(Mark One) | ||||||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED | ||||||||
OR | ||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each Class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | Emerging-growth company | Non-accelerated filer | ☐ | Smaller reporting company |
Page | ||||||||
(Unaudited) | |||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Real estate properties | |||||||||||
Land and land improvements | $ | $ | |||||||||
Buildings, improvements, and lease intangibles | |||||||||||
Personal property | |||||||||||
Total real estate properties | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Total real estate properties, net | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Other assets, net | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Liabilities | |||||||||||
Debt, net | $ | $ | |||||||||
Accounts payable and accrued liabilities | |||||||||||
Other liabilities, net | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Cumulative net income | |||||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Cumulative dividends | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Rental income | $ | $ | $ | $ | |||||||||||||||||||
Other operating interest | |||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Property operating | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
INCOME BEFORE INCOME TAXES AND OTHER ITEMS | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Deferred income tax (expense) benefit | ( | ( | ( | ||||||||||||||||||||
Interest and other income | |||||||||||||||||||||||
NET INCOME | $ | $ | $ | $ | |||||||||||||||||||
NET INCOME PER COMMON SHARE: | |||||||||||||||||||||||
Net income per common share – Basic | $ | $ | $ | $ | |||||||||||||||||||
Net income per common share – Diluted | $ | $ | $ | $ | |||||||||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC | |||||||||||||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
NET INCOME | $ | $ | $ | $ | |||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Increase (decrease) in fair value of cash flow hedges | ( | ||||||||||||||||||||||||||||
Reclassification for amounts recognized as interest expense | |||||||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ||||||||||||||||||||||||||||
COMPREHENSIVE INCOME | $ | $ | $ | $ |
Preferred Stock | Common Stock | Additional Paid in Capital | Cumulative Net Income | Accumulated Other Comprehensive Income (Loss) | Cumulative Dividends | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Unrecognized gain on cash flow hedges | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for losses included in net income (interest expense) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation, net of shares withheld and forfeited | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Unrecognized gain on cash flow hedges | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for losses included in net income (interest expense) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | $ | $ | ( | $ |
Preferred Stock | Common Stock | Additional Paid in Capital | Cumulative Net Income | Accumulated Other Comprehensive (Loss) Income | Cumulative Dividends | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Unrecognized loss on cash flow hedges | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for losses included in net income (interest expense) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Unrecognized gain on cash flow hedges | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for losses included in net income (interest expense) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Other amortization | |||||||||||
Stock-based compensation | |||||||||||
Straight-line rent receivable | ( | ( | |||||||||
Deferred income tax (benefit) expense | ( | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Other assets | ( | ( | |||||||||
Accounts payable and accrued liabilities | ( | ||||||||||
Other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisitions of real estate | ( | ( | |||||||||
Acquisition and funding of notes receivable | ( | ( | |||||||||
Proceeds from the repayment of notes receivable | |||||||||||
Capital expenditures on existing real estate properties | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES | |||||||||||
Net borrowings (repayments) on revolving credit facility | ( | ||||||||||
Term loan borrowings | |||||||||||
Term loan repayments | ( | ||||||||||
Mortgage note repayments | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Proceeds from issuance of common stock | |||||||||||
Equity issuance costs | ( | ( | |||||||||
Debt issuance costs | ( | ||||||||||
Net cash provided by financing activities | |||||||||||
(Decrease) increase in cash and cash equivalents and restricted cash | ( | ||||||||||
Cash and cash equivalents and restricted cash, beginning of period | |||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental Cash Flow Information: | |||||||||||
Interest paid (net of capitalized interest) | $ | $ | |||||||||
Invoices accrued for construction, tenant improvement and other capitalized costs | $ | $ | |||||||||
Reclassification of registration statement costs incurred in prior year to equity issuance costs | $ | $ | |||||||||
Increase in fair value of cash flow hedges | $ | $ | |||||||||
Income taxes paid | $ | $ | |||||||||
Capitalized interest | $ | $ |
Balance as of June 30, | |||||||||||
(Dollars in thousands) | 2022 | 2021 | |||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash, cash equivalents and restricted cash | $ | $ |
Property Type | # of Properties | Gross Investment (in thousands) | ||||||
Medical Office Building | $ | |||||||
Acute Inpatient Behavioral | ||||||||
Inpatient Rehabilitation Facilities | ||||||||
Specialty Centers | ||||||||
Physician Clinics | ||||||||
Surgical Centers and Hospitals | ||||||||
Behavioral Specialty Facilities | ||||||||
Long-term Acute Care Hospitals | ||||||||
Total | $ |
State | # of Properties | Gross Investment (in thousands) | ||||||
Texas | $ | |||||||
Illinois | ||||||||
Ohio | ||||||||
Florida | ||||||||
Massachusetts | ||||||||
All Others | ||||||||
Total | $ |
Primary Tenant | # of Properties | Gross Investment (in thousands) | ||||||
Everest Rehabilitation | $ | |||||||
US Healthvest | ||||||||
All Others | ||||||||
Total | $ |
2022 (six months ending December 31) | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 and thereafter | |||||
$ |
2022 (six months ended December 31) | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 and thereafter | |||||
Total undiscounted lease receivable | |||||
Discount | ( | ||||
Lease receivable | $ |
Operating | Financing | |||||||
2022 (six months ended December 31) | $ | $ | ||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 and thereafter | ||||||||
Total undiscounted lease payments | ||||||||
Discount | ( | ( | ||||||
Lease liabilities | $ | $ |
June 30, | ||||||||
