Real Property Acquisitions and Development

3 Months Ended

Mar. 31, 2015

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.

Triple-net Activity

		Three Months Ended
(In thousands)		March 31, 2015(1)			March 31, 2014
Land and land improvements			$	70,002		$	2,750
Buildings and improvements				537,014			30,693
Acquired lease intangibles				799			-
Receivables and other assets				7			-
	Total assets acquired			607,822			33,443
Accrued expenses and other liabilities				(732)			-
	Total liabilities assumed			(732)			-
Non-cash acquisition related activity				(357)			(657)
	Cash disbursed for acquisitions			606,733			32,786
Construction in progress additions				45,360			24,657
Less:	Capitalized interest			(1,756)			(1,170)
	Foreign currency translation			(642)			(14)
Cash disbursed for construction in progress				42,962			23,473
Capital improvements to existing properties				11,557			5,877
	Total cash invested in real property, net of cash acquired		$	661,252		$	62,136
(1) Includes acquisitions with an aggregate purchase price of $571,586,000 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, 2014for information regarding our foreign currency policies.

		Three Months Ended
(In thousands)		March 31, 2015(1)			March 31, 2014
Land and land improvements			$	86,184		$	2,100
Building and improvements				1,016,426			19,069
Acquired lease intangibles				62,838			1,331
Restricted cash				3,820			-
Receivables and other assets				23,014			-
	Total assets acquired(2)			1,192,282			22,500
Secured debt				(208,960)			-
Accrued expenses and other liabilities				(16,164)			(245)
	Total liabilities assumed			(225,124)			(245)
Noncontrolling interests				(83,194)			-
	Cash disbursed for acquisitions			883,964			22,255
Construction in progress additions				4,193			1,026
Less:	Capitalized interest			(394)			(50)
	Foreign currency translation			(1,472)			-
Cash disbursed for construction in progress				2,327			976
Capital improvements to existing properties				11,632			13,998
	Total cash invested in real property, net of cash acquired		$	897,923		$	37,229
(1) Includes acquisitions with an aggregate purchase price of $885,642,000 for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) Excludes $1,677,000 and $245,000 of cash acquired during the three months ended March 31, 2015 and 2014, respectively.

Outpatient Medical Activity

		Three Months Ended
(In thousands)		March 31, 2015 (1)			March 31, 2014
Buildings and improvements			$	9,786	$	-
Acquired lease intangibles				511		-
	Total assets acquired			10,297		-
	Cash disbursed for acquisitions			10,297		-
Construction in progress additions				16,421		38,237
Less:	Capitalized interest			(237)		(385)
	Accruals(2)			(1,921)		(9,584)
Cash disbursed for construction in progress				14,263		28,268
Capital improvements to existing properties				6,639		7,531
	Total cash invested in real property		$	31,199	$	35,799
(1) Includes acquisitions with an aggregate purchase price of $10,297,000 for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) 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 (in thousands):

			Three Months Ended
			March 31, 2015			March 31, 2014
	Development projects:
		Triple-net		$	-		$	8,481
		Outpatient medical			16,592			42,799
		Total development projects			16,592			51,280
	Expansion projects				19,541			9,209
Total construction in progress conversions				$	36,133		$	60,489