Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2022	Feb. 24, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 6,374,706,546
Entity Common Stock, Shares Outstanding		380,779,861
Documents Incorporated by Reference	Portions of the Registrant’s definitive Proxy Statement relating to the Annual Meeting of Stockholders to be held on June 5, 2023 are incorporated by reference into Part III of this Report.
Entity Central Index Key	0001360604
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	BDO USA, LLP
Auditor Location	Nashville, TN
Auditor Firm ID	243

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Real estate properties
Land	$ 1,439,798	$ 387,918
Buildings and improvements	11,332,037	4,337,641
Lease intangibles	959,998	120,478
Personal property	11,907	11,761
Investment in financing receivables, net	120,236	186,745
Financing lease right-of-use assets	83,824	31,576
Construction in progress	35,560	3,974
Land held for development	74,265	24,849
Total real estate investments	14,057,625	5,104,942
Less accumulated depreciation	(1,645,271)	(1,338,743)
Total real estate investments, net	12,412,354	3,766,199
Cash and cash equivalents	60,961	13,175
Assets held for sale, net	18,893	57
Operating lease right-of-use assets	336,983	128,386
Investments in unconsolidated joint ventures	327,248	161,942
Goodwill	223,202	3,487
Other assets, net	469,990	185,673
Total assets	13,849,631	4,258,919
Liabilities
Notes and bonds payable	5,351,827	1,801,325
Accounts payable and accrued liabilities	244,033	86,108
Liabilities of properties held for sale	437	294
Operating lease liabilities	279,895	96,138
Financing lease liabilities	72,939	22,551
Other liabilities	218,668	67,387
Total liabilities	6,167,799	2,073,803
Commitments and contingencies (See Footnote 15)
Redeemable non-controlling interests	2,014	0
Stockholders' equity
Preferred stock, $0.01 par value; 200,000 shares authorized; none issued and outstanding	0	0
Common stock, $0.01 par value; 1,000,000 shares authorized; 380,590 and 150,457 shares issued and outstanding at December 31, 2022 and 2021, respectively.	3,806	1,505
Additional paid-in capital	9,587,637	3,972,917
Accumulated other comprehensive income (loss)	2,140	(9,981)
Cumulative net income attributable to common stockholders	1,307,055	1,266,158
Cumulative dividends	(3,329,562)	(3,045,483)
Total stockholders’ equity	7,571,076	2,185,116
Non-controlling interest	108,742	0
Total equity	7,679,818	2,185,116
Total liabilities, redeemable non-controlling interests, and stockholders' equity	$ 13,849,631	$ 4,258,919

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
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)	380,590,000	150,457,000
Common stock, outstanding (in shares)	380,590,000	150,457,000
Lease intangibles	$ 959,998	$ 120,478

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues
Rental income	$ 907,451	$ 520,334	$ 492,262
Interest income	11,480	4,192	0
Other operating	13,706	10,291	7,367
Total Revenue	932,637	534,817	499,629
Expenses
Property operating	344,038	212,273	196,514
General and administrative	52,734	34,152	30,704
Acquisition and pursuit costs	3,229	3,930	2,561
Merger-related costs	103,380	0	0
Depreciation and amortization	453,082	202,714	190,435
Total expenses	956,463	453,069	420,214
Other income (expense)
Gain on sales of real estate properties	270,271	55,940	70,361
Interest expense	(146,691)	(53,124)	(56,174)
Loss on extinguishment of debt	(2,401)	0	(21,503)
Impairment of real estate properties	(54,427)	(17,101)	0
Equity loss recognized during the period	(687)	(795)	(463)
Interest and other (expense) income, net	(1,546)	(9)	559
Total other income (expense)	64,519	(15,089)	(7,220)
Net income	40,693	66,659	72,195
Net loss attributable to non-controlling interests	204	0	0
Net income attributable to common stockholders	$ 40,897	$ 66,659	$ 72,195
Basic and diluted earnings per share:
Basic earnings per common share (in dollars per share)	$ 0.15	$ 0.45	$ 0.52
Diluted earnings per common share (in dollars per share)	$ 0.15	$ 0.45	$ 0.52
Weighted average number of shares outstanding, basic and diluted:
Weighted average common shares outstanding - basic (in shares)	252,356,203	142,637,166	133,930,145
Weighted average common shares outstanding - diluted (in shares)	253,873,321	142,710,228	134,006,940
Revenue, Product and Service [Extensible List]	Service [Member]	Service [Member]

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net income	$ 40,693	$ 66,659	$ 72,195
Interest rate swaps
Reclassification adjustment for losses included in net income (interest expense)	1,527	4,472	3,472
Gains (losses) arising during the period on interest rate swaps and treasury rate locks	10,630
Net current-period other comprehensive income	12,157	7,851	(11,657)
Comprehensive income	52,850	74,510	60,538
Less: Comprehensive loss attributable to non-controlling interests	168
Comprehensive income attributable to common stockholders	53,018	74,510	60,538
Interest Rate Swaps
Interest rate swaps
Gains (losses) arising during the period on interest rate swaps and treasury rate locks	10,630	3,379	(10,862)
Treasury Rate Locks
Interest rate swaps
Gains (losses) arising during the period on interest rate swaps and treasury rate locks	$ 0	$ 0	$ (4,267)

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Cumulative Net Income	Cumulative Dividends	Total Stockholders’ Equity	Non- controlling Interests
Beginning Balance at Dec. 31, 2019	$ 1,900,009	$ 0	$ 1,347	$ 3,485,003	$ (6,175)	$ 1,127,304	$ (2,707,470)	$ 1,900,009	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock, net of costs	142,170		47	142,123				142,170
Common stock redemption	(1,706)		(1)	(1,705)				(1,706)
Share-based compensation	9,922		2	9,920				9,922
Net income	72,195					72,195		72,195
Reclassification adjustments for losses included in net income (interest expense)	3,472
Gains (Losses) arising during the period on interest rate swaps and treasury locks	(11,657)				(11,657)			(11,657)
Dividends to common stockholders ($1.24 per share)	(162,557)						(162,557)	(162,557)
Ending Balance at Dec. 31, 2020	1,948,376	0	1,395	3,635,341	(17,832)	1,199,499	(2,870,027)	1,948,376	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock, net of costs	331,042		109	330,933				331,042
Common stock redemption	(4,085)		(1)	(4,084)				(4,085)
Share-based compensation	10,729		2	10,727				10,729
Net income	66,659					66,659		66,659
Reclassification adjustments for losses included in net income (interest expense)	4,472
Gains (Losses) arising during the period on interest rate swaps and treasury locks	7,851				7,851			7,851
Dividends to common stockholders ($1.24 per share)	(175,456)						(175,456)	(175,456)
Ending Balance at Dec. 31, 2021	2,185,116	0	1,505	3,972,917	(9,981)	1,266,158	(3,045,483)	2,185,116	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock, net of costs	22,907		6	22,901				22,907
Merger consideration transferred	5,687,165		2,289	5,574,174				5,576,463	110,702
Common stock redemption	(2,792)		(1)	(2,791)				(2,792)
Share-based compensation	20,346		7	20,339				20,346
Redemption of non-controlling interest	0			97				97	(97)
Net income	40,693					40,897		40,897	(204)
Reclassification adjustments for losses included in net income (interest expense)	1,527				1,531			1,531	(4)
Gains (Losses) arising during the period on interest rate swaps and treasury locks	10,630				10,590			10,590	40
Dividends to common stockholders ($1.24 per share)	(285,774)						(284,079)	(284,079)	(1,695)
Ending Balance at Dec. 31, 2022	$ 7,679,818	$ 0	$ 3,806	$ 9,587,637	$ 2,140	$ 1,307,055	$ (3,329,562)	$ 7,571,076	$ 108,742

Consolidated Statements of Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Dividend per share to common stockholders (in dollars per share)	$ 1.24	$ 1.21	$ 1.20

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
OPERATING ACTIVITIES
Net income	$ 40,693	$ 66,659	$ 72,195
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	453,082	202,714	190,435
Other amortization	24,695	3,793	4,381
Share-based compensation	20,346	10,729	9,922
Amortization of straight-line rent receivable (lessor)	(23,498)	(5,801)	(3,735)
Amortization of straight-line rent on operating leases (lessee)	3,374	1,498	1,490
Gain on sales of real estate properties	(270,271)	(55,940)	(70,361)
Loss on extinguishment of debt	2,401	0	21,503
Impairment of real estate properties	54,427	17,101	0
Equity loss from unconsolidated joint ventures	687	795	463
Distributions from unconsolidated joint ventures	1,881	0	193
Proceeds from disposition of sales-type lease properties	0	0	244,454
Non-cash interest from financing and real estate notes receivable	(2,257)	(391)	0
Changes in operating assets and liabilities:
Other assets, including right-of-use-assets	(26,098)	(11,436)	(727)
Accounts payable and accrued liabilities	24,191	(839)	4,555
Other liabilities	(30,906)	3,747	(4,679)
Net cash provided by operating activities	272,747	232,629	470,089
INVESTING ACTIVITIES
Acquisitions of real estate	(402,529)	(365,943)	(397,349)
Development of real estate	(37,862)	(4,029)	(3,089)
Additional long-lived assets	(163,544)	(100,689)	(93,963)
Funding of mortgages and notes receivable	(23,325)	0	0
Investments in unconsolidated joint ventures	(99,967)	(89,600)	(65,663)
Investment in financing receivable	(1,002)	(186,433)	0
Proceeds from sales of real estate properties and additional long-lived assets	1,201,068	184,221	4,898
Proceeds from notes receivable repayments	1,688	0	0
Cash assumed in Merger, including restricted cash for special dividend payment	1,159,837	0
Net cash provided by (used in) investing activities	1,634,364	(562,473)	(555,166)
FINANCING ACTIVITIES
Net borrowings/(repayments) on unsecured credit facility	40,000	210,000	(293,000)
Borrowings on term loans	666,500	0	150,000
Repayment on term loan	(1,141,500)	0	0
Borrowings of notes and bonds payable	0	0	596,562
Repayments of notes and bonds payable	(20,042)	(24,557)	(47,845)
Redemption of notes and bonds payable	(2,184)	0	(270,386)
Dividends paid	(283,713)	(175,456)	(162,557)
Special dividend paid in relation to the Merger	(1,123,648)	0	0
Net proceeds from issuance of common stock	22,902	331,119	142,000
Common stock redemptions	(3,192)	(3,803)	(1,436)
Distributions to non-controlling interest of limited partners	(1,695)	0	0
Settlement of treasury rate locks	0	0	(4,267)
Debt issuance and assumption costs	(12,753)	(405)	(5,931)
Payments made on finance leases	0	(9,182)	(3,417)
Net cash (used in) provided by financing activities	(1,859,325)	327,716	99,723
Increase (decrease) in cash and cash equivalents	47,786	(2,128)	14,646
Cash and cash equivalents cash at beginning of period	13,175	15,303	657
Cash and cash equivalents at end of period	60,961	13,175	15,303
Supplemental Cash Flow Information
Interest paid	112,692	49,443	52,787
Mortgage notes payable assumed upon acquisition (adjusted to fair value)	0	11,790	36,536
Invoices accrued for construction, tenant improvements and other capitalized costs	48,292	17,655	14,935
Capitalized interest	1,410	221	1,142
Real estate notes receivable assumed in Merger (adjusted to fair value)	74,819	0	0
Unsecured credit facility and term loans assumed in Merger (adjusted to fair value)	1,758,650	0	0
Senior notes assumed in Merger (adjusted to fair value)	2,232,650	0	0
Consideration transferred in relation to the Merger	$ 5,576,463	$ 0	$ 0

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

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 of America. See Note 2 below for a discussion of the Merger between Legacy HR and Legacy HTA. The Company had gross investments of approximately $14.1 billion in 688 real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development, and corporate property as of December 31, 2022. The Company’s 688 real estate properties are located in 35 states and total approximately 40.3 million square feet. In addition, the Company had a weighted average ownership interest of approximately 48% in 33 real estate properties held in joint ventures. See Note 5 below for more details regarding the Company's joint ventures. Square footage and property count disclosures in these Notes to the Company's Consolidated Financial Statements are unaudited.

Principles of Consolidation

The Company’s 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 Topic 810 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 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.

Healthcare Realty Holdings, L.P. (formally known as Healthcare Trust of America Holdings, LP) (the "OP") is 98.9% owned by the Company. 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 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 December 31, 2022 there were approximately 4.0 million, or 1.1%, 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 the interests in the OP.

As of December 31, 2022, the Company had three consolidated VIEs in addition to the OP where it 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)	DECEMBER 31, 2022
Assets:
Net real estate investments	$	46,322
Cash and cash equivalents	3,645
Receivables and other assets	2,385
Total assets	$	52,352
Liabilities:
Accrued expenses and other liabilities	$	12,214
Total equity	40,138
Total liabilities and equity	$	52,352

As of December 31, 2022, the Company had three unconsolidated VIEs consisting of two notes receivables and one joint venture. The Company does not have the power or economics to direct the activities of the VIEs on a stand-alone basis, therefore it was determined that the Company was not the primary beneficiary. Therefore, 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:


ORIGINATION DATE	LOCATION	SOURCE	CARRYING AMOUNT		MAXIMUM EXPOSURE TO LOSS
2021	Houston, TX 1	Note receivable	$	29,753	$	31,150
2021	Charlotte, NC 1	Note receivable	5,984		6,000
2022	Texas 2	Equity method	23,219		23,219

1Assumed mortgage note receivable in connection with the Merger.

2Includes investments in six properties.

As of December 31, 2022, 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 5 for more details regarding the Company's unconsolidated joint ventures.

Use of Estimates in the Consolidated Financial Statements

Preparation of the Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates and assumptions. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, impairments, collectability of tenant receivables, and fair value measurements, as applicable.

Reclassifications

Certain reclassifications have been made on the Company's prior year Consolidated Balance Sheet to conform to current year presentation. Previously, the Company's Lease intangibles were included in Building, improvements and lease intangibles and Goodwill was included with Other assets, net. These amounts are now classified as separate line items on the Company's Consolidated Balance Sheets.

Segment Reporting

The Company owns, leases, acquires, manages, finances, develops and redevelops outpatient and other healthcare-related properties. The Company is managed as one reporting unit, rather than multiple reporting units, for internal reporting purposes and for internal decision-making. Therefore, the Company discloses its operating results in a single reportable segment.

Real Estate Properties

Real estate properties are recorded at cost or at fair value if acquired in a transaction that is a business combination under Accounting Standards Codification Topic 805, Business Combinations. Cost or fair value at the time of acquisition is allocated among land, buildings, tenant improvements, lease and other intangibles, and personal property as applicable.

During 2022 and 2021, the Company eliminated against accumulated depreciation approximately $19.6 million and $16.3 million, respectively, of fully amortized real estate intangibles that were initially recorded as a component of certain real estate acquisitions. Also during 2022 and 2021, approximately $4.1 million and $9.9 million, respectively, of fully depreciated tenant and capital improvements that were no longer in service were eliminated against accumulated depreciation. In addition, during 2021, the Company eliminated against accumulated depreciation approximately $7.1 million of a fully depreciated building that is being demolished and redeveloped.

