outstanding	84,250,503			84,992,633			85,705,595			86,351,934
Basic and diluted loss per share	$	(0.06	)	$	(0.16	)	$	(0.19	)	$	(0.08	)

(In thousands, except for share and per share data)	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Total revenues	$	1,387		$	2,869		$	11,818		$	42,365
Net income (loss)	$	(582	)	$	(4,147	)	$	(20,023	)	$	(12,926	)
Basic and diluted weighted average shares outstanding	13,623,545			35,127,969			71,813,126			83,381,570
Basic and diluted income (loss) per share	$	(0.04	)	$	(0.12	)	$	(0.28	)	$	(0.16	)

(In thousands, except for share and per share data)	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
Total revenues	$	—		$	27		$	652		$	1,138
Net income (loss)	$	(47	)	$	(116	)	$	(399	)	$	341
Basic weighted average shares outstanding	8,888			379,911			2,559,022			5,579,635
Basic income (loss) per share	$	(5.29	)	$	(0.31	)	$	(0.16	)	$	0.06
Diluted weighted average shares outstanding	8,888			379,911			2,559,022			5,624,600
Diluted income (loss) per share	$	(5.29	)	$	(0.31	)	$	(0.16	)	$	0.05

XML

Subsequent Events

12 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

Subsequent Events

Note 18 — Subsequent Events

The Company has evaluated subsequent events through the filing of this Annual Report on Form 10-K, and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following:

Amended and Restated SRP

On January 25, 2016, the board of directors of the Company unanimously approved an amended and restated share repurchase program (the “A&R SRP”). Effective February 28, 2016, beginning on and following the NAV Pricing Date, the repurchase price per share for requests other than for death or disability will be equal to the NAV, in each case multiplied by a percentage equal to (i) 92.5%, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95%, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5%, if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100%, if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the NAV at the time of repurchase beginning on and following the NAV Pricing Date.

Repurchases pursuant to the A&R SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the A&R SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any distribution reinvestment plan in effect from time to time; provided that the board of directors has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose.

Sponsor Transaction

In January 2016, AR Global became the successor business to AR Capital, LLC and became the parent of the Company's current Sponsor.

RCS Capital Corporation Bankruptcy

RCS Capital Corporation, the parent company of the Former Dealer Manager and certain of its affiliates that provided the Company with services, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of the Company's sponsor.

Termination of Listing Advisory Services Agreements

On March 17, 2015, the Company formally engaged KeyBanc and RCS Capital and on May 20, 2015, the Company formally engaged BMO as financial advisors in connection with the Listing. While the Company's board of directors continues to monitor market conditions and other factors with respect to the Listing, the agreements with KeyBanc, RCS Capital and BMO were terminated in January 2016.

American National Stock Transfer, LLC Termination

On February 10, 2016, AR Global received written notice from ANST, the Company's transfer agent and an affiliate of the Company's Former Dealer Manager, that it would wind down operations by the end of the month. ANST withdrew as the transfer agent effective February 29, 2016.

On February 26, 2016, the Company entered into a definitive agreement with DST Systems, Inc., its previous provider of sub-transfer agency services, to provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services).

XML

Real Estate and Accumulated Depreciation - Schedule III

12 Months Ended

Dec. 31, 2015

SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]

Real Estate and Accumulated Depreciation, Schedule III

					Initial Costs				Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015		Land		Building and Improvements		Building and Improvements		Gross Amount at December 31,2015(1)(2)		Accumulated Depreciation(3)(4)
Fresenius Medical Care - Winfield(5)	AL	5/10/2013	$	—	$	151	$	1,568	$	—	$	1,719	$	123
Adena Health Center - Jackson(5)	OH	6/28/2013	—		242		4,494		—		4,736		291
Ouachita Community Hospital - West Monroe	LA	7/12/2013	—		633		5,304		—		5,937		350
CareMeridian - Littleton	CO	8/8/2013	—		976		8,900		—		9,876		948
Oak Lawn Medical Center - Oak Lawn(5)	IL	8/21/2013	—		835		7,477		—		8,312		566
Surgery Center of Temple - Temple(5)	TX	8/30/2013	—		225		5,208		—		5,433		315
Greenville Health System - Greenville(5)	SC	10/10/2013	—		720		3,045		—		3,765		176
Arrowhead Medical Plaza II - Glendale	AZ	2/21/2014	—		—		9,707		216		9,923		573
Village Center Parkway - Stockbridge	GA	2/21/2014	—		1,135		2,299		131		3,565		154
Stockbridge Family Medical - Stockbridge	GA	2/21/2014	—		823		1,799		11		2,633		98
Creekside MOB - Douglasville	GA	4/30/2014	—		2,709		5,320		169		8,198		290
Bowie Gateway Medical Center - Bowie	MD	5/7/2014	5,969		983		10,321		—		11,304		467
Campus at Crooks & Auburn Building D - Rochester Hills	MI	5/19/2014	—		640		4,107		—		4,747		185
Medical Center of New Windsor - New Windsor	NY	5/22/2014	8,720		—		10,566		323		10,889		483
Plank Medical Center - Clifton Park	NY	5/22/2014	3,461		749		3,559		25		4,333		171
Cushing Center - Schenectady	NY	5/23/2014	4,184		—		12,489		7		12,496		559
Berwyn Medical Center - Berwyn(5)	IL	5/29/2014	—		1,305		7,559		—		8,864		312
Countryside Medical Arts - Safety Harbor	FL	5/30/2014	5,992		915		7,663		60		8,638		344
St. Andrews Medical Park - Venice	FL	5/30/2014	6,623		1,666		9,944		36		11,646		455
Campus at Crooks & Auburn Building C - Rochester Hills	MI	6/3/2014	3,555		609		3,842		130		4,581		177
Slingerlands Crossing Phase I - Bethlehem	NY	6/13/2014	6,680		3,865		5,919		—		9,784		272
Slingerlands Crossing Phase II - Bethlehem	NY	6/13/2014	7,777		1,707		9,715		148		11,570		431
UC Davis MOB - Elk Grove(5)	CA	7/15/2014	—		1,138		7,242		—		8,380		306
Laguna Professional Center - Elk Grove(5)	CA	7/15/2014	—		1,811		14,598		—		16,409		608
Big Spring Care Center - Humansville	MO	7/31/2014	—		230		6,514		—		6,744		346
Buffalo Prairie Care Center - Buffalo	MO	7/31/2014	—		230		4,098		—		4,328		241
Cassville Health Care & Rehab - Cassville	MO	7/31/2014	—		250		3,774		—		4,024		190
Country Aire Retirement Estates - Lewistown	MO	7/31/2014	—		400		4,546		—		4,946		283
Edgewood Manor Nursing Home - Raytown	MO	7/31/2014	—		591		851		—		1,442		48
Georgian Gardens - Potosi	MO	7/31/2014	—		500		6,359		—		6,859		387
Gregory Ridge Living Center - Kansas City	MO	7/31/2014	—		590		4,043		—		4,633		276
Marshfield Care Center - Marshfield	MO	7/31/2014	—		310		4,052		—		4,362		251

				Initial Costs		Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015	Land	Building and Improvements	Building and Improvements	Gross Amount at December 31,2015(1)(2)	Accumulated Depreciation(3)(4)
Parkway Health Care Center - Kansas City	MO	7/31/2014	—	630	4,229	—	4,859	232
Estate at Hyde Park - Tampa(5)	FL	7/31/2014	—	1,777	20,153	—	21,930	902
Autumn Ridge of Clarkston - Clarkston(5)	MI	8/12/2014	—	655	19,834	78	20,567	905
Sunnybrook of Burlington - Burlington(5)	IA	8/26/2014	—	518	16,651	16	17,185	722
Sunnybrook of Carroll - Carroll(5)	IA	8/26/2014	—	473	11,150	15	11,638	444
Sunnybrook of Fairfield - Fairfield(5)	IA	8/26/2014	—	340	14,028	37	14,405	621
Sunnybrook of Ft. Madison - Ft. Madison(5)	IA	8/26/2014	—	550	9,024	17	9,591	397
Sunnybrook of Mt. Pleasant - Mt. Pleasant(5)	IA	8/26/2014	—	205	10,811	115	11,131	397
Sunnybrook of Muscatine - Muscatine	IA	8/26/2014	—	302	13,752	16	14,070	553
Prairie Hills at Cedar Rapids -Cedar Rapids(5)	IA	8/26/2014	—	195	8,544	9	8,748	340
Prairie Hills at Clinton - Clinton(5)	IA	8/26/2014	—	890	18,801	24	19,715	771
Prairie Hills at Des Moines - Des Moines	IA	8/26/2014	—	647	13,645	31	14,323	612
Prairie Hills at Tipton - Tipton	IA	8/26/2014	—	306	10,370	—	10,676	382
Prairie Hills at Independence - Independence(5)	IA	8/26/2014	—	473	10,534	3	11,010	412
Prairie Hills at Ottumwa - Ottumwa(5)	IA	8/26/2014	—	538	9,100	24	9,662	382
Sunnybrook of Burlington - Land - Burlington	IA	8/26/2014	—	620	—	—	620	—
Benedictine Cancer Center - Kingston	NY	8/27/2014	6,811	—	13,274	—	13,274	462
Buchanan Meadows - Buchanan	MI	8/29/2014	—	288	6,988	—	7,276	304
Crystal Springs - Kentwood	MI	8/29/2014	—	661	14,507	—	15,168	696
Golden Orchards - Fennville	MI	8/29/2014	—	418	5,318	—	5,736	215
Lakeside Vista - Holland	MI	8/29/2014	—	378	12,196	—	12,574	518
Liberty Court - Dixon	IL	8/29/2014	—	119	1,957	—	2,076	93
Prestige Centre - Buchanan	MI	8/29/2014	—	297	2,207	—	2,504	112
Prestige Commons - Chesterfield Twp	MI	8/29/2014	—	318	5,346	—	5,664	216
Prestige Pines - Dewitt	MI	8/29/2014	—	476	3,065	—	3,541	176
Prestige Place - Clare	MI	8/29/2014	—	59	1,169	—	1,228	98
Prestige Point - Grand Blanc	MI	8/29/2014	—	268	3,037	—	3,305	156
Prestige Way - Holt	MI	8/29/2014	—	527	5,269	—	5,796	264
The Atrium - Rockford	IL	8/29/2014	—	367	4,385	—	4,752	202
Waldon Woods - Wyoming	MI	8/29/2014	—	527	5,696	—	6,223	332
Whispering Woods - Grand Rapids	MI	8/29/2014	—	806	12,204	—	13,010	596
Arrowhead Medical Plaza I - Glendale	AZ	9/10/2014	—	—	6,377	53	6,430	218

				Initial Costs		Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015	Land	Building and Improvements	Building and Improvements	Gross Amount at December 31,2015(1)(2)	Accumulated Depreciation(3)(4)
Golden Years - Harrisonville	MO	9/11/2014	—	620	8,401	—	9,021	435
Cardiovascular Consultants of Cape Girardeau Medical Office Building- Cape Girardeau(5)	MO	9/18/2014	—	1,624	5,303	—	6,927	247
FOC Clinical - Mechanicsburg(5)	PA	9/26/2014	—	—	19,634	—	19,634	699
Brady MOB - Harrisburg(5)	PA	9/26/2014	—	—	22,485	—	22,485	709
Community Health MOB - Harrisburg(5)	PA	9/26/2014	—	—	6,170	—	6,170	199
FOC I - Mechanicsburg(5)	PA	9/26/2014	—	—	8,923	21	8,944	326
FOC II - Mechanicsburg(5)	PA	9/26/2014	—	—	16,473	—	16,473	591
Landis Memorial - Harrisburg(5)	PA	9/26/2014	—	—	32,484	—	32,484	1,028
Copper Springs Senior Living - Meridian(5)	ID	9/29/2014	—	498	7,053	71	7,622	376
Benton House - Brunswick - Brunswick(5)	GA	9/30/2014	—	1,509	14,385	7	15,901	608
Benton House - Dublin - Dublin(5)	GA	9/30/2014	—	403	9,254	20	9,677	425
Benton House - Johns Creek - Johns Creek(5)	GA	9/30/2014	—	997	11,849	51	12,897	512
Benton House - Lee's Summit - Lee's Summit(5)	MO	9/30/2014	—	2,734	24,970	15	27,719	975
Benton House - Roswell - Roswell(5)	GA	9/30/2014	—	1,000	8,509	69	9,578	413
Benton House - Titusville - Titusville(5)	FL	9/30/2014	—	1,379	13,827	70	15,276	626
Allegro at Elizabethtown - Elizabethtown(5)	KY	9/30/2014	—	317	7,261	124	7,702	351
Allegro at Jupiter - Jupiter(5)	FL	9/30/2014	—	3,741	49,413	49	53,203	1,938
Allegro at St Petersburg - St Petersburg(5)	FL	9/30/2014	—	3,791	7,950	143	11,884	483
Allegro at Stuart - Stuart(5)	FL	9/30/2014	—	5,018	60,505	102	65,625	2,423
Allegro at Tarpon - Tarpon Springs(5)	FL	9/30/2014	—	2,360	13,412	42	15,814	680
Allegro at St Petersburg - Land - St Petersburg	FL	9/30/2014	—	3,045	—	—	3,045	—
Gateway Medical Office Building - Clarksville	TN	10/3/2014	—	—	16,367	242	16,609	531
757 Building - Munster(5)	IN	10/17/2014	—	645	7,885	—	8,530	241
Dyer Building - Dyer(5)	IN	10/17/2014	—	601	8,867	67	9,535	269
759 Building - Munster(5)	IN	10/17/2014	—	1,101	8,899	—	10,000	279
761 Building - Munster(5)	IN	10/17/2014	—	1,436	8,580	—	10,016	279
Schererville Building - Schererville	IN	10/17/2014	—	1,260	750	96	2,106	42
Nuvista at Hillsborough - Lutz	FL	10/17/2014	—	913	17,176	—	18,089	896
Nuvista at Wellington Green - Wellington(5)	FL	10/17/2014	—	4,273	42,098	—	46,371	1,838
Mount Vernon Medical Office Building - Mount Vernon	WA	11/25/2014	—	—	18,519	—	18,519	544
Meadowbrook Senior Living - Agoura Hills(5)	CA	11/25/2014	—	8,821	48,454	10	57,285	1,523

				Initial Costs		Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015	Land	Building and Improvements	Building and Improvements	Gross Amount at December 31,2015(1)(2)	Accumulated Depreciation(3)(4)
Hampton River Medical Arts Building - Hampton(5)	VA	12/3/2014	—	—	17,706	—	17,706	542
Careplex West Medical Office Building- Hampton(5)	VA	12/3/2014	—	2,628	16,098	—	18,726	465
Wellington at Hershey's Mill - West Chester(5)	PA	12/3/2014	—	8,531	78,409	334	87,274	2,431
Eye Specialty Group Medical Building - Memphis(5)	TN	12/5/2014	—	775	7,223	—	7,998	205
Benton House - Alpharetta	GA	12/10/2014	—	1,604	26,055	10	27,669	890
Benton House - Prairie Village - Prairie Village(5)	KS	12/10/2014	—	1,782	21,831	7	23,620	767
Medical Sciences Pavilion - Harrisburg(5)	PA	12/15/2014	—	—	22,309	—	22,309	612
Bloom MOB - Harrisburg(5)	PA	12/15/2014	—	—	15,928	20	15,948	450
Pinnacle Center - Southaven(5)	MS	12/16/2014	—	1,378	6,418	189	7,985	201
Wood Glen Nursing and Rehab Center - West Chicago	IL	12/16/2014	—	1,896	16,107	—	18,003	654
Paradise Valley Medical Plaza - Phoenix(5)	AZ	12/29/2014	—	—	25,187	358	25,545	671
Victory Medical Center at Craig Ranch - McKinney	TX	12/30/2014	—	1,596	40,389	4	41,989	1,031
Capitol Healthcare & Rehab Centre - Springfield	IL	12/31/2014	—	603	21,690	—	22,293	853
Colonial Healthcare & Rehab Centre- Princeton	IL	12/31/2014	—	173	5,872	—	6,045	301
Morton Terrace Healthcare & Rehab Centre - Morton	IL	12/31/2014	—	709	5,650	—	6,359	296
Morton Villa Healthcare & Rehab Centre - Morton	IL	12/31/2014	—	645	3,665	—	4,310	178
Rivershores Healthcare & Rehab Centre - Marseilles	IL	12/31/2014	—	1,276	6,869	—	8,145	296
The Heights Healthcare & Rehab Centre - Peoria Heights	IL	12/31/2014	—	213	7,952	—	8,165	359
Specialty Hospital - Mesa	AZ	1/14/2015	—	1,977	16,146	266	18,389	417
Specialty Hospital - Sun City	AZ	1/14/2015	—	2,329	15,795	274	18,398	411
Benton House - Shoal Creek - Kansas City(5)	MO	2/2/2015	—	3,723	22,206	10	25,939	650
Aurora Health Center - Green Bay(6)	WI	3/18/2015	—	1,130	1,678	—	2,808	41
Aurora Health Center - Greenville(6)	WI	3/18/2015	—	259	958	—	1,217	25
Aurora Health Center - Plymouth(6)	WI	3/18/2015	—	2,891	24,224	—	27,115	525
Aurora Health Center - Waterford(6)	WI	3/18/2015	—	590	6,452	—	7,042	135
Aurora Health Center - Wautoma(6)	WI	3/18/2015	—	1,955	4,361	—	6,316	95
Aurora Sheyboyan Clinic - Kiel(6)	WI	3/18/2015	—	676	2,214	—	2,890	48
Arbor View Assisted Living and Memory Care - Burlington	WI	3/31/2015	—	367	7,815	—	8,182	226
Advanced Orthopedic Medical Center - Richmond(5)	VA	4/7/2015	—	1,523	19,229	—	20,752	383
Palm Valley Medical Plaza - Goodyear	AZ	4/7/2015	3,525	1,890	4,876	29	6,795	109
Physicians Plaza of Roane County - Harriman(5)	TN	4/27/2015	—	1,746	7,813	—	9,559	147
Adventist Health Lacey Medical Plaza - Hanford(5)	CA	4/29/2015	—	328	13,267	—	13,595	225