2022 | 2021 | |||||||
Operating leases: | ||||||||
Weighted-average remaining lease term in years (including renewal options) | ||||||||
Weighted-average discount rate | % | % | ||||||
Financing leases: | ||||||||
Weighted-average remaining lease term in years (including renewal options) | ||||||||
Weighted-average discount rate | % | % |
Location | Property Type (1) | Date Acquired | Purchase Price | Cash Consideration | Real Estate | Other | Square Footage | ||||||||||||||||
(000's) | (000's) | (000's) | (000's) | ||||||||||||||||||||
Toledo, OH | MOB | 03/09/22 | $ | $ | $ | $ | ( | ||||||||||||||||
Fremont, NE | MOB | 03/09/22 | ( | ||||||||||||||||||||
Cincinnati, OH | IRF | 05/12/22 | ( | ||||||||||||||||||||
$ | $ | $ | $ | ( | |||||||||||||||||||
(1) MOB - Medical Office Building; IRF - Inpatient Rehabilitation Facility | |||||||||||||||||||||||
Relative Fair Value | Estimated Useful Life | |||||||||||||
(in thousands) | (in years) | |||||||||||||
Land and land improvements | $ | |||||||||||||
Building and building improvements | ||||||||||||||
Intangibles: | ||||||||||||||
At-market lease intangibles | ||||||||||||||
Below-market lease intangibles | ( | |||||||||||||
Total intangibles | ||||||||||||||
Accounts payable, accrued liabilities and other liabilities assumed | ( | |||||||||||||
Prorated rent, interest and operating expense reimbursement amounts collected | ( | |||||||||||||
Total cash consideration | $ |
Balance as of | |||||||||||
(Dollars in thousands) | June 30, 2022 | December 31, 2021 | Maturity Dates | ||||||||
Credit Facility: | |||||||||||
Revolving Credit Facility | $ | $ | 3/26 | ||||||||
A-2 Term Loan, net | 3/24 | ||||||||||
A-3 Term Loan, net | 3/26 | ||||||||||
A-4 Term Loan, net | 3/28 | ||||||||||
Mortgage Note Payable, net | 5/24 | ||||||||||
$ | $ |
Asset Derivatives Fair Value at | Liability Derivatives Fair Value at | ||||||||||||||||||||||
(Dollars in thousands) | June 30, 2022 | December 31, 2021 | Balance Sheet Classification | June 30, 2022 | December 31, 2021 | Balance Sheet Classification | |||||||||||||||||
Interest rate swaps | $ | $ | Other assets, net | $ | $ | Other liabilities, net |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Amount of unrealized gain (loss) recognized in OCI on derivatives | $ | $ | ( | $ | $ | ||||||||||||
Amount of loss reclassified from AOCI into interest expense | $ | $ | $ | $ | |||||||||||||
Total interest expense presented in the Condensed Consolidated Statements of Income in which the effects of the cash flow hedges are recorded | $ | $ | $ | $ |
Offsetting of Derivative Assets (as of June 30, 2022) | ||||||||||||||||||||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||
(In thousands) | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Condensed Consolidated Balance Sheet | Net Amounts of Assets in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||
Derivatives | $ | $ | $ | $ | $ | $ |
Offsetting of Derivative Liabilities (as of June 30, 2022) | ||||||||||||||||||||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||
(In thousands) | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheet | Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||
Derivatives | $ | $ | $ | $ | $ | $ |
Offsetting of Derivative Assets (as of December 31, 2021) | ||||||||||||||||||||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||
(In thousands) | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Condensed Consolidated Balance Sheet | Net Amounts of Assets in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||
Derivatives | $ | $ | $ | $ | ( | $ | $ |
Offsetting of Derivative Liabilities (as of December 31, 2021) | ||||||||||||||||||||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||
(In thousands) | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheet | Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||
Derivatives | $ | ( | $ | $ | ( | $ | $ | $ | ( |
(In thousands) | Six Months Ended June 30, 2022 | Year Ended December 31, 2021 | ||||||
Balance, beginning of period | ||||||||
Issuance of common stock | ||||||||
Restricted stock issued | ||||||||
Restricted stock withheld and forfeited | ( | ( | ||||||
Balance, end of period |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Participating securities' share in earnings | ( | ( | ( | ( | |||||||||||||||||||
Net income, less participating securities' share in earnings | $ | $ | $ | $ | |||||||||||||||||||
Weighted average Common Shares outstanding | |||||||||||||||||||||||
Weighted average Common Shares outstanding | |||||||||||||||||||||||
Unvested restricted shares | ( | ( | ( | ( | |||||||||||||||||||
Weighted average Common Shares outstanding–Basic | |||||||||||||||||||||||
Dilutive potential common shares | |||||||||||||||||||||||
Weighted average Common Shares outstanding –Diluted | |||||||||||||||||||||||
Basic Net Income per Common Share | $ | $ | $ | $ | |||||||||||||||||||
Diluted Net Income per Common Share | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
(Dollars and shares in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Stock-based awards, beginning of period | ||||||||||||||||||||
Stock in lieu of compensation | ||||||||||||||||||||
Stock awards | ||||||||||||||||||||
Total stock granted | ||||||||||||||||||||
Vested shares | ( | ( | ( | ( | ||||||||||||||||
Forfeited shares | ( | |||||||||||||||||||
Stock-based awards, end of period | ||||||||||||||||||||
Amortization expense | $ | $ | $ | $ |
Balance as of | ||||||||
(Dollars in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Notes receivable | $ | $ | ||||||
Accounts and interest receivable | ||||||||
Straight-line rent receivable | ||||||||
Prepaid assets | ||||||||
Deferred financing costs, net | ||||||||
Leasing commissions, net | ||||||||
Deferred tax assets, net | ||||||||
Fair value of interest rate swaps | ||||||||
Above-market lease intangible assets, net | ||||||||
Sales-type lease receivable | ||||||||
Financing right-of-use asset | ||||||||
Operating lease right-of-use assets | ||||||||
Other | ||||||||
$ | $ |
Classification | Carrying Amount (in thousands) | Maximum Exposure to Loss (in thousands) | ||||||
Note receivable (term loan) | $ | $ | ||||||
Note receivable (revolving credit facility) | $ | $ | ||||||
Note receivable (term loan) | $ | $ |
Balance as of | ||||||||
(Dollars in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Prepaid rent | $ | $ | ||||||
Security deposits | ||||||||
Below-market lease intangibles, net | ||||||||
Fair value of derivatives | ||||||||
Financing lease liability | ||||||||
Operating lease liability | ||||||||
Other | ||||||||
$ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||||||||
(Dollars in thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Notes receivable | $ | $ | $ | $ | |||||||||||||
Interest rate swap asset | $ | $ | $ | $ | |||||||||||||
Interest rate swap liability | $ | $ | $ | $ | |||||||||||||