Depreciation expense of real estate properties for the three years ended December 31, 2022, 2021 and 2020 was $320.8 million, $170.0 million and $162.4 million, respectively. Depreciation and amortization of real estate assets in place as of December 31, 2022, is provided for on a straight-line basis over the asset’s estimated useful life:


Land improvements			2.0 to 39.0 years
Buildings and improvements			3.0 to 49.0 years
Lease intangibles (including ground lease intangibles)			1.2 to 99.0 years
Personal property			3.0 to 20.0 years

The Company capitalizes direct costs, including costs such as construction costs and professional services, and indirect costs, including capitalized interest and overhead costs, associated with the development and construction of real estate assets while substantive activities are ongoing to prepare the assets for their intended use. Capitalized interest cost is calculated using the weighted average interest rate of the Company's unsecured debt or the interest rate on project specific debt, if applicable. The Company continues to capitalize interest on the unoccupied portion of the properties in stabilization for up to one year after the buildings have been placed into service, at which time the capitalization of interest must cease.

Land Held for Development

Land held for development includes parcels of land owned by the Company, upon which the Company intends to develop and own outpatient healthcare facilities. The Company's land held for development included twenty parcels as of December 31, 2022 and seven parcels as of December 31, 2021. The Company’s investments in land held for development totaled approximately $74.3 million as of December 31, 2022 and $24.8 million as of December 31, 2021. The current land that is held for development is located adjacent to certain of the Company's existing medical office buildings in California, Colorado, Connecticut, Florida, Georgia, Massachusetts, New York, North Carolina, Tennessee, Texas and Washington.

Asset Impairment

The Company assesses the potential for impairment of identifiable, definite-lived, intangible assets and long-lived assets, including real estate properties, whenever events occur 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. In addition, the Company reviews for possible impairment, those assets subject to purchase options and those impacted by casualty losses, such as tornadoes and hurricanes. A property value is considered impaired only if management's estimate of current and projected (undiscounted and unleveraged) operating cash flows of the property is less than the net carrying value of the property. These estimates of future cash flows include only those that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the property based on its estimated remaining useful life. These estimates, including the useful life determination which can be affected by any potential sale of the property, are based on management's assumptions about its use of the property. Therefore, significant judgment is involved in estimating the current and projected cash flows. If management determines that the carrying value of the Company’s assets may not be fully recoverable based on the existence of any of the factors above, or others, management would measure and record an impairment charge based on the estimated fair value of the property or the estimated fair value less costs to sell the property.

Acquisitions of Real Estate Properties with In-Place Leases

The Company's acquisitions of real estate properties typically do not meet the definition of a business and are accounted for as asset acquisitions. Acquisitions of real estate properties with in-place leases are accounted for at relative fair value. When a building with in-place leases is acquired, the cost of the acquisition must be allocated between the tangible real estate assets "as-if-vacant" and the intangible real estate assets related to in-place leases based on their estimated fair values. Land fair value is estimated by using an assessment of comparable transactions and other relevant data.

The Company considers whether any of the in-place lease rental rates are above- or below-market. An asset (if the actual rental rate is above-market) or a liability (if the actual rental rate is below-market) is calculated and recorded in an amount equal to the present value of the future cash flows that represent the difference between the actual lease rate and the estimated market rate. If an in-place lease is identified as a below-market rental rate, the Company would also evaluate any renewal options associated with that lease to determine if the intangible should include those periods. The values related to above- or below-market in-place lease intangibles are amortized over the remaining term of the leases upon acquisition to rental income where the Company is the lessor and to property operating expense where the Company is the lessee.

The Company also estimates an absorption period, which can vary by property, assuming the building is vacant and must be leased up to the actual level of occupancy when acquired. During that absorption period, the owner would incur direct costs, such as tenant improvements, and would suffer lost rental income. Likewise, the owner would have acquired a measurable asset in that, assuming the building was vacant, certain fixed costs would be avoided because the actual in-place lessees would reimburse a certain portion of fixed costs through expense reimbursements during the absorption period.

All of these intangible assets (above- or below-market lease, tenant improvement costs avoided, leasing costs avoided, rental income lost, and expenses recovered through in-place lessee reimbursements) are estimated and recorded in amounts equal to the present value of estimated future cash flows. The actual purchase price is allocated based on the various relative asset fair values described above.

The building and tenant improvement components of the purchase price are depreciated over the estimated useful life of the building or the weighted average remaining term of the in-place leases. The at-market, in-place lease intangibles are amortized to depreciation and amortization expense over the weighted average remaining term of the leases, and customer relationship assets are amortized to depreciation amortization expense over terms applicable to each acquisition. Any goodwill recorded through a business combination would be reviewed for impairment at least annually and is not amortized.

See Note 9 for more details on the Company’s intangible assets.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. In calculating fair value, a company must maximize the use of observable market inputs, minimize the use of unobservable market inputs and disclose in the form of an outlined hierarchy the details of such fair value measurements.

A hierarchy of valuation techniques is defined to determine whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These inputs have created the following fair value hierarchy:

•Level 1 – quoted prices for identical instruments in active markets;

•Level 2 – quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

•Level 3 – fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Executed purchase and sale agreements, that are binding agreements, are categorized as level one inputs. Brokerage estimates, letters of intent, or unexecuted purchase and sale agreements are considered to be level three as they are nonbinding in nature.

Fair Value of Derivative Financial Instruments

Derivative financial instruments are recorded at fair value on the Company's Consolidated Balance Sheets as other assets or other liabilities. The valuation of derivative instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. Fair values of derivatives are estimated by pricing models that consider the forward yield curves and discount rates. The fair value of the Company's forward starting interest rate swap contracts are estimated by pricing models that consider foreign trade rates and discount rates. Such amounts and the recognition of such amounts are subject to significant estimates that may change in the future. For derivatives designated in qualifying cash flow hedging relationships, the change in fair value of the effective portion of the derivatives is recognized in accumulated other comprehensive income (loss). Gains and losses are reclassified from accumulated other comprehensive income (loss) into earnings once the underlying hedged transaction is recognized in earnings. As of December 31, 2022 and 2021, the Company had $2.1 million recorded in accumulated other comprehensive income and $10.0 million recorded in accumulated other comprehensive loss, respectively, related to forward starting interest rate swaps entered into and settled during 2015 and 2020 and a hedge of the Company's variable rate debt. See Note 11 for additional information.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents includes short-term investments with original maturities of three months or less when purchased. Restricted cash includes cash held in escrow in connection with proceeds from the sales of certain real estate properties. The Company did not have any restricted cash for the years ended December 31, 2022 or 2021.

Cash and cash equivalents are held in bank accounts and overnight investments. The Company maintains its bank deposits with large financial institutions in amounts that often exceed federally-insured limits. The Company has not experienced any losses in such accounts.

Goodwill and Other Intangible Assets

Goodwill and intangible assets with indefinite lives are not amortized, but are tested at least annually for impairment. Intangible assets with finite lives are amortized over their respective lives to their estimated residual values and are reviewed for impairment only when impairment indicators are present.

Identifiable intangible assets of the Company are comprised of enterprise goodwill, in-place lease intangible assets, customer relationship intangible assets, and debt issuance costs. In-place lease and customer relationship intangible assets are amortized on a straight-line basis over the applicable lives of the assets. Debt issuance costs are amortized

over the term of the debt instrument on the effective interest method or the straight-line method when the effective interest method is not applicable. Goodwill is not amortized but is evaluated annually as of December 31 for impairment. The Company's goodwill asset increased to $223.2 million in 2022 as a result of the Merger. The 2022 impairment evaluation indicated that no impairment had occurred with respect to the Company's goodwill asset. See Note 9 for more detail on the Company’s intangible assets.

Contingent Liabilities

From time to time, the Company may be subject to loss contingencies arising from legal proceedings and similar matters. Additionally, while the Company maintains comprehensive liability and property insurance with respect to each of its properties, the Company may be exposed to unforeseen losses related to uninsured or underinsured damages.

The Company continually monitors any matters that may present a contingent liability, and, on a quarterly basis, management reviews the Company’s reserves and accruals in relation to each of them, adjusting provisions as necessary in view of changes in available information. Liabilities for contingencies are first recorded when a loss is determined to be both probable and can be reasonably estimated. Changes in estimates regarding the exposure to a contingent loss are reflected as adjustments to the related liability in the periods when they occur.

Because of uncertainties inherent in the estimation of contingent liabilities, it is possible that the Company’s provision for contingent losses could change materially in the near term. To the extent that any significant losses, in addition to amounts recognized, are at least reasonably possible, such amounts will be disclosed in the notes to the Consolidated Financial Statements.

Share-Based Compensation

The Company has various employee and director share-based awards outstanding. These awards include non-vested common stock and options to purchase common stock granted to employees pursuant to the Company's Amended and Restated 2006 Incentive Plan, dated April 29, 2021 ("Incentive Plan"), which replaced the Company's 2015 Stock Incentive Plan (the "Legacy HR Stock Incentive Plan") following the Merger. References to the Incentive Plan include issuances under the Incentive Plan and the Legacy HR Stock Incentive Plan. Legacy HR's 2000 Employee Stock Purchase Plan (the "Legacy HR Employee Stock Purchase Plan") was terminated during 2022 and all outstanding options will expire by 2024. No new options will be issued under this plan. The Company recognizes share-based payments to employees and directors in the Consolidated Statements of Income on a straight-line basis over the requisite service period based on the fair value of the award on the measurement date. The Company recognizes the impact of forfeitures as they occur. See Note 13 for details on the Company’s share-based awards.

Accumulated Other Comprehensive Income (Loss)

Certain items must be included in comprehensive income, including items such as foreign currency translation adjustments, minimum pension liability adjustments, changes in the fair value of derivative instruments and unrealized gains or losses on available-for-sale securities. As of December 31, 2022, the Company’s accumulated other comprehensive income (loss) consists of the loss for changes in the fair value of active derivatives designated as cash flow hedges and the loss on the unamortized settlement of forward starting swaps and treasury hedges. See Note 11 for more details on the Company's derivative financial instruments.

Revenue from Contracts with Customers (Topic 606)

The Company recognizes certain revenue under the core principle of Topic 606. This 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 Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance.

Revenue that is accounted for under Topic 606 is segregated on the Company’s Consolidated Statements of Income 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:


	YEAR ENDED DECEMBER 31,
Dollars in thousands	2022		2021		2020
Type of Revenue
Parking income	$	8,513	$	7,859	$	6,720

Management fee income	4,668		2,049		343
Miscellaneous	525		383		304
	$	13,706	$	10,291	$	7,367

The Company’s three 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. In most cases, the revenue is due and payable on a monthly basis. The Company had a receivable balance of $1.5 million and $1.4 million for the years ended December 31, 2022 and 2021, respectively.

Management fee income includes property management services provided to third parties and certain of the properties in the Company's unconsolidated joint ventures and is generally calculated, accrued and billed monthly based on a percentage of cash collections of tenant receivables for the month or a stated amount per square foot. Management fee income also includes amounts paid to the Company for its asset management services for certain of its unconsolidated joint ventures. Internal management fee income, where the Company manages its owned properties, is eliminated in consolidation.

Rental Income

Rental income related to non-cancelable operating leases is recognized as earned over the life of the lease agreements on a straight-line basis. The Company's lease agreements generally include provisions for stated annual increases or increases based on a Consumer Price Index ("CPI"). Rental income from properties under multi-tenant office lease arrangements and rental income from properties with single-tenant lease arrangements are included in rental income on the Company's Consolidated Statements of Income. For lessors, the new standard requires a lessor to classify leases as either sales-type, direct-financing or operating. A lease will be treated as a sale if it is considered to transfer control of the underlying asset to the lessee. A lease will be classified as direct-financing if risks and rewards are conveyed without the transfer of control. Otherwise, the lease is treated as an operating lease.

Nonlease components, such as common area maintenance, are generally accounted for under Topic 606 and separated from the lease payments. However, the Company elected the lessor practical expedient allowing the Company to not separate these components when certain conditions are met. The combined component is accounted for under Accounting Standards Codification, Topic 842.

The components of rental income are as follows:


	YEAR ENDED DECEMBER 31,
Dollars in thousands	2022		2021		2020
Property operating income	$	883,953	$	514,533	$	488,527
Straight-line rent	23,498		5,801		3,735
Rental income	$	907,451	$	520,334	$	492,262

Federal Income Taxes

The Company believes it has qualified to be taxed as a REIT and intends at all times to continue to qualify as a REIT under Sections 856 through 860 of the Internal Revenue Code. The Company must distribute at least 90% per annum of its real estate investment trust taxable income to its stockholders and meet other requirements to continue to qualify as a real estate investment trust. As a REIT, the Company is generally not subject to federal income tax on net income it distributes to its stockholders, but may be subject to certain state and local taxes and fees. See Note 16 for further discussion.

If HR fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal income taxes on its taxable income and will not be permitted to qualify for treatment as a REIT for U.S. federal income tax purposes for four years following the year during which the qualification is lost unless the IRS grants it relief under certain statutory provisions. Such event could have a material adverse effect on its business, financial condition, results of operations and net cash available for dividend distributions to its stockholders.

HR conducts substantially all of its operations through the OP. As a partnership, the OP generally is not liable for federal income taxes. The income and loss from the operations of the OP is included in the tax returns of its partners, including HR, who are responsible for reporting their allocable share of the partnership income and loss. Accordingly no provision for income tax has been made in the accompanying consolidated financial statements.

The Company classifies interest and penalties related to uncertain tax positions, if any, in the Consolidated Financial Statements as a component of general and administrative expenses. No such amounts were recognized during the three years ended December 31, 2022.

Federal tax returns for the years 2019, 2020, 2021 and 2022 are currently subject to examination by taxing authorities.

State Income Taxes

The Company must pay certain state income taxes and the provisions for such taxes are generally included in general and administrative expense on the Company’s Consolidated Statements of Income. See Note 16 for further discussion.

Sales and Use Taxes

The Company must pay sales and use taxes to certain state tax authorities based on rents collected from tenants in properties located in those states. The Company is generally reimbursed for these taxes by the tenant. The Company accounts for the payments to the taxing authority and subsequent reimbursement from the tenant on a net basis in rental income in the Company’s Consolidated Statements of Income.

Assets Held for Sale

Long-lived assets held for sale are reported at the lower of their carrying amount or their fair value less estimated cost to sell. Further, depreciation of these assets ceases at the time the assets are classified as held for sale. Losses resulting from the sale of such properties are characterized as impairment losses in the Consolidated Statements of Income. See Note 6 for more detail on assets held for sale.

Earnings per Share

The Company uses the two-class method of computing net earnings per common share. Earnings per common share is calculated by considering share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents as participating securities. Undistributed earnings (excess net income over dividend payments) are allocated on a pro rata basis to common shareholders and restricted shareholders. Undistributed losses (dividends in excess of net income) do not get allocated to restricted stockholders as they do not have the contractual obligation to share in losses. The amount of undistributed losses that applies to the restricted stockholders is allocated to the common stockholders.

