HEALTHCARE REALTY TRUST INC, 10-Q filed on 8/2/2024
Quarterly Report
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Cover Page - shares
 6 Months Ended
Jun. 30, 2024
Jul. 26, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
Document Transition Report false  
Entity File Number 001-35568  
Entity Registrant Name HEALTHCARE REALTY TRUST INCORPORATED  
Entity Incorporation, State or Country Code MD  
Entity Tax Identification Number 20-4738467  
Entity Address, Address Line One 3310 West End Avenue  
Entity Address, Address Line Two Suite 700  
Entity Address, City or Town Nashville  
Entity Address, State or Province TN  
Entity Address, Postal Zip Code 37203  
City Area Code 615  
Local Phone Number 269-8175  
Title of 12(b) Security Class A Common Stock, $0.01 par value per share  
Trading Symbol HR  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   363,030,249
Entity Central Index Key 0001360604  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.24.2.u1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Real estate properties    
Land $ 1,287,532 $ 1,343,265
Buildings and improvements 10,436,218 10,881,373
Lease intangibles 764,730 836,302
Personal property 12,501 12,718
Investment in financing receivable, net 122,413 122,602
Financing lease right-of-use assets 81,401 82,209
Construction in progress 97,732 60,727
Land held for development 59,871 59,871
Total real estate properties 12,862,398 13,399,067
Less accumulated depreciation and amortization (2,427,709) (2,226,853)
Total real estate properties, net 10,434,689 11,172,214
Cash and cash equivalents 41,765 25,699
Assets held for sale, net 34,530 8,834
Operating lease right-of-use assets 261,976 275,975
Investments in unconsolidated joint ventures 374,841 311,511
Goodwill 0 250,530
Other assets, net 655,826 592,368
Total assets 11,803,627 12,637,131
Liabilities    
Notes and bonds payable 5,148,153 4,994,859
Accounts payable and accrued liabilities 195,884 211,994
Liabilities of assets held for sale 1,805 295
Operating lease liabilities 230,601 229,714
Financing lease liabilities 75,199 74,503
Other liabilities 177,293 202,984
Total liabilities 5,828,935 5,714,349
Commitments and contingencies
Redeemable non-controlling interests 3,875 3,868
Stockholders' equity    
Preferred stock, $.01 par value per share; 200,000 shares authorized; none issued and outstanding 0 0
Class A Common stock, $.01 par value per share; 1,000,000 shares authorized; 364,327 and 380,964 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 3,643 3,810
Additional paid-in capital 9,340,028 9,602,592
Accumulated other comprehensive income (loss) 6,986 (10,741)
Cumulative net income attributable to common stockholders 574,178 1,028,794
Cumulative dividends (4,037,693) (3,801,793)
Total stockholders' equity 5,887,142 6,822,662
Non-controlling interest 83,675 96,252
Total equity 5,970,817 6,918,914
Total liabilities and equity $ 11,803,627 $ 12,637,131
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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 200,000,000 200,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, issued (in shares) 364,327,000 380,964,000
Common stock, outstanding (in shares) 364,327,000 380,964,000
v3.24.2.u1
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Revenues        
Rental income $ 308,135 $ 329,680 $ 626,211 $ 653,773
Interest income 3,865 4,233 8,403 8,448
Other operating 4,322 4,230 8,513 8,847
Revenues 316,322 338,143 643,127 671,068
Expenses        
Property operating 117,719 125,395 238,798 247,436
General and administrative 14,002 15,464 28,788 30,399
Transaction costs 431 669 826 956
Merger-related costs 0 (15,670) 0 (10,815)
Depreciation and amortization 173,477 183,193 351,596 367,671
Expenses 305,629 309,051 620,008 635,647
Other income (expense)        
Gain on sales of real estate properties and other assets 38,338 7,156 38,360 8,162
Interest expense (62,457) (65,334) (123,510) (129,092)
Impairment of real estate properties and credit loss reserves (132,118) (55,215) (148,055) (86,637)
Impairment of goodwill 0 0 (250,530) 0
Equity loss from unconsolidated joint ventures (146) (17) (568) (797)
Interest and other (expense) income, net (248) 592 27 1,139
Total other income (expense) (156,631) (112,818) (484,276) (207,225)
Net loss (145,938) (83,726) (461,157) (171,804)
Net loss attributable to non-controlling interests 2,158 967 6,541 1,920
Net loss attributable to common stockholders $ (143,780) $ (82,759) $ (454,616) $ (169,884)
Basic earnings per common share (in dollars per share) $ (0.39) $ (0.22) $ (1.22) $ (0.45)
Diluted earnings per common share (in dollars per share) $ (0.39) $ (0.22) $ (1.22) $ (0.45)
Weighted average common shares outstanding - basic (in shares) 372,477,299 378,896,677 375,962,033 378,860,631
Weighted average common shares outstanding - diluted (in shares) 372,477,299 378,896,677 375,962,033 378,860,631
Revenue, Product and Service [Extensible List] Service [Member] Service [Member] Service [Member] Service [Member]
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Condensed Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net loss $ (145,938) $ (83,726) $ (461,157) $ (171,804)
Interest rate derivatives        
Reclassification adjustments for gains included in interest expense (3,662) (3,419) (7,528) (5,703)
Gains arising during the period on interest rate swaps 5,891 21,523 25,501 12,981
Other comprehensive income 2,229 18,104 17,973 7,278
Comprehensive loss (143,709) (65,622) (443,184) (164,526)
Less: comprehensive loss attributable to non-controlling interests 2,124 745 6,295 1,830
Comprehensive loss attributable to common stockholders $ (141,585) $ (64,877) $ (436,889) $ (162,696)
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Condensed Consolidated Statements of Equity and Redeemable Non-Controlling Interests - USD ($)
$ in Thousands
Total
Total Stockholders’ Equity
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Cumulative Net Income
Cumulative Dividends
Non-controlling Interests
Beginning balance at Dec. 31, 2022 $ 7,679,818 $ 7,571,076 $ 3,806 $ 9,587,637 $ 2,140 $ 1,307,055 $ (3,329,562) $ 108,742
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Common stock redemptions (1,596) (1,596) (1) (1,595)        
Share-based compensation 8,916 8,916 3 8,913        
Issuance of common stock, net of issuance costs 78 78   78        
Net loss (171,804) (169,884)       (169,884)   (1,920)
Reclassification adjustments for gains included in net income (interest expense) (5,703) (5,635)     (5,635)     (68)
Gains arising during the period on interest rate swaps 12,981 12,823     12,823     158
Dividends to common stockholders and distributions to non-controlling interest holders (239,273) (236,379)         (236,379) (2,894)
Ending balance at Jun. 30, 2023 7,283,417 7,179,399 3,808 9,595,033 9,328 1,137,171 (3,565,941) 104,018
Redeemable Non-controlling Interests, beginning balance at Dec. 31, 2022 2,014              
Redeemable Non-controlling Interests                
Contributions from redeemable non-controlling interests 473              
Redeemable Non-controlling Interests, ending balance at Jun. 30, 2023 2,487              
Beginning balance at Mar. 31, 2023 7,464,839 7,358,628 3,808 9,591,194 (8,554) 1,219,930 (3,447,750) 106,211
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Common stock redemptions (112) (112)   (112)        
Share-based compensation 3,924 3,924   3,924        
Issuance of common stock, net of issuance costs 27 27   27        
Net loss (83,726) (82,759)       (82,759)   (967)
Reclassification adjustments for gains included in net income (interest expense) (3,419) (3,377)     (3,377)     (42)
Gains arising during the period on interest rate swaps 21,523 21,259     21,259     264
Dividends to common stockholders and distributions to non-controlling interest holders (119,639) (118,191)         (118,191) (1,448)
Ending balance at Jun. 30, 2023 7,283,417 7,179,399 3,808 9,595,033 9,328 1,137,171 (3,565,941) 104,018
Redeemable Non-controlling Interests, beginning balance at Mar. 31, 2023 2,000              
Redeemable Non-controlling Interests                
Contributions from redeemable non-controlling interests 487              
Redeemable Non-controlling Interests, ending balance at Jun. 30, 2023 2,487              
Beginning balance at Dec. 31, 2023 6,918,914 6,822,662 3,810 9,602,592 (10,741) 1,028,794 (3,801,793) 96,252
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Common stock redemptions (138) (138)   (138)        
Share-based compensation 6,944 6,944 3 6,941        
Common stock repurchases (273,053) (273,053) (172) (272,881)        
Issuance of common stock, net of issuance costs 104 104   104        
Conversion of OP Units to common stock 0 3,412 2 3,410       (3,412)
Net loss (461,157) (454,616)       (454,616)   (6,541)
Reclassification adjustments for gains included in net income (interest expense) (7,528) (7,424)     (7,424)     (104)
Gains arising during the period on interest rate swaps 25,501 25,151     25,151     350
Dividends to common stockholders and distributions to non-controlling interest holders (238,770) (235,900)         (235,900) (2,870)
Ending balance at Jun. 30, 2024 5,970,817 5,887,142 3,643 9,340,028 6,986 574,178 (4,037,693) 83,675
Redeemable Non-controlling Interests, beginning balance at Dec. 31, 2023 3,868              
Redeemable Non-controlling Interests                
Contributions from redeemable non-controlling interests 13              
Adjustments to redemption value of redeemable non-controlling interests (6)              
Redeemable Non-controlling Interests, ending balance at Jun. 30, 2024 3,875              
Beginning balance at Mar. 31, 2024 6,503,138 6,415,895 3,815 9,609,530 4,791 717,958 (3,920,199) 87,243
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Common stock redemptions (3) (3)   (3)        
Share-based compensation 3,382 3,382   3,382        
Common stock repurchases (273,053) (273,053) (172) (272,881)        
Net loss (145,938) (143,780)       (143,780)   (2,158)
Reclassification adjustments for gains included in net income (interest expense) (3,662) (3,611)     (3,611)     (51)
Gains arising during the period on interest rate swaps 5,891 5,806     5,806     85
Dividends to common stockholders and distributions to non-controlling interest holders (118,938) (117,494)         (117,494) (1,444)
Ending balance at Jun. 30, 2024 5,970,817 $ 5,887,142 $ 3,643 $ 9,340,028 $ 6,986 $ 574,178 $ (4,037,693) $ 83,675
Redeemable Non-controlling Interests, beginning balance at Mar. 31, 2024 3,880              
Redeemable Non-controlling Interests                
Adjustments to redemption value of redeemable non-controlling interests (5)              
Redeemable Non-controlling Interests, ending balance at Jun. 30, 2024 $ 3,875              
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Condensed Consolidated Statements of Equity and Redeemable Non-Controlling Interests (Parenthetical) - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]        
Dividends to common stockholders and distributions to non-controlling interest holders (in dollars per share) $ 0.31 $ 0.31 $ 0.62 $ 0.62
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Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
OPERATING ACTIVITIES    
Net loss $ (461,157) $ (171,804)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 351,596 367,671
Other amortization 23,390 23,405
Share-based compensation 6,944 8,916
Amortization of straight-line rent receivable (lessor) (14,198) (19,313)
Amortization of straight-line rent on operating leases (lessee) 1,998 3,062
Gain on sales of real estate properties and other assets (38,360) (8,162)
Impairment of real estate properties and credit loss reserves 148,055 86,637
Impairment of goodwill 250,530 0
Equity loss from unconsolidated joint ventures 568 797
Distributions from unconsolidated joint ventures 2,649 3,031
Non-cash interest from financing and notes receivable (478) (488)
Changes in operating assets and liabilities:    
Other assets, including right-of-use-assets (4,257) (17,502)
Accounts payable and accrued liabilities (23,131) (38,601)
Other liabilities 155 16,673
Net cash provided by operating activities 244,304 254,322
INVESTING ACTIVITIES    
Acquisitions of real estate 0 (39,301)
Development of real estate (31,901) (17,594)
Additional long-lived assets (117,775) (94,013)
Funding of mortgages and notes receivable (3,466) (11,503)
Investments in unconsolidated joint ventures 0 (3,824)
Investment in financing receivable   (780)
Investment in financing receivable 475  
Contributions from redeemable non-controlling interests 13 0
Proceeds from sales of real estate properties and additional long-lived assets 303,475 160,870
Proceeds from notes receivable repayments 567 0
Net cash provided by (used in) investing activities 151,388 (6,145)
FINANCING ACTIVITIES    
Net borrowings (repayments) on unsecured credit facility 250,000 (31,000)
Repayment on term loan (100,000) 0
Repayments of notes and bonds payable (17,746) (1,340)
Dividends paid (235,618) (236,105)
Net proceeds from issuance of common stock 104 77
Common stock redemptions (321) (1,842)
Common stock repurchases (273,053) 0
Distributions to non-controlling interest holders (2,399) (2,546)
Debt issuance and assumption costs (563) (438)
Payments made on finance leases (30) (40)
Net cash used in financing activities (379,626) (273,234)
Increase (decrease) in cash and cash equivalents 16,066 (25,057)
Cash and cash equivalents at beginning of period 25,699 60,961
Cash and cash equivalents at end of period 41,765 35,904
Supplemental Cash Flow Information    
Interest paid 103,708 106,985
Mortgage note receivables taken in connection with sale of real estate 0 45,000
Invoices accrued for construction, tenant improvements and other capitalized costs 39,016 30,956
Capitalized interest 1,916 1,282
Proceeds from dispositions held in escrow 96,008 0
Contribution of real estate properties into unconsolidated joint venture $ 66,547 $ 0
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Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Business Overview
Healthcare Realty Trust Incorporated (the "Company") is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of June 30, 2024, the Company had gross investments of approximately $12.9 billion in 629 consolidated real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development and corporate property, excluding held for sale assets. In addition, as of June 30, 2024, the Company had a weighted average ownership interest of approximately 36% in 44 real estate properties held in unconsolidated joint ventures. See Note 2 below for more details regarding the Company's unconsolidated joint ventures. The Company's real estate properties are located in 35 states and total approximately 37.2 million square feet. The Company provided leasing and property management services to 92% of its portfolio nationwide as of June 30, 2024.
On July 20, 2022, pursuant to that certain Agreement and Plan of Merger dated as of February 28, 2022, by and among Healthcare Realty Trust Incorporated, a Maryland corporation (now known as HRTI, LLC, a Maryland limited liability company) (“Legacy HR”), Healthcare Trust of America, Inc., a Maryland corporation (now known as Healthcare Realty Trust Incorporated) (“Legacy HTA”), Healthcare Trust of America Holdings, LP, a Delaware limited partnership (now known as Healthcare Realty Holdings, L.P.) (the “OP”), and HR Acquisition 2, LLC, a Maryland limited liability company (“Merger Sub”), Merger Sub merged with and into Legacy HR, with Legacy HR continuing as the surviving entity and a wholly-owned subsidiary of Legacy HTA (the “Merger”). The combined company operates under the name “Healthcare Realty Trust Incorporated” and its shares of class A common stock, $0.01 par value per share, trade on the New York Stock Exchange under the ticker symbol “HR”.
The Company is structured as an umbrella partnership REIT under which substantially all of its business is conducted through the OP, the day-to-day management of which is exclusively controlled by the Company. As of June 30, 2024, the Company owned 98.6% of the issued and outstanding units of the OP, with other investors owning the remaining 1.4% of the OP's issued and outstanding units.
Any references to square footage or occupancy percentage, and any amounts derived from these values in these notes to the Company's Condensed Consolidated Financial Statements, are outside the scope of our independent registered public accounting firm’s review.
