Real Property Acquisitions and Development

6 Months Ended

Jun. 30, 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

		Six Months Ended
(In thousands)		June 30, 2015⁽¹⁾			June 30, 2014
Land and land improvements			$	92,287		$	18,530
Buildings and improvements				744,515			230,126
Acquired lease intangibles				2,817			-
Restricted cash				6			-
Receivables and other assets				60			-
	Total assets acquired			839,685			248,656
Accrued expenses and other liabilities				(1,845)			-
	Total liabilities assumed			(1,845)			-
Non-cash acquisition related activity				(936)			(1,839)
	Cash disbursed for acquisitions			836,904			246,817
Construction in progress additions				74,694			55,535
Less:	Capitalized interest			(3,303)			(2,332)
	Foreign currency translation			240			(116)
Cash disbursed for construction in progress				71,631			53,087
Capital improvements to existing properties				19,029			10,381
	Total cash invested in real property, net of cash acquired		$	927,564		$	310,285

(1) Includes acquisitions with an aggregate purchase price of $688,288,000 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, 2014 for information regarding our foreign currency policies.


		Six Months Ended
(In thousands)		June 30, 2015⁽¹⁾			June 30, 2014
Land and land improvements			$	94,294		$	3,546
Building and improvements				1,174,465			37,274
Acquired lease intangibles				71,089			5,569
Restricted cash				5,425			-
Receivables and other assets				23,645			33
	Total assets acquired⁽²⁾			1,368,918			46,422
Secured debt				(208,960)			(12,846)
Accrued expenses and other liabilities				(19,011)			(853)
	Total liabilities assumed			(227,971)			(13,699)
Noncontrolling interests				(86,842)			-
	Cash disbursed for acquisitions			1,054,105			32,723
Construction in progress additions				19,926			2,348
Less:	Capitalized interest			(715)			(75)
	Foreign currency translation			(40)			-
Cash disbursed for construction in progress				19,171			2,273
Capital improvements to existing properties				32,766			32,171
	Total cash invested in real property, net of cash acquired		$	1,106,042		$	67,167

(1) Includes acquisitions with an aggregate purchase price of $1,344,831,000 for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) Excludes $3,390,000 and $245,000 of cash acquired during the six months ended June 30, 2015 and 2014, respectively.

Outpatient Medical Activity


		Six Months Ended
(In thousands)		June 30, 2015⁽¹⁾			June 30, 2014
Land and land improvements			$	737	$	1,655
Buildings and improvements				426,130		212,572
Acquired lease intangibles				19,371		1,525
Cash and cash equivalents				4,373		-
Receivables and other assets				-		249
	Total assets acquired			450,611		216,001
Secured debt				(112,000)		-
Accrued expenses and other liabilities				(2,743)		(7,475)
	Total liabilities assumed			(114,743)		(7,475)
Noncontrolling interests				(68,535)		-
	Cash disbursed for acquisitions			267,333		208,526
Construction in progress additions				26,025		49,805
Less:	Capitalized interest			(428)		(898)
	Accruals⁽²⁾			(1,921)		(9,584)
Cash disbursed for construction in progress				23,676		39,323
Capital improvements to existing properties				15,291		12,654
	Total cash invested in real property		$	301,927	$	260,503

(1) Includes acquisitions with an aggregate purchase price of $440,220,000 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):


			Six Months Ended
			June 30, 2015			June 30, 2014
	Development projects:
		Triple-net		$	72,775		$	71,570
		Senior housing - operating			19,869			-
		Outpatient medical			16,592			42,799
		Total development projects			109,236			114,369
	Expansion projects				38,808			10,849
Total construction in progress conversions				$	148,044		$	125,218