Basic earnings per common share is calculated using weighted average shares outstanding less issued and outstanding non-vested shares of common stock. Diluted earnings per common share is calculated using weighted average shares outstanding plus the dilutive effect of the outstanding stock options from the Legacy HR Employee Stock Purchase Plan using the treasury stock method and the average stock price during the period. Additionally, net income (loss) allocated to OP units has been included in the numerator and common stock related to redeemable OP units have been included in the denominator for the purpose of computing diluted earnings per share. See Note 14 for the calculations of earnings per share.

Redeemable Non-Controlling Interests

The Company accounts for redeemable equity securities in accordance with Accounting Standards Update 2009-04 Liabilities (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 Consolidated Balance Sheet. 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 December 31, 2022, the Company had redeemable non-controlling interests of $2.0 million.

Investments in Financing Receivables, Net

In accordance with Accounting Standards Codification ("ASC") 842, 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 310 “Receivables”.

The Company had two and four medical office buildings that were accounted for as separate sale-lease back transactions and recorded as investments in financing receivables as of December 31, 2022 and 2021, respectively.

Income from Financing Receivables, net

The Company recognizes the related interest income from the financing receivable based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable will not equal the cash payments from the lease. 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 from financing receivable, net over the life of the lease.

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 December 31, 2022, real estate notes receivable, net, which are included in Other assets on the Company's Consolidated Balance Sheets totaled $99.6 million.


(dollars in thousands)	ORIGINATION	MATURITY	STATED INTEREST RATE		MAXIMUM LOAN COMMITMENT		OUTSTANDING as of DECEMBER 31, 2022
Mezzanine loans
Texas	6/24/2021	6/24/2024	8	%	$	54,119	$	54,119
North Carolina	12/22/2021	12/22/2024	8	%	6,000		6,000
					60,119		60,119
Mortgage loan
Texas	6/30/2021	12/31/2023	7	%	$	31,150	$	31,150
Florida	5/17/2022	2/27/2026	6	%	65,000		13,062
					$	96,150	$	44,212
Accrued interest							758
Fair-value discount and fees							(5,446)
							$	99,643

Pursuant to Topic 326 - Financial Instruments - Credit Losses, we adopted a policy to evaluate current expected credit losses at the inception of loans qualifying for treatment under Topic 326. We utilize a probability of default method approach for estimating current expected credit losses and have determined that the current risk of credit loss is remote. Accordingly, we have recorded no reserve for credit loss as of December 31, 2022.

New Accounting Pronouncements

Accounting Standards Update No. 2020-04 and 2022-06

On March 12, 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR and Term SOFR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation.

In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 which was issued to defer the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform to December 31, 2024. ASU 2022-06 is effective immediately for all companies. ASU 2022-06 will have no impact on the Company’s consolidated financial statements for the year ended December 31, 2022, as the Company no longer has any LIBOR-based debt.

Merger with HTA

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Merger with HTA

On July 20, 2022 (the “Closing Date”), pursuant to the Agreement and Plan of Merger dated as of February 28, 2022 (the “Merger Agreement”), 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”), 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”).

On the Closing Date, each outstanding share of Legacy HR common stock, $0.01 par value per share (the “Legacy HR Common Stock”), was cancelled and converted into the right to receive one share of Legacy HTA class A common stock at a fixed ratio of 1.00 to 1.00. Per the terms of the Merger Agreement, Legacy HTA declared a special dividend of $4.82 (the “Special Dividend”) for each outstanding share of Legacy HTA class A common stock, $0.01 par value per share ( the “Legacy HTA Common Stock”), and the OP declared a corresponding distribution to the holders of its partnership units, payable to Legacy HTA stockholders and OP unitholders of record on July 19, 2022.

Immediately following the Merger, Legacy HR converted to a Maryland limited liability company and changed its name to HRTI, LLC and Legacy HTA changed its name to “Healthcare Realty Trust Incorporated”. In addition, the equity interests of Legacy HR were contributed by Legacy HTA by means of a contribution and assignment agreement to the OP such that Legacy HR became a wholly-owned subsidiary of the OP. The 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 (the “NYSE”) under the ticker symbol “HR”.

For accounting purposes, the Merger was treated as a “reverse acquisition” in which Legacy HTA was considered the legal acquirer and Legacy HR was considered the accounting acquirer based on various factors, including, but not limited to: (i) the composition of the board of directors of the consolidated Company, (ii) the composition of senior management of the consolidated Company, and (iii) the premium transferred to the Legacy HTA stockholders. As a result, the historical financial statements of the accounting acquirer, Legacy HR, became the historical financial statements of the Company.

The acquisition was accounted for using the acquisition method of accounting in accordance with ASC 805, which requires, among other things, the assets acquired, the liabilities assumed and non-controlling interests, if any, to be recognized at their acquisition date fair value.

The implied consideration transferred on the Closing Date is as follows:


Dollars in thousands, except for per share data
Shares of Legacy HTA Common Stock outstanding as of July 20, 2022 as adjusted(a)	228,520,990
Exchange ratio	1.00
Implied shares of Legacy HR Common Stock issued	228,520,990
Adjusted closing price of Legacy HR Common Stock on July 20, 2022(b)	$	24.37
Value of implied Legacy HR Common Stock issued	$	5,569,057
Fair value of Legacy HTA restricted stock awards attributable to pre-Merger services(c)	7,406
Consideration transferred	$	5,576,463

(a) Includes 228,520,990 shares of Legacy HTA Common Stock as of July 20, 2022. The number of shares of HTA Common Stock presented above was based on 228,857,717 total shares of Legacy HTA Common Stock outstanding as of the Closing Date, less 192 HTA fractional shares that were paid in cash less 336,535 shares of Legacy HTA restricted stock (net of 215,764 shares of Legacy HTA restricted stock withheld). For accounting purposes, these shares and units were converted to Legacy HR Common Stock, at an exchange ratio of 1.00 per share of HTA Common Stock.

(b) For accounting purposes, the fair value of Legacy HR Common Stock issued to former holders of Legacy HTA Common Stock was based on the per share closing price of Legacy HR Common Stock on July 20, 2022.

(c) Represents the fair value of Legacy HTA restricted shares which fully vested prior to the closing of the Merger or became fully vested as a result of the closing of the Merger and which are attributable to pre-combination services.

Preliminary Purchase Price Allocation

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Closing Date:


Dollars in thousands	PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE		MEASUREMENT PERIOD ADJUSTMENTS		PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE (as adjusted)
ASSETS
Real estate investments
Land	$	985,926	$	6,775	$	992,701
Buildings and improvements	6,960,418		(83,662)		6,876,756
Lease intangible assets(a)	831,920		1,230		833,150
Financing lease right-of-use assets	9,874		3,146		13,020
Construction in progress	10,071		(6,744)		3,327
Land held for development	46,538		—		46,538
Total real estate investments	$	8,844,747	$	(79,255)	$	8,765,492
Assets held for sale, net	707,442		(7,946)		699,496
Investments in unconsolidated joint ventures	67,892		—		67,892
Cash and cash equivalents	26,034		11,403		37,437
Restricted cash	1,123,647		(1,247)		1,122,400
Operating lease right-of-use assets	198,261		17,786		216,047
Other assets, net (b) (c)	209,163		(3,840)		205,323
Total assets acquired	$	11,177,186	$	(63,099)	$	11,114,087

LIABILITIES
Notes and bonds payable	$	3,991,300	$	—	$	3,991,300
Accounts payable and accrued liabilities	1,227,570		17,374		1,244,944
Liabilities of assets held for sale	28,677		(3,939)		24,738
Operating lease liabilities	173,948		10,173		184,121
Financing lease liabilities	10,720		(855)		9,865
Other liabilities	203,210		(11,541)		191,669
Total liabilities assumed	$	5,635,425	$	11,212	$	5,646,637
Net identifiable assets acquired	$	5,541,761	$	(74,311)	$	5,467,450
Non-controlling interest	$	110,702	$	—	$	110,702
Goodwill	$	145,404	$	74,311	$	219,715
(a) The weighted average amortization period for the acquired lease intangible assets is approximately 6 years.
(b) Includes $15.9 million of contractual accounts receivable, which approximates fair value.
(c) Includes $78.7 million of gross contractual real estate notes receivable, the fair value of which was $74.8 million, and the Company preliminarily expects to collect substantially all of the real estate notes receivable proceeds as of the Closing Date.

The measurement period adjustments recorded during the year ended December 31, 2022 primarily resulted from updated valuations related to the Company’s real estate assets and liabilities and additional information obtained by the Company related to the properties acquired in the Merger and their respective tenants, and resulted in an increase to goodwill of $74.3 million. As of December 31, 2022, the Company had not finalized the determination of fair value of certain tangible and intangible assets acquired and liabilities assumed, including, but not limited to real estate assets and liabilities, notes receivables and goodwill. As such, the assessment of fair value of assets acquired and liabilities assumed is preliminary and was based on information that was available at the time the Consolidated Financial Statements were prepared. The finalization of the purchase accounting assessment could result in material changes in the Company’s determination of the fair value of assets acquired and liabilities assumed, which will be recorded as measurement period adjustments in the period in which they are identified, up to one year from the Closing Date.

A preliminary estimate of approximately $219.7 million has been allocated to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. The recognized goodwill is attributable to expected synergies and benefits arising from the Merger, including anticipated general and administrative cost savings and potential economies of scale benefits in both tenant and vendor relationships following the closing of the Merger. None of the goodwill recognized is expected to be deductible for tax purposes.

Merger related Costs

In conjunction with the Merger, the Company incurred Merger-related costs of $103.4 million during the year ended December 31, 2022, which were included within Merger-related costs in results of operations. The Merger-related costs primarily consist of legal, consulting, banking services, and other Merger-related costs.

Unaudited Pro Forma Financial Information

The Consolidated Statement of Income for the year ended December 31, 2022 includes $351.8 million of revenues and $79.3 million of net loss associated with the results of operations of Legacy HTA from the Merger closing date to December 31, 2022.

The following unaudited pro forma information presents a summary of our Consolidated Statements of Income for the years ended December 31, 2022 and 2021, as if the Merger had occurred on January 1, 2021. Adjustments in the pro forma financial information include but are not limited to the following:

(i) additional depreciation and amortization expense related to the acquired tangible and intangible assets,

(ii) additional interest expense on transaction-related borrowings, including assumed debt in connection with the Merger,

(iii) additional rental income related to the assumed above and below-market leases, and straight-line rent and

(iv) Merger-related costs and other one-time, non-recurring costs.

The pro forma financial information excludes adjustments for estimated cost synergies or other effects of the integration of the Merger.

The following pro forma financial information is not necessarily indicative of the results of operations had the acquisition been effected on the assumed date, nor is it necessarily an indication of trends in future results for a number of reasons, including, but not limited to, differences between the assumptions used to prepare the pro forma information, cost savings from operating efficiencies, potential synergies, and the impact of incremental costs incurred in integrating the businesses.


	YEAR ENDED December 31,
Dollars in thousands	2022		2021
Total revenues	$	1,391,096	$	1,316,743
Net income	$	130,445	$	(78,990)

Property Investments

12 Months Ended

Dec. 31, 2022

Real Estate Investment Property, Net [Abstract]

Property Investments

The Company invests in healthcare-related properties located throughout the United States. The Company provides management, leasing, development and redevelopment services, and capital for the construction of new facilities as well as for the acquisition of existing properties. The following table summarizes the Company’s consolidated investments at December 31, 2022.


Dollars in thousands	NUMBER OF PROPERTIES	LAND		BUILDINGS AND IMPROVEMENTS		LEASE INTANGIBLES		PERSONAL PROPERTY		TOTAL		ACCUMULATED DEPRECIATION
Dallas, TX	45	$	95,010	$	1,116,725	$	77,589	$	551	$	1,289,875	$	(202,031)
Seattle, WA	29	64,295		623,166		13,444		726		701,631		(164,423)
Los Angeles, CA	23	98,524		460,780		31,790		453		591,547		(129,663)
Boston, MA	18	128,904		396,002		63,134		—		588,040		(13,513)
Charlotte, NC	32	35,402		450,076		29,839		105		515,422		(95,363)
Houston, TX	34	85,389		633,474		64,045		57		782,965		(63,486)
Miami, FL	23	72,364		400,839		46,355		105		519,663		(52,920)
Atlanta, GA	28	49,379		437,312		36,170		95		522,956		(63,773)
Tampa, FL	20	31,533		377,455		36,838		33		445,859		(18,991)
Denver, CO	33	76,698		497,235		45,854		609		620,396		(65,123)
Raleigh, NC	27	56,620		363,359		37,446		9		457,434		(15,566)
Phoenix, AZ	35	20,262		430,396		37,097		425		488,180		(30,281)
Chicago, IL	7	32,374		266,672		20,608		81		319,735		(28,243)
Indianapolis, IN	36	52,180		265,070		32,739		13		350,002		(19,705)
Hartford, CT	30	43,326		204,049		31,803		—		279,178		(8,015)
Nashville, TN	12	43,348		346,312		10,205		1,424		401,289		(92,720)
New York, NY	14	64,402		167,819		26,430		—		258,651		(4,771)
Austin, TX	13	27,064		271,692		18,568		142		317,466		(40,363)
Orlando, FL	8	20,708		180,694		21,581		1		222,984		(11,654)
Memphis, TN	11	13,901		184,540		4,211		317		202,969		(60,624)
Other (51 markets)	210	326,262		3,256,027		273,568		1,223		3,857,080		(457,572)
	688	1,437,945		11,329,694		959,314		6,369		13,733,322		(1,638,800)

Construction in progress	—	—		—				—		35,560		—
Land held for development	—	—		—		—		—		74,265		(1,183)
Financing lease right-of-use assets	—	—		—		—		—		83,824		—
Investment in financing receivables, net	—	—		—		—		—		120,236		—
Corporate property 1	—	1,853		2,343		684		5,538		10,418		(5,288)



Total real estate investments	688	$	1,439,798	$	11,332,037	$	959,998	$	11,907	$	14,057,625	$	(1,645,271)

1Includes a 15,014 square foot building located in Charleston, South Carolina that is used as one of the Company's corporate offices.

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Lessor Accounting Under ASC 842

The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide for fixed rent renewal terms in addition to 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 portfolio of single-tenant leases generally requires 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 records these expenses on a net basis, with the exception of property taxes. Property taxes are recorded on a gross basis as a lessor cost in which the tenant reimburses the Company. The Company generally expects that collectability is probable at lease commencement. If the assessment of collectability changes after the lease commencement date and Rental income is not considered probable, Rental income is recognized on a

cash basis and all previously recognized uncollectible Rental income is reversed in the period in which it is determined not to be probable of collection. In addition to the lease-specific collectability assessment performed under Topic 842, the Company may also apply a general reserve ("provision for bad debt"), as a reduction to Rental income, for its portfolio of operating lease receivables.