Basis of Presentation
The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. All material intercompany transactions and balances have been eliminated in consolidation.
This interim financial information should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2024 for many reasons including, but not limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties.
Principles of Consolidation
The Company’s Condensed Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and joint ventures and partnerships where the Company controls the operating activities. GAAP requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). Accounting Standards Codification (“ASC”) Topic 810, Consolidation broadly defines a VIE as an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the
activities of the VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary, with any minority interests reflected as non-controlling interests or redeemable non-controlling interests in the accompanying Condensed Consolidated Financial Statements.
The Company may change its original assessment of a VIE upon subsequent events, such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk, the disposition of all or a portion of an interest held by the primary beneficiary, or changes in facts and circumstances that impact the power to direct activities of the VIE that most significantly impacts economic performance. The Company performs this analysis on an ongoing basis.
For property holding entities not determined to be VIEs, the Company consolidates such entities in which it owns 100% of the equity or has a controlling financial interest evidenced by ownership of a majority voting interest. All intercompany balances and transactions are eliminated in consolidation. For entities in which the Company owns less than 100% of the equity interest, the Company consolidates the entity if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements.
The OP is 98.6% owned by the Company. Other holders of operating partnership units (“OP Units”) are considered to be non-controlling interest holders in the OP and their ownership interests are reflected as equity on the accompanying Condensed Consolidated Balance Sheets. Further, a portion of the earnings and losses of the OP are allocated to non-controlling interest holders based on their respective ownership percentages. Upon conversion of OP Units to common stock, any difference between the fair value of the common stock issued and the carrying value of the OP Units converted to common stock is recorded as a component of equity. As of June 30, 2024, there were approximately 5.3 million OP Units, or 1.4% of OP Units issued and outstanding, held by non-controlling interest holders. Additionally, the Company is the primary beneficiary of this VIE. Accordingly, the Company consolidates its interests in the OP.
As of June 30, 2024, the Company had four consolidated VIEs, in addition to the OP, consisting of joint venture investments in which the Company is the primary beneficiary of the VIE based on the combination of operational control and the rights to receive residual returns or the obligation to absorb losses arising from the joint ventures. Accordingly, such joint ventures have been consolidated, and the table below summarizes the balance sheets of consolidated VIEs, excluding the OP, in the aggregate:
(dollars in thousands)JUNE 30, 2024
Assets:
Total real estate properties, net
$112,694 
Cash and cash equivalents3,205 
Other assets, net
2,556 
Total assets
$118,455 
Liabilities:
Accrued expenses and other liabilities
7,848 
Total liabilities
7,848 
Redeemable non-controlling interests
3,194 
Partners' equity
108,612 
Cumulative net loss
(1,199)
Total partners' equity
107,413 
Total liabilities and equity
$118,455 
As of June 30, 2024, the Company had three unconsolidated VIEs consisting of two notes receivables and one joint venture. The Company does not have the power or economic interests to direct the activities of these VIEs on a
stand-alone basis, and therefore it was determined that the Company was not the primary beneficiary. As a result, the Company accounts for the two notes receivables as amortized cost and a joint venture arrangement under the equity method. See below for additional information regarding the Company's unconsolidated VIEs.
(dollars in thousands) ORIGINATION DATELOCATIONSOURCECARRYING AMOUNT MAXIMUM EXPOSURE TO LOSS
2021
Houston, TX 1
Note receivable$20,500 $20,500 
2021
Charlotte, NC 1
Note receivable7,111 7,211 
2022
Texas 2
Joint venture59,239 59,239 
1Assumed mortgage note receivable in connection with the Merger.
2Includes investments in seven properties.

As of June 30, 2024, the Company's unconsolidated joint venture arrangements were accounted for using the equity method of accounting as the Company exercised significant influence over but did not control these entities. See Note 2 below for more details regarding the Company's unconsolidated joint ventures.
Use of Estimates in the Condensed Consolidated Financial Statements
Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates.                                                     
Redeemable Non-Controlling Interests
The Company accounts for redeemable equity securities in accordance with ASC Topic 480: Accounting for Redeemable Equity Instruments, which requires that equity securities redeemable at the option of the holder, not solely within our control, be classified outside permanent stockholders’ equity. The Company classifies redeemable equity securities as redeemable non-controlling interests in the accompanying Condensed Consolidated Balance Sheets. Accordingly, the Company records the carrying amount at the greater of the initial carrying amount (increased or decreased for the non-controlling interest’s share of net income or loss and distributions) or the redemption value. We measure the redemption value and record an adjustment to the carrying value of the equity securities as a component of redeemable non-controlling interest. As of June 30, 2024, the Company had redeemable non-controlling interests of $3.9 million.
Asset Impairment
The Company assesses the potential for impairment of identifiable, definite-lived, intangible assets and long-lived assets, including real estate properties, whenever the occurrence of an event or a change in circumstances indicates that the carrying value might not be fully recoverable. Indicators of impairment may include significant underperformance of an asset relative to historical or expected operating results; significant changes in the Company’s use of assets or the strategy for its overall business; plans to sell an asset before its depreciable life has ended; the expiration of a significant portion of leases in a property; or significant negative economic trends or negative industry trends for the Company or its tenants. During the three and six months ended June 30, 2024, the Company recognized real estate impairments totaling $120.9 million and $136.9 million, respectively, as a result of completed and planned disposition activity.
As of June 30, 2024, 16 real estate properties totaling $265.6 million were measured at fair value using level 3 fair value hierarchy. The level 3 fair value techniques included brokerage estimates, letters of intent, and unexecuted purchase and sale agreements, less estimated closing costs.
Goodwill Impairment
During the first quarter of 2024, the Company experienced a sustained decline in the price per share of its common stock, which was identified as an indicator of goodwill impairment. As a result, a goodwill evaluation was performed. The Company's current operations are carried out through a single reporting unit with a carrying value of approximately $12.0 billion. The Company determined that the carrying value exceeded estimated fair value and therefore an impairment of goodwill was recorded. The Company recorded a $250.5 million full impairment of its goodwill, which is recorded as a non-cash charge in “Impairment of goodwill” in the Condensed Consolidated Statements of Operations.
Investments in Leases - Financing Receivables, Net
In accordance with ASC Topic 842: Leases, for transactions in which the Company enters into a contract to acquire an asset and leases it back to the seller (i.e., a sale leaseback transaction), control of the asset is not considered to have transferred when the seller-lessee has a purchase option. As a result, the Company does not recognize the underlying real estate asset but instead recognizes a financial asset in accordance with ASC Topic 310: Receivables. See below for additional information regarding the Company's financing receivables.
(dollars in thousands) ORIGINATION DATELOCATIONINTEREST RATECARRYING VALUE as of JUNE 30, 2024
May 2021Poway, CA5.72%$115,056 
November 2021Columbus, OH6.48%7,357 
$122,413 

Real Estate Notes Receivable
Real estate notes receivable consists of mezzanine and other real estate loans, which are generally collateralized by a pledge of the borrower’s ownership interest in the respective real estate owner, a mortgage or deed of trust, and/or corporate guarantees. Real estate notes receivable are intended to be held to maturity and are recorded at amortized cost, net of unamortized loan origination costs and fees and allowance for credit losses. As of June 30, 2024, real estate notes receivable, net, which are included in Other assets on the Company's Condensed Consolidated Balance Sheets, totaled $168.8 million.
(dollars in thousands)ORIGINATIONMATURITYSTATED INTEREST RATEMAXIMUM LOAN COMMITMENTOUTSTANDING as of
JUN 30, 2024		INTEREST RECEIVABLE (OTHER ASSETS)ALLOWANCE FOR CREDIT LOSSESFAIR VALUE DISCOUNT AND FEESCARRYING VALUE as of JUNE 30, 2024
Mezzanine loans
Texas 1
6/24/20216/24/20248.00 %$54,119 $54,119 $906 $(5,196)$(3,067)$46,762 
Arizona12/21/202312/20/20269.00 %6,000 6,000 36 — — 6,036 
60,119 60,119 942 (5,196)(3,067)52,798 
Mortgage loans
Texas 2
6/30/202112/02/20247.00 %31,150 31,150 551 (11,201)— 20,500 
North Carolina 3
12/22/202112/22/20248.00 %6,000 6,000 1,211 — (100)7,111 
Florida5/17/20222/27/20266.00 %65,000 35,623 532 — (34)36,121 
California3/30/20233/29/20266.00 %45,000 45,000 178 — — 45,178 
Florida12/28/202312/28/20269.00 %7,700 7,133 — — — 7,133 
154,850 124,906 2,472 (11,201)(134)116,043 
$214,969 $185,025 $3,414 $(16,397)$(3,201)$168,841 
1As of the date of these financial statements, the outstanding principal and interest on these loans had not been repaid, and on July 15, 2024, the senior lender on the construction loans associated with the underlying projects provided notice of foreclosure proceedings to the borrower. The borrower is in negotiations with a third party to provide financing that will repay the senior lender.
2During the second quarter of 2024, the Company determined that an allowance for credit loss of $11.2 million was needed on this mortgage loan. The reserve amount consists of approximately $10.7 million of principal and approximately $0.5 million of interest. Additionally, the maturity date on this mortgage loan was extended to December 2, 2024.
3Outstanding principal and interest due upon maturity.


Allowance for Credit Losses
Pursuant to ASC Topic 326: Financial Instruments - Credit Losses, the Company adopted a policy to evaluate current expected credit losses at the inception of loans qualifying for treatment under ASC Topic 326. The Company utilizes a probability of default method approach for estimating current expected credit losses and evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis to determine whether any updates to the future expected losses recognized upon inception are necessary. The Company’s evaluation considers industry and economic conditions, credit enhancements, liquidity, and other factors. The determination of the credit allowance is based on a quarterly
evaluation of all outstanding loans, including general economic conditions and estimated collectability of loan payments. The Company evaluates the collectability of loan receivables based on a combination of credit quality indicators, including, but not limited to, payment status, historical loan charge-offs, financial strength of the borrower and guarantors, and nature, extent, and value of the underlying collateral. A loan is considered to have deteriorated credit quality when, based on current information and events, it is probable that the Company will be unable to collect all amounts due as scheduled according to the contractual terms of the loan agreement. For those loans identified as having deteriorated credit quality, the amount of credit loss is determined on an individual basis. Placement on non-accrual status may be required. Consistent with this definition, all loans on non-accrual status are deemed to have deteriorated credit quality. To the extent circumstances improve and the risk of collectability is diminished, the loan may return to income accrual status. While a loan is on non-accrual status, any cash receipts are applied against the outstanding principal balance.
During the first quarter of 2023, the Company determined that the risk of credit loss on two of its mezzanine loans were no longer remote and recorded a credit loss reserve of $5.2 million. During the three and six months ended June 30, 2024, the Company determined that the risk of credit loss on one of its mortgage note receivables was no longer remote and recorded a credit loss reserve of $11.2 million. The Company utilized the level 3 fair value hierarchy, which included a brokerage estimate on the underlying collateral of the loan, to determine the amount of credit loss reserve.
The following table summarizes the Company's allowance for credit losses on real estate notes receivable:
Dollars in thousandsSIX MONTHS ENDED JUNE 30, 2024TWELVE MONTHS ENDED DECEMBER 31, 2023
Allowance for credit losses, beginning of period$5,196 $— 
Credit loss reserves11,201 5,196 
Allowance for credit losses, end of period$16,397 $5,196 
Interest Income
Income from Lease Financing Receivables
The Company recognized the related income from two financing receivables totaling $2.1 million and $4.2 million, respectively, for the three and six months ended June 30, 2024, and $2.1 million and $4.2 million, respectively, for the three and six months ended June 30, 2023, based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable in any particular period will not equal the cash payments from the lease agreement in that period.
Acquisition costs incurred in connection with entering into the financing receivable are treated as loan origination fees. These costs are classified with the financing receivable and are included in the balance of the net investment. Amortization of these amounts will be recognized as a reduction to Interest income over the life of the lease.
Income from Real Estate Notes Receivable
The Company recognized interest income related to real estate notes receivable of $1.8 million and $4.2 million, respectively, for the three and six months ended June 30, 2024, and $2.2 million and $4.3 million, respectively, for the three and six months ended June 30, 2023. The Company recognizes interest income on an accrual basis unless the Company has determined that collectability of contractual amounts is not reasonably assured, at which point the note is placed on non-accrual status and interest income is recognized on a cash basis. In 2023, the Company placed two of its real estate notes receivable with principal balances, net of credit loss, of $48.9 million on non-accrual status and accordingly did not recognize any interest income for the three and six month periods ended June 30, 2024. In 2024, the Company placed one of its real estate notes receivable with a principal balance, net of credit loss, of $20.5 million on non-accrual status.
Revenue from Contracts with Customers (ASC Topic 606)
The Company recognizes certain revenue under the core principle of ASC Topic 606. This topic requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of ASC Topic 606. To achieve the core principle, the Company applies the five-step model specified in the guidance.
Revenue that is accounted for under ASC Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Operations in the Other operating line item. This line item includes parking income, management fee income and other miscellaneous income. Below is a detail of the amounts by category:
THREE MONTHS ENDED
June 30,		SIX MONTHS ENDED
June 30,
in thousands2024202320242023
Type of Revenue
Parking income$2,463 $2,370 $5,009 $4,761 
Management fee income/other 1
1,859 1,860 3,504 4,086 
$4,322 $4,230 $8,513 $8,847 
1 Includes the recovery of certain expenses under the financing receivable as outlined in the management agreement.

The Company’s major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied. The performance obligations that are identified for each of these items are satisfied over time, and the Company recognizes revenue monthly based on this principle.
New Accounting Pronouncements
On November 27, 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280). Some of the main provisions of this update to segment reporting include; (i) a requirement to disclose significant segment expenses, on an annual and interim basis, that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss; (ii) a requirement to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources, and (iii) a requirement that an entity that has a single reportable segment provide all the disclosures required by the amendments in this update.
The update is effective for annual reporting periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Early adoption is permitted. At this time, the Company does not expect that the adoption of this ASU will have a material impact on its consolidated financial statements other than compliance with these new disclosure requirements, which will begin with the Company's Annual Report on Form 10-K for the year ending December 31, 2024.
v3.24.2.u1
Real Estate Investments
 6 Months Ended
Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Real Estate Investments Real Estate Investments
2024 Acquisition Activity
The Company had no real estate acquisition activity for the six months ended June 30, 2024.

Unconsolidated Joint Ventures
The Company's investment in and loss recognized for the three and six months ended June 30, 2024 and 2023 related to its unconsolidated joint ventures accounted for under the equity method are shown in the table below:
THREE MONTHS ENDED
June 30,		SIX MONTHS ENDED
June 30,
Dollars in thousands2024202320242023
Investments in unconsolidated joint ventures, beginning of period $309,754 $327,746 $311,511 $327,248 
New investment during the period 1
66,547 — 66,547 3,824 
Equity loss recognized during the period (146)(17)(568)(797)
Owner distributions(1,314)(484)(2,649)(3,030)
Investments in unconsolidated joint ventures, end of period $374,841 $327,245 $374,841 $327,245 
1In the second quarter of 2024, the Company contributed 11 properties into a new joint venture in which it retained a 20% ownership interest. See 2024 "Real Estate Asset Dispositions" below for additional information. In 2023, there was an additional investment in an existing joint venture in which the Company retained a 40% ownership interest. The investment consisted of the Company's contribution of a property in Dallas, Texas to the joint venture.