Mortgage note payable (principal amount) | $ | $ | $ | $ |
Three Months Ended June 30, | Increase (Decrease) to Net income | |||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | ||||||||||||||||
REVENUES | ||||||||||||||||||||
Rental income | $ | 23,197 | $ | 22,006 | $ | 1,191 | 5.4 | % | ||||||||||||
Other operating interest | 852 | 682 | 170 | 24.9 | % | |||||||||||||||
24,049 | 22,688 | 1,361 | 6.0 | % | ||||||||||||||||
EXPENSES | ||||||||||||||||||||
Property operating | 4,062 | 3,843 | (219) | (5.7) | % | |||||||||||||||
General and administrative | 3,610 | 2,893 | (717) | (24.8) | % | |||||||||||||||
Depreciation and amortization | 8,077 | 7,539 | (538) | (7.1) | % | |||||||||||||||
15,749 | 14,275 | (1,474) | (10.3) | % | ||||||||||||||||
INCOME BEFORE INCOME TAXES AND OTHER ITEMS | 8,300 | 8,413 | (113) | (1.3) | % | |||||||||||||||
Interest expense | (2,755) | (2,736) | (19) | (0.7) | % | |||||||||||||||
Deferred income tax expense | (16) | (20) | 4 | 20.0 | % | |||||||||||||||
Interest and other income | 55 | 53 | 2 | 3.8 | % | |||||||||||||||
NET INCOME | $ | 5,584 | $ | 5,710 | $ | (126) | (2.2) | % |
Six Months Ended June 30, | Increase (Decrease) to Net income | |||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | ||||||||||||||||
REVENUES | ||||||||||||||||||||
Rental income | $ | 45,801 | $ | 42,786 | $ | 3,015 | 7.0 | % | ||||||||||||
Other operating interest | 1,729 | 1,297 | 432 | 33.3 | % | |||||||||||||||
47,530 | 44,083 | 3,447 | 7.8 | % | ||||||||||||||||
EXPENSES | ||||||||||||||||||||
Property operating | 8,153 | 7,572 | (581) | (7.7) | % | |||||||||||||||
General and administrative | 6,926 | 5,752 | (1,174) | (20.4) | % | |||||||||||||||
Depreciation and amortization | 16,019 | 14,763 | (1,256) | (8.5) | % | |||||||||||||||
31,098 | 28,087 | (3,011) | (10.7) | % | ||||||||||||||||
INCOME BEFORE INCOME TAXES AND OTHER ITEMS | 16,432 | 15,996 | 436 | 2.7 | % | |||||||||||||||
Interest expense | (5,381) | (4,966) | (415) | (8.4) | % | |||||||||||||||
Deferred income tax benefit (expense) | 1 | (59) | 60 | 101.7 | % | |||||||||||||||
Interest and other income | 56 | 54 | 2 | 3.7 | % | |||||||||||||||
NET INCOME | $ | 11,108 | $ | 11,025 | $ | 83 | 0.8 | % |
Three Months Ended June 30, | |||||||||||
(In thousands, except per share amounts) | 2022 | 2021 | |||||||||
Net income | $ | 5,584 | $ | 5,710 | |||||||
Real estate depreciation and amortization | 8,141 | 7,593 | |||||||||
FFO | $ | 13,725 | $ | 13,303 | |||||||
Straight-line rent | (917) | (981) | |||||||||
Stock-based compensation | 2,184 | 1,606 | |||||||||
AFFO | $ | 14,992 | $ | 13,928 | |||||||
FFO per diluted common share | $ | 0.57 | $ | 0.56 | |||||||
AFFO per diluted common share | $ | 0.62 | $ | 0.58 | |||||||
Weighted average common shares outstanding - diluted (1) | 24,247 | 23,908 |
Three Months Ended June 30, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Net income | $ | 5,584 | $ | 5,710 | ||||||||||
General and administrative | 3,610 | 2,893 | ||||||||||||
Depreciation and amortization | 8,077 | 7,539 | ||||||||||||
Interest expense | 2,755 | 2,736 | ||||||||||||
Deferred income expense | 16 | 20 | ||||||||||||
Interest and other income | (55) | (53) | ||||||||||||
NOI | $ | 19,987 | $ | 18,845 |
Three Months Ended June 30, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Net income | $ | 5,584 | $ | 5,710 | ||||||||||
Interest expense | 2,755 | 2,736 | ||||||||||||
Depreciation and amortization | 8,077 | 7,539 | ||||||||||||
Deferred income tax expense | 16 | 20 | ||||||||||||
EBITDAre | $ | 16,432 | $ | 16,005 | ||||||||||
Non-cash stock-based compensation expense | 2,184 | 1,606 | ||||||||||||
Adjusted EBITDAre | $ | 18,616 | $ | 17,611 |
Exhibit No. | Description | ||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
10.1 † | |||||||||||
31.1 * | |||||||||||
31.2 * | |||||||||||
32.1 ** | |||||||||||
101.INS | Inline XBRL Instance Document | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | ||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
COMMUNITY HEALTHCARE TRUST INCORPORATED | ||||||||
By: | /s/ Timothy G. Wallace | |||||||
Timothy G. Wallace | ||||||||
Chief Executive Officer and President | ||||||||
By: | /s/ David H. Dupuy | |||||||
David H. Dupuy | ||||||||
Executive Vice President and Chief Financial Officer |
/s/ Timothy G. Wallace | |||||
Timothy G. Wallace | |||||
Chief Executive Officer and President |
/s/ David H. Dupuy | |||||
David H. Dupuy | |||||
Executive Vice President and Chief Financial Officer |
/s/ Timothy G. Wallace | |||||
Timothy G. Wallace | |||||
Chief Executive Officer and President | |||||
/s/ David H. Dupuy | |||||
David H. Dupuy | |||||
Executive Vice President and Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common Stock, shares issued (in shares) | 25,099,000 | 24,983,000 |
Common Stock, shares outstanding (in shares) | 25,099,000 | 24,983,000 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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REVENUES | ||||
Rental income | $ 23,197 | $ 22,006 | $ 45,801 | $ 42,786 |
Other operating interest | 852 | 682 | 1,729 | 1,297 |
Total revenue | 24,049 | 22,688 | 47,530 | 44,083 |
EXPENSES | ||||
Property operating | 4,062 | 3,843 | 8,153 | 7,572 |
General and administrative | 3,610 | 2,893 | 6,926 | 5,752 |
Depreciation and amortization | 8,077 | 7,539 | 16,019 | 14,763 |
Total expenses | 15,749 | 14,275 | 31,098 | 28,087 |
INCOME BEFORE INCOME TAXES AND OTHER ITEMS | 8,300 | 8,413 | 16,432 | 15,996 |
Interest expense | (2,755) | (2,736) | (5,381) | (4,966) |
Deferred income tax (expense) benefit | (16) | (20) | 1 | (59) |
Interest and other income | 55 | 53 | 56 | 54 |
Net income | $ 5,584 | $ 5,710 | $ 11,108 | $ 11,025 |
NET INCOME PER COMMON SHARE: | ||||
Net income per common share – Basic (in dollars per share) | $ 0.21 | $ 0.22 | $ 0.41 | $ 0.43 |
Net income per common share – Diluted (in dollars per share) | $ 0.21 | $ 0.22 | $ 0.41 | $ 0.43 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC (in shares) | 23,578 | 23,195 | 23,574 | 23,003 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED (in shares) | 23,578 | 23,195 | 23,574 | 23,003 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 5,584 | $ 5,710 | $ 11,108 | $ 11,025 |
Other comprehensive income (loss): | ||||
Increase (decrease) in fair value of cash flow hedges | 4,584 | (2,788) | 15,991 | 15 |
Reclassification for amounts recognized as interest expense | 635 | 1,160 | 1,750 | 2,092 |
Total other comprehensive income (loss) | 5,219 | (1,628) | 17,741 | 2,107 |
COMPREHENSIVE INCOME | $ 10,803 | $ 4,082 | $ 28,849 | $ 13,132 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Cumulative Dividends | ||||
Dividends to common stockholders, per share (in dollars per share) | $ 0.44 | $ 0.43 | $ 0.8775 | $ 0.8575 |