				Initial Costs		Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015	Land	Building and Improvements	Building and Improvements	Gross Amount at December 31,2015(1)(2)	Accumulated Depreciation(3)(4)
Commercial Center - Peoria	AZ	5/15/2015	—	959	1,076	31	2,066	24
Medical Center I - Peoria	AZ	5/15/2015	—	807	1,077	231	2,115	36
Medical Center II - Peoria	AZ	5/15/2015	—	945	1,304	41	2,290	31
Medical Center III - Peoria	AZ	5/15/2015	—	673	1,597	48	2,318	32
Dental Arts Building - Peoria	AZ	5/15/2015	—	156	152	6	314	3
Redwood Radiology and Outpatient Center - Santa Rosa(5)	CA	6/17/2015	—	3,701	11,314	—	15,015	152
Morrow Medical Center - Morrow	GA	6/24/2015	—	1,155	5,618	6	6,779	77
Belmar Medical Building - Lakewood	CO	6/29/2015	—	819	4,273	—	5,092	58
Addington Place of Northville - Northville	MI	6/30/2015	—	440	14,975	6	15,421	241
Medical Center V - Peoria	AZ	7/10/2015	3,231	1,089	3,145	37	4,271	44
Legacy Medical Village - Plano(5)	TX	7/10/2015	—	3,755	31,021	—	34,776	417
Conroe Medical Arts and Surgery Center - Conroe(5)	TX	7/10/2015	—	1,965	12,032	—	13,997	175
Scripps Cedar Medical Center - Vista(5)	CA	8/6/2015	—	1,213	14,531	—	15,744	157
NuVista Institute for Healthy Living - Jupiter	FL	8/7/2015	—	10,000	—	—	10,000	—
Ocean Park of Brookings - Brookings	OR	9/1/2015	—	861	8,367	—	9,228	92
Ramsey Woods - Cudahy	WI	10/2/2015	—	930	4,990	—	5,920	44
East Coast Square North - Morehead City	NC	10/15/2015	—	899	4,761	—	5,660	32
East Coast Square West - Cedar Point	NC	10/15/2015	—	1,535	4,803	—	6,338	33
Eastside Cancer Institute - Greenville	SC	10/22/2015	—	1,498	6,637	—	8,135	30
Sassafras Medical Building - Erie	PA	10/22/2015	—	928	4,538	—	5,466	20
Sky Lakes Klamath Medical Clinic - Klamath Falls	OR	10/22/2015	—	433	2,604	—	3,037	12
Courtyard Fountains - Gresham	OR	12/1/2015	24,999	2,476	50,534	—	53,010	130
Presence Healing Arts Pavilion - New Lenox	IL	12/4/2015	—	—	6,761	—	6,761	15
Mainland Medical Arts Pavilion - Texas City	TX	12/4/2015	—	320	7,823	—	8,143	18
Renaissance on Peachtree - Atlanta	GA	12/15/2015	—	4,535	68,605	9	73,149	171
Fox Ridge Senior Living at Bryant - Bryant	AR	12/29/2015	7,825	1,687	12,862	—	14,549	—
Fox Ridge Senior Living at Chenal - Little Rock	AR	12/29/2015	17,801	6,896	20,484	—	27,380	—
Fox Ridge Senior Living at Parkstone - North Little Rock	AR	12/29/2015	11,045	—	19,190	—	19,190	—

					Initial Costs				Subsequent to Acquisition
Property (In thousands)	State	Acquisition Date	Encumbrances at  December31, 2015		Land		Building and Improvements		Building and Improvements		Gross Amount at December 31,2015(1)(2)		Accumulated Depreciation(3)(4)
Autumn Leaves of Clear Lake - Houston	TX	12/31/2015	—		1,599		13,194		—		14,793		—
Autumn Leaves of Cy-Fair - Houston	TX	12/31/2015	—		1,225		11,335		—		12,560		—
Autumn Leaves of Meyerland- Houston	TX	12/31/2015	—		2,033		13,410		—		15,443		—
Autumn Leaves of the Woodlands - The Woodlands	TX	12/31/2015	—		2,413		9,140		—		11,553		—
Encumbrances allocated based on note below (6)			31,257
Total			$	159,455	$	192,790	$	1,880,904	$	4,809	$	2,078,503	$	60,575

___________________________________

(1) Acquired intangible lease assets allocated to individual properties in the amount of $241.5 million are not reflected in the table above.

(2) The tax basis of aggregate land, buildings and improvements as of December 31, 2015 is $2.2 billion (unaudited).

(3) The accumulated depreciation column excludes $86.1 million of amortization associated with acquired intangible lease assets.

(4) Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements and five years for fixtures.

(5) These unencumbered properties collateralize a Credit Facility of up to $565.0 million, which had $430.0 million of outstanding borrowings as of December 31, 2015.

(6) These properties cross collateralize a mortgage note payable of $31.3 million as of December 31, 2015.

A summary of activity for real estate and accumulated depreciation for the years ended December 31, 2015, 2014 and 2013:

	December 31,
(In thousands)	2015		2014		2013
Real estate investments, at cost:
Balance at beginning of year	$	1,475,848	$	39,778	$	—
Additions-Acquisitions	602,655		1,436,070		39,778
Disposals	—		—		—
Balance at end of the year	$	2,078,503	$	1,475,848	$	39,778
Accumulated depreciation and amortization:
Balance at beginning of year	$	11,791	$	814	$	—
Depreciation expense	48,784		10,977		814
Disposals	—		—		—
Balance at end of the year	$	60,575	$	11,791	$	814

See accompanying report of independent registered public accounting firm.

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Basis of Accounting

Basis of Accounting

The accompanying consolidated financial statements of the Company are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States ("GAAP").

Reclassifications

Reclassifications

Certain prior year amounts within straight-line rent receivable, net, prepaid expenses and other assets, rental income, resident services and fee income, cash flows from operating activities and cash flows from financing activities have been reclassified to conform with the current year presentation.

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and consolidated joint venture arrangements in which the Company has controlling financial interests. The portions of the consolidated joint venture arrangements not owned by the Company were presented as non-controlling interests as of and during the period consolidated. All inter-company accounts and transactions have been eliminated in consolidation.

The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity ("VIE"). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or (2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE's operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity.

The Company continually evaluates the need to consolidate joint ventures based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company is the primary beneficiary.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, real estate taxes, fair value measurements and income taxes, as applicable.

Real Estate Investments

Real Estate Investments

Investments in real estate are recorded at cost. Improvements and replacements are capitalized when they extend the useful life of the asset. Costs of repairs and maintenance are expensed as incurred.

The Company evaluates the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statement of operations. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets.

In business combinations, the Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values. Tangible assets may include land, land improvements, buildings and fixtures. Intangible assets may include the value of in-place leases and above- and below-market leases and other identifiable intangible assets or liabilities based on lease or property specific characteristics. In addition, any assumed mortgages receivable or payable and any assumed or issued non-controlling interests are recorded at their estimated fair values.

The Company generally determines the value of construction in progress based upon the replacement cost. During the construction period, we capitalize interest, insurance and real estate taxes until the development has reached substantial completion.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. The fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the Company’s estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining term of the lease including any below-market fixed rate renewal options for below-market leases.

In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including real estate valuations prepared by independent valuation firms. The Company also considers information and other factors including market conditions, the industry that the tenant operates in, characteristics of the real estate, i.e. location, size, demographics, value and comparative rental rates, tenant credit profile and the importance of the location of the real estate to the operations of the tenant’s business.

In allocating the fair value to assumed mortgages, amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above- or below-market interest rates.

In allocating non-controlling interests, amounts are recorded based on the fair value of units issued or percentage of investment contributed at the date of acquisition, as determined by the terms of the applicable agreement.

Real estate investments that are intended to be sold are designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount or fair value less estimated selling costs when they meet specific criteria to be presented as held for sale. Real estate investments are no longer depreciated when they are classified as held for sale. If the disposal, or intended disposal, of certain real estate investments represents a strategic shift that has had or will have a major effect on the Company's operations and financial results, the operations of such real estate investments would be presented as discontinued operations in the consolidated statements of operations and comprehensive loss for all applicable periods. The Company had not sold and did not intend to sell any properties as of December 31, 2015 and 2014.

Depreciation and Amortization

Depreciation and Amortization

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements, five years for fixtures and improvements, and the shorter of the useful life or the remaining lease term for tenant improvements and leasehold interests.

Construction in progress, including capitalized interest, insurance and real estate taxes, is not depreciated until the development has reached substantial completion.

The assumed mortgage premiums or discounts are amortized as an increase or reduction to interest expense over the remaining term of the respective mortgages.

Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market lease values are accreted as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods.

Capitalized above-market ground lease values are accreted as a reduction of property operating expense over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property operating expense over the remaining terms of the respective leases and expected below-market renewal option periods.

The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to expense over the remaining periods of the respective leases.

For the years ended December 31, 2015, 2014 and 2013, amortization of in-place leases and other intangible assets of $75.2 million, $17.9 million and $0.3 million, respectively, is included in depreciation and amortization expense on the consolidated statements of operations and comprehensive loss. For the years ended December 31, 20152014 and 2013, net amortization of intangible market lease assets and liabilities relating to assumed tenant leases of $0.4 million, $0.6 million and approximately $13,000 respectively, is deducted from rental income on the consolidated statements of operations and comprehensive loss. For the year ended December 31, 2015 and 2014, net amortization of intangible market lease assets and liabilities related to assumed leasehold interests of $0.2 million and approximately $29,000, respectively, is included in property operating and maintenance expense on the consolidated statements of operations and comprehensive loss. The Company did not have any intangible market lease assets or liabilities related to assumed leasehold interest and therefore did not have amortization of intangible market lease assets and liabilities related to assumed leasehold interests included in property operating and maintenance expense on the consolidated statements of operations and comprehensive loss during the year ended December 31, 2013.

The following table provides the projected amortization expense and adjustments to revenues for the next five years:

(In thousands)	2016			2017			2018			2019			2020
In-place lease assets	$	34,526		$	16,322		$	14,031		$	11,465		$	9,106
Other intangible assets	265			265			265			265			265
Total to be added to amortization expense	$	34,791		$	16,587		$	14,296		$	11,730		$	9,371
Above-market lease assets	$	(2,210	)	$	(1,888	)	$	(1,367	)	$	(1,079	)	$	(737	)
Below-market lease liabilities	2,430			2,115			1,886			1,605			1,450
Total to be added to rental income	$	220		$	227		$	519		$	526		$	713
Below-market ground lease assets	$	212		$	212		$	212		$	212		$	212
Above-market ground lease liabilities	(39		)	(39		)	(39		)	(39		)	(39		)
Total to be added to property operating and maintenance expense	$	173		$	173		$	173		$	173		$	173

Impairment of Long-Lived Assets

Impairment of Long Lived Assets

If circumstances indicate that the carrying value of a property may not be recoverable, the Company reviews the asset for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. Impairment assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents includes cash in bank accounts as well as investments in highly-liquid money market funds with original maturities of three months or less.

Restricted Cash

Restricted Cash

Restricted cash generally consists of resident security deposits and reserves related to real estate taxes, maintenance, structural improvements, and debt service.

Investments in Securities

Investments in Securities

The Company classifies its investments in debt or equity securities into one of three classes: held-to-maturity, available-for-sale or trading, as applicable.  Investments in debt securities that the Company has the positive intent and ability to hold until maturity are classified as held-to-maturity and are reported at amortized cost. Debt and equity securities that are bought and held principally for the purposes of selling them in the near future are classified as trading securities. Debt and equity securities not classified as trading securities or as held-to-maturity securities are classified as available-for-sale securities and are reported at fair value, with unrealized holding gains and losses reported as a component of equity within accumulated other comprehensive income or loss. Gains or losses on securities sold are based on the specific identification method.

The Company evaluates its investments in securities for impairment or other-than-temporary impairment on a quarterly basis.  The Company reviews each investment individually and assesses factors that may include (i) if the carrying amount of an investment exceeds its fair value, (ii) if there has been any change in the market as a whole or in the investee’s market, (iii) if there are any plans to sell the investment in question or if the Company believes it may be forced to sell its investment, and (iv) if there have been any other factors that would indicate the possibility of the existence of an other-than-temporary impairment. The fair value of the Company’s investments in available-for-sale securities generally rise and fall based on current market conditions. If, after reviewing relevant factors surrounding an impaired security, the Company determines that it will not recover its full investment in an impaired security, the Company recognizes an other-than-temporary impairment charge in the consolidated statements of operations and comprehensive loss in the period in which the other-than-temporary impairment is determined, regardless of whether or not the Company plans to sell or believes it will be forced to sell the security in question. 

Deferred Costs, Net

Deferred Costs, Net

Deferred costs, net, consists of deferred financing costs and deferred leasing costs. Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method and included in interest expense on the accompanying consolidated statements of operations and comprehensive loss. Unamortized deferred financing costs are expensed if the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.

Revenue Recognition

Revenue Recognition

The Company's rental income is primarily related to rent received from tenants in MOBs and triple-net leased healthcare facilities. Rent from tenants in the Company's MOB and triple-net leased healthcare facilities operating segments (as discussed below) is recorded in accordance with the terms of each lease on a straight-line basis over the initial term of the lease. Because many of the leases provide for rental increases at specified intervals, GAAP requires the Company to record a receivable, and include in revenues on a straight-line basis, unbilled rent receivables that the Company will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. When the Company acquires a property, the acquisition date is considered to be the commencement date for purposes of this calculation.

Cost recoveries from tenants are included in operating expense reimbursement in the period the related costs are incurred, as applicable.

Resident services and fee income primarily relates to rent from residents in the Company's seniors housing — operating properties ("SHOP") held using a structure permitted by the REIT Investment Diversification and Empowerment Act of 2007 and to fees for ancillary services performed for SHOP residents. Rental income from residents in the Company's SHOP operating segment is recognized as earned. Residents pay monthly rent that covers occupancy of their unit and basic services, including utilities, meals and some housekeeping services. The terms of the rent are short term in nature, primarily month-to-month. Fees for ancillary services are recorded in the period in which the services are performed.

The Company defers the revenue related to lease payments received from tenants and residents in advance of their due dates.

The Company continually reviews receivables related to rent and unbilled rent receivables and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, the Company records an increase in the allowance for uncollectible accounts on the consolidated balance sheets or records a direct write-off of the receivable in the consolidated statements of operations.

Offering and Related Costs

Offering and Related Costs

Offering and related costs include all expenses incurred in connection with the IPO. Offering costs of the Company (other than selling commissions and the dealer manager fee, as discussed in Note 9 — Related Party Transactions and Arrangements) may be paid by the Advisor, the Former Dealer Manager or their affiliates on behalf of the Company. Offering and related costs included (i) legal, accounting, printing, mailing, and filing fees; (ii) escrow service related fees; (iii) reimbursement of the Former Dealer Manager for amounts it paid to reimburse the itemized and detailed due diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for a portion of the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company was obligated to reimburse the Advisor or its affiliates, as applicable, for offering costs paid by them on behalf of the Company, provided that the Advisor was obligated to reimburse the Company to the extent offering costs (excluding selling commissions and the dealer manager fee) incurred by the Company in its offering exceed 2.0% of offering proceeds, net of repurchases and DRIP. As a result, these costs were only a liability of the Company to the extent aggregate selling commissions, the dealer manager fees and other organization and offering costs did not exceed 12.0% of the gross proceeds determined at the end of the IPO. As of the end of the IPO in November 2014, cumulative offering costs did not exceed 12.0% of the gross proceeds received in the IPO (See Note 9 — Related Party Transactions and Arrangements).

Share-Based Compensation

Equity-Based Compensation

The Company has a stock-based incentive award plan for its directors, which is accounted for under the guidance of share based payments. The expense for such awards is included in general and administrative expenses and is recognized over the vesting period or when the requirements for exercise of the award have been met (See Note 11 — Equity-Based Compensation).

Income Taxes

As of December 31, 2015, the Company, through its TRS entity, owned 38 seniors housing communities. The TRS entity is a wholly-owned subsidiary of the OP. A TRS is subject to federal, state and local income taxes. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event the Company determines that it would not be able to realize the deferred income tax assets in the future in excess of the net recorded amount, the Company establishes a valuation allowance which offsets the previously recognized income tax benefit. Deferred income taxes result from temporary differences between the carrying amounts of the TRS's assets and liabilities used for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred tax assets and liabilities as of December 31, 2015 consisted of deferred rent and depreciation. As of December 31, 2015, the Company had a deferred tax asset of $2.9 million with no valuation allowance. As of December 31, 2014, the Company had a deferred tax asset of $0.7 million and a valuation allowance of $0.7 million.