2024 Real Estate Asset Dispositions
The following table details the Company's dispositions and joint venture contributions for the six months ended June 30, 2024.
Dollars in thousandsDATE DISPOSEDSALE PRICECLOSING ADJUSTMENTSNET PROCEEDSNET REAL ESTATE INVESTMENTOTHER (INCLUDING RECEIVABLES) GAIN/(IMPAIRMENT)SQUARE FOOTAGE
Albany, NY4/1/24$725 $(60)$665 $765 $(82)$(18)14,800 
San Angelo, TX4/12/245,085 (128)4,957 4,917 66 (26)24,580 
Houston, TX5/20/24250 (9)241 713 (520)48 37,040 
Multiple 1
5/23/24284,348 (14,270)270,078 254,176 25,836 (9,934)556,274 
Denver, CO5/30/2419,000 (628)18,372 18,522 165 (315)37,130 
Austin, TX 1
6/6/2454,858 (1,575)53,283 27,964 623 24,696 129,879 
Minneapolis, MN6/21/241,082 (144)938 303 43 592 50,291 
Greensboro/Raleigh, NC 2, 3
6/28/2499,518 (2,835)96,683 86,810 906 8,967 309,424 
Total dispositions$464,866 $(19,649)$445,217 $394,170 $27,037 $24,010 1,159,418 
1The Company contributed the following medical outpatient properties to a joint venture in which the Company retained 20% ownership: one in each of Raleigh, NC, New York, NY, Philadelphia, PA, Atlanta, GA and Austin, TX; two medical outpatient properties in Los Angeles and four in Seattle, WA. Sale price and square footage reflect the total sale price paid by the joint venture and total square footage of the property. The net proceeds to the Company related to these dispositions totaled $256.8 million.
2The Company sold seven medical outpatient properties in Greensboro, NC and two medical outpatient properties in Raleigh, NC to a single buyer in a single transaction.
3The amount in the net proceeds column for this portfolio disposition includes the receivable for the cash held in escrow that closed on June 28, 2024 and was received by the Company on July 1, 2024. These proceeds were recorded as a receivable in other assets, net as of June 30, 2024.
Assets Held for Sale
The Company had three properties classified as assets held for sale as of June 30, 2024 and one property classified as assets held for sale as of December 31, 2023. The table below reflects the assets and liabilities classified as held for sale as of June 30, 2024 and December 31, 2023:
Dollars in thousandsJune 30, 2024December 31, 2023
Balance Sheet data:
Land$2,330 $1,850 
Building and improvements43,342 6,779 
Lease intangibles1,017 1,017 
46,689 9,646 
Accumulated depreciation(13,600)(913)
Real estate assets held for sale, net 33,089 8,733 
Cash and cash equivalents— — 
Operating lease right-of-use assets850 — 
Other assets, net591 101 
Assets held for sale, net$34,530 $8,834 
Accounts payable and accrued liabilities$531 $23 
Operating lease liabilities589 — 
Other liabilities685 272 
Liabilities of assets held for sale$1,805 $295 
v3.24.2.u1
Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
Lessor Accounting
The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide tenants with fixed rent renewal terms while others have market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s single-tenant net leases generally require the lessee to pay
minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property.
The Company's leases typically have escalators that are either based on a stated percentage or an index such as the Consumer Price Index ("CPI"). In addition, most of the Company's leases include nonlease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the three and six months ended June 30, 2024 was $308.1 million and $626.2 million, respectively. Lease income for the Company's operating leases recognized for the three and six months ended June 30, 2023 was $329.7 million and $653.8 million, respectively.
Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sale-type lease, as of June 30, 2024 were as follows:
Dollars in thousandsOPERATING
2024$441,170 
2025827,950 
2026734,851 
2027614,428 
2028500,591 
2029 and thereafter1,629,794 
$4,748,784 
Lessee Accounting
As of June 30, 2024, the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of June 30, 2024, the Company had 221 properties totaling 16.5 million square feet that were held under ground leases. Some of the Company's ground lease renewal terms are based on fixed rent renewal terms, and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally stated in the lease or based on CPI. The Company had 73 prepaid ground leases as of June 30, 2024. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.5 million and $0.3 million of the Company's rental expense for the three months ended June 30, 2024 and 2023, respectively, and $0.9 million and $0.7 million for the six months ended June 30, 2024 and 2023, respectively.
The Company’s future lease payments (primarily for its 148 non-prepaid ground leases) as of June 30, 2024 were as follows:
Dollars in thousandsOPERATINGFINANCING
2024$5,912 $1,013 
202512,644 2,218 
202612,739 2,255 
202712,934 2,294 
202813,061 2,326 
2029 and thereafter693,556 394,072 
Total undiscounted lease payments750,846 404,178 
Discount(520,245)(328,979)
Lease liabilities$230,601 $75,199 
The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2024 and 2023:
THREE MONTHS ENDED
June 30,		SIX MONTHS ENDED
June 30,
Dollars in thousands2024202320242023
Operating lease cost
Operating lease expense$4,599 $5,329 $9,065 $10,436 
Variable lease expense1,315 2,235 2,542 4,371 
Finance lease cost
Amortization of right-of-use assets392 387 779 774 
Interest on lease liabilities942 923 1,880 1,841 
Total lease expense$7,248 $8,874 $14,266 $17,422 
Other information
Operating cash flows outflows related to operating leases$4,889 $5,230 $8,929 $11,190 
Operating cash flows outflows related to financing leases$591 $541 $1,154 $1,094 
Financing cash flows outflows related to financing leases$4 $6 $30 $17 
Right-of-use assets obtained in exchange for new operating lease liabilities$2,561 $— $2,561 $— 
Weighted-average years remaining lease term (excluding renewal options) - operating leases45.947.3
Weighted-average years remaining lease term (excluding renewal options) - finance leases57.458.4
Weighted-average discount rate - operating leases5.7 %5.8 %
Weighted-average discount rate - finance leases5.0 %5.0 %
Leases Leases
Lessor Accounting
The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide tenants with fixed rent renewal terms while others have market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s single-tenant net leases generally require the lessee to pay
minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property.
The Company's leases typically have escalators that are either based on a stated percentage or an index such as the Consumer Price Index ("CPI"). In addition, most of the Company's leases include nonlease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the three and six months ended June 30, 2024 was $308.1 million and $626.2 million, respectively. Lease income for the Company's operating leases recognized for the three and six months ended June 30, 2023 was $329.7 million and $653.8 million, respectively.
Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sale-type lease, as of June 30, 2024 were as follows:
Dollars in thousandsOPERATING
2024$441,170 
2025827,950 
2026734,851 
2027614,428 
2028500,591 
2029 and thereafter1,629,794 
$4,748,784 
Lessee Accounting
As of June 30, 2024, the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of June 30, 2024, the Company had 221 properties totaling 16.5 million square feet that were held under ground leases. Some of the Company's ground lease renewal terms are based on fixed rent renewal terms, and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally stated in the lease or based on CPI. The Company had 73 prepaid ground leases as of June 30, 2024. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.5 million and $0.3 million of the Company's rental expense for the three months ended June 30, 2024 and 2023, respectively, and $0.9 million and $0.7 million for the six months ended June 30, 2024 and 2023, respectively.
The Company’s future lease payments (primarily for its 148 non-prepaid ground leases) as of June 30, 2024 were as follows:
Dollars in thousandsOPERATINGFINANCING
2024$5,912 $1,013 
202512,644 2,218 
202612,739 2,255 
202712,934 2,294 
202813,061 2,326 
2029 and thereafter693,556 394,072 
Total undiscounted lease payments750,846 404,178 
Discount(520,245)(328,979)
Lease liabilities$230,601 $75,199 
The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2024 and 2023:
THREE MONTHS ENDED
June 30,		SIX MONTHS ENDED
June 30,
Dollars in thousands2024202320242023
Operating lease cost
Operating lease expense$4,599 $5,329 $9,065 $10,436 
Variable lease expense1,315 2,235 2,542 4,371 
Finance lease cost
Amortization of right-of-use assets392 387 779 774 
Interest on lease liabilities942 923 1,880 1,841 
Total lease expense$7,248 $8,874 $14,266 $17,422 
Other information
Operating cash flows outflows related to operating leases$4,889 $5,230 $8,929 $11,190 
Operating cash flows outflows related to financing leases$591 $541 $1,154 $1,094 
Financing cash flows outflows related to financing leases$4 $6 $30 $17 
Right-of-use assets obtained in exchange for new operating lease liabilities$2,561 $— $2,561 $— 
Weighted-average years remaining lease term (excluding renewal options) - operating leases45.947.3
Weighted-average years remaining lease term (excluding renewal options) - finance leases57.458.4
Weighted-average discount rate - operating leases5.7 %5.8 %
Weighted-average discount rate - finance leases5.0 %5.0 %
v3.24.2.u1
Notes and Bonds Payable
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Notes and Bonds Payable Notes and Bonds Payable
The table below details the Company’s notes and bonds payable as of June 30, 2024 and December 31, 2023. 
 MATURITY DATE
BALANCE 1 AS OF
EFFECTIVE INTEREST RATE
as of 6/30/2024
Dollars in thousands6/30/202412/31/2023
$1.5 billion Unsecured Credit Facility 2
10/25$250,000 $— 6.28 %
$200 million Unsecured Term Loan 3
5/25199,750 199,903 6.37 %
$250 million Unsecured Term Loan 4
7/25249,659 349,798 6.37 %
$300 million Unsecured Term Loan
10/25299,970 299,958 6.37 %
$150 million Unsecured Term Loan
6/26149,716 149,643 6.37 %
$200 million Unsecured Term Loan
7/27199,571 199,502 6.37 %
$300 million Unsecured Term Loan
1/28298,498 298,288 6.37 %
Senior Notes due 20255/25249,674 249,484 4.12 %
Senior Notes due 2026
8/26582,873 579,017 4.94 %
Senior Notes due 2027 7/27485,889 483,727 4.76 %
Senior Notes due 20281/28297,726 297,429 3.85 %
Senior Notes due 2030 2/30580,667 575,443 5.30 %
Senior Notes due 20303/30296,983 296,780 2.72 %
Senior Notes due 2031 3/31296,086 295,832 2.25 %
Senior Notes due 2031 3/31658,263 649,521 5.13 %
Mortgage notes payable
9/24-12/2652,828 70,534 
3.57% - 6.88%
$5,148,153 $4,994,859 
1Balance is presented net of discounts and issuance costs and inclusive of premiums, where applicable.
2As of June 30, 2024, the Company had $1.3 billion available to be drawn on its $1.5 billion Unsecured Credit Facility.
3In April 2024, the Company exercised its option to extend the maturity date for one year to May 2025 for a fee of approximately $0.3 million.
4In June 2024, the Company repaid $100 million of the initial $350 million Unsecured Term Loan and exercised its second option to extend the maturity date for one year to July 2025 for a fee of approximately $0.3 million.

Changes in Debt Structure
On January 6, 2024, the Company repaid in full at maturity a mortgage note payable bearing interest at a rate of 4.77% per annum with an outstanding principal balance of $11.3 million. The mortgage note encumbered a 63,012 square foot property in California.
On February 1, 2024, the Company repaid in full at maturity a mortgage note payable bearing interest at a rate of 4.12% per annum with an outstanding principal balance of $5.6 million. The mortgage note encumbered a 40,324 square foot property in Georgia.
v3.24.2.u1
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Risk Management Objective of Using Derivatives
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings.
Cash Flow Hedges of Interest Rate Risk
The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.
For derivatives designated, and that qualify, as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (Loss) ("AOCI") and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.
As of June 30, 2024, the Company had 15 outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:
AMOUNTWEIGHTED
AVERAGE RATE
May 2026$275,000 3.74 %
June 2026150,000 3.83 %
December 2026150,000 3.84 %
June 2027200,000 4.27 %
December 2027300,000 3.93 %
$1,075,000 3.92 %
Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet
The table below presents the fair value of the Company's derivative financial instruments and their classification on the Condensed Consolidated Balance Sheet as of June 30, 2024.
BALANCE AT JUNE 30, 2024
In thousandsBALANCE SHEET LOCATIONFAIR VALUE
Derivatives designated as hedging instruments
Interest rate swapsOther liabilities$(1,839)
Interest rate swapsOther assets$11,538 
Total derivatives designated as hedging instruments$9,699 

Tabular Disclosure of the Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss)
The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2024 and 2023 related to the Company's outstanding interest rate swaps.
(GAIN)/LOSS RECOGNIZED IN
AOCI ON DERIVATIVE
three months ended June 30,		(GAIN)/LOSS RECLASSIFIED FROM
AOCI INTO INCOME
three months ended June 30,
In thousands2024202320242023
Interest rate swaps$(5,891)$(21,523)Interest expense$(3,811)$(3,568)
Settled treasury hedges— — Interest expense107 107 
Settled interest rate swaps— — Interest expense42 42 
 $(5,891)$(21,523)Total interest expense$(3,662)$(3,419)
(GAIN)/LOSS RECOGNIZED IN
AOCI ON DERIVATIVE
six months ended June 30,		(GAIN)/LOSS RECLASSIFIED FROM
AOCI INTO INCOME
six months ended June 30,
In thousands2024202320242023
Interest rate swaps$(25,501)$(12,981)Interest expense$(7,825)$(6,000)
Settled treasury hedges— — Interest expense213 213 
Settled interest rate swaps— — Interest expense84 84 
 $(25,501)$(12,981)Total interest expense$(7,528)$(5,703)

The Company estimates that an additional $10.5 million related to active interest rate swaps will be reclassified from AOCI as a decrease to interest expense over the next 12 months, and that an additional $0.6 million related to settled interest rate swaps will be amortized from AOCI as an increase to interest expense over the next 12 months.
Credit-risk-related Contingent Features
The Company's agreements with each of its derivative counterparties contain a cross-default provision under which the Company could be declared in default of its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender should the Company default on the indebtedness.
As of June 30, 2024, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $0.3 million. As of June 30, 2024, the Company had not posted any collateral related to these agreements and was not in breach of any agreement.
v3.24.2.u1
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Proceedings
From time to time, the Company is involved in litigation arising in the ordinary course of business. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.
Development and Redevelopment Activity
For the six months ended June 30, 2024, the Company invested $35.6 million and $8.5 million toward active development and redevelopment of properties, respectively, and $22.3 million toward recently completed development and redevelopment projects.
v3.24.2.u1
Stockholders' Equity
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
Common Stock    
The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2024 and the twelve months ended December 31, 2023:
SIX MONTHS ENDED JUNE 30, 2024TWELVE MONTHS ENDED DECEMBER 31, 2023
Balance, beginning of period380,964,433 380,589,894 
Issuance of common stock8,623 8,627 
Conversion of OP units to common stock194,767 190,544 
Shares Repurchased(17,242,237)— 
Non-vested share-based awards, net of withheld shares and forfeitures401,648 175,368 
Balance, end of period364,327,234 380,964,433 
Common Stock Dividends
During the six months ended June 30, 2024, the Company declared and paid common stock dividends totaling $0.62 per share. On July 30, 2024, the Company declared a quarterly common stock dividend in the amount of $0.31 per share payable on August 28, 2024 to stockholders of record on August 12, 2024.