The Company's leases typically have escalators that are either based on a stated percentage or an index such as CPI (consumer price index). 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 year ended December 31, 2022 was $907.5 million.

Future minimum lease payments under the non-cancelable operating leases, excluding any reimbursements, as of December 31, 2022 are as follows:


In thousands
2023	$	928,516
2024	814,132
2025	701,659
2026	603,051
2027	500,645
2028 and thereafter	1,633,847
	$	5,181,850

Revenue Concentrations

The Company’s real estate portfolio is leased to a diverse tenant base. The Company did not have any customers that account for 10% or more of the Company's revenues for the years ended December 31, 2022, 2021 and 2020.

Purchase Option Provisions

Certain of the Company’s leases include purchase option provisions. The provisions vary by agreement but generally allow the lessee to purchase the property covered by the agreement at fair market value or an amount equal to the Company’s gross investment. The Company expects that the purchase price from its purchase options will be greater than its net investment in the properties at the time of potential exercise by the lessee. The Company had investments of approximately $100.4 million in five real estate properties as of December 31, 2022 that were subject to purchase options that were exercisable.

Lessee Accounting Under ASC 842

As of December 31, 2022, the Company was obligated, as the lessee, under operating and finance lease agreements consisting primarily of the Company’s ground leases. Contracts evaluated and treated as leases are those that convey the right to control the use of identified assets for a period of time in exchange for consideration. ASC 842 requires the recording of these leases based on the aggregate future cash flows, discounted utilizing the implicit rate in the lease, or, if not readily determinable, based upon the lessee's incremental borrowing rate, to which the Company utilizes market inputs that are both similar to the Company's credit profile and corresponding term of the leases. As of December 31, 2022, the Company had 242 properties totaling 17.8 million square feet that were held under ground leases. Some of the ground leases 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 either stated or based on the Consumer Price Index. The Company had 75 prepaid ground leases as of December 31, 2022. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $1.1 million for the year ended December 31, 2022 and $0.6 million for the years ended December 31, 2021 and 2020.

The Company’s future lease payments (primarily for its 167 non-prepaid ground leases) as of December 31, 2022 were as follows:


In thousands	OPERATING		FINANCING
2023	$	15,641	$	2,140
2024	$	15,227	$	2,182
2025	$	14,814	$	2,218
2026	$	14,852	$	2,255
2027	$	14,921	$	2,294
2028 and thereafter	$	939,165	$	396,398
Total undiscounted lease payments	$	1,014,620	$	407,487
Discount	$	(734,725)	$	(334,548)
Lease liabilities	$	279,895	$	72,939

The following table provides details of the Company's total lease expense for the year ended December 31, 2022:


In thousands	YEAR ENDED Dec. 31, 2022			YEAR ENDED Dec. 31, 2021
Operating lease cost
Operating lease expense	$	12,699		$	4,765
Variable lease expense	4,529			3,929

Finance lease cost
Amortization of right-of-use assets	1,288			388
Interest on lease liabilities	2,876			1,032
Total lease expense	$	21,392		$	10,114

Other information
Operating cash flows outflows related to operating leases	$	12,816		$	7,706
Operating cash flows outflows related to financing leases	$	1,838		$	809
Financing cash flows outflows related to financing leases	$	—		$	9,182
Right-of-use assets obtained in exchange for new finance lease liabilities	$	53,765		$	3,827
Right-of-use assets obtained in exchange for new operating lease liabilities	$	216,047		$	8,298

Weighted-average remaining lease term (excluding renewal options) - operating leases	47.5			47.6
Weighted-average remaining lease term (excluding renewal options) -finance leases	58.9			62.1
Weighted-average discount rate - operating leases	5.8		%	5.6		%
Weighted-average discount rate - finance leases	5.0		%	5.3		%

Leases

Lessor Accounting Under ASC 842

The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide for fixed rent renewal terms in addition to 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 portfolio of single-tenant leases generally requires 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 records these expenses on a net basis, with the exception of property taxes. Property taxes are recorded on a gross basis as a lessor cost in which the tenant reimburses the Company. The Company generally expects that collectability is probable at lease commencement. If the assessment of collectability changes after the lease commencement date and Rental income is not considered probable, Rental income is recognized on a

cash basis and all previously recognized uncollectible Rental income is reversed in the period in which it is determined not to be probable of collection. In addition to the lease-specific collectability assessment performed under Topic 842, the Company may also apply a general reserve ("provision for bad debt"), as a reduction to Rental income, for its portfolio of operating lease receivables.

The Company's leases typically have escalators that are either based on a stated percentage or an index such as CPI (consumer price index). 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 year ended December 31, 2022 was $907.5 million.

Future minimum lease payments under the non-cancelable operating leases, excluding any reimbursements, as of December 31, 2022 are as follows:


In thousands
2023	$	928,516
2024	814,132
2025	701,659
2026	603,051
2027	500,645
2028 and thereafter	1,633,847
	$	5,181,850

Revenue Concentrations

The Company’s real estate portfolio is leased to a diverse tenant base. The Company did not have any customers that account for 10% or more of the Company's revenues for the years ended December 31, 2022, 2021 and 2020.

Purchase Option Provisions

Certain of the Company’s leases include purchase option provisions. The provisions vary by agreement but generally allow the lessee to purchase the property covered by the agreement at fair market value or an amount equal to the Company’s gross investment. The Company expects that the purchase price from its purchase options will be greater than its net investment in the properties at the time of potential exercise by the lessee. The Company had investments of approximately $100.4 million in five real estate properties as of December 31, 2022 that were subject to purchase options that were exercisable.

Lessee Accounting Under ASC 842

As of December 31, 2022, the Company was obligated, as the lessee, under operating and finance lease agreements consisting primarily of the Company’s ground leases. Contracts evaluated and treated as leases are those that convey the right to control the use of identified assets for a period of time in exchange for consideration. ASC 842 requires the recording of these leases based on the aggregate future cash flows, discounted utilizing the implicit rate in the lease, or, if not readily determinable, based upon the lessee's incremental borrowing rate, to which the Company utilizes market inputs that are both similar to the Company's credit profile and corresponding term of the leases. As of December 31, 2022, the Company had 242 properties totaling 17.8 million square feet that were held under ground leases. Some of the ground leases 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 either stated or based on the Consumer Price Index. The Company had 75 prepaid ground leases as of December 31, 2022. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $1.1 million for the year ended December 31, 2022 and $0.6 million for the years ended December 31, 2021 and 2020.

The Company’s future lease payments (primarily for its 167 non-prepaid ground leases) as of December 31, 2022 were as follows:


In thousands	OPERATING		FINANCING
2023	$	15,641	$	2,140
2024	$	15,227	$	2,182
2025	$	14,814	$	2,218
2026	$	14,852	$	2,255
2027	$	14,921	$	2,294
2028 and thereafter	$	939,165	$	396,398
Total undiscounted lease payments	$	1,014,620	$	407,487
Discount	$	(734,725)	$	(334,548)
Lease liabilities	$	279,895	$	72,939

The following table provides details of the Company's total lease expense for the year ended December 31, 2022:


In thousands	YEAR ENDED Dec. 31, 2022			YEAR ENDED Dec. 31, 2021
Operating lease cost
Operating lease expense	$	12,699		$	4,765
Variable lease expense	4,529			3,929

Finance lease cost
Amortization of right-of-use assets	1,288			388
Interest on lease liabilities	2,876			1,032
Total lease expense	$	21,392		$	10,114

Other information
Operating cash flows outflows related to operating leases	$	12,816		$	7,706
Operating cash flows outflows related to financing leases	$	1,838		$	809
Financing cash flows outflows related to financing leases	$	—		$	9,182
Right-of-use assets obtained in exchange for new finance lease liabilities	$	53,765		$	3,827
Right-of-use assets obtained in exchange for new operating lease liabilities	$	216,047		$	8,298

Weighted-average remaining lease term (excluding renewal options) - operating leases	47.5			47.6
Weighted-average remaining lease term (excluding renewal options) -finance leases	58.9			62.1
Weighted-average discount rate - operating leases	5.8		%	5.6		%
Weighted-average discount rate - finance leases	5.0		%	5.3		%

Acquisitions, Dispositions and Mortgage Repayments

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions, Dispositions and Mortgage Repayments

2022 Acquisitions

The following table details the Company's acquisitions, exclusive of the Merger, for the year ended December 31, 2022:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 2		REAL ESTATE		OTHER 3		SQUARE FOOTAGE unaudited
Dallas, TX 4	MOB	2/11/22	$	8,175	$	8,185	$	8,202	$	(17)	18,000
San Francisco, CA 5	MOB	3/7/22	114,000		112,986		108,687		4,299		166,396
Atlanta, GA	MOB	4/7/22	6,912		7,054		7,178		(124)		21,535
Denver, CO	MOB	4/13/22	6,320		5,254		5,269		(15)		12,207
Colorado Springs, CO 6	MOB	4/13/22	13,680		13,686		13,701		(15)		25,800
Seattle, WA	MOB	4/28/22	8,350		8,334		8,370		(36)		13,256
Houston, TX	MOB	4/28/22	36,250		36,299		36,816		(517)		76,781
Los Angeles, CA	MOB	4/29/22	35,000		35,242		25,400		9,842		34,282
Oklahoma City, OK	MOB	4/29/22	11,100		11,259		11,334		(75)		34,944
Raleigh, NC 5	MOB	5/31/22	27,500		26,710		27,127		(417)		85,113
Tampa. FL 6	MOB	6/9/22	18,650		18,619		18,212		407		55,788
Seattle, WA	MOB	8/1/22	4,850		4,806		4,882		(76)		10,593
Raleigh, NC	MOB	8/9/22	3,783		3,878		3,932		(54)		11,345
Jacksonville, FL	MOB	8/9/22	18,195		18,508		18,583		(75)		34,133
Atlanta, GA	MOB	8/10/22	11,800		11,525		12,038		(513)		43,496
Denver, CO	MOB	8/11/22	14,800		13,902		13,918		(16)		34,785
Raleigh, NC	MOB	8/18/22	11,375		10,670		10,547		123		31,318
Nashville, TN	MOB	9/15/22	21,000		20,764		20,572		192		61,932
Austin, TX	MOB	9/29/22	5,450		5,449		5,572		(123)		15,000
Jacksonville, FL 4	MOB	10/12/22	3,600		3,530		3,609		(79)		6,200
Houston, TX	MOB	11/21/22	5,500		5,469		5,513		(44)		28,369
Austin, TX 7	MOB	12/28/22	888		890		889		1		2,219
Denver, CO	MOB	12/28/22	16,400		16,170		16,467		(297)		39,692

			$	403,578	$	399,189	$	386,818	$	12,371	863,184

1MOB = medical office building.

2Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

3Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

4Represents a single-tenant property.

5Includes three properties.

6Includes two properties.

7The Company acquired additional ownership interests in an existing building bringing the Company's ownership to 71.4%.

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2022 as of the acquisition date:


	ESTIMATED FAIR VALUE in millions		ESTIMATED USEFUL LIFE in years
Building	$	250.7	14.0 - 38.0


Land	76.1		—
Land Improvements	11.2		5.0 - 14.0

Intangibles
At-market lease intangibles	48.8		1.5 - 13.4
Above-market lease intangibles (lessor)	15.9		1.3 - 15.6
Below-market lease intangibles (lessor)	(2.2)		1.3 - 19.3

Below-market lease intangibles (lessee)	1.2		13.1



Other assets acquired	0.4
Accounts payable, accrued liabilities and other liabilities assumed	(2.9)
Total cash paid	$	399.2

Unconsolidated Joint Ventures

As of December 31, 2022, the Company had a weighted average ownership interest of approximately 48% in 33 real estate properties held in joint ventures.

2022 Acquisitions

The following table details the joint venture acquisitions for the year ended December 31, 2022:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 2		REAL ESTATE		OTHER 3		SQUARE FOOTAGE unaudited
San Francisco, CA 4	MOB	3/7/22	$	67,175	$	66,789	$	65,179	$	1,610	110,865
Los Angeles, CA 5	MOB	3/7/22	33,800		32,384		32,390		(6)		103,259

			$	100,975	$	99,173	$	97,569	$	1,604	214,124

1MOB = medical office building.

2Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

3Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

4Includes three properties.

5Includes two properties.

The Company's investment in and loss recognized for the years ended December 31, 2022 and 2021 related to its joint ventures accounted for under the equity method are shown in the table below:


	DECEMBER 31,
Dollars in millions	2022		2021
Investments in unconsolidated joint ventures, beginning of period	$	161.9	$	73.1
New investments during the period1	167.9		89.6
Equity loss recognized during the period	(0.7)		(0.8)
Owner distributions	(1.9)		—
Investments in unconsolidated joint ventures, end of period	$	327.2	$	161.9

1For the year ended December 31, 2022, this included unconsolidated joint ventures acquired as part of the Merger, as well as investments in two joint ventures representing a 20% and 40% ownership interest in portfolios in Los Angeles, California and Dallas, Texas, respectively. Also, see 2022 Real Estate Asset Dispositions below for additional information.

2021 Acquisitions

The following table details the Company's acquisitions for the year ended December 31, 2021:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE 2		MORTGAGES ASSUMED 3		CASH CONSIDERATION 4		REAL ESTATE 2		OTHER 5		SQUARE FOOTAGE unaudited
San Diego, CA 6	MOB	1/7/21	$	17,150	$	—	$	17,182	$	17,182	$	—	22,461
Dallas, TX 8	MOB	2/1/21	22,515		—		22,299		22,641		(342)		121,709
Atlanta, GA 8	MOB	2/17/21	9,800		—		10,027		10,073		(46)		44,567
Washington, D.C.	MOB	3/3/21	12,750		—		12,709		12,658		51		26,496
Houston, TX	MOB	5/14/21	13,500		—		12,986		13,379		(393)		45,393
San Diego, CA 6,7	MOB	5/28/21	102,650		—		103,984		104,629		(645)		160,394
Greensboro, NC	MOB	6/28/21	9,390		—		9,475		10,047		(572)		25,168
Baltimore, MD	MOB	6/29/21	14,600		—		14,357		14,437		(80)		33,316
Denver, CO 9	MOB	7/16/21	70,426		—		69,151		65,100		4,051		259,555
Greensboro, NC 6	MOB	7/19/21	6,400		—		6,374		6,514		(140)		18,119
Colorado Springs, CO	MOB	7/27/21	33,400		—		32,738		33,241		(503)		69,526
Birmingham, AL	MOB	8/19/21	9,250		—		9,355		9,388		(33)		29,942
Raleigh, NC	MOB	9/20/21	5,780		—		5,821		5,810		11		18,280
Denver, CO	MOB	9/22/21	20,250		—		19,630		19,405		225		83,604
Raleigh, NC	MOB	9/30/21	10,000		—		9,921		9,874		47		29,178
Denver, CO	MOB	11/15/21	7,700		—		7,383		7,431		(48)		18,599
Denver, CO	MOB	11/18/21	22,400		—		22,343		22,422		(79)		30,185
Columbus, OH 10	MOB	12/1/21	16,275		—		15,970		7,365		8,605		71,930
Nashville, TN	MOB	12/2/21	11,300		—		11,245		11,263		(18)		34,908
Colorado Springs, CO	MOB	12/20/21	10,575		—		10,541		11,009		(468)		44,166
Columbus, OH 8	MOB	12/28/21	9,525		—		9,521		9,601		(80)		28,962
Los Angeles, CA	MOB	12/28/21	20,500		(11,000)		9,396		20,316		80		56,762
Nashville, TN 11	MOB	12/29/21	19,775		—		19,833		19,982		(149)		85,590
Austin, TX	MOB	12/29/21	20,500		—		20,696		20,741		(45)		62,548
Atlanta, GA	MOB	12/30/21	4,900		—		4,772		4,419		353		11,840
Nashville, TN 12	MOB	12/30/21	54,000		—		53,923		54,072		(149)		74,489
Nashville, TN 12	MOB	12/30/21	20,500		—		19,833		19,825		8		32,454

			$	575,811	$	(11,000)	$	561,465	$	562,824	$	9,641	1,540,141

1MOB = medical office building.