Summary of Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Overview Community Healthcare Trust Incorporated (the ‘‘Company’’, ‘‘we’’, ‘‘our’’) was organized in the State of Maryland on March 28, 2014. The Company is a fully-integrated healthcare real estate company that owns and acquires real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers. As of June 30, 2022, the Company had investments of approximately $869.5 million in 159 real estate properties (including a portion of one property accounted for as a financing lease with a gross amount totaling approximately $3.0 million). The properties are located in 34 states, totaling approximately 3.4 million square feet in the aggregate and were approximately 90.3% leased at June 30, 2022 with a weighted average remaining lease term of approximately 7.8 years. Any references to square footage, property count, or occupancy percentages, and any amounts derived from these values in these notes to the condensed consolidated financial statements, are outside the scope of our independent registered public accounting firm's review. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. This interim financial information should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2022. All intercompany accounts and transactions have been eliminated. Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may materially differ from those estimates. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents includes short-term investments with original maturities of three months or less when purchased. Restricted cash consists of amounts held by the lender of our mortgage note payable to provide for future real estate tax, insurance expenditures and tenant improvements related to one property. The carrying amounts approximate fair value due to the short term maturity of these investments. The following table provides a reconciliation of cash and cash equivalents and restricted cash:
Income Taxes The Company has elected to be taxed as a real estate investment trust ("REIT"), as defined under the Internal Revenue Code of 1986, as amended (the "Code"). The Company and two subsidiaries have also elected for those subsidiaries to be treated as taxable REIT subsidiaries ("TRSs"), which are subject to federal and state income taxes. No provision has been made for federal income taxes for the REIT; however, the Company has recorded income tax expense or benefit for the TRSs to the extent applicable. The Company also evaluates the realizability of its deferred tax assets and will record valuation allowances if it is determined that more likely than not the asset will not be recovered. The Company intends at all times to qualify as a REIT under the Code. The Company must distribute at least 90% per annum of its REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with generally accepted accounting principles) and meet other requirements to continue to qualify as a REIT. New Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
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Real Estate Properties |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Properties | REAL ESTATE PROPERTIES As of June 30, 2022, we had investments of approximately $869.5 million in 159 real estate properties (including a portion of one property accounted for as a financing lease with a gross amount totaling approximately $3.0 million). The Company's investments are diversified by property type, geographic location, and tenant as shown in the following tables:
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Real Estate Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Leases | REAL ESTATE LEASES Lessor Accounting The Company’s properties are generally leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2039. The Company’s leases generally require the lessee to pay minimum rent, with fixed rent renewal terms or increases based on a Consumer Price Index and may also include additional rent, which may include the reimbursement of taxes (including property taxes), insurance, maintenance and other operating costs associated with the leased property. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. Some leases also allow the lessee to renew or extend their lease term or in some cases terminate their lease, based on conditions provided in the lease. Future minimum lease payments under the non-cancelable operating leases due to the Company for the years ending December 31, as of June 30, 2022, are as follows (in thousands):
Rental income is recognized as earned over the life of the lease agreement on a straight-line basis when collection of rental payments over the term of the lease is probable. Straight-line rent included in rental income was approximately $0.9 million and $1.0 million, respectively, for the three months ended June 30, 2022 and 2021, and was approximately $1.7 million and $1.8 million, respectively, for the six months ended June 30, 2022 and 2021. Purchase Option Provisions Certain of the Company's leases provide the lessee with a purchase option or a right of first refusal to purchase the leased property. The purchase option provisions generally allow the lessee to purchase the leased property at fair value or at an amount greater than the Company's gross investment in the leased property at the time of the purchase. At June 30, 2022, the Company had an aggregate gross investment of approximately $28.1 million in five real estate properties with purchase options exercisable at June 30, 2022 that had not been exercised. Sales-type Lease The Company has a portion of one property accounted for as a sales-type lease with a gross amount totaling approximately $3.0 million included in other assets, net on the Company's Condensed Consolidated Balance Sheets. Future lease payments due to the Company under this lease for the years ending December 31, as of June 30, 2022, are as follows (in thousands):
The Company recognized interest income of approximately $0.1 million and $0.1 million, respectively, during the three months ended June 30, 2022 and 2021 and recognized approximately $0.2 million and $0.2 million, respectively, of interest income during the six months ended June 30, 2022 and 2021 related to this lease which is included in other operating interest on the Company's Consolidated Income Statements. Lessee Accounting At June 30, 2022, the Company was obligated, as the lessee, under four non-prepaid ground leases accounted for as operating leases with expiration dates, including renewal options, through 2076, and one non-prepaid ground lease accounted for as a financing lease with an expiration date through 2085, including renewal options. Any rental increases related to the Company's ground leases are generally either stated or based on the Consumer Price Index. The Company's future lease payments under these non-prepaid ground leases were as follows (in thousands):
The following table discloses other information regarding the ground leases.
