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Real Property Acquisitions and Development
 12 Months Ended
Dec. 31, 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. During the year ended December 31, 2014, we finalized our purchase price allocation of certain previously reported acquisitions and there were no material changes from those previously disclosed.

Seniors Housing Triple-net Activity

The following provides our purchase price allocations and other seniors housing triple-net real property investment activity for the periods presented (in thousands):

Year Ended December 31,
2014(1)20132012
Land and land improvements $ 141,387 $54,596$87,372
Buildings and improvements 1,365,638 360,5941,000,278
Acquired lease intangibles 19,196 --
Restricted cash-189-
Receivables and other assets 4,895 1,020119
Total assets acquired(2) 1,531,116 416,3991,087,769
Secured debt (130,638)(9,810)(89,881)
Senior unsecured notes(48,567)--
Accrued expenses and other liabilities(9,067)(540)(3,542)
Total liabilities assumed(188,272)(10,350)(93,423)
Capital in excess of par--921
Noncontrolling interests--(17,215)
Non-cash acquisition related activity(3)(3,453)(12,207)(616)
Cash disbursed for acquisitions1,339,391393,842977,436
Construction in progress additions135,349145,624180,009
Less: Capitalized interest(4,582)(4,828)(6,042)
Accruals Foreign currency translation421--
Non-cash related activity(14,459)--
Cash disbursed for construction in progress116,729140,796173,967
Capital improvements to existing properties18,90135,91267,026
Total cash invested in real property, net of cash acquired $ 1,475,021 $570,550$1,218,429
(1) Includes acquisitions with an aggregate purchase price of $1,081,607,000 for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) Excludes $1,382,000, $0, and $2,031,000 of cash acquired during the year ended December 31, 2014, 2013 and 2012, respectively.
(3) For the year ended December 31, 2013, relates to an asset swap transaction. Please refer to Note 5 for additional information.

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 for information regarding our foreign currency policies.

The following is a summary of our seniors housing operating real property investment activity for the periods presented (in thousands):

Year Ended December 31,
2014(1)20132012
Land and land improvements $ 57,534 $445,152$146,332
Buildings and improvements 297,314 4,275,0461,341,560
Acquired lease intangibles 12,983 396,444118,077
Construction in progress27,957--
Restricted cash80444,4271,296
Receivables and other assets 9,327 79,56410,125
Total assets acquired(2) 405,919 5,240,6331,617,390
Secured debt (19,834)(1,275,245)(124,190)
Accrued expenses and other liabilities(17,802)(96,709)(17,347)
Total liabilities assumed(37,636)(1,371,954)(141,537)
Noncontrolling interests(482)(232,575)(56,884)
Non-cash acquisition related activity(3)-(555,563)-
Cash disbursed for acquisitions367,8013,080,5411,418,969
Construction in progress additions12,2913,894-
Less: Capitalized interest(714)(57)-
Less: Foreign currency translation(2,012)--
Cash disbursed for construction in progress9,5653,837-
Capital improvements to existing properties86,80372,25821,751
Total cash invested in real property, net of cash acquired $ 464,169 $3,156,636$1,440,720
(1) Includes an aggregate purchase price of $368,313,000 relating to acquisitions for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) Excludes $9,060,000, $92,148,000 and $20,691,000 of cash acquired during the years ended December 31, 2014, 2013 and 2012, respectively.
(3) Represents Sunrise loan and noncontrolling interest acquisitions during the first quarter of 2013.

Medical Facilities Activity

Accrued contingent consideration related to certain medical facility acquisitions was $27,374,000, $26,187,000 and $34,692,000 as of December 31, 2014, 2013 and 2012, respectively. Of the amount recognized, $12,500,000 is required to be settled in the Company’s common stock upon the achievement of certain performance thresholds. The following is a summary of our medical facilities real property investment activity for the periods presented (in thousands):

Year Ended December 31,
2014(1)20132012
Land and land improvements $ 63,129 $14,515$68,489
Buildings and improvements 567,847 156,087632,208
Acquired lease intangibles 46,661 9,432115,233
Restricted cash - 505975
Receivables and other assets - 3444,469
Total assets acquired 677,637 180,883821,374
Secured debt (66,113)(55,884)(267,527)
Accrued expenses and other liabilities(22,293)(1,041)(25,928)
Total liabilities assumed(88,406)(56,925)(293,455)
Noncontrolling interests(39,987)(386)(193)
Non-cash acquisition related activity(2)(45,836)-(880)
Cash disbursed for acquisitions503,408123,572526,846
Construction in progress additions99,878123,494134,505
Less: Capitalized interest(1,854)(1,815)(3,735)
Accruals(3)(26,437)(18,752)(18,327)
Cash disbursed for construction in progress71,587102,927112,443
Capital improvements to existing properties27,07627,66246,673
Total cash invested in real property, net of cash acquired $ 602,071 $254,161$685,962
(1) Includes acquisitions with an aggregate purchase price of $489,042,000 for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) For the year ended December 31, 2014, relates to an acquisition of assets previously financed as real estate loans. Please refer to Note 6 for additional information.
(3) Represents non-cash consideration 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:

Year Ended
December 31, 2014December 31, 2013December 31, 2012
Development projects:
Seniors housing triple-net$71,569$133,181$146,913
Medical facilities127,290127,363189,135
Total development projects198,859260,544336,048
Expansion projects24,80426,3954,983
Total construction in progress conversions$223,663$286,939$341,031

At December 31, 2014, future minimum lease payments receivable under operating leases (excluding properties in our seniors housing operating partnerships and excluding any operating expense reimbursements) are as follows (in thousands):

2015$1,283,484
20161,259,168
20171,250,683
20181,243,452
20191,209,371
Thereafter9,576,144
Totals$15,822,302