Real Property Acquisitions and Development

6 Months Ended

Jun. 30, 2020

Real Property Acquisitions and Development

The total purchase price for all properties acquired has been allocated to the tangible and identifiable intangible assets and liabilities at cost on a relative fair value basis. Liabilities assumed and any associated noncontrolling interests are reflected at fair value. 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, 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.

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


	Six Months Ended
	June 30, 2020														June 30, 2019
	Seniors Housing Operating		Triple-net		Outpatient Medical		Totals		Seniors Housing Operating		Triple-net		Outpatient Medical		Totals
Land and land improvements	$	15,758	$	—	$	40,847	$	56,605	$	103,743	$	8,099	$	132,154	$	243,996
Buildings and improvements	132,480		765		171,457		304,702		1,109,966		96,244		1,198,608		2,404,818
Acquired lease intangibles	10,810		—		23,823		34,633		58,773		—		85,492		144,265
Construction in progress	—		—		—		—		36,174		—		—		36,174

Right of use assets, net	—		—		—		—		—		—		56,073		56,073

Receivables and other assets	257		—		139		396		4,560		—		376		4,936
Total assets acquired ⁽¹⁾	159,305		765		236,266		396,336		1,313,216		104,343		1,472,703		2,890,262
Secured debt	—		—		—		—		(43,209)		—		—		(43,209)
Lease liabilities	—		—		—		—		—		—		(45,287)		(45,287)
Accrued expenses and other liabilities	(671)		—		(2,036)		(2,707)		(8,677)		—		(22,506)		(31,183)
Total liabilities acquired	(671)		—		(2,036)		(2,707)		(51,886)		—		(67,793)		(119,679)
Noncontrolling interests ⁽²⁾	(2,827)		—		—		(2,827)		(38,830)		(1,056)		—		(39,886)
Non-cash acquisition related activity⁽³⁾	—		—		—		—		(11,889)		—		—		(11,889)
Cash disbursed for acquisitions	155,807		765		234,230		390,802		1,210,611		103,287		1,404,910		2,718,808
Construction in progress additions	53,705		26,262		26,677		106,644		110,902		24,131		26,587		161,620
Less: Capitalized interest	(5,470)		(1,826)		(1,991)		(9,287)		(3,560)		(908)		(1,788)		(6,256)
Accruals ⁽⁴⁾	(1,343)		—		(2,983)		(4,326)		—		—		45		45
Cash disbursed for construction in progress	46,892		24,436		21,703		93,031		107,342		23,223		24,844		155,409
Capital improvements to existing properties	87,002		4,700		30,401		122,103		97,867		7,423		18,886		124,176
Total cash invested in real property, net of cash acquired	$	289,701	$	29,901	$	286,334	$	605,936	$	1,415,820	$	133,933	$	1,448,640	$	2,998,393

⁽¹⁾ Excludes $580,000 and $1,910,000 of unrestricted and restricted cash acquired during the six months ended June 30, 2020 and 2019, respectively.

⁽²⁾ Includes amounts attributable to both redeemable noncontrolling interests and noncontrolling interests.

⁽³⁾ Relates to the acquisition of assets previously recognized as investments in unconsolidated entities.

⁽⁴⁾ 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):


	Six Months Ended
	June 30, 2020		June 30, 2019
Development projects:
Seniors Housing Operating	$	93,188	$	28,117
Triple-net	33,627		—
Outpatient Medical	43,493		—
Total development projects	170,308		28,117
Expansion projects	35,637		—
Total construction in progress conversions	$	205,945	$	28,117