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Real Estate Acquisitions |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Acquisitions | REAL ESTATE ACQUISITIONS During the second quarter of 2022, the Company acquired one real estate property. Upon acquisition, the property was 100% leased with a lease expiration in 2037. Amounts reflected in revenues and net income for this property for the three months ended June 30, 2022 were approximately $0.4 million and $0.3 million, respectively, and transaction costs totaling approximately $0.1 million were capitalized relating to the property acquisition. During the first quarter of 2022, the Company acquired two real estate properties. Upon acquisition, the properties were 100% leased in the aggregate with lease expirations through 2028. Amounts reflected in revenues and net income for these properties for the six months ended June 30, 2022 were approximately $0.3 million and $43,000, respectively, and transaction costs totaling approximately $0.1 million were capitalized relating to these property acquisitions.
The following table summarizes the relative fair values of the assets acquired and liabilities assumed in the property acquisitions for the six months ended June 30, 2022.
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Debt, net |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt, net | DEBT, NET The table below details the Company's debt as of June 30, 2022 and December 31, 2021.
On March 19, 2021, Community Healthcare Trust Incorporated, as borrower, entered into a third amended and restated credit facility by and among Community Healthcare Trust Incorporated, as borrower, the several banks and financial institutions party thereto as lenders, and Truist Bank, as administrative agent (the "Credit Facility"). The Credit Facility allows the Company to borrow, through the accordion feature, up to $600.0 million, including the ability to add and fund incremental term loans, and provides the Company the ability to apply lower margins to its annual interest rate after it obtains an investment grade rating of BBB-/Baa3 (or the equivalent) from a rating agency, and modified its debt covenants. The Credit Facility provides for a $150.0 million Revolving Credit Facility and $250.0 million in term loans (the "Term Loans"). The Revolving Credit Facility matures on March 19, 2026 and includes one 12-month option to extend the maturity date, subject to the satisfaction of certain conditions. The Term Loans include a seven-year term loan facility in the aggregate principal amount of $50.0 million (the "A-2 Term Loan"), which matures on March 29, 2024, a seven-year term loan facility in the aggregate principal amount of $75.0 million (the "A-3 Term Loan"), which matures on March 29, 2026, and a seven-year term loan facility in the aggregate principal amount of $125.0 million (the "A-4 Term Loan), which matures on March 19, 2028. Amounts outstanding under the Revolving Credit Facility bear annual interest at a floating rate that is based, at the Company’s option, on either: (i) LIBOR plus 1.25% to 1.90% or (ii) a base rate plus 0.25% to 0.90% in each case, depending upon the Company’s leverage ratio. In addition, the Company is obligated to pay an annual fee equal to 0.20% of the amount of the unused portion of the Revolving Credit Facility if amounts borrowed are greater than 33.3% of the borrowing capacity under the Revolving Credit Facility and 0.25% of the unused portion of the Revolving Credit Facility if amounts borrowed are less than or equal to 33.3% of the borrowing capacity under the Revolving Credit Facility. The Company had $38.0 million outstanding under the Revolving Credit Facility with a weighted average interest rate of 2.9% and a borrowing capacity remaining of $112.0 million at June 30, 2022. Amounts outstanding under the Term Loans, as amended, bear annual interest at a floating rate that is based, at the Company’s option, on either: (i) LIBOR plus 1.45% to 2.30% or (ii) a base rate plus 0.45% to 1.30%, in each case, depending upon the Company’s leverage ratio. The Company has entered into interest rate swaps to fix the interest rates on the Term Loans. See Note 6 – Derivative Financial Instruments for more details on the interest rate swaps. At June 30, 2022, the Company had $250.0 million outstanding under the Term Loans which had a fixed weighted average interest rate under the swaps of approximately 3.79%. The Company’s ability to borrow under the Credit Facility is subject to its ongoing compliance with a number of customary affirmative and negative covenants, including limitations with respect to liens, indebtedness, distributions, mergers, consolidations, investments, restricted payments and asset sales, as well as financial maintenance covenants. The Company was in compliance with its financial covenants under its Credit Facility as of June 30, 2022.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives The Company may use derivative financial instruments, including interest rate swaps, caps, options, floors and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure as well as to hedge specific anticipated transactions. The Company does not intend to utilize derivatives for speculative or other purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of June 30, 2022, the Company had twelve outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk for notional amounts totaling $250.0 million. Tabular Disclosure of Fair Value of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021.
The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) ("AOCI") and are subsequently reclassified to interest expense in the period that the hedged forecasted transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s Term Loans. During the next twelve months, the Company estimates that an additional $3.3 million will be reclassified from AOCI as a decrease to interest expense. Tabular Disclosure of the Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2022 and 2021.
Tabular Disclosures of Offsetting Derivatives The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of June 30, 2022 and December 31, 2021. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Condensed Consolidated Balance Sheets.
Credit-risk-related Contingent Features As of June 30, 2022, the Company did not have any derivatives in a net liability position. As of June 30, 2022, the Company had not posted any collateral related to these agreements and was not in breach of any agreement provisions. If the Company terminated these interest rate swaps or breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value.
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Stockholders' Equity |
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | STOCKHOLDERS' EQUITY Common Stock The following table provides a reconciliation of the beginning and ending common stock balances for the six months ended June 30, 2022 and for the year ended December 31, 2021:
ATM Program The Company has an at-the-market offering program ("ATM Program"), with Piper Sandler & Co., Evercore Group L.L.C., Truist Securities, Inc., Regions Securities LLC, Robert W. Baird & Co. Incorporated, Fifth Third Securities, Inc. and Janney Montgomery Scott LLC., as sales agents (collectively, the “Agents”). Under the ATM Program, the Company may issue and sell shares of its common stock, having an aggregate gross sales price of up to $360.0 million. The shares of common stock may be sold from time to time through or to one or more of the Agents, as may be determined by the Company in its sole discretion, subject to the terms and conditions of the agreement and applicable law. The Company elected not to issue any shares under the ATM Program during the six months ended June 30, 2022. As of June 30, 2022, the Company had approximately $101.0 million remaining that may be issued under the ATM Program.
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Net Income Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Common Share | NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and diluted net income per common share for the three and six months ended June 30, 2022 and 2021, respectively.
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Stock Incentive Plan |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Incentive Plan | STOCK INCENTIVE PLAN A summary of the activity under the Company's 2014 Incentive Plan, as amended, for the three and six months ended June 30, 2022 and 2021 is included in the table below, as well as compensation expense recognized from the amortization of the value of shares over the applicable vesting periods.
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Other Assets, net |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, net | OTHER ASSETS, NET Other assets, net on the Company's Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 are detailed in the table below.