The following table details the composition of the Company's tax benefit (expense) for the years ended December 31, 2015, 2014 and 2013, which includes federal and state income taxes incurred by the Company's TRS entity. The Company estimated its income tax benefit (expense) relating to its TRS entity using a combined federal and state rate of approximately 40.2% and 39.6% for the years ended December 31, 2015 and 2014, respectively. These income taxes are reflected in income tax benefit (expense) on the accompanying consolidated statements of operations and comprehensive loss.

	Years Ended December 31,
	2015				2014					2013
(In thousands)	Current		Deferred		Current			Deferred		Current		Deferred
Federal benefit (expense)	$	1,667	$	762	$	(450	)	$	—	$	—	$	—
State benefit (expense)	358		191		(115		)	—		5		—
Total	$	2,025	$	953	$	(565	)	$	—	$	5	$	—

As of December 31, 2015 and 2014, the Company had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended December 31, 2012 remain open to examination by the major taxing jurisdictions to which the Company is subject.

The amount of distributions payable to the Company's stockholders is determined by the board of directors and is dependent on a number of factors, including funds available for distribution, financial condition, capital expenditure requirements, as applicable, and annual distribution requirements needed to qualify and maintain the Company's status as a REIT under the Code.

Income Taxes

The Company elected and qualified to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986 (the "Code"), as amended, commencing with the taxable year ended December 31, 2013. If the Company continues to qualify for taxation as a REIT, it generally will not be subject to federal corporate income tax to the extent it distributes all of its REIT taxable income to its stockholders. REITs are subject to a number of organizational and operational requirements, including a requirement that the Company distribute annually at least 90% of the Company’s REIT taxable income to the Company’s stockholders. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates (including any applicable alternative minimum tax) beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. The Company distributed to its stockholders 100% of its REIT taxable income for each of the years ended December 31, 2015, 2014 and 2013. Accordingly, no provision for federal or state income taxes related to such REIT taxable income was recorded in the Company's financial statements. Even if the Company continues to qualify for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

Per Share Data

Per Share Data

Net income (loss) per basic share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock considers the effect of potentially dilutive shares of common stock outstanding during the period.

Reportable Segments

Reportable Segments

The Company has determined that it has three reportable segments, with activities related to investing in MOBs, triple-net leased healthcare facilities, and seniors housing communities. Management evaluates the operating performance of the Company's investments in real estate and seniors housing communities on an individual property level.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of this new guidance.

In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to the Company's consolidated financial position, results of operations and cash flows.

In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company has elected to adopt this guidance effective January 1, 2016. The Company has assessed the impact from the adoption of this revised guidance and has determined that there will be no material impact to its financial position, results of operations and cash flows.

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendment requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company has elected to adopt this guidance effective January 1, 2016. The adoption of this revised guidance will result in the reclassification of $2.2 million of deferred issuance costs related to the Company's mortgage notes payable from deferred costs, net to mortgage notes payable in the Company's consolidated balance sheet as of December 31, 2015.

In September 2015, the FASB issued an update that eliminates the requirement to adjust provisional amounts from a business combination and the related impact on earnings by restating prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of measurement period adjustments on current and prior periods, including the prior period impact on depreciation, amortization and other income statement items and their related tax effects, shall be recognized in the period the adjustment amount is determined. The cumulative adjustment would be reflected within the respective financial statement line items affected. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted. The Company elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to the Company's financial position, results of operations and cash flows.

In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of this new guidance.

In February 2016, the FASB issued an update that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance is effective on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

XML

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Schedule of Finite-Lived Intangible Assets

Acquired intangible assets and liabilities consisted of the following as of the periods presented:

	December 31, 2015						December 31, 2014
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	202,608	$	82,390	$	120,218	$	150,953	$	18,104	$	132,849
Intangible market lease assets	28,262		3,393		24,869		25,307		1,008		24,299
Other intangible assets	10,589		309		10,280		10,589		44		10,545
Total acquired intangible assets	$	241,459	$	86,092	$	155,367	$	186,849	$	19,156	$	167,693
Intangible market lease liabilities	$	25,613	$	2,619	$	22,994	$	19,897	$	362	$	19,535

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Schedule of Components of Income Tax Expense (Benefit)

The following table details the composition of the Company's tax benefit (expense) for the years ended December 31, 2015, 2014 and 2013, which includes federal and state income taxes incurred by the Company's TRS entity. The Company estimated its income tax benefit (expense) relating to its TRS entity using a combined federal and state rate of approximately 40.2% and 39.6% for the years ended December 31, 2015 and 2014, respectively. These income taxes are reflected in income tax benefit (expense) on the accompanying consolidated statements of operations and comprehensive loss.

	Years Ended December 31,
	2015				2014					2013
(In thousands)	Current		Deferred		Current			Deferred		Current		Deferred
Federal benefit (expense)	$	1,667	$	762	$	(450	)	$	—	$	—	$	—
State benefit (expense)	358		191		(115		)	—		5		—
Total	$	2,025	$	953	$	(565	)	$	—	$	5	$	—

Summary of Distributions

The following table details from a tax perspective the portion of distributions classified as a return of capital, capital gain dividend income and ordinary dividend income, per share per annum, for the years ended December 31, 2015, 2014 and 2013:

	Years Ended December 31,
	2015				2014				2013
Return of capital	97.9	%	$	1.66	93.7	%	$	1.59	97.7	%	$	1.01
Capital gain dividend income	0.3	%	0.01		—	%	—		—	%	—
Ordinary dividend income	1.8	%	0.03		6.3	%	0.11		2.3	%	0.02
Total	100.0	%	$	1.70	100.0	%	$	1.70	100.0	%	$	1.03

XML

Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2015

Real Estate Investments, Net [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following table presents the allocation of the assets acquired during the years ended December 31, 2015, 2014 and 2013:

	Years Ended December 31,
(Dollar amounts in thousands)	2015			2014			2013
Real estate investments, at cost:
Land	$	79,329		$	109,679		$	3,782
Buildings, fixtures and improvements	519,185			1,325,721			35,996
Construction in progress	21,309			—			—
Total tangible assets	619,823			1,435,400			39,778
Acquired intangibles:
In-place leases (1)	62,584			145,464			5,489
Market lease and other intangible assets (1)	3,223			34,877			1,019
Market lease liabilities (1)	(10,064		)	(19,837		)	(61		)
Total assets and liabilities acquired, net	675,566			1,595,904			46,225
Mortgage notes payable assumed to acquire real estate investments	(100,058		)	(66,321		)	—
Premiums on mortgages assumed	(1,492		)	(3,533		)	—
Other assets and liabilities, net (2)	(882		)	(9,040		)	(91		)
Deposits for real estate acquisitions	(3,000		)	—			—
OP units issued to acquire real estate	—			(10,148		)	—
Cash paid for acquired real estate investments	$	570,134		$	1,506,862		$	46,134
Number of properties purchased	48			111			7

_______________

(1) Weighted-average remaining amortization periods for in-place leases, market lease and other intangible assets and market lease liabilities acquired during the years ended December 31, 2015 were 4.9, 6.1 and 14.1 years, respectively, as of each property's respective acquisition date.

(2) Other assets and liabilities, net includes $0.9 million in tenant security deposits assumed at acquisition for properties acquired during the year ended December 31, 2015. Other assets and liabilities, net includes $4.2 million in tenant security deposits assumed at acquisition for properties acquired and a $4.8 million capital lease obligation incurred in conjunction with the transaction described below for the year ended December 31, 2014. Other assets and liabilities, net includes $0.1 million in tenant security deposits assumed at acquisition for properties acquired during the year ended December 31, 2013.

Business Acquisition, Pro Forma Information

The following table presents unaudited pro forma information as if the acquisitions that were completed during the years ended December 31, 2015 had been consummated on January 1, 2013. Additionally, the unaudited pro forma net loss was adjusted to reclassify acquisition and transaction related expense of $14.6 million from the years ended December 31, 2015 to the years ended December 31, 2014.

	Years Ended December 31,
(In thousands)	2015			2014			2013
Pro forma revenues (1)	$	302,539		$	138,872		$	82,250
Pro forma net loss (1)	$	(38,284	)	$	(53,157	)	$	(30,293	)
Basic and diluted pro forma net loss per share	$	(0.45	)	$	(1.04	)	$	(14.10	)

___________________

(1) For the years ended December 31, 2015, aggregate revenues and net loss derived from the Company's 2015 acquisitions (for the Company's period of ownership) were $25.4 million and $(4.2) million, respectively.

Schedule of Future Minimum Rental Payments for Operating Leases

The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter as of December 31, 2015.  These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes, among other items.

(In thousands)	Future Minimum Base Rent Payments
2016	$	94,110
2017	94,232
2018	89,568
2019	83,333
2020	77,006
Thereafter	510,096
Total	$	948,345

Schedule of Annualized Rental Income by Major Tenants

The following table lists the tenants (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income for all properties on a straight-line basis as of December 31, 2015, 2014 and 2013:

	December 31,
Tenant	2015	2014	2013
Adena Health System	*	*	10.8%
Advocate Health and Hospitals Corporation	*	*	10.9%
HH/Killeen Health System, LLC	*	*	12.8%
IASIS Healthcare, LLC	*	*	15.3%
National Mentor Holdings, Inc.	*	*	24.8%

_______________________________

* Tenant's annualized rental income on a straight-line basis was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

The following table lists the states where the Company has a concentration of properties where annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis for all properties as of December 31, 2015, 2014 and 2013:

	December 31,
State	2015	2014	2013
Colorado	*	*	24.8%
Florida	18.6%	24.6%	*
Illinois	*	*	23.0%
Iowa	10.1%	13.9%	*
Louisiana	*	*	15.3%
Ohio	*	*	10.8%
Pennsylvania	11.4%	15.2%	*
Texas	*	*	12.8%

_______________________________

* State's annualized rental income on a straight-line basis was not 10% or more of total annualized rental income on a straight-line basis for all portfolio properties as of the period specified.

XML

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

The following table details the unrealized gains and losses on investment securities as of December 31, 2015 and 2014.

(In thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2015
Equity securities	$	1,084	$	19	$	(25	)	$	1,078
December 31, 2014
Equity securities	$	19,397	$	477	$	(33	)	$	19,841
Debt security	426		19		—			445
Total	$	19,823	$	496	$	(33	)	$	20,286

XML

Mortgage Notes Payable (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The following table reflects the Company's mortgage notes payable as of December 31, 2015 and 2014:

		Outstanding Loan Amount as of December 31,				Effective Interest Rate
Portfolio	Encumbered Properties	2015		2014					Interest Rate		Maturity
		(In thousands)		(In thousands)
Creekside Medical Office Building - Douglasville, GA	—	$	—	$	5,154	5.32	%		Fixed		Sep. 2015
Bowie Gateway Medical Center - Bowie, MD	1	5,969		6,055		6.18	%		Fixed		Sep. 2016
Medical Center of New Windsor - New Windsor, NY	1	8,720		8,832		6.39	%		Fixed		Sep. 2017
Plank Medical Center - Clifton Park, NY	1	3,461		3,506		6.39	%		Fixed		Sep. 2017
Cushing Center - Schenectady, NY	1	4,184		4,287		5.71	%		Fixed		Feb. 2016
Countryside Medical Arts - Safety Harbor, FL	1	5,992		6,076		6.07	%		Fixed	(1)	Apr. 2019
St. Andrews Medical Park - Venice, FL	3	6,623		6,716		6.07	%		Fixed	(1)	Apr. 2019
Campus at Crooks & Auburn Building C - Rochester Hills, MI	1	3,555		3,626		5.91	%		Fixed		Apr. 2016
Slingerlands Crossing Phase I - Bethlehem, NY	1	6,680		6,759		6.39	%		Fixed		Sep. 2017
Slingerlands Crossing Phase II - Bethlehem, NY	1	7,777		7,877		6.39	%		Fixed		Sep. 2017
Benedictine Cancer Center - Kingston, NY	1	6,811		6,898		6.39	%		Fixed		Sep. 2017
Aurora Healthcare Center Portfolio - WI	6	31,257		—		6.55	%		Fixed		Jan. 2018
Palm Valley Medical Plaza - Goodyear, AZ	1	3,525		—		4.21	%		Fixed		Jun. 2023
Medical Center V - Peoria, AZ	1	3,232		—		4.75	%		Fixed		Sep. 2023
Courtyard Fountains - Gresham, OR	1	24,999		—		3.82	%		Fixed	(2)	Jan. 2020
Fox Ridge Bryant - Bryant, AR	1	7,825		—		3.98	%		Fixed		May 2047
Fox Ridge Chenal - Little Rock, AR	1	17,800		—		3.98	%		Fixed		May 2049
Fox Ridge North Little Rock - North Little Rock, AR	1	11,045		—		3.98	%		Fixed		May 2047
Total	24	$	159,455	$	65,786	5.32	%	(3)

_______________

(1)    Fixed interest rate through May 10, 2017. Interest rate changes to variable rate starting in June 2017.

(2)    Interest only payments through July 1, 2016. Principal and interest payments starting in August 2016.

(3)    Calculated on a weighted average basis for all mortgages outstanding as of December 31, 2015.

Schedule of Maturities of Long-term Debt

The following table summarizes the scheduled aggregate principal payments on mortgage notes payable for the five years subsequent to December 31, 2015:

(In thousands)	Future Principal Payments
2016	$	15,650
2017	34,832
2018	31,893
2019	13,324
2020	24,279
Thereafter	39,477
Total	$	159,455

XML

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

The following table presents information about the Company's assets measured at fair value on a recurring basis as of December 31, 2015 and 2014, aggregated by the level in the fair value hierarchy within which those instruments fall.

(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
December 31, 2015
Investment securities	$	1,078	$	—	$	—	$	1,078
December 31, 2014
Investment securities	$	20,286	$	—	$	—	$	20,286

Fair Value, by Balance Sheet Grouping

The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below:

		Carrying Amount (1) at		Fair Value at		Carrying Amount (1) at		Fair Value at
(In thousands)	Level	December 31, 2015		December 31, 2015		December 31, 2014		December 31, 2014
Mortgage notes payable and premiums, net	3	$	161,858	$	162,654	$	68,630	$	69,117
Credit Facility	3	$	430,000	$	430,000	$	—	$	—

_______________________________

(1) Carrying value includes mortgage notes payable of $159.5 million and $65.8 million and mortgage premiums, net of $2.4 million and $2.8 million as of December 31, 2015 and December 31, 2014, respectively.

XML

Common Stock (Tables)

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Class of Treasury Stock

The following table reflects the number of shares repurchased cumulatively through December 31, 2015:

	Number of Shares Repurchased	Average Price per Share
Cumulative repurchases as of December 31, 2014	74,031	$	24.42
Year ended December 31, 2015 (1)	894,339	23.66
Cumulative repurchases as of December 31, 2015 (1)	968,370	$	23.72

_____________________________

(1) As permitted under the SRP, in January 2016, the Company's board of directors authorized, with respect to redemption requests received during the three months ended December 31, 2015, the repurchase of shares validly submitted for repurchase in an amount equal to 1.0% of the weighted average number of shares of common stock outstanding during the fiscal year ended December 31, 2014, representing less than all the shares validly submitted for repurchase during the three months ended December 31, 2015. Accordingly, 512,408 shares for $12.0 million at an average repurchase price per share of $23.45 (including all shares submitted for death or disability) were approved and completed in February 2016, while 201,367 shares for $4.6 million at an average price per share of $23.04 were not fulfilled. The accrual for these repurchases is reflected in the accounts payable and accrued expenses line of the accompanying consolidated balance sheets. There were no other unfulfilled share repurchases for the period from October 15, 2012 (date of inception) to December 31, 2015.

XML

Related Party Transactions and Arrangements (Tables)

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate

The following table details total selling commissions and dealer manager fees incurred from and due to the Former Dealer Manager as of and for the periods presented:

	Years Ended December 31,							Payable as of December 31,
(In thousands)	2015			2014		2013		2015		2014
Total commissions and fees incurred from (reimbursed by) and due to the Former Dealer Manager	$	(2	)	$	175,575	$	17,481	$	—	$	1

Schedule Of Offering Costs Reimbursements to Related Party

The following table details reimbursable offering costs incurred from and due to the Advisor and Former Dealer Manager as of and for the periods presented:

	Years Ended December 31,						Payable as of December 31,
(In thousands)	2015		2014		2013		2015		2014
Fees and expense reimbursements incurred from and due to the Advisor	$	—	$	21,767	$	3,807	$	—	$	—
Fees and expense reimbursements incurred from and due to the Former Dealer Manager	—		3,262		1,190		—		605
Total fees and expense reimbursements incurred from and due to the Advisor and Former Dealer Manager	$	—	$	25,029	$	4,997	$	—	$	605

Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services

The following table details amounts incurred, forgiven and payable in connection with the Company's operations-related services described above as of and for the periods presented.