2Includes investments in financing receivables and an $8.9 million right-of-use asset related to the Columbus, Ohio transaction.

3The mortgages assumed in the acquisitions do not reflect the fair value adjustments totaling $0.8 million in aggregate recorded by the Company upon acquisition (included in Other).

4Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

5Includes other assets acquired, liabilities assumed, intangibles, and fair value mortgage adjustments recognized at acquisition.

6Represents a single-tenant property.

7The Company acquired a single-tenant net lease property in San Diego, CA in a sale-leaseback transaction which was accounted for as a financing arrangement as required under ASC 842, Leases.

8Includes two properties.

9Includes three properties.

10This sale-leaseback transaction was a multi-tenant lease property. A portion of the transaction totaling $7.4 million was accounted for as a financing receivable and the remaining $8.9 million was accounted for as an imputed lease arrangement. See Note 1 to the Consolidated Financial Statements accompanying this report for more information.

11Includes purchase of an adjoining 2.7 acre land parcel that will be held for development.

12This sale-leaseback transaction was a multi-tenant lease property which was accounted for as a financing arrangement as required under ASC 842, Leases.

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2021 as of the acquisition date:


	ESTIMATED FAIR VALUE in millions		ESTIMATED USEFUL LIFE in years
Building	$	275.1	18.0 - 44.0
Investment in financing receivables, net	185.9		0.5 - 34.0
Financing lease right of use assets 1	8.9		15.0 - 34.0
Land	34.1		—
Land Improvements	8.9		6.0 - 16.0

Intangibles
At-market lease intangibles	58.8		2.6 - 16.6
Above-market lease intangibles (lessor)	3.4		1.9 - 8.1
Below-market lease intangibles (lessor)	(1.4)		3.1 - 21.8
Above-market lease intangibles (lessee)	(0.3)		36.7 - 64.5
Below-market lease intangibles (lessee)	4.7		45.4
Mortgage notes payable assumed, including fair value adjustments	(11.8)


Other assets acquired	0.8
Accounts payable, accrued liabilities and other liabilities assumed	(5.6)
Total cash paid	$	561.5

1The Company acquired a building in Columbus, Ohio in a sale lease back transaction totaling $16.3 million, in which $8.9 million was recorded as an imputed lease arrangement and the remaining $7.4 million was recorded as an investment in financing receivables.

Unconsolidated Joint Ventures

The following table details the joint venture acquisitions for the year ended December 31, 2021:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 2		REAL ESTATE		OTHER 3		SQUARE FOOTAGE unaudited
Denver, CO	MOB	3/30/21	$	14,375	$	14,056	$	14,550	$	(494)	59,359
Colorado Springs, CO	MOB	4/1/21	7,200		7,288		7,347		(59)		27,510
Los Angeles, CA	MOB	4/8/21	31,335		30,179		30,642		(463)		57,573
San Antonio, TX	MOB	4/30/21	13,600		13,412		13,656		(244)		45,000
Los Angeles, CA	MOB	5/10/21	24,600		24,259		24,147		112		73,078
Colorado Springs, CO 4	MOB	7/27/21	9,133		9,137		9,135		2		23,956
Denver, CO	MOB	10/21/21	23,000		22,638		23,021		(383)		57,257
San Antonio, TX 5	MOB	12/10/21	42,300		41,892		42,190		(298)		117,597
San Antonio, TX	MOB	12/29/21	6,094		6,218		6,308		(90)		22,381
San Antonio, TX	MOB	12/29/21	8,850		8,915		8,866		49		30,542

			$	180,487	$	177,994	$	179,862	$	(1,868)	514,253

1MOB = medical office building.

2Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

3Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

4Includes purchase of an adjoining 3.0 acre land parcel.

5Includes three properties.

2022 Real Estate Asset Dispositions

The following table details the Company's dispositions for the year ended December 31, 2022:


Dollars in thousands	TYPE 1	DATE DISPOSED	SALES PRICE		CLOSING ADJUSTMENTS		NET PROCEEDS		NET REAL ESTATE INVESTMENT		OTHER including receivables 2		GAIN/ (IMPAIRMENT)		SQUARE FOOTAGE unaudited
Loveland, CO 3, 4	MOB	2/24/22	$	84,950	$	(45)	$	84,905	$	40,095	$	4	$	44,806	150,291
San Antonio, TX 3	MOB	4/15/22	25,500		(2,272)		23,228		14,381		284		8,563		201,523
GA, FL, PA 5, 11	MOB	7/29/22	133,100		(8,109)		124,991		124,991		—		—		316,739
GA, FL, TX 7, 11	MOB	8/4/22	160,917		(5,893)		155,024		151,819		3,205		—		343,545
Los Angeles, CA 5, 9, 11	MOB	8/5/22	134,845		(3,102)		131,743		131,332		411		—		283,780
Dallas, TX 7, 10, 11	MOB	8/30/22	114,290		(682)		113,608		113,608		—		—		189,385
Indianapolis, IN 6, 12	MOB	8/31/22	238,845		(5,846)		232,999		84,767		4,324		143,908		506,406
Dallas, TX 3	MOB	10/4/22	104,025		(5,883)		98,142		38,872		6,436		52,834		291,328
Houston, TX	MOB	10/21/22	32,000		(280)		31,720		10,762		744		20,214		134,910
College Station, TX	MOB	11/10/22	49,177		(3,755)		45,422		44,918		475		28		122,942
El Paso, TX	MOB	12/22/22	55,326		(4,002)		51,324		56,427		(1,897)		(3,205)		110,465
Atlanta, GA 8	MOB	12/22/22	91,243		(4,326)		86,917		109,051		235		(22,369)		348,416
St. Louis, MO	MOB	12/28/22	18,000		(1,471)		16,529		18,340		4		(1,815)		69,394

			$	1,242,218	$	(45,666)	$	1,196,552	$	939,363	$	14,225	$	242,964	3,069,124

1MOB = medical office building

2Includes straight-line rent receivables, leasing commissions and lease inducements.

3Includes two properties.

4The Company deferred the tax gain through a 1031 exchange and reinvested the proceeds.

5Includes four properties.

6Includes five properties.

7Includes six properties.

8Includes nine properties.

9Values and square feet are represented at 100%. The Company retained a 20% ownership interest in the joint venture with an unrelated third party that purchased these properties.

10Values and square feet are represented at 100%. The Company retained a 40% ownership interest in the joint venture with an unrelated third party that purchased these properties.

11These properties were acquired as part of the Merger and were included as assets held for sale in the purchase price allocation.

12Two of the five properties included in this portfolio were acquired in the Merger and were included as assets held for sale in the purchase price allocation.

Subsequent Dispositions

On January 13, 2023, the Company disposed of two medical office buildings, one in Tampa, Florida and one in Miami, Florida, with a combined total of 224,037 square feet for an aggregate purchase price of $93.3 million.

On January 30, 2023, the Company disposed of a 36,691 square foot medical office building in Dallas, Texas, for a purchase price of $19.2 million. The Company retained a 40% ownership interest in the joint venture that purchased this property.

On February 10, 2023, the Company disposed of a 6,500 square foot medical office building in St. Louis, Missouri for a purchase price of $0.4 million.

2021 Real Estate Asset Dispositions

The following table details the Company's dispositions for the year ended December 31, 2021:


Dollars in thousands	TYPE 1	DATE DISPOSED	SALES PRICE		CLOSING ADJUSTMENTS		NET PROCEEDS		NET REAL ESTATE INVESTMENT		OTHER including receivables 2		GAIN/ (IMPAIRMENT)		SQUARE FOOTAGE unaudited
Los Angeles, CA 3	MOB	3/11/21	$	26,000	$	(555)	$	25,445	$	6,046	$	509	$	18,890	73,906
Atlanta, GA	MOB	4/12/21	8,050		(272)		7,778		5,675		151		1,952		19,732
Richmond, VA	MOB	5/18/21	52,000		(314)		51,686		29,414		3,270		19,002		142,856
Gadsden, AL 4	MOB	5/19/21	5,500		(280)		5,220		5,914		175		(869)		120,192
Dallas, TX 5	MOB	7/9/21	23,000		(1,117)		21,883		18,733		1,966		1,184		190,160
Chicago, IL	MOB	10/28/21	13,300		(388)		12,912		23,213		706		(11,007)		95,436
Des Moines, IA 6	MOB	12/8/21	47,000		(901)		46,099		32,312		1,037		12,750		132,617
Aberdeen, SD	MOB	12/22/21	12,750		(299)		12,451		10,337		—		2,114		58,285
Dallas, TX	MOB	12/23/21	800		(103)		697		712		167		(182)		13,818
			$	188,400	$	(4,229)	$	184,171	$	132,356	$	7,981	$	43,834	847,002

1MOB = medical office building

2Includes straight-line rent receivables, leasing commissions and lease inducements.

3Includes two properties sold to a single purchaser in two transactions which closed on March 5 and March 11, 2021.

4Includes three properties.

5Includes four properties and a land parcel sold under a single purchase agreement.

6Includes three properties and two land parcels under a single purchase agreement.

Held for Sale

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Held for Sale

Assets and liabilities of properties sold or classified as held for sale are separately identified on the Company’s Consolidated Balance Sheets. As of December 31, 2022 the Company had one property classified as held for sale, and as of December 31, 2021 the Company had no real estate properties classified as held for sale. The table below reflects the assets and liabilities classified as held for sale as of December 31, 2022 and 2021.


	DECEMBER 31,
Dollars in thousands	2022		2021
Balance Sheet data
Land	$	1,700	$	—
Buildings and improvements	15,164		—
Lease intangibles	1,986		—
	18,850		—
Accumulated depreciation	—		—
Real estate assets held for sale, net	18,850		—
Other assets, net	43		57
Assets held for sale, net	$	18,893	$	57

Accounts payable and accrued liabilities	$	282	$	169
Other liabilities	155		125
Liabilities of properties held for sale	$	437	$	294

Impairment Charges	12 Months Ended
Impairment Charges	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Impairment Charges	Impairment Charges An asset is impaired when undiscounted cash flows expected to be generated by the asset are less than the carrying value of the asset. The Company must assess the potential for impairment of its long-lived assets, including real estate properties, whenever events occur or there is a change in circumstances, such as the sale of a property or the decision to sell a property, that indicate that the recorded value might not be fully recoverable. The Company recorded impairment charges on 12 properties sold and three additional properties associated with completed or planned disposition activity for the year ended December 31, 2022 totaling $54.4 million. The Company recorded impairment charges on five properties sold and one property being redeveloped for a total of $17.1 million in 2021. Both level 1 and level 3 fair value techniques were used to derive these impairment charges.

Other Assets and Liabilities

12 Months Ended

Dec. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets and Liabilities

Other Assets

Other assets consist primarily of intangible assets, prepaid assets, real estate notes receivable, straight-line rent receivables, accounts receivable, additional long-lived assets and interest rate swaps. Items included in "Other assets, net" on the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021 are detailed in the table below:


Dollars in thousands	December 31, 2022		December 31, 2021
Real estate notes receivable, net	$	99,643	$	—
Straight-line rent receivables	88,868		70,784
Prepaid assets	81,900		58,618
Above-market intangible assets, net	80,720		4,966
Accounts receivable, net 1	47,498		14,072
Additional long-lived assets, net	21,446		20,048
Interest rate swap assets	14,512		—
Other receivables, net	7,169		—
Investment in securities (2)	6,011		—
Debt issuance costs, net	5,977		1,813
Project costs	4,337		5,129
Net investment in lease	1,828		—
Customer relationship intangible assets, net	1,120		1,174
Other	8,961		9,069
	$	469,990	$	185,673

1This amount is net of allowance for doubtful accounts of $4.0 million

2This amount represents the value of the Company's preferred stock investment in a data analytics platform.

Accounts Payable and Accrued Liabilities

The following table provides details of the items included in "Accounts payable and accrued liabilities" on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021:


Dollars in thousands	December 31, 2022		December 31, 2021
Accrued property taxes	$	78,185	$	35,295
Accounts payable and capital expenditures	57,352		17,036
Accrued interest	50,037		12,060
Other operating accruals	58,459		21,717






	$	244,033	$	86,108

Other Liabilities

The following table provides details of the items included in "Other liabilities" on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021:


Dollars in thousands	December 31, 2022		December 31, 2021
Below-market intangible liabilities, net	$	97,935	$	4,931
Deferred revenue	87,325		45,130
Security deposits	28,521		11,116
Interest rate swap liability	4,269		5,917
Other	618		293







	$	218,668	$	67,387

Intangible Assets and Liabilities

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Liabilities

The Company has several types of intangible assets and liabilities included in its Consolidated Balance Sheets, including goodwill, debt issuance costs, above-, below-, and at-market lease intangibles, and customer relationship intangibles. For additional detail on the Company's debt issuance costs, see Note 10 to the Consolidated Financial Statements. The Company’s intangible assets and liabilities, including assets held for sale and excluding certain debt issuance costs, as of December 31, 2022 and 2021 consisted of the following:


	GROSS BALANCE at December 31,				ACCUMULATED AMORTIZATION at December 31,				WEIGHTED AVG. REMAINING LIFE in years	BALANCE SHEET CLASSIFICATION
Dollars in millions	2022		2021		2022		2021
Goodwill	$	223.2	$	3.5	$	—	$	—	N/A	Goodwill
Credit facility debt issuance costs	6.9		5.1		0.9		3.3		2.9	Other assets, net
Above-market lease intangibles (lessor)	91.5		7.0		10.7		2.0		5.3	Other assets, net
Customer relationship intangibles (lessor)	2.1		2.1		1.0		0.9		20.6	Other assets, net
Below-market lease intangibles (lessor)	(112.5)		(10.1)		(14.6)		(5.1)		5.7	Other liabilities

At-market lease intangibles	1,067.4		213.0		188.3		77.5		5.2	Real estate properties


	$	1,278.6	$	220.6	$	186.3	$	78.6	5.3

For the years ended December 31, 2022 and 2021, the Company recognized approximately $133.6 million and $33.7 million of intangible amortization, respectively.