Common Stock Repurchases
On May 31, 2023, the Company’s Board of Directors authorized the repurchase of up to $500.0 million of outstanding shares of the Company’s common stock either in the open market or through privately negotiated transactions, subject to market conditions, regulatory constraints, and other customary conditions. In April 2024, the Company repurchased 2,966,764 shares of its common stock at a weighted average price of $14.07 for a total of $41.7 million under this authorization.
On April 30, 2024, the Company's Board of Directors authorized the repurchase of up to $500.0 million of outstanding shares of the Company's common stock, superseding the previous stock repurchase authorization. The stock repurchase authorization expires on April 29, 2025, and the Company may suspend or terminate repurchases at any time without prior notice. Under the Maryland General Corporation Law, outstanding shares of common stock acquired by a corporation become authorized but unissued shares, which may be re-issued. In May and June 2024, the Company repurchased an aggregate of 14,275,473 shares of its common stock at a weighted average price of $16.18 for a total of $231.0 million under this authorization. As of June 30, 2024, the Company was authorized to repurchase an additional $269.0 million of the Company's common stock.
Subsequent to June 30, 2024, the Company repurchased 1,296,985 shares of its common stock for a total of $21.8 million.
Earnings Per Common Share
The Company uses the two-class method of computing net earnings per common shares. The Company's non-vested share-based awards are considered participating securities pursuant to the two-class method.
The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2024 and 2023.
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
Dollars in thousands, except per share data2024202320242023
Weighted average common shares outstanding
Weighted average common shares outstanding374,498,770 380,829,011 377,916,989 380,812,981 
Non-vested shares(2,021,471)(1,932,334)(1,954,956)(1,952,350)
Weighted average common shares outstanding - basic372,477,299 378,896,677 375,962,033 378,860,631 
Weighted average common shares outstanding - basic372,477,299 378,896,677 375,962,033 378,860,631 
Dilutive effect of OP Units— — — — 
Weighted average common shares outstanding - diluted372,477,299 378,896,677 375,962,033 378,860,631 
Net loss$(145,938)$(83,726)$(461,157)$(171,804)
Income allocated to participating securities(917)(606)(1,819)(1,830)
Loss attributable to non-controlling interest2,158 967 6,541 1,920 
Adjustment to loss attributable to non-controlling interest for legally outstanding restricted units(717)(77)(2,047)1,154 
Net loss applicable to common stockholders - basic$(145,414)$(83,442)$(458,482)$(170,560)
Basic earnings per common share - net loss$(0.39)$(0.22)$(1.22)$(0.45)
Diluted earnings per common share - net loss$(0.39)$(0.22)$(1.22)$(0.45)
The effect of OP Units redeemable for 3,657,682 shares and 3,669,454 shares for the three and six months ended June 30, 2024, respectively, were excluded from the calculation of diluted loss per common share because the effect was anti-dilutive due to the loss from continuing operations incurred during those periods.
Stock Incentive Plan
The Company's stock incentive plan ("Incentive Plan") permits the grant of incentive awards to its employees and directors in any of the following forms: options, stock appreciation rights, restricted stock, restricted or deferred stock units, performance awards, dividend equivalents, or other stock-based awards, including units in the OP.
Equity Incentive Plans
During the six months ended June 30, 2024, the Company made the following equity awards:
•Restricted Stock
•During the first quarter of 2024, the Company granted non-vested stock awards to its named executive officers and other members of senior management with an aggregate grant date fair value of $5.6 million, which consisted of an aggregate of 361,712 non-vested shares with vesting periods ranging from three to eight years.
•During the second quarter of 2024, the Company granted to independent directors an aggregate of 58,910 shares of non-vested stock awards with a grant date fair value of $0.9 million, and an aggregate of 45,982 LTIP Series D units with a grant date fair value of $0.7 million. The Company also granted non-vested stock awards to other members of senior management with an aggregate grant date fair value of $0.1 million, which consisted of an aggregate of 9,350 non-vested shares.
•Restricted Stock Units ("RSUs")
•On February 13, 2024, the Company granted an aggregate of 208,055 RSUs to members of senior management, with an aggregate grant date fair value of $3.5 million and a five-year vesting period.
•On April 30, 2024, the Company granted an aggregate of 21,816 RSUs to members of senior management, with an aggregate grant date fair value of $0.3 million and a five-year vesting period.
Approximately 36% of the RSUs vest based on relative total shareholder return ("TSR") and were valued using independent specialists. The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair value of $19.10 for the relative TSR component for the February 2024 grant using the following assumptions:
Volatility28.0 %
Dividend assumptionAccrued
Expected term 3 years
Risk-free rate4.44 %
Stock price (per share)$15.22
The remaining 64% of the RSUs vest based upon certain operating performance conditions. With respect to the operating performance conditions of the February 13, 2024 grant, the grant date fair value was $15.22 based on the Company's share price on the date of grant.
•LTIP Series C Units
On February 13, 2024, the Company granted an aggregate of 906,044 LTIP Series C units ("LTIP-C units) in the OP to its named executive officers with three-year forward-looking performance targets, a five-year vesting period and an aggregate grant date fair value of $7.5 million.
Approximately 36% of the LTIP-C units vest based on relative TSR and were valued using independent specialists. The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair value of $9.62 for the relative TSR component for the February 2024 grant using the following assumptions:
Volatility28.0 %
Dividend assumptionAccrued
Expected term 3 years
Risk-free rate4.44 %
Stock price (per share)$15.22
The remaining 64% of the LTIP-C units vest based upon certain operating performance conditions. With respect to the operating performance conditions of the February 13, 2024 grant, the grant date fair value was $15.22 based on the Company's share price on the date of grant. The Company records amortization expense based on the probability of achieving certain operating performance conditions, which is evaluated throughout the performance period.
The following table represents the summary of non-vested share-based awards under the Incentive Plan for the three and six months ended June 30, 2024 and 2023:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
 2024202320242023
Share-based awards, beginning of period4,043,154 2,946,242 2,615,562 2,090,060 
Granted 1
135,767 43,276 1,611,578 1,118,537 
Vested(46,660)(74,304)(75,074)(188,070)
Change in awards based on performance assessment(47,202)— (47,202)(79,250)
Forfeited— (3,860)(19,805)(29,923)
Share-based awards, end of period4,085,059 2,911,354 4,085,059 2,911,354 
1LTIP-C units are issued at the maximum possible value of the award and are reflected as such in this table until the performance conditions have been satisfied and the exact number of awards are determinable.
The following table represents expected amortization of the Company's non-vested awards issued as of June 30, 2024:
Dollars in millionsFUTURE AMORTIZATION
of non-vested shares
2024$8.0 
202513.4 
202610.1 
20275.5 
2028 and thereafter2.9 
Total$39.9 
v3.24.2.u1
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practical to estimate that value.
•Cash and cash equivalents - The carrying amount approximates fair value (level 1 inputs) due to the short-term maturity of these investments.
•Real estate notes receivable - Real estate notes receivable are recorded in other assets on the Company's Condensed Consolidated Balance Sheets. Fair value is estimated using cash flow analyses, based on current interest rates for similar types of arrangements using level 2 inputs in the hierarchy. However, the fair value of one note receivable was determined utilizing the fair value of the receivables' collateral, as the receivables are collateral-dependent, and were classified as level 3 inputs in the hierarchy.
•Borrowings under the Unsecured Credit Facility and the Term Loans Due 2024 and 2026 - The carrying amount approximates fair value because the borrowings are based on variable market interest rates.
•Senior Notes and Mortgage Notes payable - The fair value of notes and bonds payable is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements.
•Interest rate swap agreements - Interest rate swap agreements are recorded in other liabilities on the Company's Condensed Consolidated Balance Sheets at fair value. Fair value is estimated by utilizing pricing models, level 2 inputs, which consider forward yield curves and discount rates. See Note 5 for additional information.
The table below details the fair values and carrying values for notes and bonds payable and real estate notes receivable at June 30, 2024 and December 31, 2023:
 June 30, 2024December 31, 2023
Dollars in millionsCARRYING VALUEFAIR VALUECARRYING VALUEFAIR VALUE
Notes and bonds payable 1
$5,148.2 $4,984.7 $4,994.9 $4,872.7 
Real estate notes receivable$168.8 $163.6 $173.6 $172.5 
1Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets.
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Pay vs Performance Disclosure        
Net income (loss) $ (143,780) $ (82,759) $ (454,616) $ (169,884)
v3.24.2.u1
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.2.u1
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Business Overview
Business Overview
Healthcare Realty Trust Incorporated (the "Company") is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of June 30, 2024, the Company had gross investments of approximately $12.9 billion in 629 consolidated real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development and corporate property, excluding held for sale assets. In addition, as of June 30, 2024, the Company had a weighted average ownership interest of approximately 36% in 44 real estate properties held in unconsolidated joint ventures. See Note 2 below for more details regarding the Company's unconsolidated joint ventures. The Company's real estate properties are located in 35 states and total approximately 37.2 million square feet. The Company provided leasing and property management services to 92% of its portfolio nationwide as of June 30, 2024.
On July 20, 2022, pursuant to that certain Agreement and Plan of Merger dated as of February 28, 2022, by and among Healthcare Realty Trust Incorporated, a Maryland corporation (now known as HRTI, LLC, a Maryland limited liability company) (“Legacy HR”), Healthcare Trust of America, Inc., a Maryland corporation (now known as Healthcare Realty Trust Incorporated) (“Legacy HTA”), Healthcare Trust of America Holdings, LP, a Delaware limited partnership (now known as Healthcare Realty Holdings, L.P.) (the “OP”), and HR Acquisition 2, LLC, a Maryland limited liability company (“Merger Sub”), Merger Sub merged with and into Legacy HR, with Legacy HR continuing as the surviving entity and a wholly-owned subsidiary of Legacy HTA (the “Merger”). The combined company operates under the name “Healthcare Realty Trust Incorporated” and its shares of class A common stock, $0.01 par value per share, trade on the New York Stock Exchange under the ticker symbol “HR”.
The Company is structured as an umbrella partnership REIT under which substantially all of its business is conducted through the OP, the day-to-day management of which is exclusively controlled by the Company. As of June 30, 2024, the Company owned 98.6% of the issued and outstanding units of the OP, with other investors owning the remaining 1.4% of the OP's issued and outstanding units.
Any references to square footage or occupancy percentage, and any amounts derived from these values in these notes to the Company's Condensed Consolidated Financial Statements, are outside the scope of our independent registered public accounting firm’s review.
Basis of Presentation
Basis of Presentation
The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. All material intercompany transactions and balances have been eliminated in consolidation.
This interim financial information should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2024 for many reasons including, but not limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties.
Principles of Consolidation
Principles of Consolidation
The Company’s Condensed Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and joint ventures and partnerships where the Company controls the operating activities. GAAP requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). Accounting Standards Codification (“ASC”) Topic 810, Consolidation broadly defines a VIE as an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the
activities of the VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary, with any minority interests reflected as non-controlling interests or redeemable non-controlling interests in the accompanying Condensed Consolidated Financial Statements.
The Company may change its original assessment of a VIE upon subsequent events, such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk, the disposition of all or a portion of an interest held by the primary beneficiary, or changes in facts and circumstances that impact the power to direct activities of the VIE that most significantly impacts economic performance. The Company performs this analysis on an ongoing basis.
For property holding entities not determined to be VIEs, the Company consolidates such entities in which it owns 100% of the equity or has a controlling financial interest evidenced by ownership of a majority voting interest. All intercompany balances and transactions are eliminated in consolidation. For entities in which the Company owns less than 100% of the equity interest, the Company consolidates the entity if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements.
The OP is 98.6% owned by the Company. Other holders of operating partnership units (“OP Units”) are considered to be non-controlling interest holders in the OP and their ownership interests are reflected as equity on the accompanying Condensed Consolidated Balance Sheets. Further, a portion of the earnings and losses of the OP are allocated to non-controlling interest holders based on their respective ownership percentages. Upon conversion of OP Units to common stock, any difference between the fair value of the common stock issued and the carrying value of the OP Units converted to common stock is recorded as a component of equity. As of June 30, 2024, there were approximately 5.3 million OP Units, or 1.4% of OP Units issued and outstanding, held by non-controlling interest holders. Additionally, the Company is the primary beneficiary of this VIE. Accordingly, the Company consolidates its interests in the OP.
Variable Interest Entities As of June 30, 2024, the Company's unconsolidated joint venture arrangements were accounted for using the equity method of accounting as the Company exercised significant influence over but did not control these entities.
Use of Estimates in the Condensed Consolidated Financial Statements
Use of Estimates in the Condensed Consolidated Financial Statements
Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates.
Redeemable Non-Controlling Interests
Redeemable Non-Controlling Interests
The Company accounts for redeemable equity securities in accordance with ASC Topic 480: Accounting for Redeemable Equity Instruments, which requires that equity securities redeemable at the option of the holder, not solely within our control, be classified outside permanent stockholders’ equity. The Company classifies redeemable equity securities as redeemable non-controlling interests in the accompanying Condensed Consolidated Balance Sheets. Accordingly, the Company records the carrying amount at the greater of the initial carrying amount (increased or decreased for the non-controlling interest’s share of net income or loss and distributions) or the redemption value. We measure the redemption value and record an adjustment to the carrying value of the equity securities as a component of redeemable non-controlling interest.
Asset Impairment
Asset Impairment
The Company assesses the potential for impairment of identifiable, definite-lived, intangible assets and long-lived assets, including real estate properties, whenever the occurrence of an event or a change in circumstances indicates that the carrying value might not be fully recoverable. Indicators of impairment may include significant underperformance of an asset relative to historical or expected operating results; significant changes in the Company’s use of assets or the strategy for its overall business; plans to sell an asset before its depreciable life has ended; the expiration of a significant portion of leases in a property; or significant negative economic trends or negative industry trends for the Company or its tenants.
Goodwill Impairment
Goodwill Impairment
During the first quarter of 2024, the Company experienced a sustained decline in the price per share of its common stock, which was identified as an indicator of goodwill impairment. As a result, a goodwill evaluation was performed. The Company's current operations are carried out through a single reporting unit with a carrying value of approximately $12.0 billion. The Company determined that the carrying value exceeded estimated fair value and therefore an impairment of goodwill was recorded. The Company recorded a $250.5 million full impairment of its goodwill, which is recorded as a non-cash charge in “Impairment of goodwill” in the Condensed Consolidated Statements of Operations.
Investments in Leases - Financing Receivables, Net and Real Estate Notes Receivable and Interest Income
Investments in Leases - Financing Receivables, Net
In accordance with ASC Topic 842: Leases, for transactions in which the Company enters into a contract to acquire an asset and leases it back to the seller (i.e., a sale leaseback transaction), control of the asset is not considered to have transferred when the seller-lessee has a purchase option. As a result, the Company does not recognize the underlying real estate asset but instead recognizes a financial asset in accordance with ASC Topic 310: Receivables.
Real Estate Notes Receivable
Real estate notes receivable consists of mezzanine and other real estate loans, which are generally collateralized by a pledge of the borrower’s ownership interest in the respective real estate owner, a mortgage or deed of trust, and/or corporate guarantees. Real estate notes receivable are intended to be held to maturity and are recorded at amortized cost, net of unamortized loan origination costs and fees and allowance for credit losses.