The Company's notes receivable mainly included: •At June 30, 2022 and December 31, 2021, notes receivable included a $10.5 million and $12.0 million, respectively, term loan, secured by all assets and ownership interests in seven long-term acute care hospitals and one inpatient rehabilitation hospital owned by the borrower. The term loan will be repaid in equal monthly installments of $250,000 through the maturity date of December 31, 2025 and bears interest at 9% per annum. •At June 30, 2022 and December 31, 2021, notes receivable included a $6.0 million and $6.0 million, respectively, term loan and a $11.0 million and $8.0 million, respectively, revolving credit facility, secured by assets and ownership interests of six geriatric behavioral hospitals and affiliated companies all of which are co-borrowers on the loans. The term loan bears interest at 9% per annum, with interest only payments due initially and then equal monthly installments of principal payments due beginning June 30, 2023. The term loan facility matures on July 1, 2027. The revolving credit facility bears interest at 9% per annum and matures on December 31, 2025. In addition, the Company has committed to fund, at the Company’s discretion, additional amounts, up to $5.0 million with interest at 9% per annum on any amount funded, that may be used by the borrower to pay existing liabilities of co-borrowers. The term loan, the revolving credit facility and the additional commitment all include a 3% non-cash interest charge that is due and payable upon the earlier of the repayment or maturity of each note. The Company identified the borrowers of these notes as variable interest entities ("VIEs"), but management determined that the Company was not the primary beneficiary of the VIEs because we lack either directly or through related parties any material decision-making rights or control of the entities that impact the borrowers' economic performance. We are not obligated to provide support beyond our stated commitment to the borrowers, and accordingly our maximum exposure to loss as a result of this relationship is limited to the amount of our outstanding notes receivable. The VIEs that we have identified at June 30, 2022 are summarized in the table below.
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Other Liabilities, net |
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Other Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities, net | OTHER LIABILITIES, NET Other liabilities, net on the Company's Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 are detailed in the table below.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practical to estimate the fair value. Cash and cash equivalents and restricted cash - The carrying amount approximates the fair value. Notes receivable - The fair value is estimated using cash flow analyses, based on an assumed market rate of interest or at a rate consistent with the rates on notes carried by the Company and are classified as level 2 in the hierarchy. Borrowings under our Credit Facility - The carrying amount approximates the fair value because the borrowings are based on variable market interest rates. Derivative financial instruments - The fair value is estimated using discounted cash flow techniques. These techniques incorporate primarily level 2 inputs. The market inputs are utilized in the discounted cash flow calculation considering the instrument’s term, notional amount, discount rate and credit risk. Significant inputs to the derivative valuation model for interest rate swaps are observable in active markets and are classified as level 2 in the hierarchy. Mortgage note payable - The fair value is estimated using cash flow analyses which are based on an assumed market rate of interest or at a rate consistent with the rates on mortgage notes assumed by the Company and are classified as level 2 in the hierarchy. The table below details the fair values and carrying values for our notes receivable, interest rate swaps, and mortgage note payable at June 30, 2022 and December 31, 2021, using level 2 inputs.
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Subsequent Events |
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Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Dividend Declared On July 28, 2022, the Company’s Board of Directors declared a quarterly common stock dividend in the amount of $0.4425 per share. The dividend is payable on August 26, 2022 to stockholders of record on August 12, 2022. Restricted Stock Issuances On July 29, 2022, the Company issued 72,431 shares of restricted stock to its executive officers under the Company's 2014 Incentive Plan with an 8-year vesting period.
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Summary of Significant Accounting Policies (Policies) |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. This interim financial information should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2022. All intercompany accounts and transactions have been eliminated.
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Use of Estimates in the Condensed Consolidated Financial Statements | Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may materially differ from those estimates.
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Cash and Cash Equivalents | Cash and Cash Equivalents and Restricted CashCash and cash equivalents includes short-term investments with original maturities of three months or less when purchased. |
Restricted Cash | Restricted cash consists of amounts held by the lender of our mortgage note payable to provide for future real estate tax, insurance expenditures and tenant improvements related to one property. The carrying amounts approximate fair value due to the short term maturity of these investments. |
Income Taxes | Income Taxes The Company has elected to be taxed as a real estate investment trust ("REIT"), as defined under the Internal Revenue Code of 1986, as amended (the "Code"). The Company and two subsidiaries have also elected for those subsidiaries to be treated as taxable REIT subsidiaries ("TRSs"), which are subject to federal and state income taxes. No provision has been made for federal income taxes for the REIT; however, the Company has recorded income tax expense or benefit for the TRSs to the extent applicable. The Company also evaluates the realizability of its deferred tax assets and will record valuation allowances if it is determined that more likely than not the asset will not be recovered. The Company intends at all times to qualify as a REIT under the Code. The Company must distribute at least 90% per annum of its REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with generally accepted accounting principles) and meet other requirements to continue to qualify as a REIT.
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New Accounting Pronouncements | New Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
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Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restrictions on cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash:
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Schedule of cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash:
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Real Estate Properties (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of real estate property investments | The Company's investments are diversified by property type, geographic location, and tenant as shown in the following tables:
|
Real Estate Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum lease payments for operating leases | Future minimum lease payments under the non-cancelable operating leases due to the Company for the years ending December 31, as of June 30, 2022, are as follows (in thousands):
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Sales-type maturity | Future lease payments due to the Company under this lease for the years ending December 31, as of June 30, 2022, are as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of operating lease payments | The Company's future lease payments under these non-prepaid ground leases were as follows (in thousands):
|
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Schedule of finance lease payments | The Company's future lease payments under these non-prepaid ground leases were as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ground leases | The following table discloses other information regarding the ground leases.
|
Real Estate Acquisitions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of acquisitions |
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Schedule of assets acquired and liabilities assumed | The following table summarizes the relative fair values of the assets acquired and liabilities assumed in the property acquisitions for the six months ended June 30, 2022.
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Debt, net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt | The table below details the Company's debt as of June 30, 2022 and December 31, 2021.
|
Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of derivative instruments on balance sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021.
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Schedule of derivative gain (loss) | The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2022 and 2021.
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Stockholders' Equity (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of common stock | The following table provides a reconciliation of the beginning and ending common stock balances for the six months ended June 30, 2022 and for the year ended December 31, 2021:
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Net Income Per Common Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share | The following table sets forth the computation of basic and diluted net income per common share for the three and six months ended June 30, 2022 and 2021, respectively.
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Stock Incentive Plan (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of nonvested restricted stock activity | A summary of the activity under the Company's 2014 Incentive Plan, as amended, for the three and six months ended June 30, 2022 and 2021 is included in the table below, as well as compensation expense recognized from the amortization of the value of shares over the applicable vesting periods.