The following table represents expected amortization over the next five years of the Company’s intangible assets and liabilities in place as of December 31, 2022:


Dollars in millions	FUTURE AMORTIZATION OF INTANGIBLES, NET
2023	$	233.8
2024	197.9
2025	151.1
2026	97.6
2027	64.3

Notes and Bonds Payable

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Notes and Bonds Payable


	DECEMBER 31,				MATURITY DATES	CONTRACTUAL INTEREST RATES		EFFECTIVE INTEREST RATES		PRINCIPAL PAYMENTS	INTEREST PAYMENTS
Dollars in thousands	2022		2021
$700M Unsecured Credit Facility	$	—	$	210,000	5/23	LIBOR + 0.90%		N/A		At maturity	Monthly
$1.5B Unsecured Credit Facility	385,000		—		10/25	SOFR + 0.95%		5.27	%	At maturity	Monthly
$350M Unsecured Term Loan 1	349,114		—		7/23	SOFR + 1.05%		5.17	%	At maturity	Monthly
$200M Unsecured Term Loan 1	199,670		199,460		5/24	SOFR + 1.05%		5.17	%	At maturity	Monthly
$150M Unsecured Term Loan 1	149,495		149,376		6/26	SOFR + 1.05%		5.17	%	At maturity	Monthly
$300M Unsecured Term Loan 1	299,936		—		10/25	SOFR + 1.05%		5.17	%	At maturity	Monthly
$200M Unsecured Term Loan 1	199,362		—		7/27	SOFR + 1.05%		5.17	%	At maturity	Monthly
$300M Unsecured Term Loan 1	297,869		—		1/28	SOFR + 1.05%		5.17	%	At maturity	Monthly
Senior Notes due 2025 1	249,115		249,040		5/25	3.88	%	4.12	%	At maturity	Semi-annual
Senior Notes due 2026 1	571,587		—		8/26	3.50	%	4.94	%	At maturity	Semi-annual
Senior Notes due 2027 1	479,553		—		7/27	3.75	%	4.76	%	At maturity	Semi-annual
Senior Notes due 2028 1	296,852		296,612		1/28	3.63	%	3.85	%	At maturity	Semi-annual
Senior Notes due 2030 1	565,402		—		2/30	3.10	%	5.30	%	At maturity	Semi-annual
Senior Notes due 2030 1	296,385		296,813		3/30	2.40	%	2.72	%	At maturity	Semi-annual
Senior Notes due 2031 1	295,547		295,374		3/31	2.05	%	2.25	%	At maturity	Semi-annual
Senior Notes due 2031 1	632,693		—		3/31	2.00	%	5.13	%	At maturity	Semi-annual
Mortgage notes payable 2	84,247		104,650		8/23-12/26	3.31%-4.77%		3.42%-4.84%		Monthly	Monthly
	$	5,351,827	$	1,801,325

1Balances are shown net of discounts and unamortized issuance costs.

2Balances are shown net of discounts and unamortized issuance costs and include premiums.

The Company’s various debt agreements contain certain representations, warranties, and financial and other covenants customary in such loan agreements. Among other things, these provisions require the Company to maintain certain financial ratios and impose certain limits on the Company’s ability to incur indebtedness and create liens or encumbrances. As of December 31, 2022, the Company was in compliance with its financial covenant provisions under its various debt instruments.

Exchange Offer

In connection with the Merger, the OP offered to exchange all validly tendered and accepted notes of each series previously issued by Legacy HR (the “Old HR Notes”) for (i) up to $250,000,000 of 3.875% Senior Notes due 2025 (the “2025 Notes”), (ii) up to $300,000,000 of 3.625% Senior Notes due 2028 (the “2028 Notes”), (iii) up to $300,000,000 of 2.400% Senior Notes due 2030 (the “2030 Notes”) and (iv) up to $300,000,000 of 2.050% Senior Notes due 2031 to be issued by the OP (the “2031 Notes” and, collectively, the “New HR Notes”) and solicited consents from holders of the Old HR Notes to amend the indenture governing the Old HR Notes to eliminate substantially all of the restrictive covenants in such indenture (the “Exchange Offers”). Legacy HTA guaranteed the New HR Notes pursuant to (i) a guarantee of the 2025 Notes, (ii) a guarantee of the 2028 Notes, (iii) a guarantee of the 2030 Notes, and (iv) a guarantee of the 2031 Notes, each dated July 22, 2022. Legacy HTA and the OP filed a registration statement on Form S-4 (File No. 333-265593) relating to the issuance of the New HR Notes with the Securities and Exchange Commission (the “SEC”) on June 14, 2022, which was declared effective by the SEC on June 28, 2022. The following sets forth the results of the Exchange Offers:


Series of Old HR Notes			Tenders and Consents Received as of the Expiration Date	Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes
3.875	%	Senior Notes due 2025	$235,016,000	94.01	%
3.625	%	Senior Notes due 2028	$290,246,000	96.75	%
2.400	%	Senior Notes due 2030	$297,507,000	99.17	%
2.050	%	Senior Notes due 2031	$298,858,000	99.62	%

Senior Notes Assumed with the Merger

In connection with the Merger, the Company assumed senior notes ("Legacy Senior Notes") that were originated on various dates prior to the date of the Merger by the OP (formerly, Healthcare Trust of America Holdings, LP). These notes are all fully and unconditionally guaranteed by the Company and have semi-annual payment requirements. In addition, the Legacy Senior Notes carry customary restrictive financial covenants, including limitations on our ability to incur additional indebtedness and requirements to maintain a pool of unencumbered assets. In addition, the corresponding indentures provide for the ability to redeem the Legacy Senior Notes, subject to certain "make whole" call provisions. The Legacy Senior Notes assumed by the Company consist of the following:


	COUPON			PRINCIPAL OUTSTANDING AS OF
Dollars in thousands		FACE VALUE		12/31/2022		12/31/2021
Senior Notes due 2026	3.50%	$	600,000	$	600,000	$	—
Senior Notes due 2027	3.75%	500,000		500,000		—
Senior Notes due 2030	3.10%	650,000		650,000		—
Senior Notes due 2031	2.00%	800,000		800,000		—
		$	2,550,000	$	2,550,000	$	—

The following table reconciles the Company’s aggregate Senior notes principal balance with the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021


	DECEMBER 31,
Dollars in thousands	2022		2021
Senior notes principal balance	$	3,699,500	$	1,150,000
Unaccreted discount	(304,919)		(4,730)
Debt issuance costs	(7,447)		(7,431)
Senior notes carrying amount	$	3,387,134	$	1,137,839

Credit Facilities

The Unsecured Credit Facility restructured the parties’ existing bank facilities and added additional borrowing capacities for the Company following the Merger. The OP is the borrower under the Unsecured Credit Facility (in such capacity, the “Borrower”).

•Legacy HR’s existing $700.0 million revolving credit facility under the Amended and Restated Credit Agreement, dated as of May 31, 2019 (as amended, restated, replaced, supplemented, or otherwise modified from time to time prior to July 20, 2022, the “Existing HR Revolving Credit Agreement”), by and among Legacy HR, the lenders party thereto from time to time and their assignees, as lenders, and Wells Fargo Bank, National Association, as the administrative agent (the “WF Administrative Agent”), was terminated, all outstanding obligations in respect thereof were deemed paid in full and all commitments thereunder were permanently reduced to zero and terminated.

•Legacy HR’s existing $200.0 million term loan facility and existing $150.0 million term loan facility under the Amended and Restated Term Loan Agreement, dated as of May 31, 2019 (as amended, restated, replaced, supplemented, or otherwise modified from time to time prior to July 20, 2022, the “Existing HR Term Loan Agreement”), by and among Legacy HR, the lenders party thereto from time to time and their assignees, as lenders, and the WF Administrative Agent, in each, case, were deemed continued and assumed by the Borrower under the Credit Facility, and the Existing HR Term Loan Agreement was terminated.

◦The existing $200.0 million term loan facility was amended to: (a) conform to the terms of the Borrower’s other term loan facilities under the Credit Facility; (b) include two one-year extension options, resulting in a latest final maturity in May 2026; and (c) reprice to align with the pricing for the Borrower’s other term loan facilities under the Credit Facility; and

◦The existing $150.0 million term loan facility was amended to conform to the terms of the Borrower’s other term loan facilities under the Credit Facility, and the existing maturity in June 2026 remains unchanged under the Credit Facility.

•Legacy HTA’s and the OP’s existing $1.0 billion revolving credit facility was upsized to $1.5 billion (the “Revolver”) pursuant to the Credit Facility. The Revolver currently matures in October 2025, and the Credit Facility adds an additional one-year extension option for the Revolver, for a total of two one-year extension options.

•Legacy HTA’s and the OP’s existing $300.0 million term loan facility was deemed continued pursuant to the Credit Facility and was amended to conform to the terms of the Borrower’s other term loan facilities under the Credit Facility. The existing maturity in October 2025 remains unchanged under the Credit Facility.

•Legacy HTA’s and the OP’s existing $200.0 million term loan facility was deemed continued pursuant to the Credit Facility and was amended to (a) conform to the terms of the Borrower’s other term loan facilities under the Credit Facility; (b) extend the maturity from January 2024 to July 20, 2027; and (c) reprice to align with the pricing for the Borrower’s other term loan facilities under the Credit Facility.

•The Credit Facility provides for a new $350.0 million delayed-draw term loan facility that is available to be drawn for 12 months after July 20, 2022 and has an initial maturity date of July 20, 2023, with two one-year extension options. As of December 31, 2022, the $350.0 million Credit Facility was drawn in full. The terms of any delayed draw term loans funded thereunder conform to the terms of the Borrower’s other term loan facilities under the Credit Facility, and the pricing for such delayed draw term loans aligns with the pricing for the Borrower’s other term loan facilities under the Credit Facility.

•The Credit Facility provides for a new $300.0 million term loan facility that was funded on July 20, 2022 and has a maturity date of January 20, 2028, with no extension options. The terms of such term loan facility conform to the terms of the Borrower’s other term loan facilities under the Credit Facility, and the pricing for such term loan facility aligns with the pricing for the Borrower’s other term loan facilities under the Credit Facility.

The following table reconciles the Company’s aggregate term loan principal balance with the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021.


	DECEMBER 31,
Dollars in thousands	2022		2021
Term loan principal balances	$	1,500,000	$	350,000
Debt issuance costs	(4,554)		(1,164)
Term Loans carrying amount	$	1,495,446	$	348,836

$1.125 billion Asset Sale Term Loan

The Company completed its draw of the $1.125 billion asset sale term loan on July 19, 2022. The principal balance was fully repaid on December 30, 2022.

Mortgage Notes Payable

The following table reconciles the Company’s aggregate mortgage notes principal balance with the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021.


	DECEMBER 31,
Dollars in thousands	2022		2021
Mortgage notes payable principal balance	$	84,122	$	103,664
Unamortized premium	486		1,720
Unaccreted discount	(38)		(83)
Debt issuance costs	(323)		(651)
Mortgage notes payable carrying amount	$	84,247	$	104,650

Mortgage Activity

On February 18, 2022, the Company repaid in full a mortgage note payable bearing interest at a rate of 4.70% that encumbered a 56,762 square foot property in California. The aggregate payoff price of $12.6 million consisted of outstanding principal of $11.0 million and a "make-whole" amount of approximately $1.6 million. The unamortized premium of $0.8 million and the unamortized cost on this note of $0.1 million were written off upon payoff.

On February 24, 2022, the Company repaid in full a mortgage note payable bearing interest at a rate of 6.17% that encumbered a 80,153 square foot property in Colorado, in conjunction with the disposition of the property. The aggregate payoff price of $6.4 million consisted of outstanding principal of $5.8 million and a "make-whole" amount of approximately $0.6 million. The unamortized premium of $0.1 million was written off upon payoff.

The following table details the Company’s mortgage notes payable, with related collateral.


	ORIGINAL BALANCE	EFFECTIVE INTEREST RATE 10		MATURITY DATE	COLLATERAL 11	PRINCIPAL AND INTEREST PAYMENTS 9	INVESTMENT IN COLLATERAL at December 31,		BALANCE at December 31,
Dollars in millions							2022		2022		2021
Commercial Bank 1	15.0	5.25	%	4/27	MOB	Monthly/20-yr amort.	—		—		6.1
Life Insurance Co. 2	11.0	3.64	%	5/27	MOB	Monthly/10-yr amort.	—		—		11.6
Life Insurance Co. 3	12.3	3.86	%	8/23	MOB	Monthly/7-yr amort.	25.9		10.0		10.3
Life Insurance Co. 4	9.0	4.84	%	12/23	MOB,OFC	Monthly/10-yr amort.	24.5		6.8		7.1
Life Insurance Co. 5	13.3	4.13	%	1/24	MOB	Monthly/10-yr amort.	22.5		11.7		12.0
Life Insurance Co. 6	6.8	3.96	%	2/24	MOB	Monthly/7-yr amort.	14.7		5.8		6.0
Financial Services 7	9.7	4.32	%	9/24	MOB	Monthly/10-yr amort.	16.6		7.5		7.8
Life Insurance Co. 8	16.5	3.43	%	12/25	MOB,OFC	Monthly/7-yr amort.	39.1		16.2		16.7
Financial Services	11.5	3.71	%	1/26	MOB	Monthly/10-yr amort.	40.5		8.3		8.7
Life Insurance Co.	19.2	4.08	%	12/26	MOB	Monthly/10-yr amort.	44.5		17.9		18.4
							$	228.3	$	84.2	$	104.7

1The Company repaid this loan at the time of disposal in February 2022.

2The Company repaid this loan in February 2022. The Company's unencumbered gross investment was $20.6 million at December 31, 2022.

3The unaccreted portion of the $0.2 million discount recorded on this note upon acquisition is included in the balance above.

4The unamortized portion of the $0.1 million premium recorded on this note upon acquisition is included in the balance above.

5The unamortized portion of the $0.8 million premium recorded on this note upon acquisition is included in the balance above.

6The unamortized portion of the $0.2 million premium recorded on this note upon acquisition is included in the balance above.

7The unamortized portion of the $0.1 million premium recorded on this note upon acquisition is included in the balance above.

8The unamortized portion of the $0.7 million premium recorded on this note upon acquisition is included in the balance above.

9Payable in monthly installments of principal and interest with the final payment due at maturity (unless otherwise noted).

10The contractual interest rates for the eight outstanding mortgage notes ranged from 3.3% to 4.8% as of December 31, 2022.