Allowance for Credit Losses
Pursuant to ASC Topic 326: Financial Instruments - Credit Losses, the Company adopted a policy to evaluate current expected credit losses at the inception of loans qualifying for treatment under ASC Topic 326. The Company utilizes a probability of default method approach for estimating current expected credit losses and evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis to determine whether any updates to the future expected losses recognized upon inception are necessary. The Company’s evaluation considers industry and economic conditions, credit enhancements, liquidity, and other factors. The determination of the credit allowance is based on a quarterly
evaluation of all outstanding loans, including general economic conditions and estimated collectability of loan payments. The Company evaluates the collectability of loan receivables based on a combination of credit quality indicators, including, but not limited to, payment status, historical loan charge-offs, financial strength of the borrower and guarantors, and nature, extent, and value of the underlying collateral. A loan is considered to have deteriorated credit quality when, based on current information and events, it is probable that the Company will be unable to collect all amounts due as scheduled according to the contractual terms of the loan agreement. For those loans identified as having deteriorated credit quality, the amount of credit loss is determined on an individual basis. Placement on non-accrual status may be required. Consistent with this definition, all loans on non-accrual status are deemed to have deteriorated credit quality. To the extent circumstances improve and the risk of collectability is diminished, the loan may return to income accrual status. While a loan is on non-accrual status, any cash receipts are applied against the outstanding principal balance.
Interest Income
Income from Lease Financing Receivables
The Company recognized the related income from two financing receivables totaling $2.1 million and $4.2 million, respectively, for the three and six months ended June 30, 2024, and $2.1 million and $4.2 million, respectively, for the three and six months ended June 30, 2023, based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable in any particular period will not equal the cash payments from the lease agreement in that period.
Acquisition costs incurred in connection with entering into the financing receivable are treated as loan origination fees. These costs are classified with the financing receivable and are included in the balance of the net investment. Amortization of these amounts will be recognized as a reduction to Interest income over the life of the lease.
Revenue from Contracts with Customers (ASC Topic 606)
Revenue from Contracts with Customers (ASC Topic 606)
The Company recognizes certain revenue under the core principle of ASC Topic 606. This topic requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of ASC Topic 606. To achieve the core principle, the Company applies the five-step model specified in the guidance.
Revenue that is accounted for under ASC Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Operations in the Other operating line item. This line item includes parking income, management fee income and other miscellaneous income.
The Company’s major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied. The performance obligations that are identified for each of these items are satisfied over time, and the Company recognizes revenue monthly based on this principle.
New Accounting Pronouncements
New Accounting Pronouncements
On November 27, 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280). Some of the main provisions of this update to segment reporting include; (i) a requirement to disclose significant segment expenses, on an annual and interim basis, that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss; (ii) a requirement to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources, and (iii) a requirement that an entity that has a single reportable segment provide all the disclosures required by the amendments in this update.
The update is effective for annual reporting periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Early adoption is permitted. At this time, the Company does not expect that the adoption of this ASU will have a material impact on its consolidated financial statements other than compliance with these new disclosure requirements, which will begin with the Company's Annual Report on Form 10-K for the year ending December 31, 2024.
v3.24.2.u1
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Schedule of Condensed Balance Sheet Accordingly, such joint ventures have been consolidated, and the table below summarizes the balance sheets of consolidated VIEs, excluding the OP, in the aggregate:
(dollars in thousands)JUNE 30, 2024
Assets:
Total real estate properties, net
$112,694 
Cash and cash equivalents3,205 
Other assets, net
2,556 
Total assets
$118,455 
Liabilities:
Accrued expenses and other liabilities
7,848 
Total liabilities
7,848 
Redeemable non-controlling interests
3,194 
Partners' equity
108,612 
Cumulative net loss
(1,199)
Total partners' equity
107,413 
Total liabilities and equity
$118,455 
Schedule of Variable Interest Entities As a result, the Company accounts for the two notes receivables as amortized cost and a joint venture arrangement under the equity method. See below for additional information regarding the Company's unconsolidated VIEs.
(dollars in thousands) ORIGINATION DATELOCATIONSOURCECARRYING AMOUNT MAXIMUM EXPOSURE TO LOSS
2021
Houston, TX 1
Note receivable$20,500 $20,500 
2021
Charlotte, NC 1
Note receivable7,111 7,211 
2022
Texas 2
Joint venture59,239 59,239 
1Assumed mortgage note receivable in connection with the Merger.
2Includes investments in seven properties.
Schedule of Accounts, Notes, Loans and Financing Receivable See below for additional information regarding the Company's financing receivables.
(dollars in thousands) ORIGINATION DATELOCATIONINTEREST RATECARRYING VALUE as of JUNE 30, 2024
May 2021Poway, CA5.72%$115,056 
November 2021Columbus, OH6.48%7,357 
$122,413 
(dollars in thousands)ORIGINATIONMATURITYSTATED INTEREST RATEMAXIMUM LOAN COMMITMENTOUTSTANDING as of
JUN 30, 2024		INTEREST RECEIVABLE (OTHER ASSETS)ALLOWANCE FOR CREDIT LOSSESFAIR VALUE DISCOUNT AND FEESCARRYING VALUE as of JUNE 30, 2024
Mezzanine loans
Texas 1
6/24/20216/24/20248.00 %$54,119 $54,119 $906 $(5,196)$(3,067)$46,762 
Arizona12/21/202312/20/20269.00 %6,000 6,000 36 — — 6,036 
60,119 60,119 942 (5,196)(3,067)52,798 
Mortgage loans
Texas 2
6/30/202112/02/20247.00 %31,150 31,150 551 (11,201)— 20,500 
North Carolina 3
12/22/202112/22/20248.00 %6,000 6,000 1,211 — (100)7,111 
Florida5/17/20222/27/20266.00 %65,000 35,623 532 — (34)36,121 
California3/30/20233/29/20266.00 %45,000 45,000 178 — — 45,178 
Florida12/28/202312/28/20269.00 %7,700 7,133 — — — 7,133 
154,850 124,906 2,472 (11,201)(134)116,043 
$214,969 $185,025 $3,414 $(16,397)$(3,201)$168,841 
1As of the date of these financial statements, the outstanding principal and interest on these loans had not been repaid, and on July 15, 2024, the senior lender on the construction loans associated with the underlying projects provided notice of foreclosure proceedings to the borrower. The borrower is in negotiations with a third party to provide financing that will repay the senior lender.
2During the second quarter of 2024, the Company determined that an allowance for credit loss of $11.2 million was needed on this mortgage loan. The reserve amount consists of approximately $10.7 million of principal and approximately $0.5 million of interest. Additionally, the maturity date on this mortgage loan was extended to December 2, 2024.
3Outstanding principal and interest due upon maturity.
Schedule of Company's Allowance For Credit Losses
The following table summarizes the Company's allowance for credit losses on real estate notes receivable:
Dollars in thousandsSIX MONTHS ENDED JUNE 30, 2024TWELVE MONTHS ENDED DECEMBER 31, 2023
Allowance for credit losses, beginning of period$5,196 $— 
Credit loss reserves11,201 5,196 
Allowance for credit losses, end of period$16,397 $5,196 
Schedule of Disaggregation of revenue Below is a detail of the amounts by category:
THREE MONTHS ENDED
June 30,		SIX MONTHS ENDED
June 30,
in thousands2024202320242023
Type of Revenue
Parking income$2,463 $2,370 $5,009 $4,761 
Management fee income/other 1
1,859 1,860 3,504 4,086 
$4,322 $4,230 $8,513 $8,847 
1 Includes the recovery of certain expenses under the financing receivable as outlined in the management agreement.
v3.24.2.u1
Real Estate Investments (Tables)
 6 Months Ended
Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Schedule of Equity Method Investments
The Company's investment in and loss recognized for the three and six months ended June 30, 2024 and 2023 related to its unconsolidated joint ventures accounted for under the equity method are shown in the table below:
THREE MONTHS ENDED
June 30,		SIX MONTHS ENDED
June 30,
Dollars in thousands2024202320242023
Investments in unconsolidated joint ventures, beginning of period $309,754 $327,746 $311,511 $327,248 
New investment during the period 1
66,547 — 66,547 3,824 
Equity loss recognized during the period (146)(17)(568)(797)
Owner distributions(1,314)(484)(2,649)(3,030)
Investments in unconsolidated joint ventures, end of period $374,841 $327,245 $374,841 $327,245 
1In the second quarter of 2024, the Company contributed 11 properties into a new joint venture in which it retained a 20% ownership interest. See 2024 "Real Estate Asset Dispositions" below for additional information. In 2023, there was an additional investment in an existing joint venture in which the Company retained a 40% ownership interest. The investment consisted of the Company's contribution of a property in Dallas, Texas to the joint venture.
Schedule of dispositions
The following table details the Company's dispositions and joint venture contributions for the six months ended June 30, 2024.
Dollars in thousandsDATE DISPOSEDSALE PRICECLOSING ADJUSTMENTSNET PROCEEDSNET REAL ESTATE INVESTMENTOTHER (INCLUDING RECEIVABLES) GAIN/(IMPAIRMENT)SQUARE FOOTAGE
Albany, NY4/1/24$725 $(60)$665 $765 $(82)$(18)14,800 
San Angelo, TX4/12/245,085 (128)4,957 4,917 66 (26)24,580 
Houston, TX5/20/24250 (9)241 713 (520)48 37,040 
Multiple 1
5/23/24284,348 (14,270)270,078 254,176 25,836 (9,934)556,274 
Denver, CO5/30/2419,000 (628)18,372 18,522 165 (315)37,130 
Austin, TX 1
6/6/2454,858 (1,575)53,283 27,964 623 24,696 129,879 
Minneapolis, MN6/21/241,082 (144)938 303 43 592 50,291 
Greensboro/Raleigh, NC 2, 3
6/28/2499,518 (2,835)96,683 86,810 906 8,967 309,424 
Total dispositions$464,866 $(19,649)$445,217 $394,170 $27,037 $24,010 1,159,418 
1The Company contributed the following medical outpatient properties to a joint venture in which the Company retained 20% ownership: one in each of Raleigh, NC, New York, NY, Philadelphia, PA, Atlanta, GA and Austin, TX; two medical outpatient properties in Los Angeles and four in Seattle, WA. Sale price and square footage reflect the total sale price paid by the joint venture and total square footage of the property. The net proceeds to the Company related to these dispositions totaled $256.8 million.
2The Company sold seven medical outpatient properties in Greensboro, NC and two medical outpatient properties in Raleigh, NC to a single buyer in a single transaction.
3The amount in the net proceeds column for this portfolio disposition includes the receivable for the cash held in escrow that closed on June 28, 2024 and was received by the Company on July 1, 2024. These proceeds were recorded as a receivable in other assets, net as of June 30, 2024.
Schedule of Assets and Liabilities Held for Sale The table below reflects the assets and liabilities classified as held for sale as of June 30, 2024 and December 31, 2023:
Dollars in thousandsJune 30, 2024December 31, 2023
Balance Sheet data:
Land$2,330 $1,850 
Building and improvements43,342 6,779 
Lease intangibles1,017 1,017 
46,689 9,646 
Accumulated depreciation(13,600)(913)
Real estate assets held for sale, net 33,089 8,733 
Cash and cash equivalents— — 
Operating lease right-of-use assets850 — 
Other assets, net591 101 
Assets held for sale, net$34,530 $8,834 
Accounts payable and accrued liabilities$531 $23 
Operating lease liabilities589 — 
Other liabilities685 272 
Liabilities of assets held for sale$1,805 $295 
v3.24.2.u1
Leases (Tables)
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Schedule of Future Minimum Operating Lease Payments Receivable
Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sale-type lease, as of June 30, 2024 were as follows:
Dollars in thousandsOPERATING
2024$441,170 
2025827,950 
2026734,851 
2027614,428 
2028500,591 
2029 and thereafter1,629,794 
$4,748,784 
Schedule of Future Minimum Operating Lease Payments
The Company’s future lease payments (primarily for its 148 non-prepaid ground leases) as of June 30, 2024 were as follows:
Dollars in thousandsOPERATINGFINANCING
2024$5,912 $1,013 
202512,644 2,218 
202612,739 2,255 
202712,934 2,294 
202813,061 2,326 
2029 and thereafter693,556 394,072 
Total undiscounted lease payments750,846 404,178 
Discount(520,245)(328,979)
Lease liabilities$230,601 $75,199 
Schedule of Future Minimum Financing Lease Payments
The Company’s future lease payments (primarily for its 148 non-prepaid ground leases) as of June 30, 2024 were as follows:
Dollars in thousandsOPERATINGFINANCING
2024$5,912 $1,013 
202512,644 2,218 
202612,739 2,255 
202712,934 2,294 
202813,061 2,326 
2029 and thereafter693,556 394,072 
Total undiscounted lease payments750,846 404,178 
Discount(520,245)(328,979)
Lease liabilities$230,601 $75,199 
Schedule of Lease Cost
The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2024 and 2023:
THREE MONTHS ENDED
June 30,		SIX MONTHS ENDED
June 30,
Dollars in thousands2024202320242023
Operating lease cost
Operating lease expense$4,599 $5,329 $9,065 $10,436 
Variable lease expense1,315 2,235 2,542 4,371 
Finance lease cost
Amortization of right-of-use assets392 387 779 774 
Interest on lease liabilities942 923 1,880 1,841 
Total lease expense$7,248 $8,874 $14,266 $17,422 
Other information
Operating cash flows outflows related to operating leases$4,889 $5,230 $8,929 $11,190 
Operating cash flows outflows related to financing leases$591 $541 $1,154 $1,094 
Financing cash flows outflows related to financing leases$4 $6 $30 $17 
Right-of-use assets obtained in exchange for new operating lease liabilities$2,561 $— $2,561 $— 
Weighted-average years remaining lease term (excluding renewal options) - operating leases45.947.3
Weighted-average years remaining lease term (excluding renewal options) - finance leases57.458.4
Weighted-average discount rate - operating leases5.7 %5.8 %
Weighted-average discount rate - finance leases5.0 %5.0 %
v3.24.2.u1
Notes and Bonds Payable (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
The table below details the Company’s notes and bonds payable as of June 30, 2024 and December 31, 2023. 
 MATURITY DATE
BALANCE 1 AS OF
EFFECTIVE INTEREST RATE
as of 6/30/2024
Dollars in thousands6/30/202412/31/2023
$1.5 billion Unsecured Credit Facility 2
10/25$250,000 $— 6.28 %
$200 million Unsecured Term Loan 3
5/25199,750 199,903 6.37 %
$250 million Unsecured Term Loan 4
7/25249,659 349,798 6.37 %
$300 million Unsecured Term Loan
10/25299,970 299,958 6.37 %
$150 million Unsecured Term Loan
6/26149,716 149,643 6.37 %
$200 million Unsecured Term Loan
7/27199,571 199,502 6.37 %
$300 million Unsecured Term Loan
1/28298,498 298,288 6.37 %
Senior Notes due 20255/25249,674 249,484 4.12 %
Senior Notes due 2026
8/26582,873 579,017 4.94 %
Senior Notes due 2027 7/27485,889 483,727 4.76 %
Senior Notes due 20281/28297,726 297,429 3.85 %
Senior Notes due 2030 2/30580,667 575,443 5.30 %
Senior Notes due 20303/30296,983 296,780 2.72 %
Senior Notes due 2031 3/31296,086 295,832 2.25 %
Senior Notes due 2031 3/31658,263 649,521 5.13 %
Mortgage notes payable
9/24-12/2652,828 70,534 
3.57% - 6.88%
$5,148,153 $4,994,859 
1Balance is presented net of discounts and issuance costs and inclusive of premiums, where applicable.