	Years Ended December 31,												Payable (Receivable) as of
	2015				2014				2013				December 31,
(In thousands)	Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven		2015			2014
One-time fees and reimbursements:
Acquisition fees	$	6,878	$	—	$	15,936	$	—	$	462	$	—	$	—		$	—
Acquisition cost reimbursements	3,439		—		7,968		—		144		—		—			—
Financing coordination fees	3,863		—		1,997		—		—		—		—			—
Ongoing fees:
Asset management fees (1)	10,889		—		—		—		—		—		(5		)	—
Property management fees	1,302		1,220		—		617		—		23		(10		)	—
Professional fees and reimbursements	4,558		—		364		—						499			364
Strategic advisory fees	—		—		605		—		315		—		—			—
Distributions on Class B Units	490		—		47		—		1		—		52			—
Total related party operation fees and reimbursements	$	31,419	$	1,220	$	26,917	$	617	$	922	$	23	$	536		$	364

_______________

(1) Prior to April 1, 2015, the Company caused the OP to issue (subject to periodic approval by the board of directors) to the Advisor restricted performance based Class B Units for asset management services. As of December 31, 2015, the Company's board of directors had approved the issuance of 359,250 Class B Units to the Advisor in connection with this arrangement. Effective April 1, 2015, in connection with the Amendment, the Company will pay an asset management fee to the Advisor or its assignees in cash, in shares, or a combination of both and will no longer issue any Class B Units.

Schedule of General and Administrative Expenses Absorbed by Affiliate

The following table reflects costs absorbed by the Advisor during the periods presented.

	Years Ended December 31,						Receivable as of December 31,
(In thousands)	2015		2014		2013		2015		2014
Property operating expenses absorbed	$	—	$	—	$	150	$	—	$	—
General and administrative expenses absorbed	—		—		843		—		—
Total expenses absorbed	$	—	$	—	$	993	$	—	$	—

XML

Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Restricted Share Award Activity

The following table reflects restricted share award activity for the period presented:

	Number of Common Shares		Weighted-Average Issue Price
Unvested, January 1, 2013	—		$	—
Granted	3,999		22.50
Vested	—		—
Forfeitures	—		—
Unvested, December 31, 2013	3,999		22.50
Granted	3,999		22.50
Vested	(800	)	22.50
Forfeitures	—		—
Unvested, December 31, 2014	7,198		22.50
Granted	7,998		22.50
Vested	(1,066	)	22.50
Forfeitures	(2,399	)	22.50
Unvested, December 31, 2015	11,731		$	22.50

XML

Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table illustrates the changes in accumulated other comprehensive income as of and for the period presented:

(In thousands)	Unrealized Gains on Available-for-Sale Securities
Balance, December 31, 2013	$	—
Other comprehensive income, before reclassifications	471
Amounts reclassified from accumulated other comprehensive income (1)	(8		)
Balance, December 31, 2014	463
Other comprehensive loss, before reclassifications	(23		)
Amounts reclassified from accumulated other comprehensive income (1)	(446		)
Balance, December 31, 2015	$	(6	)

__________________

(1) During the years ended December 31, 2015and 2014, the Company sold certain of its investments in preferred stock, common stock, real estate income funds and its investment in a senior note which resulted in a realized gain of $0.4 million and approximately $8,000, respectively, which is included in gain on sale of investment securities on the consolidated statement of operations and comprehensive loss.

XML

Non-Controlling Interests (Tables)

12 Months Ended

Dec. 31, 2015

Noncontrolling Interest [Abstract]

Schedule related to Investment Arrangements with Unaffiliated Third Party

The following table summarizes the activity related to investment arrangements with the unaffiliated third party. The Company did not have any investment arrangements with unaffiliated third parties during the years ended December 31, 2014 or 2013 and therefore did not have any distributions to unaffiliated third parties for investment arrangements for the years ended December 31, 2014 or 2013.

						As of December 31, 2015
Property Name (Dollar amounts in thousands)	Investment Date	Third Party Net Investment Amount as of December 31, 2015		Non-Controlling Ownership Percentage as of December 31, 2015		Net Real Estate Assets Subject to Investment Arrangement		Mortgage Notes Payable Subject to Investment Arrangement	Distributions for the Year Ended December 31, 2015
Plaza Del Rio Medical Office Campus Portfolio - Peoria, AZ	May 2015	$	500	4.1	%	$	10,561	—	—

XML

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a summary of the basic and diluted net loss per share computation for the years ended December 31, 2015, 2014 and 2013:

	Years Ended December 31,
	2015			2014			2013
Net loss attributable to stockholders (in thousands)	$	(41,741	)	$	(37,678	)	$	(221	)
Basic and diluted weighted-average shares outstanding	85,331,966			51,234,729			2,148,297
Basic and diluted net loss per share	$	(0.49	)	$	(0.74	)	$	(0.10	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The Company had the following potentially dilutive securities as of December 31, 2015, 2014 and 2013, which were excluded from the calculation of diluted loss per share attributable to stockholders as the effect would have been antidilutive:

	December 31,
	2015	2014	2013
Unvested restricted stock	11,731	7,198	3,999
OP Units	405,998	405,998	90
Class B units	359,250	107,885	4,062
Total common share equivalents	776,979	521,081	8,151

XML

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables reconcile the segment activity to consolidated net loss for the years ended December 31, 2015, 2014 and 2013:

	Year Ended December 31, 2015
(In thousands)	Medical Office Buildings		Triple-Net Leased Healthcare Facilities		Seniors Housing — Operating Properties		Consolidated
Revenues:
Rental income	$	56,165	$	37,053	$	—	$	93,218
Operating expense reimbursements	12,611		148		—		12,759
Resident services and fee income	—		—		140,901		140,901
Contingent purchase price consideration	572		—		40		612
Total revenues	69,348		37,201		140,941		247,490
Property operating and maintenance	20,334		6,706		98,533		125,573
Net operating income	$	49,014	$	30,495	$	42,408	121,917
Operating fees to related parties							(12,191		)
Acquisition and transaction related							(14,679		)
General and administrative							(9,733		)
Depreciation and amortization							(120,924		)
Interest expense							(10,356		)
Interest and other income							582
Gain on sale of investment securities							446
Income tax benefit (expense)							2,978
Net loss attributable to non-controlling interests							219
Net loss attributable to stockholders							$	(41,741	)

	Year Ended December 31, 2014
(In thousands)	Medical Office Buildings		Triple-Net Leased Healthcare Facilities		Seniors Housing — Operating Properties		Consolidated
Revenues:
Rental income	$	13,955	$	9,050	$	—	$	23,005
Operating expense reimbursements	3,532		53		—		3,585
Resident services and fee income	—		—		31,849		31,849
Total revenues	17,487		9,103		31,849		58,439
Property operating and maintenance	4,765		79		21,873		26,717
Net operating income	$	12,722	$	9,024	$	9,976	31,722
Acquisition and transaction related							(33,623		)
General and administrative							(3,541		)
Depreciation and amortization							(28,889		)
Interest expense							(3,559		)
Interest and other income							735
Gain on sale of investment securities							8
Income tax benefit (expense)							(565		)
Net loss attributable to non-controlling interests							34
Net loss attributable to stockholders							$	(37,678	)

	Year Ended December 31, 2013
(In thousands)	Medical Office Buildings		Triple-Net Leased Healthcare Facilities		Seniors Housing — Operating Properties		Consolidated
Revenues:
Rental income	$	881	$	670	$	—	$	1,551
Operating expense reimbursements	236		30		—		266
Resident services and fee income	—		—		—		—
Total revenues	1,117		700		—		1,817
Property operating and maintenance	92		30		—		122
Net operating income	$	1,025	$	670	$	—	1,695
Acquisition and transaction related							(730		)
General and administrative							(104		)
Depreciation and amortization							(1,077		)
Income tax benefit (expense)							(5		)
Net loss attributable to stockholders							$	(221	)

The following table reconciles the segment activity to consolidated total assets as of the periods presented:

	December 31,
(In thousands)	2015		2014
ASSETS
Investments in real estate, net:
Medical office buildings	$	839,041	$	593,648
Triple-net leased healthcare facilities	447,893		355,962
Construction in progress	31,309		—
Seniors housing — operating properties	876,359		682,140
Total investments in real estate, net	2,194,602		1,631,750
Cash and cash equivalents	24,474		182,617
Restricted cash	4,647		1,778
Investment securities, at fair value	1,078		20,286
Receivable for sale of common stock	—		6
Straight-line rent receivable, net	11,470		2,325
Prepaid expenses and other assets	21,707		14,711
Deferred costs, net	14,014		4,237
Total assets	$	2,271,992	$	1,857,710

The following table reconciles capital expenditures by reportable business segment, excluding corporate non-real estate expenditures, for the periods presented:

	Years Ended December 31,
(In thousand)	2015		2014		2013
Medical office buildings	$	2,129	$	609	$	—
Triple-net leased healthcare facilities	540		—		—
Seniors housing — operating properties	2,701		134		—
Total capital expenditures	$	5,370	$	743	$	—

XML

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter under these arrangements, including the present value of the net minimum payment due under capital leases. These amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes among other items.

	Future Minimum Base Rent Payments
(In thousands)	Operating Leases		Capital Leases
2016	$	645	$	74
2017	664		76
2018	668		78
2019	673		80
2020	671		82
Thereafter	79,980		7,848
Total minimum lease payments	$	83,301	8,238
Less: amounts representing interest			(3,435		)
Total present value of minimum lease payments			$	4,803

XML

Quarterly Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2015, 2014 and 2013:

(In thousands, except for share and per share data)	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Total revenues	$	57,121		$	59,516		$	64,030		$	66,373
Net loss attributable to stockholders	$	(5,220	)	$	(13,421	)	$	(16,108	)	$	(6,992	)
Basic and diluted weighted average shares outstanding	84,250,503			84,992,633			85,705,595			86,351,934
Basic and diluted loss per share	$	(0.06	)	$	(0.16	)	$	(0.19	)	$	(0.08	)

(In thousands, except for share and per share data)	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Total revenues	$	1,387		$	2,869		$	11,818		$	42,365
Net income (loss)	$	(582	)	$	(4,147	)	$	(20,023	)	$	(12,926	)
Basic and diluted weighted average shares outstanding	13,623,545			35,127,969			71,813,126			83,381,570
Basic and diluted income (loss) per share	$	(0.04	)	$	(0.12	)	$	(0.28	)	$	(0.16	)

(In thousands, except for share and per share data)	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
Total revenues	$	—		$	27		$	652		$	1,138
Net income (loss)	$	(47	)	$	(116	)	$	(399	)	$	341
Basic weighted average shares outstanding	8,888			379,911			2,559,022			5,579,635
Basic income (loss) per share	$	(5.29	)	$	(0.31	)	$	(0.16	)	$	0.06
Diluted weighted average shares outstanding	8,888			379,911			2,559,022			5,624,600
Diluted income (loss) per share	$	(5.29	)	$	(0.31	)	$	(0.16	)	$	0.05

XML

Organization (Details)	12 Months Ended			39 Months Ended
	Dec. 31, 2015 USD ($) ft² property state $ / shares	Dec. 31, 2014 USD ($) $ / shares	Dec. 31, 2013 USD ($)	Dec. 31, 2015 USD ($) ft² property state $ / shares	Feb. 28, 2013 USD ($) $ / shares
Class of Stock [Line Items]
Number of real estate properties | property	166			166
Number of states properties are located in | state	29			29
Area of real estate property | ft²	8,494,764			8,494,764
Common stock, par value, in dollars per share	$ 0.01	$ 0.01		$ 0.01	$ 0.01
Proceeds from issuance of common stock | $	$ 6,000	$ 1,853,231,000	$ 184,006,000	$ 2,100,000,000
Common Stock
Class of Stock [Line Items]
Share Price (in dollars per share)					$ 25.0
DRIP share price (in dollars per share)	$ 23.75			$ 23.75
IPO [Member]
Class of Stock [Line Items]
Stock available for issuance under DRIP | $					$ 1,700,000,000.0

XML

Summary of Significant Accounting Policies (Narrative) (Details)	12 Months Ended
	Dec. 31, 2015 USD ($) community	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
Schedule of Shares Repurchased [Line Items]
Money market funds	$ 0	$ 134,212,000
Cash and cash equivalents	24,474,000	182,617,000	$ 111,833,000	$ 3,000
Cash in excess of FDIC limit	12,200,000	173,100,000
Net deferred financing costs	13,600,000	4,101,000
Accumulated amortization, deferred financing costs	4,000,000	1,300,000
Deferred leasing costs, accumulated amortization	400,000	100,000
Deferred leasing costs, net	$ 73,000	24,000
Number of senior housing communities | community	38
Deferred tax asset, net	$ 2,900,000	700,000
Valuation allowance	$ 0	$ 700,000
Effective income tax rate	40.00%	40.00%
Maximum
Schedule of Shares Repurchased [Line Items]
Liability for offering and related costs from IPO	2.00%
Aggregate offering costs	12.00%
Building
Schedule of Shares Repurchased [Line Items]
Useful life	40 years
Land Improvements
Schedule of Shares Repurchased [Line Items]
Useful life	15 years
Fixtures and improvements
Schedule of Shares Repurchased [Line Items]
Useful life	5 years
In-place leases
Schedule of Shares Repurchased [Line Items]
Amortization	$ 75,200,000	$ 17,900,000	300,000
Intangible market lease assets
Schedule of Shares Repurchased [Line Items]
Amortization	400,000	604,000	$ 13,000
Intangible market lease assets and liabilities
Schedule of Shares Repurchased [Line Items]
Amortization	199,000	$ 29,000
New Accounting Pronouncement, Early Adoption, Effect | Deferred costs
Schedule of Shares Repurchased [Line Items]
Net deferred financing costs	(2,200,000)
New Accounting Pronouncement, Early Adoption, Effect | Mortgage notes payable
Schedule of Shares Repurchased [Line Items]
Net deferred financing costs	$ 2,200,000

XML

Summary of Significant Accounting Policies (Acquired Leases) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 241,459	$ 186,849
Accumulated Amortization	86,092	19,156
Net Carrying Amount	155,367	167,693
Below Market Lease, Gross Carrying Amount	25,613	19,897
Below Market Lease, Accumulated Amortization	2,619	362
Below Market Lease, Net Carrying Amount	22,994	19,535
In-place leases
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	202,608	150,953
Accumulated Amortization	82,390	18,104
Net Carrying Amount	120,218	132,849
Intangible market lease assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	28,262	25,307
Accumulated Amortization	3,393	1,008
Net Carrying Amount	24,869	24,299
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,589	10,589
Accumulated Amortization	309	44
Net Carrying Amount	$ 10,280	$ 10,545

XML

Summary of Significant Accounting Policies (Lease Amortization) (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Amortization Expense
Finite-Lived Intangible Assets [Line Items]
Finite Lived Lease Amortization Expense (Income) 2015	$ 34,791
Finite Lived Lease Amortization Expense (Income) 2016	16,587
Finite Lived Lease Amortization Expense (Income) 2017	14,296
Finite Lived Lease Amortization Expense (Income) 2018	11,730
Finite Lived Lease Amortization Expense (Income) 2019	9,371
Amortization Expense | In-place leases
Finite-Lived Intangible Assets [Line Items]
Finite Lived Lease Amortization Expense (Income) 2015	34,526
Finite Lived Lease Amortization Expense (Income) 2016	16,322
Finite Lived Lease Amortization Expense (Income) 2017	14,031
Finite Lived Lease Amortization Expense (Income) 2018	11,465
Finite Lived Lease Amortization Expense (Income) 2019	9,106
Amortization Expense | Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Finite Lived Lease Amortization Expense (Income) 2015	265
Finite Lived Lease Amortization Expense (Income) 2016	265
Finite Lived Lease Amortization Expense (Income) 2017	265
Finite Lived Lease Amortization Expense (Income) 2018	265
Finite Lived Lease Amortization Expense (Income) 2019	265
Rental Income
Finite-Lived Intangible Assets [Line Items]
Total Amortization (Expense) for 2015	220
Total Amortization (Expense) for 2016	227
Total Amortization (Expense) for 2017	519
Total Amortization (Expense) for 2018	526
Total Amortization (Expense) for 2019	713
Rental Income | Market lease and other intangible assets
Finite-Lived Intangible Assets [Line Items]
Finite Lived Lease Amortization Expense (Income) 2015	(2,210)
Finite Lived Lease Amortization Expense (Income) 2016	(1,888)
Finite Lived Lease Amortization Expense (Income) 2017	(1,367)
Finite Lived Lease Amortization Expense (Income) 2018	(1,079)
Finite Lived Lease Amortization Expense (Income) 2019	(737)
Rental Income | Intangible market lease liabilities
Finite-Lived Intangible Assets [Line Items]
Below Market Lease Income (Expense) Amortization 2015	2,430
Below Market Lease Income (Expense) Amortization 2016	2,115
Below Market Lease Income (Expense) Amortization 2017	1,886
Below Market Lease Income (Expense) Amortization 2018	1,605
Below Market Lease Income (Expense) 2019	1,450
Property Operating and Maintenance Expense
Finite-Lived Intangible Assets [Line Items]
Total Amortization (Expense) for 2015	173
Total Amortization (Expense) for 2016	173
Total Amortization (Expense) for 2017	173
Total Amortization (Expense) for 2018	173
Total Amortization (Expense) for 2019	173
Property Operating and Maintenance Expense | Below-market ground lease assets
Finite-Lived Intangible Assets [Line Items]
Below Market Lease Income (Expense) Amortization 2015	212
Below Market Lease Income (Expense) Amortization 2016	212
Below Market Lease Income (Expense) Amortization 2017	212
Below Market Lease Income (Expense) Amortization 2018	212
Below Market Lease Income (Expense) 2019	212
Property Operating and Maintenance Expense | Above-market ground lease liabilities
Finite-Lived Intangible Assets [Line Items]
Finite Lived Lease Amortization Expense (Income) 2015	(39)
Finite Lived Lease Amortization Expense (Income) 2016	(39)
Finite Lived Lease Amortization Expense (Income) 2017	(39)
Finite Lived Lease Amortization Expense (Income) 2018	(39)
Finite Lived Lease Amortization Expense (Income) 2019	$ (39)