11MOB-Medical office building; OFC-Office

Other Long-Term Debt Information

Future maturities of the Company’s notes and bonds payable as of December 31, 2022 were as follows:


Dollars in thousands	PRINCIPAL MATURITIES		NET ACCRETION/ AMORTIZATION 1		DEBT ISSUANCE COSTS 2		NOTES AND BONDS PAYABLE		%
2023	$	368,880	$	(38,805)	$	(3,258)	$	326,817	6.1	%
2024	225,352		(40,922)		(2,211)		182,219		3.4	%
2025	951,250		(43,193)		(1,851)		906,206		16.9	%
2026	773,640		(41,798)		(1,636)		730,206		13.6	%
2027	700,000		(36,192)		(1,518)		662,290		12.4	%
2028 and thereafter	2,649,500		(103,561)		(1,850)		2,544,089		47.6	%
	$	5,668,622	$	(304,471)	$	(12,324)	$	5,351,827	100.0	%

1Includes discount accretion and premium amortization related to the Company’s Senior Notes and six mortgage notes payable.

2Excludes approximately $6.0 million in debt issuance costs related to the Company's Unsecured Credit Facility included in other assets, net.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1I
-Subparagraph (a)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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. During 2022, 2021 and 2020, 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) and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.

During 2020, the Company entered into two treasury rate locks totaling $75.0 million and $40.0 million, respectively. The treasury rate locks were settled for an aggregate amount of $4.3 million concurrent with the Company's issuance of its Senior Notes due 2030. The settlement will be amortized over the 10-year term of the notes.

As of December 31, 2022, the Company had interest rate derivatives that were designated as cash flow hedges of interest rate risk. The table below presents the notional value and weighted average rates of the Company's derivative financial instruments as of December 31, 2022 and 2021:


	NOTIONAL VALUE AS OF		WEIGHTED AVERAGE RATE
EXPIRATION DATE	DECEMBER 31, 2022
January 31, 2023	$	300,000	1.42	%
January 15, 2024	200,000		1.21	%
May 1, 2026	100,000		2.15	%
December 1, 2026	150,000		3.84	%
June 1, 2027	150,000		4.13	%
December 1, 2027	250,000		3.79	%
	$	1,150,000	2.63	%

On February 16, 2023, the Company entered into a swap transaction with a notional amount of $50.0 million and a fixed rate of 4.16%. The swap agreement has an effective date of March 1, 2023 and a termination date of June 1, 2026.

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 as well as their classification on the Consolidated Balance Sheets as of December 31, 2022 and 2021.


	AS OF DECEMBER 31, 2022			AS OF DECEMBER 31, 2021
Dollars in thousands	BALANCE SHEET LOCATION	FAIR VALUE		BALANCE SHEET LOCATION	FAIR VALUE
Derivatives designated as hedging instruments
Interest rate swaps 2017				Other liabilities	$	(420)
Interest rate swaps 2018				Other liabilities	(976)
Interest rate swaps 2019	Other Assets	$	13,603	Other liabilities	(4,521)
Interest rate swaps 2022	Other Assets	909			—
Interest rate swaps 2022	Other Liabilities	(4,269)			—
Total derivatives designated as hedging instruments		$	10,243		$	(5,917)

Tabular Disclosure of the Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive

Income (Loss)

The table below presents the effect of cash flow hedge accounting on Accumulated other comprehensive income (loss) as of December 31, 2022 related to the Company's outstanding interest rate swaps.


	AMOUNT OF GAIN/(LOSS) RECOGNIZED IN OCI on derivatives			AMOUNT OF (GAIN)/LOSS RECLASSIFIED FROM OCI INTO INCOME for the year ended December 31,
Dollars in thousands	2022			2022		2021
Interest rate swaps 2017	$	302	Interest expense	$	118	$	527
Interest rate swaps 2018	616		Interest expense	361		1,194
Interest rate swaps 2019	12,964		Interest expense	563		2,157
Interest rate swaps 2022	(3,252)		Interest expense	(109)		—
Settled treasury hedges	—		Interest expense	426		426
Settled interest rate swaps	—		Interest expense	168		168
	$	10,630	Total interest expense	$	1,527	$	4,472

The Company estimates that an additional $10.3 million will be reclassified from accumulated other comprehensive loss as a net decrease to interest expense over the next 12 months.

Tabular Disclosure Offsetting Derivatives

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of December 31, 2022. The net amounts of derivative liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative liabilities are presented on the Company's Consolidated Balance Sheets.


Offsetting of Derivative Assets
	GROSS AMOUNTS of recognized assets		GROSS AMOUNTS OFFSET in the Consolidated Balance Sheets		NET AMOUNTS OF ASSETS presented in the Consolidated Balance Sheets		GROSS AMOUNTS NOT OFFSET in the Consolidated Balance Sheets
	GROSS AMOUNTS of recognized assets		GROSS AMOUNTS OFFSET in the Consolidated Balance Sheets				FINANCIAL INSTRUMENTS		CASH COLLATERAL		NET AMOUNT
Derivatives	$	14,512	$	—	$	14,512	$	(4,269)	$	—	$	10,243


Offsetting of Derivative Liabilities
	GROSS AMOUNTS of recognized liabilities		GROSS AMOUNTS OFFSET in the Consolidated Balance Sheets		NET AMOUNTS OF LIABILITIES presented in the Consolidated Balance Sheets		GROSS AMOUNTS NOT OFFSET in the Consolidated Balance Sheets
	GROSS AMOUNTS of recognized liabilities		GROSS AMOUNTS OFFSET in the Consolidated Balance Sheets				FINANCIAL INSTRUMENTS		CASH COLLATERAL		NET AMOUNT
Derivatives	$	(4,269)	$	—	$	(4,269)	$	4,269	$	—	$	—

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

As of December 31, 2022, 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 $2.1 million. As of December 31, 2022, the Company has not posted any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of $2.1 million.

Stockholders' Equity

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Common Stock

The Company had no preferred shares outstanding and had common shares outstanding for the three years ended December 31, 2022, 2021, and 2020 as follows:


	YEAR ENDED DECEMBER 31,
	2022	2021	2020
Balance, beginning of year	150,457,433	139,487,375	134,706,154
Issuance of common stock	229,618,304	10,899,301	4,637,445
Non-vested share-based awards, net of withheld shares and forfeitures	514,157	70,757	143,776
Balance, end of year	380,589,894	150,457,433	139,487,375

At-The-Market Equity Offering Program

The Company has in place an ATM equity offering program to sell shares of the Company’s common stock from time to time in at-the-market sales transactions. The Company has equity distribution agreements with various sales agents with respect to the ATM offering program of common stock with an aggregate sales amount of up to $750.0 million. As of December 31, 2022, $750.0 million remained available for issuance under the current ATM offering program. The Company's previous ATM agreements involving Legacy HR are no longer in effect following the Merger on July 20, 2022. The following table details the Company's at-the-market activity, including any forward transactions:


	WEIGHTED AVERAGE SALE PRICE per share		SHARES PRICED	SHARES SETTLED	SHARES REMAINING TO BE SETTLED	NET PROCEEDS in millions
2021	$	31.09	9,763,680	10,859,539	727,400	$	330.3
2022	$	31.73	—	727,400	—	$	22.3

Dividends Declared

During 2022, the Company declared and paid common stock dividends aggregating $1.24 per share ($0.31 per share per quarter).

On February 24, 2023, the Company declared a quarterly common stock dividend in the amount of $0.31 per share payable on March 21, 2023 to stockholders of record on March 7, 2023.

Authorization to Repurchase Common Stock

On August 2, 2022, 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. The Company is not obligated under this authorization to repurchase any specific number of shares. This authorization supersedes all previous stock repurchase authorizations. As of the date of these Consolidated Financial Statements, the Company has not repurchased any shares of its common stock under this authorization.

Accumulated Other Comprehensive Income

During the year ended December 31, 2020, the Company entered into two treasury rate locks that were settled for an aggregate amount of $4.3 million concurrent with the Company’s issuance of its Senior Notes due 2030. This amount will be reclassified out of accumulated other comprehensive over the 10-year term of the notes. The Company continues to amortize the 2015 settlement of forward-starting interest rate swaps. This amount will be reclassified out of accumulated other comprehensive income impacting net income over the 10-year term of the associated senior note issuance. See Note 11 for more information regarding the Company's derivative instruments.

The following table represents the changes in accumulated other comprehensive income (loss) during the years ended December 31, 2022 and 2021:


	INTEREST RATE SWAPS as of December 31,
Dollars in thousands	2022		2021
Beginning balance	$	(9,981)	$	(17,832)
Other comprehensive loss before reclassifications	1,531		4,472
Amounts reclassified from accumulated other comprehensive income	10,590		3,379
Net current-period other comprehensive income	12,121		7,851
Ending balance	$	2,140	$	(9,981)

The following table represents the details regarding the reclassifications from accumulated other comprehensive income (loss) during the year ended December 31, 2022 (dollars in thousands):


DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) COMPONENTS	AMOUNT RECLASSIFIED from accumulated other comprehensive income (loss)		AFFECTED LINE ITEM in the statement where net income is presented
Amounts reclassified from accumulated other comprehensive income (loss) related to settled interest rate swaps	$	594	Interest Expense
Amounts reclassified from accumulated other comprehensive income (loss) related to current interest rate swaps	937		Interest Expense
	$	1,531

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stock and Other Incentive Plans

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Stock and Other Incentive Plans

Stock Incentive Plan

The Legacy HR stockholders approved the Legacy HR Incentive Plan, which authorized the Company to issue 3,500,000 shares of common stock to its employees and directors. The Legacy HR Incentive Plan was replaced as of the merger date by the Incentive Plan. As of December 31, 2022 and 2021, the Company had issued a total of 3,417,696 and 2,386,822 restricted shares under the Incentive Plan and the Legacy HR Incentive Plan, respectively. Unvested awards under the Legacy HR Incentive Plan were assumed according to their existing terms by the Company in connection with the Merger. Non-vested shares issued under the Legacy HR Incentive Plan are generally subject to fixed vesting periods varying from three to eight years beginning on the date of issue. If a recipient voluntarily terminates his or her relationship with the Company or is terminated for cause before the end of the vesting period, the shares are forfeited, at no cost to the Company. Once the shares have been issued, the recipient has the right to receive dividends and the right to vote the shares through the vesting period. Compensation expense, included in general and administrative expense, recognized during the years ended December 31, 2022, 2021 and 2020 from the amortization of the value of shares over the vesting period issued to employees and directors was $13.9 million, $10.4 million and $9.7 million, respectively. The following table represents expected amortization of the Company's non-vested shares issued as of December 31, 2022:


Dollars in millions	FUTURE AMORTIZATION of non-vested shares
2023	$	12.0
2024	10.0
2025	8.3
2026	5.5
2027	0.4
2028 and thereafter	0.1
Total	$	36.3

Executive Incentive Plan

The Compensation Committee has adopted an executive incentive plan pursuant to the Incentive Plan (the "Executive Incentive Plan") to provide specific award criteria with respect to incentive awards made under the Incentive Plan subject to the discretion of the Compensation Committee. Under the terms of the Executive Incentive Plan, the Company's named executive officers, and certain other members of senior management, may earn incentive awards in the form of cash, non-vested stock, restricted stock units ("RSUs"), and units in the OP ("OP Units"). For 2022, 2021 and 2020, compensation expense, included in general and administrative expense, resulting from the amortization of the Executive Incentive Plan non-vested share and RSU grants to officers was approximately $9.8 million, $6.6 million, and $5.9 million, respectively. Details of equity awards that have been issued under this plan are as follows:

•On January 3, 2022, the Company granted non-vested stock awards to its named executive officers, and certain other members of senior management and employees, with a grant date fair value of $7.9 million, which consisted of an aggregate of 249,689 non-vested shares with a five-year vesting period, which will result in an annual compensation expense of $1.6 million for each of 2023, 2024, 2025 and 2026.

•On January 3, 2022, the Company granted RSUs to its named executive officers, and certain other members of senior management and officers, with a grant date fair value of $9.7 million, which consisted of an aggregate

294,932 RSUs with a three-year performance period and a total five-year vesting period, which will result in an annual compensation expense of $1.9 million for each of 2023, 2024, 2025, and 2026.

•On February 22, 2022, the Company granted a performance-based award to its named executive officers, senior vice presidents, and first vice presidents with a grant date fair value of $3.9 million, which consisted of an aggregate of 126,930 non-vested shares with a five-year vesting period, which will result in an annual compensation expense of $0.8 million for 2023, 2024, 2025 and 2026, and $0.1 million for 2027.

•On December 12, 2022, the Company granted non-vested stock awards to its named executive officers in view of efforts with respect to the merger transaction and integration of the two companies, with a grant date fair value of $2.7 million, which consisted of an aggregate of 140,809 non-vested shares with a three-year vesting period, which will result in an compensation expense of $0.9 million for 2023, 2024 and 2025.

•On January 4, 2023, the Company granted non-vested stock awards to its named executive officers, senior vice presidents, and first vice presidents with a grant date fair value of $4.1 million, which consisted of an aggregate of 205,264 shares with a ratable five-year vesting period, which will result in an annual compensation expense of $0.8 million for 2023, 2024, 2025, 2026 and 2027.

•On January 4, 2023, the Company granted 627,547 in OP units to named executive officers with a three-year performance period and ratable vestings of 50% in year four and 50% in year five. The expense will be recognized on the straight-line basis over the five-year vesting period.

•On January 4, 2023, the Company granted RSUs to certain of its non-executive senior officers consisting of an aggregate of 165,174 RSUs with ratable vestings of 50% in year four and 50% in year five. The expense will be recognized on the straight-line basis over the five-year vesting period

Approximately 43% of the RSUs vest based on two market performance conditions. Relative and absolute total shareholder return ("TSR") awards containing these market performance conditions were valued using independent specialists. The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair values of $30.56 for the absolute TSR component and $41.30 for the relative TSR component for the January 2022 grant using the following assumptions:


Volatility	30.0	%
Dividend Assumption	Accrued
Expected term in years	3 years
Risk-free rate	1.02	%
Stock price (per share)	$31.68

The remaining 57% of the RSUs vest upon certain operating performance conditions. With respect to the operating performance conditions of the January grant, the grant date fair value was $31.68 based on the Company's share price on the date of grant. The combined weighted average grant date fair value of the January 2022 RSUs was $33.04 per share.

Long-Term Incentive Program

In the first quarter of 2022, the Company granted a performance-based award to certain non-executive officers under the Long-term Incentive Program adopted under the Legacy HR Incentive Plan (the "LTIP") totaling approximately $0.6 million, which was granted in the form of 19,204 non-vested shares. In the first quarter of 2021, the Company granted a performance-based award to certain non-executive officers under the LTIP totaling approximately $0.6 million, which was granted in the form of 19,679 non-vested shares. The shares have vesting periods ranging from one to eight years with a weighted average vesting period of approximately five years.

For 2022, 2021 and 2020, compensation expense resulting from the amortization of non-vested share grants to officers was approximately $0.9 million, $1.0 million, and $1.1 million, respectively.

