Real Property Acquisitions and Development

3 Months Ended

Mar. 31, 2016

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, 2015 for information regarding our foreign currency policies.

Triple-net Activity

		Three Months Ended
(In thousands)		March 31, 2016(1)			March 31, 2015
Land and land improvements			$	15,331		$	22,983
Buildings and improvements				114,235			239,728
Acquired lease intangibles				1,623			799
Receivables and other assets				-			7
	Total assets acquired			131,189			263,517
Accrued expenses and other liabilities				(809)			(732)
	Total liabilities assumed			(809)			(732)
Non-cash acquisition related activity				(28,621)			(357)
	Cash disbursed for acquisitions			101,759			262,428
Construction in progress additions				43,835			45,360
Less:	Capitalized interest			(1,684)			(1,756)
	Foreign currency translation			(583)			(642)
Cash disbursed for construction in progress				41,568			42,962
Capital improvements to existing properties				7,438			11,557
	Total cash invested in real property, net of cash acquired		$	150,765		$	316,947
(1) Includes acquisitions with an aggregate purchase price of $115,875,000 for which the allocation of the purchase price consideration is preliminary and subject to change.

Seniors Housing Operating Activity

		Three Months Ended
(In thousands)		March 31, 2016(1)			March 31, 2015
Land and land improvements			$	3,440		$	86,184
Building and improvements				48,218			1,016,426
Acquired lease intangibles				1,942			62,838
Restricted cash				-			3,820
Receivables and other assets				36			23,014
	Total assets acquired(2)			53,636			1,192,282
Secured debt				-			(208,960)
Accrued expenses and other liabilities				(11)			(16,164)
	Total liabilities assumed			(11)			(225,124)
Noncontrolling interests				(549)			(83,194)
	Cash disbursed for acquisitions			53,076			883,964
Construction in progress additions				4,033			4,193
Less:	Capitalized interest			(565)			(394)
	Foreign currency translation			(1,107)			(1,472)
Cash disbursed for construction in progress				2,361			2,327
Capital improvements to existing properties				16,808			11,632
	Total cash invested in real property, net of cash acquired		$	72,245		$	897,923
(1) Includes acquisitions with an aggregate purchase price of $53,636,000 for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) Excludes $113,000 and $1,677,000 of cash acquired during the three months ended March 31, 2016 and 2015, respectively.

Outpatient Medical Activity

		Three Months Ended
(In thousands)		March 31, 2016 (1)			March 31, 2015
Land and land improvements			$	-	$	47,019
Buildings and improvements				17,637		307,072
Acquired lease intangibles				-		511
	Total assets acquired			17,637		354,602
Accrued expenses and other liabilities				(990)		-
	Total liabilities assumed			(990)		-
	Cash disbursed for acquisitions			16,647		354,602
Construction in progress additions				28,934		16,421
Less:	Capitalized interest			(788)		(237)
	Accruals(2)			(5,336)		(1,921)
Cash disbursed for construction in progress				22,810		14,263
Capital improvements to existing properties				10,779		6,639
	Total cash invested in real property		$	50,236	$	375,504
(1) Includes acquisitions with an aggregate purchase price of $17,637,000 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, 2016			March 31, 2015
	Development projects:
		Outpatient medical		$	35,363		$	16,592
	Total development projects				35,363			16,592
	Expansion projects				-			19,541
Total construction in progress conversions				$	35,363		$	36,133