XML

Summary of Significant Accounting Policies (Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Federal benefit (expense)	$ 1,667	$ (450)	$ 0
State benefit (expense)	358	(115)	5
Current benefit (expense)	2,025	(565)	5
Deferred federal benefit (expense)	762	0	0
State deferred benefit (expense)	191	0	0
Deferred benefit (expense)	$ 953	$ 0	$ 0

XML

Summary of Significant Accounting Policies (Distributions) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Dividends Payable [Line Items]
Dividends, percent	100.00%	100.00%	100.00%
Dividends paid (in usd per share)	$ 1.70	$ 1.70	$ 1.03
Return of Capital [Member]
Dividends Payable [Line Items]
Dividends, percent	97.90%	93.70%	97.70%
Dividends paid (in usd per share)	$ 1.66	$ 1.59	$ 1.01
Capital Gain Dividend Income [Member]
Dividends Payable [Line Items]
Dividends, percent	0.30%	0.00%	0.00%
Dividends paid (in usd per share)	$ 0.01	$ 0	$ 0
Ordinary Dividend Income [Member]
Dividends Payable [Line Items]
Dividends, percent	1.80%	6.30%	2.30%
Dividends paid (in usd per share)	$ 0.03	$ 0.11	$ 0.02

XML

Real Estate Investments (Narrative) (Details) $ in Thousands		12 Months Ended
	Dec. 03, 2014 USD ($)	Dec. 31, 2015 USD ($) property	Dec. 31, 2014 USD ($) property	Dec. 31, 2013 USD ($)
Business Acquisition [Line Items]
Number of real estate properties | property		166
Acquisition and transaction related		$ 14,679	$ 33,623	$ 730
Future minimum payments		8,238
Wellington Senior Housing Community
Business Acquisition [Line Items]
Contract purchase price	$ 95,000
2014 Acquisitions with Capital Leases
Business Acquisition [Line Items]
Number of properties purchased | property			8
Leasehold interests to buildings, fixtures and improvements, capital leases			$ 144,400
Future minimum payments		128,600
In-place leases | 2014 Acquisitions with Capital Leases
Business Acquisition [Line Items]
Finite lived intangible assets acquired, capital leases			$ 34,100
Acquisition and Transaction Related Line Items [Member] | Wellington Senior Housing Community
Business Acquisition [Line Items]
Acquisition and transaction related	$ 2,700
Restatement Adjustment [Member]
Business Acquisition [Line Items]
Acquisition and transaction related		$ 14,600

XML

Real Estate Investments (Acquired Assets) (Details) $ in Thousands		12 Months Ended
		Dec. 31, 2015 USD ($) property	Dec. 31, 2014 USD ($) property	Dec. 31, 2013 USD ($) property
Real estate investments
Deposits for real estate acquisitions		$ 1,000	$ (3,650)	$ (350)
Tenant security deposits assumed		$ 900	4,200	100
Capital lease obligation assumed			4,800
In-place leases
Real estate investments
Weighted-average remaining amortization period		4 years 10 months 21 days
Market lease and other intangible assets
Real estate investments
Weighted-average remaining amortization period		6 years 1 month 17 days
Market lease liabilities
Real estate investments
Weighted-average remaining amortization period		14 years 1 month 13 days
2015 Acquisitions
Real estate investments
Land		$ 79,329
Buildings, fixtures and improvements		519,185
Construction in progress		21,309
Total tangible assets		619,823
Total assets acquired, net		675,566
Mortgage notes payable assumed to acquire real estate investments		(100,058)
Premiums on mortgages assumed		(1,492)
Other assets and liabilities, net	[1]	882
Deposits for real estate acquisitions		(3,000)
OP units issued to acquire real estate		0
Cash paid for acquired real estate investments		$ 570,134
Number of properties purchased | property		48
2015 Acquisitions | In-place leases
Real estate investments
Acquired intangibles:	[2]	$ 62,584
2015 Acquisitions | Market lease and other intangible assets
Real estate investments
Acquired intangibles:	[2]	3,223
2015 Acquisitions | Market lease liabilities
Real estate investments
Market lease liabilities	[2]	$ (10,064)
2014 Acquisitions
Real estate investments
Land			109,679
Buildings, fixtures and improvements			1,325,721
Construction in progress			0
Total tangible assets			1,435,400
Total assets acquired, net			1,595,904
Mortgage notes payable assumed to acquire real estate investments			(66,321)
Premiums on mortgages assumed			(3,533)
Other assets and liabilities, net	[1]		9,040
Deposits for real estate acquisitions			0
OP units issued to acquire real estate			(10,148)
Cash paid for acquired real estate investments			$ 1,506,862
Number of properties purchased | property			111
2014 Acquisitions | In-place leases
Real estate investments
Acquired intangibles:	[2]		$ 145,464
2014 Acquisitions | Market lease and other intangible assets
Real estate investments
Acquired intangibles:	[2]		34,877
2014 Acquisitions | Market lease liabilities
Real estate investments
Market lease liabilities	[2]		$ (19,837)
2013 Acquisitions
Real estate investments
Land				3,782
Buildings, fixtures and improvements				35,996
Construction in progress				0
Total tangible assets				39,778
Total assets acquired, net				46,225
Mortgage notes payable assumed to acquire real estate investments				0
Premiums on mortgages assumed				0
Other assets and liabilities, net	[1]			91
Deposits for real estate acquisitions				0
OP units issued to acquire real estate				0
Cash paid for acquired real estate investments				$ 46,134
Number of properties purchased | property				7
2013 Acquisitions | In-place leases
Real estate investments
Acquired intangibles:	[2]			$ 5,489
2013 Acquisitions | Market lease and other intangible assets
Real estate investments
Acquired intangibles:	[2]			1,019
2013 Acquisitions | Market lease liabilities
Real estate investments
Market lease liabilities	[2]			$ (61)

[1] Other assets and liabilities, net includes $0.9 million in tenant security deposits assumed at acquisition for properties acquired during the year ended December 31, 2015. Other assets and liabilities, net includes $4.2 million in tenant security deposits assumed at acquisition for properties acquired and a $4.8 million capital lease obligation incurred in conjunction with the transaction described below for the year ended December 31, 2014. Other assets and liabilities, net includes $0.1 million in tenant security deposits assumed at acquisition for properties acquired during the year ended December 31, 2013.

[2] Weighted-average remaining amortization periods for in-place leases, market lease and other intangible assets and market lease liabilities acquired during the years ended December 31, 2015 were 4.9, 6.1 and 14.1 years, respectively, as of each property's respective acquisition date.

XML

Real Estate Investments (Pro Forma Information) (Details) $ / shares in Units, $ in Thousands		3 Months Ended												12 Months Ended
		Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Sep. 30, 2013 USD ($)	Jun. 30, 2013 USD ($)	Mar. 31, 2013 USD ($)	Dec. 31, 2015 USD ($) $ / shares	Dec. 31, 2014 USD ($) property $ / shares	Dec. 31, 2013 USD ($) $ / shares
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Pro forma revenues	[1]													$ 302,539	$ 138,872	$ 82,250
Pro forma net loss	[1]													$ (38,284)	$ (53,157)	$ (30,293)
Basic and diluted pro forma net loss per share (in usd per share) | $ / shares														$ (0.45)	$ (1.04)	$ (14.10)
Total revenues		$ 66,373	$ 64,030	$ 59,516	$ 57,121	$ 42,365	$ 11,818	$ 2,869	$ 1,387	$ 1,138	$ 652	$ 27	$ 0	$ 247,490	$ 58,439	$ 1,817
Net loss														(41,960)	$ (37,712)	$ (221)
2015 Acquisitions
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Total revenues														25,400
Net loss														$ (4,200)
2014 Acquisitions
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Number of properties purchased | property															111

[1] For the years ended December 31, 2015, aggregate revenues and net loss derived from the Company's 2015 acquisitions (for the Company's period of ownership) were $25.4 million and $(4.2) million, respectively.

XML

Real Estate Investments (Future Minimum Payments) (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Business Combinations [Abstract]
2016	$ 94,110
2017	94,232
2018	89,568
2019	83,333
2020	77,006
Thereafter	510,096
Total	$ 948,345

XML

Real Estate Investments (Customer Concentration) (Details) - Sales Revenue, Net - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2013
Adena Health System
Concentration Risk [Line Items]
Concentration risk, percentage	10.80%
Advocate Health and Hospitals Corporation
Concentration Risk [Line Items]
Concentration risk, percentage	10.90%
HH/Killeen Health System, LLC
Concentration Risk [Line Items]
Concentration risk, percentage	12.80%
IASIS Healthcare, LLC
Concentration Risk [Line Items]
Concentration risk, percentage	15.30%
National Mentor Holdings, Inc.
Concentration Risk [Line Items]
Concentration risk, percentage	24.80%

XML

Real Estate Investments (Geographic Concentrations) (Details) - Geographic Concentration Risk - Sales Revenue, Net	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Colorado
Concentration Risk [Line Items]
Concentration risk, percentage			24.80%
Florida
Concentration Risk [Line Items]
Concentration risk, percentage	18.60%		24.60%
Illinois
Concentration Risk [Line Items]
Concentration risk, percentage			23.00%
Iowa
Concentration Risk [Line Items]
Concentration risk, percentage	10.10%		13.90%
Louisiana
Concentration Risk [Line Items]
Concentration risk, percentage			15.30%
Ohio
Concentration Risk [Line Items]
Concentration risk, percentage			10.80%
Pennsylvania
Concentration Risk [Line Items]
Concentration risk, percentage	11.40%	15.20%
Texas
Concentration Risk [Line Items]
Concentration risk, percentage			12.80%

XML

Investment Securities (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Investment securities, at fair value	$ 1,078	$ 20,286
Cost basis		19,823
Proceeds from sale of investment securities	19,278	513	$ 0
Gain on sale of investment securities	446	8	$ 0
Preferred Stock, Common Stock, Real Estate Income Funds and Senior Notes
Schedule of Available-for-sale Securities [Line Items]
Cost basis	18,800
Proceeds from sale of investment securities	19,300
Gain on sale of investment securities	400
Preferred stock
Schedule of Available-for-sale Securities [Line Items]
Investment securities, at fair value	$ 1,078
Cost basis		500
Gain on sale of investment securities		$ 8
Period from issuance when investments become redeemable	5 years

XML

Investment Securities (Schedule of Investments) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Cost		$ 19,823
Gross Unrealized Gains		496
Gross Unrealized Losses		(33)
Fair Value	$ 1,078	20,286
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Cost	1,084	19,397
Gross Unrealized Gains	19	477
Gross Unrealized Losses	(25)	(33)
Fair Value	$ 1,078	19,841
Debt security
Schedule of Available-for-sale Securities [Line Items]
Cost		426
Gross Unrealized Gains		19
Gross Unrealized Losses		0
Fair Value		$ 445

XML

Credit Facility (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Jul. 31, 2015	Jun. 26, 2015	Dec. 31, 2014	Apr. 15, 2014	Mar. 21, 2014
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 565,000,000
Write off of deferred debt issuance cost	$ 500,000
Credit facility	430,000,000			$ 0
Secured Debt
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 500,000,000			$ 50,000,000.0
Maximum borrowing capacity under accordion feature			750,000,000		$ 200,000,000.0
Credit facility	$ 430,000,000			$ 0
Effective Interest Rate	1.80%
Remaining borrowing capacity	$ 135,000,000
Letter of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 25,000,000
Federal Funds Effective Rate | Secured Debt
Line of Credit Facility [Line Items]
Interest rate	0.50%
One-Month LIBOR | Secured Debt
Line of Credit Facility [Line Items]
Interest rate	1.00%
Minimum | London Interbank Offered Rate (LIBOR) | Secured Debt
Line of Credit Facility [Line Items]
Interest rate	1.60%
Minimum | Base Rate | Secured Debt
Line of Credit Facility [Line Items]
Interest rate	0.35%
Maximum | London Interbank Offered Rate (LIBOR) | Secured Debt
Line of Credit Facility [Line Items]
Interest rate	2.20%
Maximum | Base Rate | Secured Debt
Line of Credit Facility [Line Items]
Interest rate	0.95%

XML

Mortgage Notes Payable (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
Real estate investments pledged as collateral	$ 301.7	$ 122.4

XML

Mortgage Notes Payable (Mortgage Notes) (Details) $ in Thousands		Dec. 31, 2015 USD ($) property	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Mortgage notes payable		$ 159,455	$ 65,786
Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		24
Mortgage notes payable		$ 159,455	65,786
Effective Interest Rate	[1]	5.32%
Creekside Medical Office Building - Douglasville, GA | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		0
Mortgage notes payable		$ 0	5,154
Effective Interest Rate		5.32%
Bowie Gateway Medical Center - Bowie, MD | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 5,969	6,055
Effective Interest Rate		6.18%
Medical Center of New Windsor - New Windsor, NY | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 8,720	8,832
Effective Interest Rate		6.39%
Plank Medical Center - Clifton Park, NY | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 3,461	3,506
Effective Interest Rate		6.39%
Cushing Center - Schenectady, NY | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 4,184	4,287
Effective Interest Rate		5.71%
Countryside Medical Arts - Safety Harbor, FL | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 5,992	6,076
Effective Interest Rate		6.07%
St. Andrews Medical Park - Venice, FL | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		3
Mortgage notes payable		$ 6,623	6,716
Effective Interest Rate		6.07%
Campus at Crooks & Auburn Building C - Rochester Hills, MI | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 3,555	3,626
Effective Interest Rate		5.91%
Slingerlands Crossing Phase I - Bethlehem, NY | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 6,680	6,759
Effective Interest Rate		6.39%
Slingerlands Crossing Phase II - Bethlehem, NY | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 7,777	7,877
Effective Interest Rate		6.39%
Benedictine Cancer Center - Kingston, NY | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 6,811	6,898
Effective Interest Rate		6.39%
Aurora Healthcare Center Portfolio WI | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		6
Mortgage notes payable		$ 31,257	0
Effective Interest Rate		6.55%
Palm Valley Medical Plaza AZ | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 3,525	0
Effective Interest Rate		4.21%
Medical Center V - Peoria, AZ | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 3,232	0
Effective Interest Rate		4.75%
Courtyard Fountains - Gresham, OR | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 24,999	0
Effective Interest Rate		3.82%
Fox Ridge Senior Living at Bryant - Bryant | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 7,825	0
Effective Interest Rate		3.98%
Fox Ridge Senior Living at Chenal - Little Rock | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 17,800	0
Effective Interest Rate		3.98%
Fox Ridge Senior Living at Parkstone - North Little Rock | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property		1
Mortgage notes payable		$ 11,045	$ 0
Effective Interest Rate		3.98%

[1] Calculated on a weighted average basis for all mortgages outstanding as of December 31, 2015.