2As of June 30, 2024, the Company had $1.3 billion available to be drawn on its $1.5 billion Unsecured Credit Facility.
3In April 2024, the Company exercised its option to extend the maturity date for one year to May 2025 for a fee of approximately $0.3 million.
4In June 2024, the Company repaid $100 million of the initial $350 million Unsecured Term Loan and exercised its second option to extend the maturity date for one year to July 2025 for a fee of approximately $0.3 million.
v3.24.2.u1
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
As of June 30, 2024, the Company had 15 outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:
AMOUNTWEIGHTED
AVERAGE RATE
May 2026$275,000 3.74 %
June 2026150,000 3.83 %
December 2026150,000 3.84 %
June 2027200,000 4.27 %
December 2027300,000 3.93 %
$1,075,000 3.92 %
The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2024 and 2023 related to the Company's outstanding interest rate swaps.
(GAIN)/LOSS RECOGNIZED IN
AOCI ON DERIVATIVE
three months ended June 30,		(GAIN)/LOSS RECLASSIFIED FROM
AOCI INTO INCOME
three months ended June 30,
In thousands2024202320242023
Interest rate swaps$(5,891)$(21,523)Interest expense$(3,811)$(3,568)
Settled treasury hedges— — Interest expense107 107 
Settled interest rate swaps— — Interest expense42 42 
 $(5,891)$(21,523)Total interest expense$(3,662)$(3,419)
(GAIN)/LOSS RECOGNIZED IN
AOCI ON DERIVATIVE
six months ended June 30,		(GAIN)/LOSS RECLASSIFIED FROM
AOCI INTO INCOME
six months ended June 30,
In thousands2024202320242023
Interest rate swaps$(25,501)$(12,981)Interest expense$(7,825)$(6,000)
Settled treasury hedges— — Interest expense213 213 
Settled interest rate swaps— — Interest expense84 84 
 $(25,501)$(12,981)Total interest expense$(7,528)$(5,703)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The table below presents the fair value of the Company's derivative financial instruments and their classification on the Condensed Consolidated Balance Sheet as of June 30, 2024.
BALANCE AT JUNE 30, 2024
In thousandsBALANCE SHEET LOCATIONFAIR VALUE
Derivatives designated as hedging instruments
Interest rate swapsOther liabilities$(1,839)
Interest rate swapsOther assets$11,538 
Total derivatives designated as hedging instruments$9,699 
v3.24.2.u1
Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Schedule of Reconciliation of Common Stock Outstanding
The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2024 and the twelve months ended December 31, 2023:
SIX MONTHS ENDED JUNE 30, 2024TWELVE MONTHS ENDED DECEMBER 31, 2023
Balance, beginning of period380,964,433 380,589,894 
Issuance of common stock8,623 8,627 
Conversion of OP units to common stock194,767 190,544 
Shares Repurchased(17,242,237)— 
Non-vested share-based awards, net of withheld shares and forfeitures401,648 175,368 
Balance, end of period364,327,234 380,964,433 
Schedule of Earnings (Loss) per Share
The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2024 and 2023.
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
Dollars in thousands, except per share data2024202320242023
Weighted average common shares outstanding
Weighted average common shares outstanding374,498,770 380,829,011 377,916,989 380,812,981 
Non-vested shares(2,021,471)(1,932,334)(1,954,956)(1,952,350)
Weighted average common shares outstanding - basic372,477,299 378,896,677 375,962,033 378,860,631 
Weighted average common shares outstanding - basic372,477,299 378,896,677 375,962,033 378,860,631 
Dilutive effect of OP Units— — — — 
Weighted average common shares outstanding - diluted372,477,299 378,896,677 375,962,033 378,860,631 
Net loss$(145,938)$(83,726)$(461,157)$(171,804)
Income allocated to participating securities(917)(606)(1,819)(1,830)
Loss attributable to non-controlling interest2,158 967 6,541 1,920 
Adjustment to loss attributable to non-controlling interest for legally outstanding restricted units(717)(77)(2,047)1,154 
Net loss applicable to common stockholders - basic$(145,414)$(83,442)$(458,482)$(170,560)
Basic earnings per common share - net loss$(0.39)$(0.22)$(1.22)$(0.45)
Diluted earnings per common share - net loss$(0.39)$(0.22)$(1.22)$(0.45)
Schedule of Stock Options, Valuation Assumptions
Volatility28.0 %
Dividend assumptionAccrued
Expected term 3 years
Risk-free rate4.44 %
Stock price (per share)$15.22
Volatility28.0 %
Dividend assumptionAccrued
Expected term 3 years
Risk-free rate4.44 %
Stock price (per share)$15.22
Schedule of the Activity Under the Incentive Plan and RSU Activity
The following table represents the summary of non-vested share-based awards under the Incentive Plan for the three and six months ended June 30, 2024 and 2023:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
 2024202320242023
Share-based awards, beginning of period4,043,154 2,946,242 2,615,562 2,090,060 
Granted 1
135,767 43,276 1,611,578 1,118,537 
Vested(46,660)(74,304)(75,074)(188,070)
Change in awards based on performance assessment(47,202)— (47,202)(79,250)
Forfeited— (3,860)(19,805)(29,923)
Share-based awards, end of period4,085,059 2,911,354 4,085,059 2,911,354 
1LTIP-C units are issued at the maximum possible value of the award and are reflected as such in this table until the performance conditions have been satisfied and the exact number of awards are determinable.
Schedule of Unrecognized Compensation Cost, Nonvested Awards
The following table represents expected amortization of the Company's non-vested awards issued as of June 30, 2024:
Dollars in millionsFUTURE AMORTIZATION
of non-vested shares
2024$8.0 
202513.4 
202610.1 
20275.5 
2028 and thereafter2.9 
Total$39.9 
v3.24.2.u1
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value And Carrying Values For Notes And Bonds Payable, Real Estate Notes Receivable, And Notes Receivable
The table below details the fair values and carrying values for notes and bonds payable and real estate notes receivable at June 30, 2024 and December 31, 2023:
 June 30, 2024December 31, 2023
Dollars in millionsCARRYING VALUEFAIR VALUECARRYING VALUEFAIR VALUE
Notes and bonds payable 1
$5,148.2 $4,984.7 $4,994.9 $4,872.7 
Real estate notes receivable$168.8 $163.6 $173.6 $172.5 
1Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets.
v3.24.2.u1
Summary of Significant Accounting Policies - Narrative (Details)
$ / shares in Units, $ in Thousands, shares in Millions, ft² in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
ft²
loan
property
variable_interest_entity
financing_receivable
note_receivable
state
$ / shares
shares
Jun. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
loan
Jun. 30, 2024
USD ($)
ft²
property
variable_interest_entity
financing_receivable
note_receivable
loan
joint_venture
state
$ / shares
shares
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
financing_receivable
$ / shares
Mar. 31, 2024
USD ($)
Dec. 31, 2022
USD ($)
Jul. 20, 2021
$ / shares
Business Overview:                  
Gross investment amount, total $ 12,900,000     $ 12,900,000          
Number of real estate properties | property 629     629          
Number of properties held in unconsolidated joint ventures | property 44     44          
Number of states that the company owns real estate in, whole units | state 35     35          
Approximate square feet invested in by company | ft² 37.2     37.2          
Nationwide portfolio (percent) 92.00%     92.00%          
Common stock, par value (in dollars per share) | $ / shares $ 0.01     $ 0.01   $ 0.01      
Principles of Consolidation:                  
Equity ownership for consolidation (percent) 100.00%     100.00%          
Number of variable interest entities | variable_interest_entity 4     4          
Redeemable Non-Controlling Interests:                  
Redeemable non-controlling interests $ 3,875 $ 2,487 $ 2,000 $ 3,875 $ 2,487 $ 3,868 $ 3,880 $ 2,014  
Asset Impairment:                  
Impairment of real estate assets 120,900     136,900          
Goodwill Impairment                  
Impairment of goodwill 0 0   250,530 0        
Real Estate Notes Receivable:                  
Investment in financing receivable, net $ 168,800     $ 168,800          
Allowance for Credit Losses, Interest Income, Income from Real Estate Notes Receivable:                  
Number of mezzanine loans | loan     2            
Number of mortgage loans | loan 1     1          
Credit loss reserves $ 11,200   $ 5,200 $ 11,201   $ 5,196      
Number of recognized lease financial receivables | financing_receivable 2     2          
Income from financing receivables $ 2,100 2,100   $ 4,200 4,200        
Number of real estate notes receivable | financing_receivable 1     1   2      
Financing receivable, nonaccrual $ 20,500     $ 20,500   $ 48,900      
Fair Value, Inputs, Level 3                  
Asset Impairment:                  
Number of properties measured at fair value | property 16     16          
Properties measured at fair value $ 265,600     $ 265,600          
One                  
Goodwill Impairment                  
Reporting unit, carrying value 12,000,000     12,000,000          
Notes Receivable                  
Allowance for Credit Losses, Interest Income, Income from Real Estate Notes Receivable:                  
Interest income $ 1,800 $ 2,200   $ 4,200 $ 4,300        
Variable Interest Entity                  
Principles of Consolidation:                  
Number of variable interest entities | variable_interest_entity 3     3          
Number of notes receivable | note_receivable 2     2          
Number of joint ventures | joint_venture       1          
HealthCare Realty Trust Incorporated                  
Business Overview:                  
Common stock, par value (in dollars per share) | $ / shares                 $ 0.01
HealthCare Realty Trust Incorporated | Other Investors                  
Business Overview:                  
Subsidiary, ownership percentage, noncontrolling owner 1.40%     1.40%          
Non-Controlling Interest Holders | Healthcare Trust of America Holdings L P                  
Principles of Consolidation:                  
Limited partner's capital, units outstanding (in shares) | shares 5.3     5.3          
Property Entities Not Determined to be VIEs                  
Principles of Consolidation:                  
Equity interest owned (percent) 100.00%     100.00%          
Healthcare Trust of America Holdings L P                  
Principles of Consolidation:                  
Equity interest owned (percent) 98.60%     98.60%          
Real Estate Properties Held in Joint Ventures                  
Business Overview:                  
Joint venture ownership (percent) 36.00%     36.00%          
v3.24.2.u1
Summary of Significant Accounting Policies - Consolidated balance sheets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Assets:            
Total real estate properties, net $ 10,434,689   $ 11,172,214      
Cash and cash equivalents 41,765   25,699      
Total assets 11,803,627   12,637,131      
Liabilities:            
Total liabilities 5,828,935   5,714,349      
Redeemable non-controlling interests 3,875 $ 3,880 3,868 $ 2,487 $ 2,000 $ 2,014
Partners' equity 5,887,142   6,822,662      
Total equity 5,970,817 $ 6,503,138 6,918,914 $ 7,283,417 $ 7,464,839 $ 7,679,818
Total liabilities and equity 11,803,627   $ 12,637,131      
Variable interest entity            
Assets:            
Total real estate properties, net 112,694          
Cash and cash equivalents 3,205          
Other assets, net 2,556          
Total assets 118,455          
Liabilities:            
Accrued expenses and other liabilities 7,848          
Total liabilities 7,848          
Redeemable non-controlling interests 3,194          
Partners' equity 108,612          
Cumulative net loss (1,199)          
Total equity 107,413          
Total liabilities and equity $ 118,455          
v3.24.2.u1
Summary of Significant Accounting Policies - Variable interest entity (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
note_receivable
property
Variable Interest Entity  
Variable Interest Entity [Line Items]  
Number of notes receivable | note_receivable 2
Houston, TX | Variable Interest Entity, Not Primary Beneficiary  
Variable Interest Entity [Line Items]  
Notes receivable, carrying amount $ 20,500
MAXIMUM EXPOSURE TO LOSS 20,500
North Carolina | Variable Interest Entity, Not Primary Beneficiary  
Variable Interest Entity [Line Items]  
Notes receivable, carrying amount 7,111
MAXIMUM EXPOSURE TO LOSS 7,211
Texas | Variable Interest Entity, Not Primary Beneficiary  
Variable Interest Entity [Line Items]  
Joint venture, carrying amount 59,239
MAXIMUM EXPOSURE TO LOSS $ 59,239
Number of owned real estate properties | property 7
v3.24.2.u1
Summary of Significant Accounting Policies - Schedule of Notes Receivable (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Mar. 31, 2023
Jun. 30, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Financing receivable, carrying value $ 122,413   $ 122,413    
MAXIMUM LOAN COMMITMENT 214,969   214,969    
REAL ESTATE NOTES RECEIVABLE, GROSS 185,025   185,025    
INTEREST RECEIVABLE (OTHER ASSETS) 3,414   3,414    
ALLOWANCE FOR CREDIT LOSSES (16,397)   (16,397) $ (5,196) $ 0
FAIR VALUE DISCOUNT AND FEES (3,201)   (3,201)    
CARRYING VALUE 168,841   168,841    
Credit loss reserves 11,200 $ 5,200 11,201 $ 5,196  
Mezzanine loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
MAXIMUM LOAN COMMITMENT 60,119   60,119    
REAL ESTATE NOTES RECEIVABLE, GROSS 60,119   60,119    
INTEREST RECEIVABLE (OTHER ASSETS) 942   942    
ALLOWANCE FOR CREDIT LOSSES (5,196)   (5,196)    
FAIR VALUE DISCOUNT AND FEES (3,067)   (3,067)    
CARRYING VALUE 52,798   52,798    
Mortgage loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
MAXIMUM LOAN COMMITMENT 154,850   154,850    
REAL ESTATE NOTES RECEIVABLE, GROSS 124,906   124,906    
INTEREST RECEIVABLE (OTHER ASSETS) 2,472   2,472    
ALLOWANCE FOR CREDIT LOSSES (11,201)   (11,201)    
FAIR VALUE DISCOUNT AND FEES (134)   (134)    
CARRYING VALUE $ 116,043   $ 116,043    
Poway, CA          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
INTEREST RATE 5.72%   5.72%    
Financing receivable, carrying value $ 115,056   $ 115,056    
Columbus, OH          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
INTEREST RATE 6.48%   6.48%    
Financing receivable, carrying value $ 7,357   $ 7,357    
Texas | Mezzanine loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
INTEREST RATE 8.00%   8.00%    
MAXIMUM LOAN COMMITMENT $ 54,119   $ 54,119    
REAL ESTATE NOTES RECEIVABLE, GROSS 54,119   54,119    
INTEREST RECEIVABLE (OTHER ASSETS) 906   906    
ALLOWANCE FOR CREDIT LOSSES (5,196)   (5,196)    
FAIR VALUE DISCOUNT AND FEES (3,067)   (3,067)    
CARRYING VALUE $ 46,762   $ 46,762    
Texas | Mortgage loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
INTEREST RATE 7.00%   7.00%    
MAXIMUM LOAN COMMITMENT $ 31,150   $ 31,150    
REAL ESTATE NOTES RECEIVABLE, GROSS 31,150   31,150    
INTEREST RECEIVABLE (OTHER ASSETS) 551   551    
ALLOWANCE FOR CREDIT LOSSES (11,201)   (11,201)    
FAIR VALUE DISCOUNT AND FEES 0   0    
CARRYING VALUE 20,500   $ 20,500    
Credit loss reserves 11,200        
Allowance for credit loss 10,700        
Allowance for credit loss, interest $ 500        
Arizona | Mezzanine loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
INTEREST RATE 9.00%   9.00%    
