Real Property Acquisitions and Development

6 Months Ended

Jun. 30, 2014

Real Property Acquisitions and Development [Abstract]

Real Property Acquisitions and Development

3. Real Property Acquisitions and Development

The total purchase price for all properties acquired has been allocated to the tangible and identifiable intangible assets, liabilities and noncontrolling interests based upon their respective fair values in accordance with our accounting policies. The results of operations for these acquisitions have been included in our consolidated results of operations since the date of acquisition and are a component of the appropriate segments. Transaction costs primarily represent costs incurred with property acquisitions, including due diligence costs, fees for legal and valuation services and termination of pre-existing relationships computed based on the fair value of the assets acquired, lease termination fees and other acquisition-related costs.

Seniors Housing Triple-net Activity

		Six Months Ended
(In thousands)		June 30, 2014(1)			June 30, 2013
Land and land improvements			$	18,530		$	8,533
Buildings and improvements				230,126			47,993
	Total assets acquired			248,656			56,526
Non-cash acquisition related activity				(1,839)			-
	Cash disbursed for acquisitions			246,817			56,526
Construction in progress additions				55,535			58,799
Less:	Capitalized interest			(2,332)			(2,208)
	Foreign currency translation			(116)			-
Cash disbursed for construction in progress				53,087			56,591
Capital improvements to existing properties				9,863			18,302
	Total cash invested in real property, net of cash acquired		$	309,767		$	131,419
(1) Includes acquisitions with an aggregate purchase price of $116,134,000 for which the allocation of the purchase price consideration is preliminary and subject to change.

Seniors Housing Operating Activity

Acquisitions of seniors housing operating properties are structured under RIDEA, which is described in Note 18. This structure results in the inclusion of all resident revenues and related property operating expenses from the operation of these qualified health care properties in our Consolidated Statements of Comprehensive Income. Certain of our subsidiaries’ functional currencies are the local currencies of their respective countries. See Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for information regarding our foreign currency policies.

		Six Months Ended
(In thousands)		June 30, 2014(1)			June 30, 2013
Land and land improvements			$	3,546		$	337,066
Building and improvements				37,274			3,069,192
Acquired lease intangibles				5,569			263,740
Restricted cash				-			22,863
Receivables and other assets				33			76,286
	Total assets acquired(2)			46,422			3,769,147
Secured debt				(12,846)			(556,413)
Accrued expenses and other liabilities				(853)			(51,356)
	Total liabilities assumed			(13,699)			(607,769)
Noncontrolling interests				-			(229,966)
Non-cash acquisition related activity(3)				-			(555,562)
	Cash disbursed for acquisitions			32,723			2,375,850
Construction in progress additions				2,348			472
Less:	Capitalized interest			(75)			(6)
Cash disbursed for construction in progress				2,273			466
Capital improvements to existing properties				32,171			21,474
	Total cash invested in real property, net of cash acquired		$	67,167		$	2,397,790
(1) Includes acquisitions with an aggregate purchase price of $23,922,000 for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) Excludes $245,000 and $60,590,000 of cash acquired during the six months ended June 30, 2014 and 2013, respectively.
(3) Represents Sunrise loan and noncontrolling interests acquisitions.

Medical Facilities Activity

		Six Months Ended
(In thousands)		June 30, 2014 (1)			June 30, 2013
Land and land improvements			$	1,655	$	-
Buildings and improvements				212,572		-
Acquired lease intangibles				1,525		-
Receivables and other assets				249		-
	Total assets acquired			216,001		-
Accrued expenses and other liabilities				(7,475)		-
	Total liabilities assumed			(7,475)		-
	Cash disbursed for acquisitions			208,526		-
Construction in progress additions				50,323		60,925
Less:	Capitalized interest			(898)		(778)
	Accruals(2)			(9,584)		2,129
Cash disbursed for construction in progress				39,841		62,276
Capital improvements to existing properties				12,654		8,704
	Total cash invested in real property		$	261,021	$	70,980
(1) Includes acquisitions with an aggregate purchase price of $200,295,000 for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) Represents non-cash accruals for amounts to be paid in future periods relating to properties that converted in the periods noted above.

Construction Activity

The following is a summary of the construction projects that were placed into service and began generating revenues during the periods presented (in thousands):

			Six Months Ended
			June 30, 2014			June 30, 2013
	Development projects:
		Seniors housing triple-net		$	71,570		$	67,317
		Medical facilities			42,799			70,227
		Total development projects			114,369			137,544
	Expansion projects				10,849			8,155
Total construction in progress conversions				$	125,218		$	145,699