XML

Mortgage Notes Payable (Mortgage Principal Payments) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total	$ 159,455	$ 65,786
Mortgages
Debt Instrument [Line Items]
2016	15,650
2017	34,832
2018	31,893
2019	13,324
2020	24,279
Thereafter	39,477
Total	$ 159,455	$ 65,786

XML

Fair Value of Financial Instruments (Investments) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value	$ 1,078	$ 20,286
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value	1,078	20,286
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value	1,078	20,286
Fair Value, Measurements, Recurring | Significant Other Observable Inputs Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value	$ 0	$ 0

XML

Fair Value of Financial Instruments (Level 3 Inputs) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage notes payable	$ 159,455	$ 65,786
Mortgage premiums, net	2,403	2,844
Mortgages
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage notes payable	159,455	65,786
Significant Unobservable Inputs Level 3 | Mortgages | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage notes payable and premiums, net	161,858	68,630
Mortgage premiums, net	(2,400)	(2,800)
Significant Unobservable Inputs Level 3 | Mortgages | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage notes payable and premiums, net	162,654	69,117
Significant Unobservable Inputs Level 3 | Line of Credit | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage notes payable and premiums, net	430,000	0
Significant Unobservable Inputs Level 3 | Line of Credit | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage notes payable and premiums, net	$ 430,000	$ 0

XML

Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended			39 Months Ended
	Apr. 09, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015	Jan. 25, 2016
Class of Stock [Line Items]
Common stock, shares outstanding		86,135,411	83,718,853		86,135,411
Proceeds from issuance of common stock		$ 6	$ 1,853,231	$ 184,006	$ 2,100,000
Dividends declared per day (in dollars per share)	$ 0.0046575343
Dividends declared (in usd per share)	$ 1.70	$ 1.70	$ 1.70	$ 1.03
Short-term trading fee percentage		2.00%
Annual authorized amount as a percentage of weighted average shares outstanding		5.00%			5.00%
Common stock issued through distribution reinvestment plan (in shares)		3,300,000	1,800,000
Common stock issued through distribution reinvestment plan		$ 78,502	$ 41,580	$ 1,345
One Year
Class of Stock [Line Items]
Share repurchase price, percentage of value		92.50%			92.50%
One Year | Maximum
Class of Stock [Line Items]
Share repurchase price, percentage of value (in dollars per share)		$ 23.13			$ 23.13
Share repurchase price, percentage of value		92.50%			92.50%
Two Years
Class of Stock [Line Items]
Share repurchase price, percentage of value		95.00%			95.00%
Two Years | Maximum
Class of Stock [Line Items]
Share repurchase price, percentage of value (in dollars per share)		$ 23.75			$ 23.75
Share repurchase price, percentage of value		95.00%			95.00%
Three Years
Class of Stock [Line Items]
Share repurchase price, percentage of value		97.50%			97.50%
Three Years | Maximum
Class of Stock [Line Items]
Share repurchase price, percentage of value (in dollars per share)		$ 24.38			$ 24.38
Share repurchase price, percentage of value		97.50%			97.50%
Four Years
Class of Stock [Line Items]
Share repurchase price, percentage of value		100.00%			100.00%
Four Years | Maximum
Class of Stock [Line Items]
Share repurchase price, percentage of value (in dollars per share)		$ 25			$ 25
Share repurchase price, percentage of value		100.00%			100.00%
Subsequent Event
Class of Stock [Line Items]
Authorized percent of shares outstanding for repurchase for fiscal semester						2.50%
Authorized percent of shares outstanding for repurchase for fiscal year						5.00%

XML

Common Stock (Stock Redemption) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended			27 Months Ended	39 Months Ended
	Feb. 29, 2016	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2015
Equity, Class of Treasury Stock [Line Items]
Number of Shares Repurchased (in shares)			894,339			74,031	968,370
Average Price per Share (in dollars per share)			$ 23.66			$ 24.42	$ 23.72
Percent of weighted average shares outstanding approved for repurchase		1.00%
Remaining number of shares authorized (in shares)		201,367	201,367				201,367
Common stock repurchases			$ 21,160	$ 1,768	$ 40
Common stock unfulfilled repurchases			$ 4,600
Unfulfilled Average Price Per Share (in dollars per share)			$ 23.04
Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Remaining number of shares authorized (in shares)	512,408
Common stock repurchases	$ 12,000
Unfulfilled Average Price Per Share (in dollars per share)	$ 23.45

XML

Related Party Transactions and Arrangements (Narrative) (Details) - USD ($) $ in Millions	Jan. 14, 2015	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Common stock held by related party, in shares		86,135,411	83,718,853
Tax Depreciation Deduction | Advisor
Related Party Transaction [Line Items]
Special allocation for tax purposes excess depreciation deductions maximum		$ 10.0
Acuity Specialty Hospital | Sponsor and Advisor Under Common Control of Purchasing Entity | Affiliated Entity
Related Party Transaction [Line Items]
Contract purchase price	$ 39.4
American Realty Capital Healthcare II Special Limited Partnership, LLC | Special Limited Partner
Related Party Transaction [Line Items]
Common stock held by related party, in shares		8,888	8,888

XML

Related Party Transactions and Arrangements (Fees Paid in Connection with the IPO) (Details)	Dec. 31, 2015
Maximum
Related Party Transaction [Line Items]
Liability for offering and related costs from IPO	2.00%
Aggregate offering costs	12.00%
Realty Capital Securities, LLC | Gross Proceeds, Common Stock | Maximum | Former Dealer Manager
Related Party Transaction [Line Items]
Sales commissions as a percentage of benchmark	7.00%
Option One | Realty Capital Securities, LLC | Gross Proceeds, Common Stock | Maximum | Former Dealer Manager
Related Party Transaction [Line Items]
Dealer manager fee earned by related party	3.00%
Gross Proceeds, Common Stock | Option Two | Gross Proceeds, Common Stock | Maximum | Participating Broker-Dealer
Related Party Transaction [Line Items]
Brokerage fee as a percentage of benchmark	7.50%
Sales Commissions | Selling Commission Fee Paid Upfront | Option Two | Gross Proceeds, Common Stock | Maximum | Participating Broker-Dealer
Related Party Transaction [Line Items]
Brokerage fee as a percentage of benchmark	2.50%
Sales Commissions | Fee Paid at Anniversary of Sale | Option Two | Gross Proceeds, Common Stock | Maximum | Participating Broker-Dealer
Related Party Transaction [Line Items]
Brokerage fee as a percentage of benchmark	1.00%
Dealer Manager Fees | Option Two | Realty Capital Securities, LLC | Gross Proceeds, Common Stock | Former Dealer Manager
Related Party Transaction [Line Items]
Sales commissions as a percentage of benchmark	2.50%

XML

Related Party Transactions and Arrangements (Fees Paid in Connection with the IPO, Selling Commissions and Dealer Manager Fees) (Details) - Realty Capital Securities, LLC - Sales Commissions and Dealer Manager Fees - Former Dealer Manager - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]
Total commissions and fees incurred from the Dealer Manager	$ (2)	$ 175,575	$ 17,481
Due to affiliate	$ 0	$ 1

XML

Related Party Transactions and Arrangements (Fees Paid in Connection with the IPO, Offering Costs and Reimbursements) (Details) - Fees and Expense Reimbursement, Stock Offering - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
American Realty Capital Healthcare Advisors, LLC | Advisor
Related Party Transaction [Line Items]
One-time fees and reimbursements:	$ 0	$ 21,767	$ 3,807
Due to affiliate	0	0
Realty Capital Securities, LLC | Former Dealer Manager
Related Party Transaction [Line Items]
One-time fees and reimbursements:	0	3,262	1,190
Due to affiliate	0	605
American Realty Capital Healthcare Advisors, LLC and Realty Capital Securities, LLC [Member] | Advisor and Dealer Manager
Related Party Transaction [Line Items]
One-time fees and reimbursements:	0	25,029	$ 4,997
Due to affiliate	$ 0	$ 605

XML

Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Apr. 01, 2015	Mar. 31, 2015
Related Party Transaction [Line Items]
Share price, net (in dollars per share)					$ 22.50
Advisor
Related Party Transaction [Line Items]
Common Share Equivalents, Shares Approved for Issuance	359,250
American Realty Capital Healthcare Advisors, LLC | Contract Purchase Price | Advisor
Related Party Transaction [Line Items]
Acquisition fees as a percentage of benchmark	1.00%
Financing advance fees as a percentage of benchmark, expected third party costs	0.50%
Quarterly asset management fee					0.1875%
Related Party Transaction, Total One-time Operating Fees Earned by Related Party, Percentage of Benchmark, Fee Cap	4.50%
American Realty Capital Healthcare Advisors, LLC | Advance on Loan or Other Investment | Advisor
Related Party Transaction [Line Items]
Acquisition fees as a percentage of benchmark	1.00%
Financing advance fees as a percentage of benchmark, expected third party costs	0.50%
Related Party Transaction, Total One-time Operating Fees Earned by Related Party, Percentage of Benchmark, Fee Cap	4.50%
American Realty Capital Healthcare Advisors, LLC | Contract Purchase Price, All Assets Acquired | Advisor
Related Party Transaction [Line Items]
Related Party Transaction, Acquisition Fees and Financing Coordination Fees, Fee Cap Earned By Related Party, Percentage Of Benchmark	1.50%
American Realty Capital Healthcare Advisors, LLC | Amount Available or Outstanding Under Financing Arrangement | Advisor
Related Party Transaction [Line Items]
Financing coordination fees	0.75%
American Realty Capital Healthcare Advisors, LLC | Pre-tax Non-compounded Return on Capital Contribution | Advisor
Related Party Transaction [Line Items]
Cumulative capital investment return to investors as a percentage of benchmark	6.00%
American Realty Capital Healthcare Advisors, LLC | Gross Revenue, Stand-alone Single-tenant Net Leased Properties | Advisor
Related Party Transaction [Line Items]
Property management fees	1.50%
American Realty Capital Healthcare Advisors, LLC | Gross Revenue, Excluding Stand-alone Single-tenant Net Leased Properties | Advisor
Related Party Transaction [Line Items]
Property management fees	2.50%
Maximum | American Realty Capital Healthcare Advisors, LLC | Average Invested Assets | Advisor
Related Party Transaction [Line Items]
Operating expenses as a percentage of benchmark	2.00%
Maximum | American Realty Capital Healthcare Advisors, LLC | Net Income, Excluding Additions to Non-cash Reserves and Gains on Sales of Assets | Advisor
Related Party Transaction [Line Items]
Operating expenses as a percentage of benchmark	25.00%
Maximum | American Realty Capital Healthcare Advisors, LLC | Gross Revenue, Managed Properties | Advisor
Related Party Transaction [Line Items]
Oversight fees earned by related party	1.00%
Annual Targeted Investor Return | Healthcare Trust Special Limited Partnership, LLC | Pre-tax Non-compounded Return on Capital Contribution | Special Limited Partner
Related Party Transaction [Line Items]
Cumulative capital investment return to investors as a percentage of benchmark	6.00%
Forgiven
Related Party Transaction [Line Items]
Total commissions and fees incurred from the Dealer Manager	$ 1,220	$ 617	$ 23
Recurring Fees | Forgiven | Property management fees
Related Party Transaction [Line Items]
Total commissions and fees incurred from the Dealer Manager	$ 1,220	$ 617	$ 23
American Realty Capital Healthcare Advisors, LLC | Cost of Assets [Member] | Advisor
Related Party Transaction [Line Items]
Related Party Transaction, Asset Management Fees, Percentage of Benchmark				0.0625%

XML

Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company, Incurred, Forgiven and Payable) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Incurred
Related Party Transaction [Line Items]
One-time fees and reimbursements:		$ 31,419	$ 26,917	$ 922
Forgiven
Related Party Transaction [Line Items]
One-time fees and reimbursements:		1,220	617	23
Payable
Related Party Transaction [Line Items]
Payable (Receivable)		536	364
Nonrecurring Fees | Incurred | Acquisition fees
Related Party Transaction [Line Items]
One-time fees and reimbursements:		6,878	15,936	462
Nonrecurring Fees | Incurred | Acquisition cost reimbursements
Related Party Transaction [Line Items]
One-time fees and reimbursements:		3,439	7,968	144
Nonrecurring Fees | Incurred | Financing coordination fees
Related Party Transaction [Line Items]
One-time fees and reimbursements:		3,863	1,997	0
Nonrecurring Fees | Forgiven | Acquisition fees
Related Party Transaction [Line Items]
One-time fees and reimbursements:		0	0	0
Nonrecurring Fees | Forgiven | Acquisition cost reimbursements
Related Party Transaction [Line Items]
One-time fees and reimbursements:		0	0
Nonrecurring Fees | Forgiven | Financing coordination fees
Related Party Transaction [Line Items]
One-time fees and reimbursements:		0	0	0
Nonrecurring Fees | Payable | Acquisition fees
Related Party Transaction [Line Items]
Payable (Receivable)		0	0
Nonrecurring Fees | Payable | Acquisition cost reimbursements
Related Party Transaction [Line Items]
Payable (Receivable)		0	0
Nonrecurring Fees | Payable | Financing coordination fees
Related Party Transaction [Line Items]
Payable (Receivable)		0	0
Recurring Fees | Incurred | Asset management fees
Related Party Transaction [Line Items]
One-time fees and reimbursements:	[1]	10,889	0	0
Recurring Fees | Incurred | Property management fees
Related Party Transaction [Line Items]
One-time fees and reimbursements:		1,302	0	0
Recurring Fees | Incurred | Transfer agent and other professional services
Related Party Transaction [Line Items]
One-time fees and reimbursements:		4,558	364
Recurring Fees | Incurred | Strategic advisory fees
Related Party Transaction [Line Items]
One-time fees and reimbursements:		0	605	315
Recurring Fees | Incurred | Distributions on Class B Units
Related Party Transaction [Line Items]
One-time fees and reimbursements:		490	47	1
Recurring Fees | Forgiven | Asset management fees
Related Party Transaction [Line Items]
One-time fees and reimbursements:	[1]	0	0	0
Recurring Fees | Forgiven | Property management fees
Related Party Transaction [Line Items]
One-time fees and reimbursements:		1,220	617	23
Recurring Fees | Forgiven | Transfer agent and other professional services
Related Party Transaction [Line Items]
One-time fees and reimbursements:		0	0
Recurring Fees | Forgiven | Strategic advisory fees
Related Party Transaction [Line Items]
One-time fees and reimbursements:		0	0	0
Recurring Fees | Forgiven | Distributions on Class B Units
Related Party Transaction [Line Items]
One-time fees and reimbursements:		0	0	$ 0
Recurring Fees | Payable | Asset management fees
Related Party Transaction [Line Items]
Payable (Receivable)	[1]	(5)	0
Recurring Fees | Payable | Property management fees
Related Party Transaction [Line Items]
Payable (Receivable)		(10)	0
Recurring Fees | Payable | Transfer agent and other professional services
Related Party Transaction [Line Items]
Payable (Receivable)		499	364
Recurring Fees | Payable | Strategic advisory fees
Related Party Transaction [Line Items]
Payable (Receivable)		0	0
Recurring Fees | Payable | Distributions on Class B Units
Related Party Transaction [Line Items]
Payable (Receivable)		$ 52	$ 0

[1] Prior to April 1, 2015, the Company caused the OP to issue (subject to periodic approval by the board of directors) to the Advisor restricted performance based Class B Units for asset management services. As of December 31, 2015, the Company's board of directors had approved the issuance of 359,250 Class B Units to the Advisor in connection with this arrangement. Effective April 1, 2015, in connection with the Amendment, the Company will pay an asset management fee to the Advisor or its assignees in cash, in shares, or a combination of both and will no longer issue any Class B Units.

XML

Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company, Absorbed General and Administrative Costs) (Details) - American Realty Capital Healthcare Advisors, LLC - Advisor - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]
Amounts of transaction	$ 0	$ 0	$ 993
Due from affiliates	0	0
Property operating expenses absorbed
Related Party Transaction [Line Items]
Amounts of transaction	0	0	150
Due from affiliates	0	0
General and administrative expenses absorbed
Related Party Transaction [Line Items]
Amounts of transaction	0	0	$ 843
Due from affiliates	$ 0	$ 0

XML

Related Party Transactions and Arrangements (Fees Paid in Connection with the Liquidation or Listing of the Company's Real Estate Assets) (Details) - USD ($) $ in Millions	Mar. 17, 2015	Dec. 31, 2015
Healthcare Trust Special Limited Partnership, LLC | Excess of Adjusted Market Value of Real Estate Assets Plus Distributions Over Aggregate Contributed Investor Capital | Special Limited Partner
Related Party Transaction [Line Items]
Subordinated participation fees as a percentage of benchmark		15.00%
Distribution upon nonrenewal of advisory agreement		15.00%
Healthcare Trust Special Limited Partnership, LLC | Net Sale Proceeds, after Return of Capital Contributions and Annual Targeted Investor Return | Special Limited Partner
Related Party Transaction [Line Items]
Subordinated performance fee as a percentage of benchmark		15.00%
American Realty Capital Healthcare Advisors, LLC | Pre-tax Non-compounded Return on Capital Contribution | Advisor
Related Party Transaction [Line Items]
Subordinated performance fee as a percentage of benchmark		15.00%
Cumulative capital investment return to investors as a percentage of benchmark		6.00%
Annual Targeted Investor Return | Healthcare Trust Special Limited Partnership, LLC | Pre-tax Non-compounded Return on Capital Contribution | Special Limited Partner
Related Party Transaction [Line Items]
Cumulative capital investment return to investors as a percentage of benchmark		6.00%
Maximum | American Realty Capital Healthcare Advisors, LLC | Aggregate Total Return of Year Fee is Incurred | Advisor
Related Party Transaction [Line Items]
Related Party Transaction, Subordinated Performance Fee Earned by Related Party, Fee Cap, Percentage of Benchmark		10.00%
Maximum | Real Estate Commissions | American Realty Capital Healthcare Advisors, LLC | Contract Sales Price | Advisor
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark		6.00%
Option One | Maximum | Brokerage Commission Fees | American Realty Capital Healthcare Advisors, LLC | Contract Sales Price | Advisor
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark		2.00%
Option Two | Maximum | Brokerage Commission Fees | American Realty Capital Healthcare Advisors, LLC | Contract Sales Price | Advisor
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark		50.00%
Listing Fee | RCS Capital, Key Banc and Investment Banking and Capital Markets Division of Dealer Manager [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Listing Fee Earned for Listing on National Securities Exchange	$ 1.5
Transaction Advisory Fee | RCS Capital, Key Banc and Investment Banking and Capital Markets Division of Dealer Manager [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Transaction Fee As Percent of Sale Transaction		0.25%

XML

Equity-Based Compensation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning Balance (in shares)	7,198	3,999	0
Ending Balance (in shares)	11,731	7,198	3,999
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Equity-based compensation	$ 60,000	$ 73,000	$ 16,000
Director
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Stock issued during period, issued for services (in shares)	0	2,037	0
Stock issued during period, issued for services		$ 46,000
Restricted Share Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted automatically upon election to board of directors, in shares	1,333
Restricted share vesting period	5 years
Periodic vesting percentage	20.00%
Maximum authorized amount as a percentage of shares authorized	5.00%
Number of shares authorized, in shares	3,400,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)	7,998	3,999	3,999
Vested (in shares)	(1,066)	(800)	0
Forfeitures (in shares)	(2,399)	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning Balance, Weighted-Average Issue Price (usd per share)	$ 22.50		$ 0.00
Granted, Weighted-Average Issue Price (usd per share)	22.50	$ 22.50	22.50
Vested, Weighted-Average Issue Price (usd per share)	22.50	22.50	0.00
Forfeitures, Weighted-Average Issue Price (usd per share)	22.50	0.00	$ 0.00
Ending Balance, Weighted-Average Issue Price (usd per share)	$ 22.50	$ 22.50
Nonvested awards, compensation cost not yet recognized	$ 200,000
Nonvested awards, compensation cost not yet recognized, period for recognition	3 years 7 months 6 days
Equity-based compensation	$ 60,000	$ 27,000	$ 16,000

XML

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance		$ 463	$ 0
Other comprehensive income, before reclassifications		(23)	471
Amounts reclassified from accumulated other comprehensive income	[1]	(446)	(8)
Ending Balance		(6)	463	$ 0
Accumulated Other Comprehensive Income (Loss) [Line Items]
Gain on sale of investment securities		446	8	$ 0
Preferred stock
Accumulated Other Comprehensive Income (Loss) [Line Items]
Gain on sale of investment securities			$ 8
Preferred Stock, Common Stock, Real Estate Income Funds and Senior Notes
Accumulated Other Comprehensive Income (Loss) [Line Items]
Gain on sale of investment securities		$ 400

[1] During the years ended December 31, 2015 and 2014, the Company sold certain of its investments in preferred stock, common stock, real estate income funds and its investment in a senior note which resulted in a realized gain of $0.4 million and approximately $8,000, respectively, which is included in gain on sale of investment securities on the consolidated statement of operations and comprehensive loss.