MAXIMUM LOAN COMMITMENT $ 6,000   $ 6,000    
REAL ESTATE NOTES RECEIVABLE, GROSS 6,000   6,000    
INTEREST RECEIVABLE (OTHER ASSETS) 36   36    
ALLOWANCE FOR CREDIT LOSSES 0   0    
FAIR VALUE DISCOUNT AND FEES 0   0    
CARRYING VALUE $ 6,036   $ 6,036    
North Carolina | Mortgage loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
INTEREST RATE 8.00%   8.00%    
MAXIMUM LOAN COMMITMENT $ 6,000   $ 6,000    
REAL ESTATE NOTES RECEIVABLE, GROSS 6,000   6,000    
INTEREST RECEIVABLE (OTHER ASSETS) 1,211   1,211    
ALLOWANCE FOR CREDIT LOSSES 0   0    
FAIR VALUE DISCOUNT AND FEES (100)   (100)    
CARRYING VALUE $ 7,111   $ 7,111    
Florida | Mortgage loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
INTEREST RATE 6.00%   6.00%    
MAXIMUM LOAN COMMITMENT $ 65,000   $ 65,000    
REAL ESTATE NOTES RECEIVABLE, GROSS 35,623   35,623    
INTEREST RECEIVABLE (OTHER ASSETS) 532   532    
ALLOWANCE FOR CREDIT LOSSES 0   0    
FAIR VALUE DISCOUNT AND FEES (34)   (34)    
CARRYING VALUE $ 36,121   $ 36,121    
California | Mortgage loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
INTEREST RATE 6.00%   6.00%    
MAXIMUM LOAN COMMITMENT $ 45,000   $ 45,000    
REAL ESTATE NOTES RECEIVABLE, GROSS 45,000   45,000    
INTEREST RECEIVABLE (OTHER ASSETS) 178   178    
ALLOWANCE FOR CREDIT LOSSES 0   0    
FAIR VALUE DISCOUNT AND FEES 0   0    
CARRYING VALUE $ 45,178   $ 45,178    
Florida 1 | Mortgage loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
INTEREST RATE 9.00%   9.00%    
MAXIMUM LOAN COMMITMENT $ 7,700   $ 7,700    
REAL ESTATE NOTES RECEIVABLE, GROSS 7,133   7,133    
INTEREST RECEIVABLE (OTHER ASSETS) 0   0    
ALLOWANCE FOR CREDIT LOSSES 0   0    
FAIR VALUE DISCOUNT AND FEES 0   0    
CARRYING VALUE $ 7,133   $ 7,133    
v3.24.2.u1
Summary of Significant Accounting Policies - Schedule of Company's Allowance For Credit Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Mar. 31, 2023
Jun. 30, 2024
Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]        
Allowance for credit losses, beginning of period   $ 0 $ 5,196 $ 0
Credit loss reserves $ 11,200 $ 5,200 11,201 5,196
Allowance for credit losses, end of period $ 16,397   $ 16,397 $ 5,196
v3.24.2.u1
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Type of Revenue $ 4,322 $ 4,230 $ 8,513 $ 8,847
Parking income        
Disaggregation of Revenue [Line Items]        
Type of Revenue 2,463 2,370 5,009 4,761
Management fee income/other        
Disaggregation of Revenue [Line Items]        
Type of Revenue $ 1,859 $ 1,860 $ 3,504 $ 4,086
v3.24.2.u1
Real Estate Investments - Unconsolidated Joint Venture Acquisitions (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Equity Method Investments [Roll Forward]          
Investments in unconsolidated joint ventures, beginning of period     $ 311,511    
Equity loss recognized during the period $ (146) $ (17) (568) $ (797)  
Investments in unconsolidated joint ventures, end of period 374,841   374,841   $ 311,511
Parking Garages          
Equity Method Investments [Roll Forward]          
Investments in unconsolidated joint ventures, beginning of period 309,754 327,746 311,511 327,248 327,248
New investments during the period 66,547 0 66,547 3,824  
Equity loss recognized during the period (146) (17) (568) (797)  
Owner distributions (1,314) (484) (2,649) (3,030)  
Investments in unconsolidated joint ventures, end of period $ 374,841 $ 327,245 $ 374,841 $ 327,245 $ 311,511
Parking Garages | Los Angeles, California | Limited Liability Company One          
Equity Method Investments [Roll Forward]          
Joint venture, ownership (in percentage) 20.00%       40.00%
v3.24.2.u1
Real Estate Investments - Dispositions (Details)
$ in Thousands
 6 Months Ended
Jun. 28, 2024
USD ($)
ft²
Jun. 21, 2024
USD ($)
ft²
Jun. 06, 2024
USD ($)
ft²
May 30, 2024
USD ($)
ft²
May 23, 2024
USD ($)
ft²
May 20, 2024
USD ($)
ft²
Apr. 12, 2024
USD ($)
ft²
Apr. 01, 2024
USD ($)
ft²
Jun. 30, 2024
USD ($)
ft²
property
Real Estate Dispositions                  
Real Estate Dispositions [Line Items]                  
SALE PRICE                 $ 464,866
CLOSING ADJUSTMENTS                 (19,649)
NET PROCEEDS                 445,217
NET REAL ESTATE INVESTMENT                 394,170
OTHER (INCLUDING RECEIVABLES)                 27,037
GAIN/(IMPAIRMENT)                 $ 24,010
SQUARE FOOTAGE | ft²                 1,159,418
Albany, NY                  
Real Estate Dispositions [Line Items]                  
SALE PRICE               $ 725  
CLOSING ADJUSTMENTS               (60)  
NET PROCEEDS               665  
NET REAL ESTATE INVESTMENT               765  
OTHER (INCLUDING RECEIVABLES)               (82)  
GAIN/(IMPAIRMENT)               $ (18)  
SQUARE FOOTAGE | ft²               14,800  
San Angelo, TX                  
Real Estate Dispositions [Line Items]                  
SALE PRICE             $ 5,085    
CLOSING ADJUSTMENTS             (128)    
NET PROCEEDS             4,957    
NET REAL ESTATE INVESTMENT             4,917    
OTHER (INCLUDING RECEIVABLES)             66    
GAIN/(IMPAIRMENT)             $ (26)    
SQUARE FOOTAGE | ft²             24,580    
Houston, TX                  
Real Estate Dispositions [Line Items]                  
SALE PRICE           $ 250      
CLOSING ADJUSTMENTS           (9)      
NET PROCEEDS           241      
NET REAL ESTATE INVESTMENT           713      
OTHER (INCLUDING RECEIVABLES)           (520)      
GAIN/(IMPAIRMENT)           $ 48      
SQUARE FOOTAGE | ft²           37,040      
Multiple                  
Real Estate Dispositions [Line Items]                  
SALE PRICE         $ 284,348        
CLOSING ADJUSTMENTS         (14,270)        
NET PROCEEDS         270,078        
NET REAL ESTATE INVESTMENT         254,176        
OTHER (INCLUDING RECEIVABLES)         25,836        
GAIN/(IMPAIRMENT)         $ (9,934)        
SQUARE FOOTAGE | ft²         556,274        
Multiple | Joint Venture                  
Real Estate Dispositions [Line Items]                  
NET PROCEEDS         $ 256,800        
Denver, CO                  
Real Estate Dispositions [Line Items]                  
SALE PRICE       $ 19,000          
CLOSING ADJUSTMENTS       (628)          
NET PROCEEDS       18,372          
NET REAL ESTATE INVESTMENT       18,522          
OTHER (INCLUDING RECEIVABLES)       165          
GAIN/(IMPAIRMENT)       $ (315)          
SQUARE FOOTAGE | ft²       37,130          
Austin, TX                  
Real Estate Dispositions [Line Items]                  
SALE PRICE     $ 54,858            
CLOSING ADJUSTMENTS     (1,575)            
NET PROCEEDS     53,283            
NET REAL ESTATE INVESTMENT     27,964            
OTHER (INCLUDING RECEIVABLES)     623            
GAIN/(IMPAIRMENT)     $ 24,696            
SQUARE FOOTAGE | ft²     129,879            
Number of owned real estate properties | property                 1
Joint venture, ownership (in percentage)                 20.00%
Minneapolis, MN                  
Real Estate Dispositions [Line Items]                  
SALE PRICE   $ 1,082              
CLOSING ADJUSTMENTS   (144)              
NET PROCEEDS   938              
NET REAL ESTATE INVESTMENT   303              
OTHER (INCLUDING RECEIVABLES)   43              
GAIN/(IMPAIRMENT)   $ 592              
SQUARE FOOTAGE | ft²   50,291              
Greensboro/Raleigh, NC                  
Real Estate Dispositions [Line Items]                  
SALE PRICE $ 99,518                
CLOSING ADJUSTMENTS (2,835)                
NET PROCEEDS 96,683                
NET REAL ESTATE INVESTMENT 86,810                
OTHER (INCLUDING RECEIVABLES) 906                
GAIN/(IMPAIRMENT) $ 8,967                
SQUARE FOOTAGE | ft² 309,424                
Los Angeles, California                  
Real Estate Dispositions [Line Items]                  
Number of owned real estate properties | property                 2
Seattle, WA                  
Real Estate Dispositions [Line Items]                  
Number of owned real estate properties | property                 4
Greensboro, NC | Real Estate Dispositions                  
Real Estate Dispositions [Line Items]                  
Number of owned real estate properties | property                 7
Raleigh, NC                  
Real Estate Dispositions [Line Items]                  
Number of owned real estate properties | property                 1
Joint venture, ownership (in percentage)                 20.00%
Raleigh, NC | Real Estate Dispositions                  
Real Estate Dispositions [Line Items]                  
Number of owned real estate properties | property                 2
Atlanta, GA                  
Real Estate Dispositions [Line Items]                  
Number of owned real estate properties | property                 1
Joint venture, ownership (in percentage)                 20.00%
Philadelphia, PA                  
Real Estate Dispositions [Line Items]                  
Number of owned real estate properties | property                 1
Joint venture, ownership (in percentage)                 20.00%
New York, NY                  
Real Estate Dispositions [Line Items]                  
Number of owned real estate properties | property                 1
Joint venture, ownership (in percentage)                 20.00%
v3.24.2.u1
Real Estate Investments - Narrative (Details) - property
Jun. 30, 2024
Dec. 31, 2023
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]    
Number of owned real estate properties 3 1
v3.24.2.u1
Real Estate Investments - Assets Held for Sale (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Long Lived Assets Held-for-sale [Line Items]    
Land $ 1,287,532 $ 1,343,265
Building and improvements 10,436,218 10,881,373
Total real estate properties 12,862,398 13,399,067
Accumulated depreciation (2,427,709) (2,226,853)
Real estate assets held for sale, net 10,434,689 11,172,214
Cash and cash equivalents 41,765 25,699
Operating lease right-of-use assets 261,976 275,975
Assets held for sale, net 34,530 8,834
Operating lease liabilities 230,601 229,714
Liabilities of assets held for sale 1,805 295
Disposal Group, Held-for-sale, Not Discontinued Operations    
Long Lived Assets Held-for-sale [Line Items]    
Land 2,330 1,850
Building and improvements 43,342 6,779
Lease intangibles 1,017 1,017
Total real estate properties 46,689 9,646
Accumulated depreciation (13,600) (913)
Real estate assets held for sale, net 33,089 8,733
Cash and cash equivalents 0 0
Operating lease right-of-use assets 850 0
Other assets, net 591 101
Assets held for sale, net 34,530 8,834
Accounts payable and accrued liabilities 531 23
Operating lease liabilities 589 0
Other liabilities 685 272
Liabilities of assets held for sale $ 1,805 $ 295
v3.24.2.u1
Leases - Lease Income - (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Leases [Abstract]        
Rental income $ 308,135 $ 329,680 $ 626,211 $ 653,773
v3.24.2.u1
Leases - Lessor Accounting (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
OPERATING  
2024 $ 441,170
2025 827,950
2026 734,851
2027 614,428
2028 500,591
2029 and thereafter 1,629,794
Total $ 4,748,784
v3.24.2.u1
Leases - Ground Leases (Details)
ft² in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
USD ($)
lease
property
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
ft²
lease
property
Jun. 30, 2023
USD ($)
Lessee, Lease, Description [Line Items]        
Number of properties subject to ground leases | property 221   221  
Square feet subject to ground leases | ft²     16.5  
Number of prepaid ground leases     73  
Amortization of prepaid rent | $ $ 0.5 $ 0.3 $ 0.9 $ 0.7
Number of non-prepaid ground leases 148   148  
Minimum        
Lessee, Lease, Description [Line Items]        
Ground lease, initial term 40 years   40 years  
Maximum        
Lessee, Lease, Description [Line Items]        
Ground lease, initial term 99 years   99 years  
v3.24.2.u1
Leases - Future Minimum Lease Payments (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
OPERATING    
2024 $ 5,912  
2025 12,644  
2026 12,739  
2027 12,934  
2028 13,061  
2029 and thereafter 693,556  
Total undiscounted lease payments 750,846  
Discount (520,245)  
Lease liabilities 230,601 $ 229,714
FINANCING    
2024 1,013  
2025 2,218  
2026 2,255  
2027 2,294  
2028 2,326  
2029 and thereafter 394,072  
Total undiscounted lease payments 404,178  
Discount (328,979)  
Lease liabilities $ 75,199 $ 74,503
v3.24.2.u1
Leases - Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Operating lease cost        
Operating lease expense $ 4,599 $ 5,329 $ 9,065 $ 10,436
Variable lease expense 1,315 2,235 2,542 4,371
Finance lease cost        
Amortization of right-of-use assets 392 387 779 774
Interest on lease liabilities 942 923 1,880 1,841
Total lease expense 7,248 8,874 14,266 17,422
Other information        
Operating cash flows outflows related to operating leases 4,889 5,230 8,929 11,190
Operating cash flows outflows related to financing leases 591 541 1,154 1,094
Financing cash flows outflows related to financing leases 4 6 30 17
Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,561 $ 0 $ 2,561 $ 0
Weighted-average years remaining lease term (excluding renewal options) - operating leases 45 years 10 months 24 days 47 years 3 months 18 days 45 years 10 months 24 days 47 years 3 months 18 days
Weighted-average years remaining lease term (excluding renewal options) - finance leases 57 years 4 months 24 days 58 years 4 months 24 days 57 years 4 months 24 days 58 years 4 months 24 days
Weighted-average discount rate - operating leases 5.70% 5.80% 5.70% 5.80%
Weighted-average discount rate - finance leases 5.00% 5.00% 5.00% 5.00%
v3.24.2.u1
Notes and Bonds Payable (Details) - USD ($)
 1 Months Ended
Jun. 30, 2024
Apr. 30, 2024
Dec. 31, 2023
Debt Instrument [Line Items]      
Notes and bonds payable $ 5,148,153,000   $ 4,994,859,000
Extension period for maturity date 1 year 1 year  
Debt fees $ 300,000 $ 300,000  
Mortgage notes payable | Minimum      
Debt Instrument [Line Items]      
Effective interest rate 3.57%    
Mortgage notes payable | Maximum      
Debt Instrument [Line Items]      
Effective interest rate 6.88%    
Line of credit | $1.5 billion Unsecured Credit Facility 2      
Debt Instrument [Line Items]      
Notes and bonds payable $ 250,000,000   0
Effective interest rate 6.28%    
Credit facility $ 1,500,000,000    
Available to be drawn debt amount 1,300,000,000    
Medium-term notes | $200 million Unsecured Term Loan      
Debt Instrument [Line Items]      
Notes and bonds payable $ 199,750,000   199,903,000
Effective interest rate 6.37%    
Face amount $ 200,000,000    
Medium-term notes | $350 million Unsecured Term Loan      
Debt Instrument [Line Items]      
Notes and bonds payable $ 249,659,000   349,798,000
Effective interest rate 6.37%    
Face amount $ 250,000,000    
Medium-term notes | $300 million Unsecured Term Loan      
Debt Instrument [Line Items]      
Notes and bonds payable $ 299,970,000   299,958,000
Effective interest rate 6.37%    
Face amount $ 300,000,000    
Medium-term notes | $150 million Unsecured Term Loan      
Debt Instrument [Line Items]      
Notes and bonds payable $ 149,716,000   149,643,000
Effective interest rate 6.37%    
Face amount $ 150,000,000    
Medium-term notes | $200 million Unsecured Term Loan      
Debt Instrument [Line Items]      
Notes and bonds payable $ 199,571,000   199,502,000
