Real Property Acquisitions and Development

9 Months Ended

Sep. 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. 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.

Triple-net Activity

		Nine Months Ended
(In thousands)		September 30, 2015(1)			September 30, 2014
Land and land improvements			$	111,674		$	36,427
Buildings and improvements				1,025,232			303,273
Acquired lease intangibles				3,888			-
Restricted cash				6			-
Receivables and other assets				60			-
	Total assets acquired			1,140,860			339,700
Accrued expenses and other liabilities				(2,447)			-
	Total liabilities assumed			(2,447)			-
Non-cash acquisition related activity				(2,780)			(1,937)
	Cash disbursed for acquisitions			1,135,633			337,763
Construction in progress additions				96,403			79,668
Less:	Capitalized interest			(4,453)			(3,258)
	Foreign currency translation			73			116
Cash disbursed for construction in progress				92,023			76,526
Capital improvements to existing properties				35,042			14,375
	Total cash invested in real property, net of cash acquired		$	1,262,698		$	428,664
(1) Includes acquisitions with an aggregate purchase price of $844,298,000 for which the allocation of the purchase price consideration is preliminary and subject to change.

Seniors Housing Operating Activity

		Nine Months Ended
(In thousands)		September 30, 2015(1)			September 30, 2014
Land and land improvements			$	98,444		$	40,764
Building and improvements				1,229,017			224,936
Acquired lease intangibles				74,091			10,021
Construction in progress				-			27,957
Restricted cash				5,567			-
Receivables and other assets				23,928			5,679
	Total assets acquired(2)			1,431,047			309,357
Secured debt				(234,597)			(12,846)
Accrued expenses and other liabilities				(19,016)			(17,011)
	Total liabilities assumed			(253,613)			(29,857)
Noncontrolling interests				(86,842)			-
	Cash disbursed for acquisitions			1,090,592			279,500
Construction in progress additions				39,493			6,984
Less:	Capitalized interest			(1,116)			(293)
	Foreign currency translation			(1,345)			(810)
Cash disbursed for construction in progress				37,032			5,881
Capital improvements to existing properties				61,911			52,177
	Total cash invested in real property, net of cash acquired		$	1,189,535		$	337,558
(1) Includes acquisitions with an aggregate purchase price of $1,268,031,000 for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) Excludes $3,390,000 and $8,476,000 of cash acquired during the nine months ended September 30, 2015 and 2014, respectively.

Outpatient Medical Activity

		Nine Months Ended
(In thousands)		September 30, 2015 (1)			September 30, 2014
Land and land improvements			$	737	$	29,588
Buildings and improvements				426,288		471,410
Acquired lease intangibles				19,373		17,440
Receivables and other assets				-		1,245
	Total assets acquired(2)			446,398		519,683
Secured debt				(112,000)		(50,500)
Accrued expenses and other liabilities				(2,743)		(9,308)
	Total liabilities assumed			(114,743)		(59,808)
Noncontrolling interests				(68,535)		(39,987)
Non-cash acquisition activity(3)				-		(45,836)
	Cash disbursed for acquisitions			263,120		374,052
Construction in progress additions				38,919		71,245
Less:	Capitalized interest			(742)		(1,533)
	Accruals(4)			(1,921)		(11,290)
Cash disbursed for construction in progress				36,256		58,422
Capital improvements to existing properties				25,687		19,772
	Total cash invested in real property		$	325,063	$	452,246
(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) Excludes $4,372,000 and $0 of cash acquired during the nine months ended September 30, 2015 and 2014, respectively.
(3) Relates to an acquisition of assets previously financed as real estate loans. Please refer to Note 6 for additional information.
(4) 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):

			Nine Months Ended
			September 30, 2015			September 30, 2014
	Development projects:
		Triple-net		$	85,902		$	71,569
		Seniors housing operating			19,869			-
		Outpatient medical			16,592			56,807
	Total development projects				122,363			128,376
	Expansion projects				38,808			17,586
Total construction in progress conversions				$	161,171		$	145,962