XML

Non-Controlling Interests (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Nov. 30, 2014
Noncontrolling Interest [Line Items]
Limited partner units (in units)	90	90
Payments of Ordinary Dividends, Noncontrolling Interest	$ 698,000	$ 0	$ 0
Non-controlling Interest
Noncontrolling Interest [Line Items]
Limited partner units (in units)				405,908
Units issued to purchase building				$ 10,100,000
Units issued to fund purchase of A Building (in dollars per share)				$ 25

XML

Non-Controlling Interests (Summary of Non-Controlling Interests) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Noncontrolling Interest [Line Items]
Third Party Net Investment Amount	$ 9,697	$ 10,114
Net Real Estate Assets Subject to Investment Arrangement	2,194,602	1,631,750
Mortgage Notes Payable Subject to Investment Arrangement	159,455	$ 65,786
Distributions	698
Non-controlling Interest
Noncontrolling Interest [Line Items]
Distributions	698
Plaza Del Rio Medical Office Campus Portfolio AZ
Noncontrolling Interest [Line Items]
Third Party Net Investment Amount	$ 500
Non-Controlling Ownership Percentage	4.00%
Distributions	$ 0
Plaza Del Rio Medical Office Campus Portfolio AZ | Non-controlling Interest
Noncontrolling Interest [Line Items]
Net Real Estate Assets Subject to Investment Arrangement	10,561
Mortgage Notes Payable Subject to Investment Arrangement	$ 0

XML

Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Net loss attributable to stockholders	$ (6,992)	$ (16,108)	$ (13,421)	$ (5,220)	$ (12,926)	$ (20,023)	$ (4,147)	$ (582)	$ 341	$ (399)	$ (116)	$ (47)	$ (41,741)	$ (37,678)	$ (221)
Basic and diluted weighted average shares outstanding (in shares)	86,351,934	85,705,595	84,992,633	84,250,503	83,381,570	71,813,126	35,127,969	13,623,545					85,331,966	51,234,729	2,148,297
Basic and diluted net loss per share (in usd per share)	$ (0.08)	$ (0.19)	$ (0.16)	$ (0.06)	$ (0.16)	$ (0.28)	$ (0.12)	$ (0.04)					$ (0.49)	$ (0.74)	$ (0.10)
Antidilutive securities excluded from computation of earnings per share (in shares)													776,979	521,081	8,151
Restricted Stock
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)													11,731	7,198	3,999
OP Units
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)													405,998	405,998	90
Class B units
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)														107,885	4,062

XML

Segment Reporting (Reconciliation of Segment Activity) (Details) $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Sep. 30, 2013 USD ($)	Jun. 30, 2013 USD ($)	Mar. 31, 2013 USD ($)	Dec. 31, 2015 USD ($) segment	Dec. 31, 2014 USD ($) segment	Dec. 31, 2013 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment													3	2
Rental income													$ 93,218	$ 23,005	$ 1,551
Operating expense reimbursements													12,759	3,585	266
Resident services and fee income													140,901	31,849	0
Contingent purchase price consideration													612	0	0
Total revenues	$ 66,373	$ 64,030	$ 59,516	$ 57,121	$ 42,365	$ 11,818	$ 2,869	$ 1,387	$ 1,138	$ 652	$ 27	$ 0	247,490	58,439	1,817
Property operating and maintenance													125,573	26,717	122
Net operating income													121,917	31,722	1,695
Operating fees to related parties													(12,191)	0	0
Acquisition and transaction related													(14,679)	(33,623)	(730)
General and administrative													(9,733)	(3,541)	(104)
Depreciation and amortization													(120,924)	(28,889)	(1,077)
Interest expense													(10,356)	(3,559)	0
Interest and other income													582	735
Gain on sale of investment securities													446	8	0
Income tax benefit (expense)													2,978	(565)	(5)
Net loss attributable to non-controlling interests													219	34	0
Net loss attributable to stockholders	$ (6,992)	$ (16,108)	$ (13,421)	$ (5,220)	$ (12,926)	$ (20,023)	$ (4,147)	$ (582)	$ 341	$ (399)	$ (116)	$ (47)	(41,741)	(37,678)	(221)
Operating Segments | Medical Office Buildings
Segment Reporting Information [Line Items]
Rental income													56,165	13,955	881
Operating expense reimbursements													12,611	3,532	236
Resident services and fee income													0	0	0
Contingent purchase price consideration													572
Total revenues													69,348	17,487	1,117
Property operating and maintenance													20,334	4,765	92
Net operating income													49,014	12,722	1,025
Operating Segments | Triple-Net Leased Healthcare Facilities
Segment Reporting Information [Line Items]
Rental income													37,053	9,050	670
Operating expense reimbursements													148	53	30
Resident services and fee income													0	0	0
Contingent purchase price consideration													0
Total revenues													37,201	9,103	700
Property operating and maintenance													6,706	79	30
Net operating income													30,495	9,024	670
Operating Segments | Seniors Housing Communities
Segment Reporting Information [Line Items]
Rental income													0	0	0
Operating expense reimbursements													0	0	0
Resident services and fee income													140,901	31,849	0
Contingent purchase price consideration													40
Total revenues													140,941	31,849	0
Property operating and maintenance													98,533	21,873	0
Net operating income													$ 42,408	$ 9,976	$ 0

XML

Segment Reporting (Reconciliation of Segment Activity to Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Net Real Estate Assets Subject to Investment Arrangement	$ 2,194,602	$ 1,631,750
Construction in progress	21,309	0
Cash and cash equivalents	24,474	182,617	$ 111,833	$ 3
Restricted cash	4,647	1,778
Investment securities, at fair value	1,078	20,286
Receivable for sale of common stock	0	6
Straight-line rent receivable, net	11,470	2,325
Prepaid expenses and other assets	21,707	14,711
Deferred costs, net	14,014	4,237
Total assets	2,271,992	1,857,710
Operating Segments
Segment Reporting Information [Line Items]
Construction in progress	31,309	0
Operating Segments | Medical Office Buildings
Segment Reporting Information [Line Items]
Net Real Estate Assets Subject to Investment Arrangement	839,041	593,648
Operating Segments | Triple-Net Leased Healthcare Facilities
Segment Reporting Information [Line Items]
Net Real Estate Assets Subject to Investment Arrangement	447,893	355,962
Operating Segments | Seniors Housing Communities
Segment Reporting Information [Line Items]
Net Real Estate Assets Subject to Investment Arrangement	$ 876,359	$ 682,140

XML

Segment Reporting (Reconciliation of Capital Expenditures by Segment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Capital expenditures	$ 6,885	$ 807	$ 0
Operating Segments
Segment Reporting Information [Line Items]
Capital expenditures	5,370	743	0
Operating Segments | Medical Office Buildings
Segment Reporting Information [Line Items]
Capital expenditures	2,129	609	0
Operating Segments | Triple-Net Leased Healthcare Facilities
Segment Reporting Information [Line Items]
Capital expenditures	540	0	0
Operating Segments | Seniors Housing Communities
Segment Reporting Information [Line Items]
Capital expenditures	$ 2,701	$ 134	$ 0

XML

Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Aug. 31, 2015	Jul. 31, 2015
Loss Contingencies [Line Items]
Rent expense	$ 400	$ 100	$ 6
Interest expense	100	200
Purchase Obligation				$ 82,000
Construction in progress	21,309	$ 0
Maximum borrowing capacity					$ 565,000
Land
Loss Contingencies [Line Items]
Construction in progress	10,000
Construction in Progress
Loss Contingencies [Line Items]
Construction in progress	$ 21,300
Line of Credit
Loss Contingencies [Line Items]
Maximum borrowing capacity				$ 2,700
Stated interest rate				7.00%

XML

Commitments and Contingencies (Schedule of Future Minimum Rental Payments) (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Operating Leases
2016, Operating Leases	$ 645
2017, Operating Leases	664
2018, Operating Leases	668
2019, Operating Leases	673
2020, Operating Leases	671
Thereafter, Operating Leases	79,980
Total, Operating Leases	83,301
Capital Leases
2016, Capital Leases	74
2017, Capital Leases	76
2018, Capital Leases	78
2019, Capital Leases	80
2020, Capital Leases	82
Thereafter, Capital Leases	7,848
Total, Capital Leases	8,238
Interest, Capital Leases	(3,435)
Total present value of minimum lease payments	$ 4,803

XML

Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Total revenues	$ 66,373	$ 64,030	$ 59,516	$ 57,121	$ 42,365	$ 11,818	$ 2,869	$ 1,387	$ 1,138	$ 652	$ 27	$ 0	$ 247,490	$ 58,439	$ 1,817
Net loss attributable to stockholders	$ (6,992)	$ (16,108)	$ (13,421)	$ (5,220)	$ (12,926)	$ (20,023)	$ (4,147)	$ (582)	$ 341	$ (399)	$ (116)	$ (47)	$ (41,741)	$ (37,678)	$ (221)
Basic and diluted weighted average shares outstanding (in shares)	86,351,934	85,705,595	84,992,633	84,250,503	83,381,570	71,813,126	35,127,969	13,623,545					85,331,966	51,234,729	2,148,297
Basic and diluted net loss per share (in usd per share)	$ (0.08)	$ (0.19)	$ (0.16)	$ (0.06)	$ (0.16)	$ (0.28)	$ (0.12)	$ (0.04)					$ (0.49)	$ (0.74)	$ (0.10)
Basic weighted average shares outstanding (in shares)									5,579,635	2,559,022	379,911	8,888
Basic income (loss) per share (in dollars per share)									$ 0.06	$ (0.16)	$ (0.31)	$ (5.29)
Diluted weighted average shares outstanding (in shares)									5,624,600	2,559,022	379,911	8,888
Diluted income (loss) per share (in dollars per share)									$ 0.05	$ (0.16)	$ (0.31)	$ (5.29)

XML

Subsequent Events (Narrative) (Details)	Jan. 25, 2016	Dec. 31, 2015
Subsequent Event
Subsequent Event [Line Items]
Authorized percent of shares outstanding for repurchase for fiscal semester	2.50%
Authorized percent of shares outstanding for repurchase for fiscal year	5.00%
One Year
Subsequent Event [Line Items]
Share repurchase price, percentage of value		92.50%
Two Years
Subsequent Event [Line Items]
Share repurchase price, percentage of value		95.00%
Three Years
Subsequent Event [Line Items]
Share repurchase price, percentage of value		97.50%
Four Years
Subsequent Event [Line Items]
Share repurchase price, percentage of value		100.00%