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Other Assets, net (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other assets | Other assets, net on the Company's Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 are detailed in the table below.
|
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Schedule of VIEs | The VIEs that we have identified at June 30, 2022 are summarized in the table below.
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Other Liabilities, net (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other liabilities | Other liabilities, net on the Company's Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 are detailed in the table below.
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Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by balance sheet grouping | The table below details the fair values and carrying values for our notes receivable, interest rate swaps, and mortgage note payable at June 30, 2022 and December 31, 2021, using level 2 inputs.
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Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands, ft² in Millions |
Jun. 30, 2022
USD ($)
ft²
real_estate_property
state
|
Dec. 31, 2021
USD ($)
|
---|---|---|
Accounting Policies [Abstract] | ||
Total real estate properties | $ | $ 869,496 | |
Number of real estate properties | real_estate_property | 159 | |
Number of properties held for investment in financing lease | real_estate_property | 1 | |
Financing lease liability | $ | $ 2,971 | $ 2,973 |
Number of states | state | 34 | |
Area of real estate property (in square feet) | ft² | 3.4 | |
Percentage leased | 90.30% | |
Remaining lease term | 7 years 9 months 18 days |
Summary of Significant Accounting Policies - Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 1,699 | $ 2,351 | $ 4,787 | |
Restricted cash | 659 | 516 | 467 | |
Cash, cash equivalents and restricted cash | $ 2,358 | $ 2,867 | $ 5,254 | $ 2,892 |
Real Estate Properties - Additional Information (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
real_estate_property
|
Dec. 31, 2021
USD ($)
|
---|---|---|
Real Estate [Abstract] | ||
Total real estate properties | $ | $ 869,496 | |
Number of real estate properties | real_estate_property | 159 | |
Number of properties held for investment in financing lease | real_estate_property | 1 | |
Financing lease liability | $ | $ 2,971 | $ 2,973 |
Real Estate Leases - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Leases [Abstract] | |
2022 (six months ending December 31) | $ 39,823 |
2023 | 76,469 |
2024 | 71,470 |
2025 | 66,222 |
2026 | 59,091 |
2027 and thereafter | 375,290 |
Total | $ 688,365 |
Real Estate Leases - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022
USD ($)
real_estate_property
lease
|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2022
USD ($)
real_estate_property
lease
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Concentration Risk [Line Items] | |||||
Straight line rent | $ 900 | $ 1,000 | $ 1,737 | $ 1,818 | |
Real estate investment property, net | $ 717,432 | $ 717,432 | $ 701,029 | ||
Number of real estate properties | real_estate_property | 159 | 159 | |||
Lease receivable | $ 3,033 | $ 3,033 | $ 3,031 | ||
Number of properties held for investment in financing lease | real_estate_property | 1 | 1 | |||
Interest income | $ 100 | $ 100 | $ 200 | $ 200 | |
Number of operating leases | lease | 4 | 4 | |||
Number of finance leases | lease | 1 | 1 | |||
Four Real Estate Property | |||||
Concentration Risk [Line Items] | |||||
Real estate investment property, net | $ 28,100 | $ 28,100 | |||
Number of real estate properties | real_estate_property | 5 | 5 |
Real Estate Leases - Lease Receivable (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
2022 (six months ended December 31) | $ 165 | |
2023 | 336 | |
2024 | 346 | |
2025 | 356 | |
2026 | 367 | |
2027 and thereafter | 5,587 | |
Total undiscounted lease receivable | 7,157 | |
Discount | (4,124) | |
Lease receivable | $ 3,033 | $ 3,031 |
Real Estate Leases - Future Lease Payments Under Non-prepaid Ground Leases (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Operating | ||
2022 (six months ended December 31) | $ 21 | |
2023 | 42 | |
2024 | 43 | |
2025 | 44 | |
2026 | 44 | |
2027 and thereafter | 1,193 | |
Total undiscounted lease payments | 1,387 | |
Discount | (596) | |
Lease liabilities | 791 | $ 795 |
Financing | ||
2022 (six months ended December 31) | 63 | |
2023 | 125 | |
2024 | 138 | |
2025 | 138 | |
2026 | 138 | |
2027 and thereafter | 5,483 | |
Total undiscounted lease payments | 6,085 | |
Discount | (3,114) | |
Lease liabilities | $ 2,971 | $ 2,973 |
Real Estate Leases - Ground Leases (Details) |
Jun. 30, 2022 |
Jun. 30, 2021 |
---|---|---|
Operating leases: | ||
Weighted-average remaining lease term in years (including renewal options) | 36 years 5 months 4 days | 37 years 7 months 17 days |
Weighted-average discount rate | 4.00% | 4.00% |
Financing leases: | ||
Weighted-average remaining lease term in years (including renewal options) | 36 years 6 months | 35 years 6 months |
Weighted-average discount rate | 4.10% | 4.10% |
Real Estate Acquisitions - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2022
USD ($)
real_estate_property
|
Mar. 31, 2022
real_estate_property
|
Jun. 30, 2022
USD ($)
|
|
Business Acquisition [Line Items] | |||
Number of real estate properties acquired | real_estate_property | 1 | 2 | |
Acquisitions Of Properties During Q2 2022 | |||
Business Acquisition [Line Items] | |||
Percentage of properties that were leased at acquisition | 100.00% | ||
Pro forma information, revenue of acquiree since acquisition date, actual | $ 400 | ||
Pro forma information, income of acquiree since acquisition date, actual | 300 | ||
Transaction costs | $ 100 | ||
Acquisitions Of Properties During Q1 2022 | |||
Business Acquisition [Line Items] | |||
Percentage of properties that were leased at acquisition | 100.00% | ||
Pro forma information, revenue of acquiree since acquisition date, actual | $ 300 | ||
Pro forma information, income of acquiree since acquisition date, actual | 43 | ||
Transaction costs | $ 100 |
Real Estate Acquisitions - Assets Acquired and Liabilities Assumed (Details) - Series of Individually Immaterial Asset Acquisitions $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Business Acquisition [Line Items] | |
Land and land improvements | $ 4,258 |
Building and building improvements | 24,290 |
Intangibles: | |
Below-market lease intangibles | $ (194) |
Below market lease useful life (in years) | 6 years 1 month 6 days |
Total intangibles | $ 993 |