Effective interest rate 6.37%    
Face amount $ 200,000,000    
Medium-term notes | $300 million Unsecured Term Loan      
Debt Instrument [Line Items]      
Notes and bonds payable $ 298,498,000   298,288,000
Effective interest rate 6.37%    
Face amount $ 300,000,000    
Medium-term notes | Unsecured Debt      
Debt Instrument [Line Items]      
Face amount 350,000,000    
Repaid amount 100,000,000    
Senior notes | Senior Notes due 2025      
Debt Instrument [Line Items]      
Notes and bonds payable $ 249,674,000   249,484,000
Effective interest rate 4.12%    
Senior notes | Senior Notes due 2026      
Debt Instrument [Line Items]      
Notes and bonds payable $ 582,873,000   579,017,000
Effective interest rate 4.94%    
Senior notes | Senior Notes due 2027      
Debt Instrument [Line Items]      
Notes and bonds payable $ 485,889,000   483,727,000
Effective interest rate 4.76%    
Senior notes | Senior Notes due 2028      
Debt Instrument [Line Items]      
Notes and bonds payable $ 297,726,000   297,429,000
Effective interest rate 3.85%    
Senior notes | Senior Notes due 2030      
Debt Instrument [Line Items]      
Notes and bonds payable $ 580,667,000   575,443,000
Effective interest rate 5.30%    
Senior notes | Senior Notes due 2030      
Debt Instrument [Line Items]      
Notes and bonds payable $ 296,983,000   296,780,000
Effective interest rate 2.72%    
Senior notes | Senior Notes due 2031      
Debt Instrument [Line Items]      
Notes and bonds payable $ 296,086,000   295,832,000
Effective interest rate 2.25%    
Senior notes | Senior Notes due 2031      
Debt Instrument [Line Items]      
Notes and bonds payable $ 658,263,000   649,521,000
Effective interest rate 5.13%    
Mortgages | Mortgage notes payable      
Debt Instrument [Line Items]      
Notes and bonds payable $ 52,828,000   $ 70,534,000
v3.24.2.u1
Notes and Bonds Payable - Narrative (Details) - Mortgages
$ in Millions
Feb. 01, 2024
USD ($)
ft²
Jan. 06, 2024
USD ($)
ft²
Debt Instrument [Line Items]    
Effective interest rate 4.12% 4.77%
Outstanding principal repaid | $ $ 5.6 $ 11.3
California    
Debt Instrument [Line Items]    
Encumbered square footage   63,012
Georgia    
Debt Instrument [Line Items]    
Encumbered square footage 40,324  
v3.24.2.u1
Derivative Financial Instruments - Cash Flow Hedges of Interest Rate Risk (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
derivative
Derivative [Line Items]  
Number of instruments | derivative 15
Interest Rate Swaps | Cash flow hedging | Designated as hedging instrument  
Derivative [Line Items]  
AMOUNT $ 1,075,000
Weighted average interest rate (percent) 3.92%
Interest Rate Swap, Expiring May 1, 2026 | Cash flow hedging | Designated as hedging instrument  
Derivative [Line Items]  
AMOUNT $ 275,000
Weighted average interest rate (percent) 3.74%
Interest Rate Swap, Expiring June 1, 2026 | Cash flow hedging | Designated as hedging instrument  
Derivative [Line Items]  
AMOUNT $ 150,000
Weighted average interest rate (percent) 3.83%
Interest Rate Swap, Expiring December 1, 2026 | Cash flow hedging | Designated as hedging instrument  
Derivative [Line Items]  
AMOUNT $ 150,000
Weighted average interest rate (percent) 3.84%
Interest Rate Swap, Expiring June 1, 2027 | Cash flow hedging | Designated as hedging instrument  
Derivative [Line Items]  
AMOUNT $ 200,000
Weighted average interest rate (percent) 4.27%
Interest Rate Swap, Expiring December 1, 2027 | Cash flow hedging | Designated as hedging instrument  
Derivative [Line Items]  
AMOUNT $ 300,000
Weighted average interest rate (percent) 3.93%
v3.24.2.u1
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Balance Sheet (Details) - Designated as hedging instrument - Interest Rate Swaps
$ in Thousands
Jun. 30, 2024
USD ($)
Derivative [Line Items]  
Liability derivatives $ 9,699
Other liabilities  
Derivative [Line Items]  
Liability derivatives (1,839)
Other assets  
Derivative [Line Items]  
Liability derivatives $ 11,538
v3.24.2.u1
Derivative Financial Instruments - Effect of Cash Flow Hedging on AOCI (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Derivative [Line Items]        
(Gain)/loss recognized in AOCI on derivative $ (5,891) $ (21,523) $ (25,501) $ (12,981)
(Gain) Loss, Reclassified from AOCI into income (3,662) (3,419) (7,528) (5,703)
Interest expense        
Derivative [Line Items]        
(Gain) Loss, Reclassified from AOCI into income (3,662) (3,419) (7,528) (5,703)
Interest rate swaps        
Derivative [Line Items]        
(Gain)/loss recognized in AOCI on derivative (5,891) (21,523) (25,501) (12,981)
Interest rate swaps | Interest expense        
Derivative [Line Items]        
(Gain) Loss, Reclassified from AOCI into income (3,811) (3,568) (7,825) (6,000)
Settled treasury hedges        
Derivative [Line Items]        
(Gain)/loss recognized in AOCI on derivative 0 0 0 0
Settled treasury hedges | Interest expense        
Derivative [Line Items]        
(Gain) Loss, Reclassified from AOCI into income 107 107 213 213
Settled interest rate swaps        
Derivative [Line Items]        
(Gain)/loss recognized in AOCI on derivative 0 0 0 0
Settled interest rate swaps | Interest expense        
Derivative [Line Items]        
(Gain) Loss, Reclassified from AOCI into income $ 42 $ 42 $ 84 $ 84
v3.24.2.u1
Derivative Financial Instruments - Derivative Instruments Designated as Cash Flow Hedges (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Derivative [Line Items]  
Derivatives in net liability position $ 0.3
Active Interest Rate Swap  
Derivative [Line Items]  
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months 10.5
Settled Interest Rate Swaps  
Derivative [Line Items]  
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months $ (0.6)
v3.24.2.u1
Commitment and Contingencies - Narrative (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2024
USD ($)
Active Development Properties  
Other Commitments [Line Items]  
Construction activity and development properties $ 35.6
Redevelopment Properties  
Other Commitments [Line Items]  
Construction activity and development properties 8.5
Completed Develpoment and Redevelopment Properties  
Other Commitments [Line Items]  
Construction activity and development properties $ 22.3
v3.24.2.u1
Stockholders' Equity - Reconciliation of Beginning and Ending Common Stock Outstanding (Details) - shares
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Reconciliation of the beginning and ending common stock outstanding    
Balance, beginning of period (in shares) 380,964,000  
Shares Repurchased (in shares) (17,242,237) 0
Balance, end of period (in shares) 364,327,000 380,964,000
Common Stock    
Reconciliation of the beginning and ending common stock outstanding    
Balance, beginning of period (in shares) 380,964,433 380,589,894
Issuance of common stock (in shares) 8,623 8,627
Stock issued during period, shares, conversion of units 194,767 190,544
Non-vested share-based awards, net of withheld shares and forfeitures (in shares) 401,648 175,368
Balance, end of period (in shares) 364,327,234 380,964,433
v3.24.2.u1
Stockholders' Equity - Stock Transactions - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 6 Months Ended
Jul. 30, 2024
Apr. 30, 2024
Feb. 13, 2024
Aug. 02, 2024
Apr. 30, 2024
Feb. 29, 2024
Jan. 31, 2023
Jun. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
May 31, 2023
Class of Stock [Line Items]                            
Dividends paid per common share, during the period (in dollars per share)                 $ 0.31   $ 0.31 $ 0.62 $ 0.62  
Stock repurchase program, authorized amount   $ 500.0     $ 500.0                 $ 500.0
Treasury stock, shares, acquired (in shares)         2,966,764     14,275,473            
Shares acquired, average cost per share (in dollars per share)         $ 14.07     $ 16.18            
Common stock repurchases, excluding commissions         $ 41.7     $ 231.0            
Additional authorized amount for share repurchase program               $ 269.0 $ 269.0     $ 269.0    
Subsequent event                            
Class of Stock [Line Items]                            
Dividends declared per common share, during the period (in dollars per share) $ 0.31                          
Treasury stock, shares, acquired (in shares)       1,296,985                    
Common stock repurchases, excluding commissions       $ 21.8                    
LTIP Series C Units | Directors | Share-Based Payment Arrangement, Nonemployee                            
Class of Stock [Line Items]                            
Granted (in shares)     906,044                      
Grant date fair value           $ 7.5                
Stock incentive plan                            
Class of Stock [Line Items]                            
Granted (in shares)                 135,767   43,276 1,611,578 1,118,537  
Operating Partnership Performance Units                            
Class of Stock [Line Items]                            
Award performance period           3 years                
Operating Partnership Performance Units | Performance conditions                            
Class of Stock [Line Items]                            
Percentage of restricted stock units             64.00%              
Weighted average grant date fair value (in dollars per share)             $ 15.22              
Operating Partnership Performance Units | Relative TSR Component                            
Class of Stock [Line Items]                            
Weighted average grant date fair value (in dollars per share)           $ 9.62                
Operating Partnership Performance Units | LTIP Series C Units                            
Class of Stock [Line Items]                            
Percentage of restricted stock units           36.00%                
Non-vested Stock Award | Executive Incentive Program                            
Class of Stock [Line Items]                            
Grant date fair value                 $ 0.9 $ 5.6        
Granted (in shares)                 58,910 361,712        
Non-vested Stock Award | Executive Incentive Program | Minimum                            
Class of Stock [Line Items]                            
Award vesting period                   3 years        
Non-vested Stock Award | Executive Incentive Program | Maximum                            
Class of Stock [Line Items]                            
Award vesting period                   8 years        
Non-vested Stock Award | LTIP Series D Units                            
Class of Stock [Line Items]                            
Grant date fair value                 $ 0.7          
Granted (in shares)                 45,982          
Non-vested Stock Award | Other Members Of Senior Management                            
Class of Stock [Line Items]                            
Grant date fair value                 $ 0.1          
Granted (in shares)                 9,350          
Restricted Stock Units (RSUs)                            
Class of Stock [Line Items]                            
Award vesting period   5 years 5 years                      
Percentage of restricted stock units     36.00%                      
Restricted Stock Units (RSUs) | Performance conditions                            
Class of Stock [Line Items]                            
Percentage of restricted stock units     64.00%                      
Weighted average grant date fair value (in dollars per share)     $ 15.22                      
Restricted Stock Units (RSUs) | Relative TSR Component                            
Class of Stock [Line Items]                            
Weighted average grant date fair value (in dollars per share)     $ 19.10                      
Restricted Stock Units (RSUs) | Executive Incentive Program                            
Class of Stock [Line Items]                            
Grant date fair value   $ 0.3 $ 3.5                      
Granted (in shares)   21,816 208,055                      
Options under the Employee Stock Option Plan | Operating Partnership Performance Units                            
Class of Stock [Line Items]                            
Weighted-average incremental shares of common stock excluded from the computation (in shares)                 3,657,682     3,669,454    
v3.24.2.u1
Stockholders' Equity - Computation of Basic and Diluted Earnings (Loss) Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Weighted average common shares outstanding        
Weighted average common shares outstanding (in shares) 374,498,770 380,829,011 377,916,989 380,812,981
Non-vested shares (in shares) (2,021,471) (1,932,334) (1,954,956) (1,952,350)
Weighted average common shares outstanding - basic (in shares) 372,477,299 378,896,677 375,962,033 378,860,631
Dilutive effect of OP Units (in shares) 0 0 0 0
Weighted average common shares outstanding - diluted (in shares) 372,477,299 378,896,677 375,962,033 378,860,631
Net loss $ (145,938) $ (83,726) $ (461,157) $ (171,804)
Income allocated to participating securities (917) (606) (1,819) (1,830)
Loss attributable to non-controlling interest 2,158 967 6,541 1,920
Adjustment to loss attributable to non-controlling interest for legally outstanding restricted units (717) (77) (2,047) 1,154
Net loss applicable to common stockholders - basic $ (145,414) $ (83,442) $ (458,482) $ (170,560)
Basic earnings per common share - net loss (in dollars per share) $ (0.39) $ (0.22) $ (1.22) $ (0.45)
Diluted earnings per common share- net loss (in dollars per share) $ (0.39) $ (0.22) $ (1.22) $ (0.45)
v3.24.2.u1
Stockholders' Equity - Schedule of Stock Options, Valuation Assumptions (Details) - $ / shares
 1 Months Ended
Jan. 04, 2023
Jan. 31, 2023
Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]    
Volatility 28.00%  
Expected term 3 years  
Risk-free rate 4.44%  
Stock price (in dollar per share) $ 15.22  
Operating Partnership Performance Units    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]    
Volatility   28.00%
Expected term   3 years
Risk-free rate   4.44%
Stock price (in dollar per share)   $ 15.22
v3.24.2.u1
Stockholders' Equity - Schedule of the Activity Under the Incentive Plan and RSU Activity (Details) - Stock incentive plan - shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Summary of the activity under the incentive plans          
Share-based awards, beginning of period (in shares) 4,043,154 2,615,562 2,946,242 2,615,562 2,090,060
Granted (in shares) 135,767   43,276 1,611,578 1,118,537
Vested/Forfeited (in shares) (46,660)   (74,304) (75,074) (188,070)
Change in awards based on performance assessment (in shares) (47,202)   0 (47,202) (79,250)
Forfeited (in shares) 0   (3,860) (19,805) (29,923)
Share-based awards, ending of period (in shares) 4,085,059 4,043,154 2,911,354 4,085,059 2,911,354
v3.24.2.u1
Stockholders' Equity - Amortization of Compensation for Nonvested Shares (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Equity [Abstract]  
2024 $ 8.0
2025 13.4
2026 10.1
2027 5.5
2028 and thereafter 2.9
Total $ 39.9
v3.24.2.u1
Fair Value of Financial Instruments (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
CARRYING VALUE    
Derivative [Line Items]    
Notes and bonds payable $ 5,148.2 $ 4,994.9
Real estate notes receivable 168.8 173.6
FAIR VALUE    
Derivative [Line Items]    
Notes and bonds payable 4,984.7 4,872.7
Real estate notes receivable $ 163.6 $ 172.5