XML

Real Estate and Accumulated Depreciation - Schedule III (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Jul. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 159,455
Land	192,790
Building and Improvements	1,880,904
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	4,809
Gross Amount	2,078,503		$ 1,475,848	$ 39,778	$ 0
Accumulated Depreciation	60,575		11,791	$ 814	$ 0
Acquired intangibles	241,500
Federal income taxes	2,200,000
Accumulated Amortization	86,100
Maximum borrowing capacity		$ 565,000
Credit facility	430,000		0
Secured Debt	$ 159,455		$ 65,786
Building
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Useful life	40 years
Land Improvements
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Useful life	15 years
Fixtures and improvements
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Useful life	5 years
Fresenius Medical Care - Winfield [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 0
Land	151
Building and Improvements	1,568
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	1,719
Accumulated Depreciation	123
Adena Health Center - Jackson [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	242
Building and Improvements	4,494
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	4,736
Accumulated Depreciation	291
Ouachita Community Hospital - West Monroe [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	633
Building and Improvements	5,304
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	5,937
Accumulated Depreciation	350
CareMeridian - Littleton [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	976
Building and Improvements	8,900
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	9,876
Accumulated Depreciation	948
Oak Lawn Medical Center - Oak Lawn [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	835
Building and Improvements	7,477
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	8,312
Accumulated Depreciation	566
Surgery Center of Temple - Temple [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	225
Building and Improvements	5,208
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	5,433
Accumulated Depreciation	315
Greenville Health System - Greenville [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	720
Building and Improvements	3,045
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	3,765
Accumulated Depreciation	176
Arrowhead Medical Plaza II - Glendale [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	9,707
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	216
Gross Amount	9,923
Accumulated Depreciation	573
Village Center Parkway - Stockbridge [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,135
Building and Improvements	2,299
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	131
Gross Amount	3,565
Accumulated Depreciation	154
Stockbridge Family Medical - Stockbridge [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	823
Building and Improvements	1,799
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	11
Gross Amount	2,633
Accumulated Depreciation	98
Creekside MOB - Douglasville [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,709
Building and Improvements	5,320
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	169
Gross Amount	8,198
Accumulated Depreciation	290
Bowie Gateway Medical Center - Bowie [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	5,969
Land	983
Building and Improvements	10,321
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	11,304
Accumulated Depreciation	467
Campus at Crooks & Auburn Building D - Rochester Hills [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	640
Building and Improvements	4,107
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	4,747
Accumulated Depreciation	185
Medical Center of New Windsor - New Windsor [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	8,720
Land	0
Building and Improvements	10,566
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	323
Gross Amount	10,889
Accumulated Depreciation	483
Plank Medical Center - Clifton Park [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,461
Land	749
Building and Improvements	3,559
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	25
Gross Amount	4,333
Accumulated Depreciation	171
Cushing Center - Schenectady [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,184
Land	0
Building and Improvements	12,489
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	7
Gross Amount	12,496
Accumulated Depreciation	559
Berwyn Medical Center - Berwyn [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,305
Building and Improvements	7,559
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	8,864
Accumulated Depreciation	312
Countryside Medical Arts - Safety Harbor [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	5,992
Land	915
Building and Improvements	7,663
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	60
Gross Amount	8,638
Accumulated Depreciation	344
St. Andrews Medical Park - Venice [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	6,623
Land	1,666
Building and Improvements	9,944
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	36
Gross Amount	11,646
Accumulated Depreciation	455
Campus at Crooks & Auburn Building C - Rochester Hills [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,555
Land	609
Building and Improvements	3,842
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	130
Gross Amount	4,581
Accumulated Depreciation	177
Slingerlands Crossing Phase I - Bethlehem [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	6,680
Land	3,865
Building and Improvements	5,919
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	9,784
Accumulated Depreciation	272
Slingerlands Crossing Phase II - Bethlehem [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	7,777
Land	1,707
Building and Improvements	9,715
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	148
Gross Amount	11,570
Accumulated Depreciation	431
UC Davis MOB - Elk Grove [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,138
Building and Improvements	7,242
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	8,380
Accumulated Depreciation	306
Laguna Professional Center - Elk Grove [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,811
Building and Improvements	14,598
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	16,409
Accumulated Depreciation	608
Big Spring Care Center - Humansville [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	230
Building and Improvements	6,514
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	6,744
Accumulated Depreciation	346
Buffalo Prairie Care Center - Buffalo [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	230
Building and Improvements	4,098
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	4,328
Accumulated Depreciation	241
Cassville Health Care & Rehab - Cassville [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	250
Building and Improvements	3,774
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	4,024
Accumulated Depreciation	190
Country Aire Retirement Estates - Lewistown [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	400
Building and Improvements	4,546
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	4,946
Accumulated Depreciation	283
Edgewood Manor Nursing Home - Raytown [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	591
Building and Improvements	851
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	1,442
Accumulated Depreciation	48
Georgian Gardens - Potosi [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	500
Building and Improvements	6,359
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	6,859
Accumulated Depreciation	387
Gregory Ridge Living Center - Kansas City [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	590
Building and Improvements	4,043
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	4,633
Accumulated Depreciation	276
Marshfield Care Center - Marshfield [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	310
Building and Improvements	4,052
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	4,362
Accumulated Depreciation	251
Parkway Health Care Center - Kansas City [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	630
Building and Improvements	4,229
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	4,859
Accumulated Depreciation	232
Estate at Hyde Park - Tampa [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,777
Building and Improvements	20,153
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	21,930
Accumulated Depreciation	902
Autumn Ridge of Clarkston - Clarkston [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	655
Building and Improvements	19,834
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	78
Gross Amount	20,567
Accumulated Depreciation	905
Sunnybrook of Burlington - Burlington [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	518
Building and Improvements	16,651
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	16
Gross Amount	17,185
Accumulated Depreciation	722
Sunnybrook of Carroll - Carroll [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	473
Building and Improvements	11,150
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	15
Gross Amount	11,638
Accumulated Depreciation	444
Sunnybrook of Fairfield - Fairfield [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	340
Building and Improvements	14,028
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	37
Gross Amount	14,405
Accumulated Depreciation	621
Sunnybrook of Ft. Madison - Ft. Madison [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	550
Building and Improvements	9,024
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	17
Gross Amount	9,591
Accumulated Depreciation	397
Sunnybrook of Mt. Pleasant - Mt. Pleasant [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	205
Building and Improvements	10,811
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	115
Gross Amount	11,131
Accumulated Depreciation	397
Sunnybrook of Muscatine - Muscatine [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	302
Building and Improvements	13,752
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	16
Gross Amount	14,070
Accumulated Depreciation	553
Prairie Hills at Cedar Rapids -Cedar Rapids [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	195
Building and Improvements	8,544
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	9
Gross Amount	8,748
Accumulated Depreciation	340
Prairie Hills at Clinton - Clinton [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	890
Building and Improvements	18,801
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	24
Gross Amount	19,715
Accumulated Depreciation	771
Prairie Hills at Des Moines - Des Moines [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	647
Building and Improvements	13,645
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	31
Gross Amount	14,323
Accumulated Depreciation	612
Prairie Hills at Tipton - Tipton [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	306
Building and Improvements	10,370
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	10,676
Accumulated Depreciation	382
Prairie Hills at Independence - Independence [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	473
Building and Improvements	10,534
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	3
Gross Amount	11,010
Accumulated Depreciation	412
Prairie Hills at Ottumwa - Ottumwa [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	538
Building and Improvements	9,100
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	24
Gross Amount	9,662
Accumulated Depreciation	382
Sunnybrook of Burlington - Land - Burlington [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	620
Building and Improvements	0
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	620
Accumulated Depreciation	0
Benedictine Cancer Center - Kingston [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	6,811
Land	0
Building and Improvements	13,274
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	13,274
Accumulated Depreciation	462
Buchanan Meadows - Buchanan [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	288
Building and Improvements	6,988
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	7,276
Accumulated Depreciation	304
Crystal Springs - Kentwood [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	661
Building and Improvements	14,507
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	15,168
Accumulated Depreciation	696
Golden Orchards - Fennville [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	418
Building and Improvements	5,318
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	5,736
Accumulated Depreciation	215
Lakeside Vista - Holland [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	378
Building and Improvements	12,196
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	12,574
Accumulated Depreciation	518
Liberty Court - Dixon [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	119
Building and Improvements	1,957
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	2,076
Accumulated Depreciation	93
Prestige Centre - Buchanan [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	297
Building and Improvements	2,207
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	2,504
Accumulated Depreciation	112
Prestige Commons - Chesterfield Twp [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	318
Building and Improvements	5,346
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	5,664
Accumulated Depreciation	216
Prestige Pines - Dewitt [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	476
Building and Improvements	3,065
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	3,541
Accumulated Depreciation	176
Prestige Place - Clare [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	59
Building and Improvements	1,169
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	1,228
Accumulated Depreciation	98
Prestige Point - Grand Blanc [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	268
Building and Improvements	3,037
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	3,305
Accumulated Depreciation	156
Prestige Way - Holt [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	527
Building and Improvements	5,269
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	5,796
Accumulated Depreciation	264
The Atrium - Rockford [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	367
Building and Improvements	4,385
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	4,752
Accumulated Depreciation	202
Waldon Woods - Wyoming [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	527
Building and Improvements	5,696
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	6,223
Accumulated Depreciation	332
Whispering Woods - Grand Rapids [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	806
Building and Improvements	12,204
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	13,010
Accumulated Depreciation	596
Arrowhead Medical Plaza I - Glendale [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	6,377
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	53
Gross Amount	6,430
Accumulated Depreciation	218
Golden Years - Harrisonville [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	620
Building and Improvements	8,401
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	9,021
Accumulated Depreciation	435
Cardiovascular Consultants of Cape Girardeau Medical Office Building- Cape Girardeau [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,624
Building and Improvements	5,303
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	6,927
Accumulated Depreciation	247
FOC Clinical - Mechanicsburg [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	19,634
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	19,634
Accumulated Depreciation	699
Brady MOB - Harrisburg [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	22,485
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	22,485
Accumulated Depreciation	709
Community Health MOB - Harrisburg [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	6,170
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	6,170
Accumulated Depreciation	199
FOC I - Mechanicsburg [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	8,923
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	21
Gross Amount	8,944
Accumulated Depreciation	326
FOC II - Mechanicsburg [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	16,473
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	16,473
Accumulated Depreciation	591
Harrisburg Pennsylvania Hospital [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	32,484
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	32,484
Accumulated Depreciation	1,028
Diamond View Assisted Living Community - Meridian [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	498
Building and Improvements	7,053
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	71
Gross Amount	7,622
Accumulated Depreciation	376
Benton House - Brunswick - Brunswick [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,509
Building and Improvements	14,385
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	7
Gross Amount	15,901
Accumulated Depreciation	608
Benton House - Dublin - Dublin [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	403
Building and Improvements	9,254
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	20
Gross Amount	9,677
Accumulated Depreciation	425
Benton House - Johns Creek - Johns Creek [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	997
Building and Improvements	11,849
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	51
Gross Amount	12,897
Accumulated Depreciation	512
Benton House - Lee's Summit - Lee's Summit [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,734
Building and Improvements	24,970
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	15
Gross Amount	27,719
Accumulated Depreciation	975
Benton House - Roswell - Roswell [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,000
Building and Improvements	8,509
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	69
Gross Amount	9,578
Accumulated Depreciation	413
Benton House - Titusville - Titusville [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,379
Building and Improvements	13,827
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	70
Gross Amount	15,276
Accumulated Depreciation	626
Allegro at Elizabethtown - Elizabethtown [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	317
Building and Improvements	7,261
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	124
Gross Amount	7,702
Accumulated Depreciation	351
Allegro at Jupiter - Jupiter [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,741
Building and Improvements	49,413
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	49
Gross Amount	53,203
Accumulated Depreciation	1,938
Allegro at St Petersburg - St Petersburg [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,791
Building and Improvements	7,950
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	143
Gross Amount	11,884
Accumulated Depreciation	483
Allegro at Stuart - Stuart [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	5,018
Building and Improvements	60,505
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	102
Gross Amount	65,625
Accumulated Depreciation	2,423
Allegro at Tarpon - Tarpon Springs [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,360
Building and Improvements	13,412
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	42
Gross Amount	15,814
Accumulated Depreciation	680
Allegro at St Petersburg - Land - St Petersburg [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,045
Building and Improvements	0
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	3,045
Accumulated Depreciation	0
Gateway Medical Office Building - Clarksville [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	16,367
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	242
Gross Amount	16,609
Accumulated Depreciation	531
757 Building - Munster [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	645
Building and Improvements	7,885
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	8,530
Accumulated Depreciation	241
Dyer Building - Dyer [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	601
Building and Improvements	8,867
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	67
Gross Amount	9,535
Accumulated Depreciation	269
759 Building - Munster [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,101
Building and Improvements	8,899
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	10,000
Accumulated Depreciation	279
761 Building - Munster [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,436
Building and Improvements	8,580
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	10,016
Accumulated Depreciation	279
Schererville Building - Schererville [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,260
Building and Improvements	750
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	96
Gross Amount	2,106
Accumulated Depreciation	42
Nuvista at Hillsborough - Lutz [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	913
Building and Improvements	17,176
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	18,089
Accumulated Depreciation	896
Nuvista at Wellington Green - Wellington [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	4,273
Building and Improvements	42,098
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	46,371
Accumulated Depreciation	1,838
Mount Vernon Medical Office Building - Mount Vernon [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	18,519
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	18,519
Accumulated Depreciation	544
Meadowbrook Senior Living - Agoura Hills [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	8,821
Building and Improvements	48,454
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	10
Gross Amount	57,285
Accumulated Depreciation	1,523
Hampton River Medical Arts Building - Hampton [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	17,706
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	17,706
Accumulated Depreciation	542
Careplex West Medical Office Building- Hampton [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,628
Building and Improvements	16,098
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	18,726
Accumulated Depreciation	465
Wellington at Hershey's Mill - West Chester [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	8,531
Building and Improvements	78,409
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	334
Gross Amount	87,274
Accumulated Depreciation	2,431
Eye Specialty Group Medical Building - Memphis [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	775
Building and Improvements	7,223
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	7,998
Accumulated Depreciation	205
Benton House - Prairie Village - Prairie Village [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,782
Building and Improvements	21,831
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	7
Gross Amount	23,620
Accumulated Depreciation	767
Benton House - Alpharetta [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,604
Building and Improvements	26,055
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	10
Gross Amount	27,669
Accumulated Depreciation	890
Medical Sciences Pavilion - Harrisburg [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	22,309
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	22,309
Accumulated Depreciation	612
Bloom MOB - Harrisburg [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	15,928
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	20
Gross Amount	15,948
Accumulated Depreciation	450
Pinnacle Center - Southaven [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,378
Building and Improvements	6,418
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	189
Gross Amount	7,985
Accumulated Depreciation	201
Wood Glen Nursing and Rehab Center - West Chicago [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,896
Building and Improvements	16,107
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	18,003
Accumulated Depreciation	654
Paradise Valley Medical Plaza - Phoenix [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	25,187
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	358
Gross Amount	25,545
Accumulated Depreciation	671
Victory Medical Center at Craig Ranch - McKinney [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,596
Building and Improvements	40,389
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	4
Gross Amount	41,989
Accumulated Depreciation	1,031
Capitol Healthcare & Rehab Centre - Springfield [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	603
Building and Improvements	21,690
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	22,293
Accumulated Depreciation	853
Colonial Healthcare & Rehab Centre- Princeton [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	173
Building and Improvements	5,872
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	6,045
Accumulated Depreciation	301
Morton Terrace Healthcare & Rehab Centre - Morton [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	709
Building and Improvements	5,650
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	6,359
Accumulated Depreciation	296
Morton Villa Healthcare & Rehab Centre - Morton [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	645
Building and Improvements	3,665
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	4,310
Accumulated Depreciation	178
Rivershores Healthcare & Rehab Centre - Marseilles [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,276
Building and Improvements	6,869
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	8,145
Accumulated Depreciation	296
The Heights Healthcare & Rehab Centre - Peoria Heights [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	213
Building and Improvements	7,952
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	8,165
Accumulated Depreciation	359
Acuity Specialty Hospital - Mesa [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,977
Building and Improvements	16,146
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	266
Gross Amount	18,389
Accumulated Depreciation	417
Acuity Specialty Hospital - Sun City [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,329
Building and Improvements	15,795
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	274
Gross Amount	18,398
Accumulated Depreciation	411
Benton House - Shoal Creek - Kansas City [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,723
Building and Improvements	22,206
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	10
Gross Amount	25,939
Accumulated Depreciation	650
Aurora Health Center - Green Bay [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,130
Building and Improvements	1,678
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	2,808
Accumulated Depreciation	41
Aurora Healthcare Center, Greenville,WI [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	259
Building and Improvements	958
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	1,217
Accumulated Depreciation	25
Aurora Healthcare Center Plymouth, WI [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,891
Building and Improvements	24,224
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	27,115
Accumulated Depreciation	525
Aurora Healthcare Center, Waterford, WI
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	590
Building and Improvements	6,452
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	7,042
Accumulated Depreciation	135
Aurora Healthcare Center, Wautoma, WI
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,955
Building and Improvements	4,361
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	6,316
Accumulated Depreciation	95
Aurora Sheboyan Clinic, Kiel, WI
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	676
Building and Improvements	2,214
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	2,890
Accumulated Depreciation	48
Arbor View Assisted Living and Memory Care - Burlington [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	367
Building and Improvements	7,815
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	8,182
Accumulated Depreciation	226
Advanced Orthopedic Medical Center - Richmond [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,523
Building and Improvements	19,229
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	20,752
Accumulated Depreciation	383
Palm Valley Medical Plaza AZ
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,525
Land	1,890
Building and Improvements	4,876
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	29
Gross Amount	6,795
Accumulated Depreciation	109
Physicians Plaza of Roane County - Harriman [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,746
Building and Improvements	7,813
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	9,559
Accumulated Depreciation	147
Adventist Health Lacey Medical Plaza - Hanford [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	328
Building and Improvements	13,267
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	13,595
Accumulated Depreciation	225
Commerical Center - Peoria [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	959
Building and Improvements	1,076
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	31
Gross Amount	2,066
Accumulated Depreciation	24
Medical Center I - Peoria [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	807
Building and Improvements	1,077
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	231
Gross Amount	2,115
Accumulated Depreciation	36
Medical Center II - Peoria [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	945
Building and Improvements	1,304
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	41
Gross Amount	2,290
Accumulated Depreciation	31
Medical Center III - Peoria [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	673
Building and Improvements	1,597
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	48
Gross Amount	2,318
Accumulated Depreciation	32
Dental Arts Building - Peoria [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	156
Building and Improvements	152
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	6
Gross Amount	314
Accumulated Depreciation	3
Redwood Radiology and Outpatient Center - Santa Rosa [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,701
Building and Improvements	11,314
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	15,015
Accumulated Depreciation	152
Morrow Medical Center - Morrow [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,155
Building and Improvements	5,618
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	6
Gross Amount	6,779
Accumulated Depreciation	77
Belmar Medical Building - Lakewood [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	819
Building and Improvements	4,273
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	5,092
Accumulated Depreciation	58
Addington Place of Northville - Northville [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	440
Building and Improvements	14,975
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	6
Gross Amount	15,421
Accumulated Depreciation	241
Medical Center V - Peoria, AZ
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,231
Land	1,089
Building and Improvements	3,145
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	37
Gross Amount	4,271
Accumulated Depreciation	44
Legacy Medical Village - Plano [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,755
Building and Improvements	31,021
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	34,776
Accumulated Depreciation	417
Conroe Medical Arts and Surgery Center - Conroe [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,965
Building and Improvements	12,032
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	13,997
Accumulated Depreciation	175
Scripps Cedar Medical Center - Vista [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,213
Building and Improvements	14,531
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	15,744
Accumulated Depreciation	157
NuVista Institute for Healthy Living - Jupiter [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	10,000
Building and Improvements	0
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	10,000
Accumulated Depreciation	0
Ocean Park of Brookings - Brookings [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	861
Building and Improvements	8,367
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	9,228
Accumulated Depreciation	92
Ramsey Woods - Cudahy [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	930
Building and Improvements	4,990
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	5,920
Accumulated Depreciation	44
East Coast Square North - Morehead City [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	899
Building and Improvements	4,761
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	5,660
Accumulated Depreciation	32
East Coast Square West - Cedar Point [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,535
Building and Improvements	4,803
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	6,338
Accumulated Depreciation	33
Eastside Cancer Institute - Greenville [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,498
Building and Improvements	6,637
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	8,135
Accumulated Depreciation	30
Sassafras Medical Building - Erie [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	928
Building and Improvements	4,538
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	5,466
Accumulated Depreciation	20
Sky Lakes Klamath Medical Clinic - Klamath Falls [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	433
Building and Improvements	2,604
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	3,037
Accumulated Depreciation	12
Courtyard Fountains - Gresham, OR
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	24,999
Land	2,476
Building and Improvements	50,534
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	53,010
Accumulated Depreciation	130
Presence Healing Arts Pavilion - New Lenox [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	0
Building and Improvements	6,761
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	6,761
Accumulated Depreciation	15
Mainland Medical Arts Pavilion - Texas City [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	320
Building and Improvements	7,823
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	8,143
Accumulated Depreciation	18
Renaissance on Peachtree - Atlanta [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	4,535
Building and Improvements	68,605
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	9
Gross Amount	73,149
Accumulated Depreciation	171
Fox Ridge Senior Living at Bryant - Bryant
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	7,825
Land	1,687
Building and Improvements	12,862
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	14,549
Accumulated Depreciation	0
Fox Ridge Senior Living at Chenal - Little Rock
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	17,801
Land	6,896
Building and Improvements	20,484
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	27,380
Accumulated Depreciation	0
Fox Ridge Senior Living at Parkstone - North Little Rock
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	11,045
Land	0
Building and Improvements	19,190
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	19,190
Accumulated Depreciation	0
Autumn Leaves of Clear Lake - Houston [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,599
Building and Improvements	13,194
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	14,793
Accumulated Depreciation	0
Autumn Leaves of Cy-Fair - Houston [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,225
Building and Improvements	11,335
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	12,560
Accumulated Depreciation	0
Autumn Leaves of Meyerland- Houston [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,033
Building and Improvements	13,410
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	15,443
Accumulated Depreciation	0
Autumn Leaves of the Woodlands - The Woodlands [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,413
Building and Improvements	9,140
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements	0
Gross Amount	11,553
Accumulated Depreciation	0
Encumbrances allocated based on notes below [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 31,257
Land
Building and Improvements
SEC Schedule III Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Buildings and Improvements
Gross Amount
Accumulated Depreciation
Cross Collateralized Mortgage Note Payable [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Secured Debt	$ 31,257

XML

Real Estate and Accumulated Depreciation - Schedule III (Changes in Accumulated Depreciation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Real estate investments, at cost:
Balance at beginning of year	$ 1,475,848	$ 39,778	$ 0
Additions-Acquisitions	602,655	1,436,070	39,778
Disposals	0	0	0
Balance at end of the year	2,078,503	1,475,848	39,778
Accumulated depreciation and amortization:
Balance at beginning of year	11,791	814	0
Depreciation Expense	48,784	10,977	814
Disposals	0	0	0
Balance at end of the year	$ 60,575	$ 11,791	$ 814