Accounts payable, accrued liabilities and other liabilities assumed | (97) |
Prorated rent, interest and operating expense reimbursement amounts collected | (773) |
Total cash consideration | 28,671 |
At-market lease intangibles | |
Intangibles: | |
Lease intangibles | $ 1,187 |
Intangibles useful life (in years) | 4 years 6 months |
Land and land improvements | |
Business Acquisition [Line Items] | |
Estimated useful life (in years) | 12 years 8 months 12 days |
Building and building improvements | |
Business Acquisition [Line Items] | |
Estimated useful life (in years) | 45 years 3 months 18 days |
Debt, net - Schedule of Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt, net | $ 291,726 | $ 265,625 |
Term Loan | Third Amended And Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 250,000 | |
Mortgage Note Payable, net | ||
Debt Instrument [Line Items] | ||
Debt, net | 4,971 | 5,029 |
Revolving Credit Facility | Line of Credit | Third Amended And Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 38,000 | 12,000 |
A-2 Term Loan, net | Term Loan | Third Amended And Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 49,855 | 49,813 |
A-3 Term Loan, net | Term Loan | Third Amended And Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | 74,548 | 74,487 |
A-4 Term Loan, net | Term Loan | Third Amended And Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, net | $ 124,352 | $ 124,296 |
Derivative Financial Instruments - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
derivative_instrument
| |
Derivative [Line Items] | |
Cash flow hedges reclassified to interest expense | $ 3,300,000 |
Cash Flow Hedging | Interest Rate Contract | |
Derivative [Line Items] | |
Number outstanding interest rate derivatives | derivative_instrument | 12 |
Notional amount | $ 250,000,000 |
Derivative Financial Instruments - Fair Value Balance Sheet (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Interest rate swap asset | $ 12,761 | $ 343 |
Interest rate swap liability | 0 | 5,324 |
Cash Flow Hedging | Interest rate swaps | Designated as Hedging Instrument | Other assets, net | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap asset | 12,761 | 343 |
Cash Flow Hedging | Interest rate swaps | Designated as Hedging Instrument | Other liabilities, net | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap liability | $ 0 | $ 5,324 |
Derivative Financial Instruments - Cash Flow Hedging (Details) - Interest Rate Contract - Cash Flow Hedging - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of unrealized gain (loss) recognized in OCI on derivatives | $ 4,584 | $ (2,788) | $ 15,991 | $ 15 |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of loss reclassified from AOCI into interest expense | 635 | 1,160 | 1,750 | 2,092 |
Total interest expense presented in the Condensed Consolidated Statements of Income in which the effects of the cash flow hedges are recorded | $ 2,755 | $ 2,736 | $ 5,381 | $ 4,966 |
Stockholders' Equity - Reconciliation of Common Stock (Details) - shares shares in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning of period (in shares) | 24,983 | 23,888 |
Issuance of common stock (in shares) | 0 | 823 |
Restricted stock issued (in shares) | 119 | 273 |
Restricted stock withheld and forfeited (in shares) | (3) | (1) |
Balance, end of period (in shares) | 25,099 | 24,983 |
Stockholders' Equity - Additional Information (Details) - At The Market Offering Program - Common Stock shares in Millions, $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
shares
| |
Subsidiary, Sale of Stock [Line Items] | |
Value of shares authorized | $ | $ 360.0 |
Shares available for issuance (in shares) | shares | 101.0 |
Stock Incentive Plan - Restricted Stock Activity (Details) - 2014 Incentive Plan - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Restricted Common Stock | ||||
Stock-based awards: | ||||
Stock-based awards, beginning of period (in shares) | 1,502 | 1,258 | 1,416 | 1,165 |
Granted (in shares) | 27 | 22 | 119 | 115 |
Vested (in shares) | (17) | (20) | (22) | (20) |
Forfeited (in shares) | 0 | 0 | (1) | 0 |
Stock-based awards, end of period (in shares) | 1,512 | 1,260 | 1,512 | 1,260 |
Amortization expense | $ 2,184 | $ 1,606 | $ 4,307 | $ 3,164 |
Stock in lieu of compensation | ||||
Stock-based awards: | ||||
Granted (in shares) | 8 | 6 | 52 | 50 |
Stock awards | ||||
Stock-based awards: | ||||
Granted (in shares) | 19 | 16 | 67 | 65 |
Other Assets, net - Other Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Notes receivable | $ 27,500 | $ 26,000 |
Accounts and interest receivable | 2,463 | 2,116 |
Straight-line rent receivable | 13,723 | 11,968 |
Prepaid assets | 728 | 701 |
Deferred financing costs, net | 790 | 896 |
Leasing commissions, net | 1,389 | 1,239 |
Deferred tax assets, net | 349 | 348 |
Fair value of interest rate swaps | 12,761 | 343 |
Above-market lease intangible assets, net | 517 | 611 |
Sales-type lease receivable | 3,033 | 3,031 |
Financing right-of-use asset | 1,844 | 1,870 |
Operating lease right-of-use assets | 774 | 788 |
Other | 373 | 426 |
Other assets, net | $ 66,244 | $ 50,337 |
Other Assets, net - VIEs (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Carrying amount | $ 27,500 | $ 26,000 |
Variable Interest Entity, Not Primary Beneficiary | Note receivable (term loan) | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 10,500 | |
Maximum exposure to loss | 10,500 | |
Variable Interest Entity, Not Primary Beneficiary | Note receivable (revolving credit facility) | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 11,000 | 8,000 |
Maximum exposure to loss | 11,000 | |
Variable Interest Entity, Not Primary Beneficiary | Note receivable (term loan) | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 6,000 | $ 6,000 |
Maximum exposure to loss | $ 6,000 |
Other Liabilities, net (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Prepaid rent | $ 3,967 | $ 3,791 |
Security deposits | 5,224 | 4,640 |
Below-market lease intangibles, net | 720 | 616 |
Fair value of derivatives | 0 | 5,324 |
Financing lease liability | 2,971 | 2,973 |
Operating lease liability | 791 | 795 |
Other | 454 | 512 |
Other liabilities, net | $ 14,127 | $ 18,651 |
Subsequent Events (Details) - Subsequent Event - $ / shares |
Jul. 29, 2022 |
Jul. 28, 2022 |
---|---|---|
Subsequent Event [Line Items] | ||
Dividend declared (in dollars per share) | $ 0.4425 | |
Restricted Common Stock | Executive Officer | ||
Subsequent Event [Line Items] | ||
Restricted common stock granted (in shares) | 72,431 | |
Vesting period | 8 years |
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