Real Property Acquisitions and Development

3 Months Ended

Mar. 31, 2019

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 relative 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 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. Transaction costs related to asset acquisitions are capitalized as a component of purchase price and all other non-capitalizable costs are reflected in other expenses on our Consolidated Statements of Comprehensive Income. Certain of our subsidiaries’ functional currencies are the local currencies of their respective countries.

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



	Three Months Ended
	March 31, 2019												March 31, 2018
	Seniors Housing Operating			Triple-net			Outpatient Medical			Totals			Seniors Housing Operating			Triple-net			Outpatient Medical			Totals
Land and land improvements	$	6,831		$	7,427		$	29,304		$	43,562		$	35,193		$	1,691		$	7,369		$	44,253
Buildings and improvements	97,759			74,116			60,671			232,546			372,562			235			42,673			415,470
Acquired lease intangibles	4,945			—			10,202			15,147			48,805			—			5,852			54,657
Right of use assets, net	—			—			2,012			2,012			—			—			—			—
Receivables and other assets	264			—			—			264			265			—			1			266
Total assets acquired⁽¹⁾	109,799			81,543			102,189			293,531			456,825			1,926			55,895			514,646
Secured debt	(43,209		)	—			—			(43,209		)	(89,973		)	—			—			(89,973		)
Lease liabilities	—			—			(961		)	(961		)	—			—			—			—
Accrued expenses and other liabilities	(848		)	—			(1,952		)	(2,800		)	(12,808		)	(6		)	(632		)	(13,446		)
Total liabilities acquired	(44,057		)	—			(2,913		)	(46,970		)	(102,781		)	(6		)	(632		)	(103,419		)
Noncontrolling interests	(7,895		)	(1,056		)	—			(8,951		)	(5,618		)	—			—			(5,618		)
Cash disbursed for acquisitions	57,847			80,487			99,276			237,610			348,426			1,920			55,263			405,609
Construction in progress additions	37,088			7,543			14,475			59,106			10,562			15,850			2,803			29,215
Less: Capitalized interest	(1,136		)	(390		)	(801		)	(2,327		)	(891		)	(847		)	(598		)	(2,336		)
Foreign currency translation	(1,332		)	(101		)	—			(1,433		)	(5,032		)	—			—			(5,032		)
Accruals⁽²⁾	—			—			45			45			—			—			888			888
Cash disbursed for construction in progress	34,620			7,052			13,719			55,391			4,639			15,003			3,093			22,735
Capital improvements to existing properties	43,300			3,768			9,867			56,935			31,325			2,351			12,871			46,547
Total cash invested in real property, net of cash acquired	$	135,767		$	91,307		$	122,862		$	349,936		$	384,390		$	19,274		$	71,227		$	474,891

⁽¹⁾ Excludes $517,000 and $4,105,000 of unrestricted and restricted cash acquired during the three months ended March 31, 2019 and 2018, respectively.

⁽²⁾ Represents non-cash accruals for amounts to be paid in future periods for properties that converted, off-set by amounts paid in the current period.

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, 2019		March 31, 2018
Development projects:
Seniors Housing Operating	$	—	$	36,218
Triple-net	—		49,759
Total construction in progress conversions	$	—	$	85,977