Salary Deferral Plan

The Company's salary deferral plan allows certain of its officers to elect to defer up to 50% of their base salary in the form of non-vested shares subject to long-term vesting. The number of shares will be increased through a Company match depending on the length of the vesting period selected by the officer. The officer's vesting period choices are: three years for a 30% match; five years for a 50% match; and eight years for a 100% match. During 2022, 2021 and 2020, the Company issued 17,381 shares, 21,396 shares and 17,570 shares, respectively, to its officers through the salary deferral plan. For 2022, 2021 and 2020, compensation expense resulting from the amortization of non-vested share grants to officers was approximately $0.9 million for each year, respectively.

Non-employee Directors Incentive Plan

The Company issues non-vested shares to its non-employee directors under the Incentive Plan. The directors’ shares have a one-year vesting period and are subject to forfeiture prior to such date upon termination of the director’s service, at no cost to the Company. For each of the years 2022, 2021 and 2020, compensation expense resulting from the amortization of non-vested share grants to directors was approximately $1.5 million, $1.2 million, and $1.0 million, respectively.

•On May 13, 2022, the Company granted a non-vested stock award to eight of its directors, with a grant date fair value of $0.8 million, which consisted of an aggregate of 26,840 non-vested shares, with a one-year vesting period.

•On August 2, 2022, the Company granted non-vested stock awards to twelve of its directors, with a grant date fair value of $1.8 million, which consisted of an aggregate of 70,816 non-vested shares, with a vesting period between one and three years.

Other Grants

The Company issued three one-time non-vested share grants related to executive management transition in 2016. For 2022, 2021 and 2020, compensation expense resulting from the amortization of these non-vested share grants to officers was approximately $0.8 million, $0.7 million, and $0.8 million, respectively.

In 2022, the Company made discretionary awards of 5,806 shares of non-vested stock to three employees.

A summary of the activity under the Incentive Plans and related information for the three years in the period ended December 31, 2022 follows:


	YEAR ENDED DECEMBER 31,
Dollars in thousands, except per share data	2022		2021		2020
Share-based awards, beginning of year	1,562,028		1,766,061		1,754,066
Granted	657,475		203,701		197,999
Vested	(418,949)		(404,777)		(186,004)
Forfeited	(5,426)		(2,957)		—
Share-based awards, end of year	1,795,128		1,562,028		1,766,061

Weighted-average grant date fair value of
Share-based awards, beginning of year	$	31.10	$	30.51	$	29.82
Share-based awards granted during the year	$	28.11	$	30.86	$	30.33
Share-based awards vested during the year	$	31.52	$	28.38	$	23.82
Stock-based awards forfeited during the year	$	31.48	$	33.04	$	—
Share-based awards, end of year	$	29.91	$	31.10	$	30.51

Grant date fair value of shares granted during the year	$	18,480	$	6,286	$	6,006

The vesting periods for the non-vested shares granted during 2022 ranged from one to eight years with a weighted-average amortization period remaining as of December 31, 2022 of approximately 4.3 years.

During 2022, 2021 and 2020, the Company withheld 137,892 shares, 129,987 shares and 54,223 shares, respectively, of common stock from its officers to pay estimated withholding taxes related to the vesting of shares.

401(k) Plan

The Company maintains a 401(k) plan that allows eligible employees to defer salary, subject to certain limitations imposed by the Internal Revenue Code. The Company provides a matching contribution of up to 3% of each eligible employee’s salary, subject to certain limitations. The Company’s matching contributions were approximately $1.2 million for the year ended December 31, 2022, $0.7 million for 2021 and $0.6 million for 2020.

Employee Stock Purchase Plan

The outstanding options relate only to the Legacy HR Employee Stock Purchase Plan, which was terminated in November 2022. No new options will be issued under the Legacy HR Employee Stock Purchase Plan and existing options will expire in March 2024.

During the years ended December 31, 2022, 2021 and 2020, the Company recognized in general and administrative expenses approximately $0.4 million, $0.4 million, and $0.3 million, respectively, of compensation expense related to the annual grant of options to its employees to purchase shares under the Legacy HR Employee Stock Purchase Plan.

Cash received from employees upon exercising options under the Legacy HR Employee Stock Purchase Plan was approximately $0.4 million for the year ended December 31, 2022, $0.8 million for the year ended December 31, 2021, and $0.7 million for the year ended December 31, 2020.

A summary of the Legacy HR Employee Stock Purchase Plan activity and related information for the three years in the period ended December 31, 2022 is as follows:


	YEAR ENDED DECEMBER 31,
Dollars in thousands, except per share data	2022		2021		2020
Options outstanding, beginning of year	348,514		341,647		332,659
Granted	255,960		253,200		212,716
Exercised	(20,246)		(30,281)		(21,713)
Forfeited	(102,619)		(71,630)		(42,221)
Expired	(140,633)		(144,422)		(139,794)
Options outstanding and exercisable, end of year	340,976		348,514		341,647

Weighted-average exercise price of
Options outstanding, beginning of year	$	25.38	$	24.70	$	25.59
Options granted during the year	$	26.89	$	25.16	$	28.36
Options exercised during the year	$	20.97	$	25.03	$	24.10
Options forfeited during the year	$	21.88	$	25.45	$	25.29
Options expired during the year	$	23.36	$	24.17	$	23.74
Options outstanding, end of year	$	16.38	$	25.38	$	24.70

Weighted-average fair value of options granted during the year (calculated as of the grant date)	$	9.91	$	9.05	$	8.06
Intrinsic value of options exercised during the year	$	75	$	165	$	101
Intrinsic value of options outstanding and exercisable (calculated as of December 31)	$	985	$	1,997	$	1,673
Exercise prices of options outstanding (calculated as of December 31)	$	16.38	$	25.91	$	24.70
Weighted-average contractual life of outstanding options (calculated as of December 31, in years)	0.8		0.8		0.8

The fair values for these options were estimated at the date of grant using a Black-Scholes options pricing model with the weighted-average assumptions for the options granted during the period noted in the following table. The risk-free interest rate was based on the U.S. Treasury constant maturity-nominal two-year rate whose maturity is nearest to the date of the expiration of the latest option outstanding and exercisable; the expected dividend yield was based on the expected dividends of the current year as a percentage of the average stock price of the prior year; the expected life of each option was estimated using the historical exercise behavior of employees; expected volatility was based on

historical volatility of the Company’s common stock; and expected forfeitures were based on historical forfeiture rates within the look-back period.


	2022		2021		2020
Risk-free interest rates	0.73	%	0.13	%	1.58	%
Expected dividend yields	3.97	%	4.11	%	3.69	%
Expected life (in years)	1.44		1.43		1.43
Expected volatility	49.0	%	48.2	%	28.6	%
Expected forfeiture rates	85	%	85	%	85	%

Earnings Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Earnings Per 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 Company used the treasury method to determine the dilution from the forward equity agreements during the period of time prior to settlement. The number of weighted-average shares outstanding used in the computation of earnings per common share for the year ended December 31, 2021 included the effect from the assumed issuance of 0.7 million shares of common stock pursuant to the settlement of the forward equity agreements at the contractual price, less the assumed repurchase of the common stock at the average market price using the proceeds of approximately $23.1 million, adjusted for costs to borrow. For the year ended December 31, 2021, 1,682 weighted-average incremental shares of common stock were excluded from the computation of weighted-average common shares outstanding - diluted, as the impact was anti-dilutive. As of and for the year ended December 31, 2022, these forward equity agreements settled and consequently, the Company did not have any remaining shares subject to unsettled forward sale agreements.

The table below sets forth the computation of basic and diluted earnings per common share for the three years in the period ended December 31, 2022.


	YEAR ENDED DECEMBER 31,
Dollars in thousands, except per share data	2022		2021		2020
Weighted average common shares outstanding
Weighted average common shares outstanding	254,296,810		144,411,835		135,666,503
Non-vested shares	(1,940,607)		(1,774,669)		(1,736,358)
Weighted average common shares outstanding - basic	252,356,203		142,637,166		133,930,145

Weighted average common shares outstanding - basic	252,356,203		142,637,166		133,930,145
Dilutive effect of forward equity shares	—		—		6,283
Dilutive effect of OP Units	1,451,599		—		—
Dilutive effect of employee stock purchase plan	65,519		73,062		70,512
Weighted average common shares outstanding - diluted	253,873,321		142,710,228		134,006,940


Net income attributable to common stockholders	$	40,897	$	66,659	$	72,195
Dividends paid on nonvested share-based awards	(2,437)		(2,154)		(2,083)

Net income applicable to common stockholders - basic	$	38,460	$	64,505	$	70,112
Net income attributable to OP Units	81		—		—
Net income applicable to common stockholders - diluted	$	38,541	$	64,505	$	70,112





Basic earnings per common share - net income	$	0.15	$	0.45	$	0.52


Diluted earnings per common share - net income	$	0.15	$	0.45	$	0.52

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Re/development Activity During the year ended December 31, 2022, the Company funded $60.8 million toward development and redevelopment of properties. Tenant Improvements The Company may provide a tenant improvement allowance in new or renewal leases for the purpose of refurbishing or renovating tenant space. As of December 31, 2022, the Company had commitments of approximately $195.1 million that are expected to be spent on tenant improvements throughout the portfolio, excluding development properties currently under construction. Land Held for Development Land held for development includes parcels of land owned by the Company, upon which the Company intends to develop and own outpatient healthcare facilities. The Company's land held for development included twenty parcels as of December 31, 2022 and seven parcels as of December 31, 2021. The Company’s investments in land held for development totaled approximately $74.3 million as of December 31, 2022 and $24.8 million as of December 31, 2021. The current land held for development is located adjacent to certain of the Company's existing medical office buildings in New York, Massachusetts, California, Connecticut, Florida, North Carolina, Texas, Tennessee, Georgia, Washington, and Colorado. Security Deposits and Letters of Credit As of December 31, 2022, the Company held approximately $32.1 million in letters of credit and security deposits for the benefit of the Company in the event the obligated tenant fails to perform under the terms of its respective lease. Generally, the Company may, at its discretion and upon notification to the tenant, draw upon these instruments if there are any defaults under the leases.

Other Data

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Other Data

Taxable Income (unaudited)

The Company has elected to be taxed as a REIT, as defined under the Internal Revenue Code. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its taxable income to its stockholders.

As a REIT, the Company generally will not be subject to federal income tax on taxable income it distributes currently to its stockholders. Accordingly, no provision for federal income taxes has been made in the accompanying Consolidated Financial Statements. If the Company fails to qualify as a REIT for any taxable year, then it will be subject to federal income taxes at regular corporate rates, including any applicable alternative minimum tax, and may not be able to qualify as a REIT for four subsequent taxable years. Even if the Company qualifies as a REIT, it may be subject to certain state and local taxes on its income and property and to federal income and excise tax on its undistributed taxable income.

Earnings and profits (as defined under the Internal Revenue Code), the current and accumulated amounts of which determine the taxability of distributions to stockholders, vary from net income attributable to common stockholders and taxable income because of different depreciation recovery periods, depreciation methods, and other items.

While Legacy HR was considered the accounting acquirer in the Merger for GAAP purposes, Legacy HR’s separate tax existence ceased with the Merger and Legacy HTA continues as the tax successor. On a tax basis, the Company’s gross real estate assets totaled approximately $13.0 billion as of December 31, 2022. As of December 31, 2021 and 2020 gross real estate assets on a tax basis were $5.0 billion and $4.7 billion for Legacy HR and $8.2 billion and $7.9 billion for Legacy HTA, respectively.

Characterization of Distributions (unaudited)

Distributions in excess of earnings and profits generally constitute a return of capital. The following table gives the characterization of the distributions on the Company’s common stock for the three years ended December 31, 2022.

For the three years ended December 31, 2022, there were no preferred shares outstanding. As such, no dividends were distributed related to preferred shares for those periods.


	YEAR ENDED DECEMBER 31,
	2022		2021		2020
	PER SHARE		PER SHARE		PER SHARE
Tax Treatment of Dividends Pre-Merger Healthcare Trust of America
Ordinary income 1	$	0.5862	$	0.7920	$	0.6976
Return of capital	4.0162		0.4930		0.5582
Capital gain	1.2216		—		0.0092
Common stock distributions	$	5.8240	$	1.2850	$	1.2650

Tax Treatment of Dividends Pre-Merger Healthcare Realty
Ordinary income 1	$	0.2655	$	0.7500	$	0.7738
Return of capital	0.5555		0.3600		0.1084
Capital gain	—		0.0964		0.3178
Common stock distributions	$	0.8210	$	1.2064	$	1.2000

Tax Treatment of Dividends Post-Merger Healthcare Realty
Ordinary income 1	$	0.0422	$	—	$	—
Return of capital	0.2889		—		—
Capital gain	0.0879		—		—
Common stock distributions	$	0.4190	$	—	$	—

1Reporting year ordinary income is also Code Section 199A eligible per the The Tax Cut and Jobs Act of 2017.

State Income Taxes

The Company must pay certain state income taxes, which are typically included in general and administrative expense on the Company’s Consolidated Statements of Income.

The State of Texas gross margins tax on gross receipts from operations is disclosed in the table below as an income tax because it is considered such by the Securities and Exchange Commission.

State income tax expense and state income tax payments for the three years ended December 31, 2022 are detailed in the table below:


	YEAR ENDED DECEMBER 31,
Dollars in thousands	2022		2021		2020
State income tax expense
Texas gross margins tax	$	1,693	$	564	$	546
Other	151		8		8
Total state income tax expense	$	1,844	$	572	$	554
State income tax payments, net of refunds and collections	$	1,834	$	560	$	557

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

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, cash equivalents and restricted cash - The carrying amount approximates fair value.

•Borrowings under the Unsecured Credit Facility, Unsecured Term Loan due 2024 and Unsecured Term Loan due 2026 - The carrying amount approximates fair value because the borrowings are based on variable market interest rates.

•Senior unsecured 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.

•Mortgage notes payable - The fair value 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 assets on the Company's Consolidated Balance Sheets at fair value. Fair value, using level 2 inputs, is estimated by utilizing pricing models that consider forward yield curves and discount rates.

The table below details the fair value and carrying values for our other financial instruments as of December 31, 2022 and 2021.


	December 31, 2022				December 31, 2021
Dollars in millions	CARRYING VALUE		FAIR VALUE		CARRYING VALUE		FAIR VALUE
Notes and bonds payable 1, 2	$	5,351.8	$	5,149.6	$	1,801.3	$	1,797.4
Real estate notes receivable 1	$	99.6	$	99.6	$	—	$	—

1Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets.

2Fair value for senior notes includes accrued interest as of December 31, 2022.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related-Party Transactions	12 Months Ended
Related-Party Transactions	Dec. 31, 2022
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party TransactionsIn the ordinary course of conducting its business, the Company enters into agreements with affiliates in relation to the management and leasing of its real estate assets, including real estate assets owned through joint ventures.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2022

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

Schedule II – Valuation and Qualifying Accounts for the years ended December 31, 2022, 2021 and 2020


Dollars in thousands				ADDITIONS AND DEDUCTIONS
DESCRIPTION		BALANCE AT BEGINNING OF PERIOD		CHARGED/(CREDITED) TO COSTS AND EXPENSES		CHARGED TO OTHER ACCOUNTS		UNCOLLECTIBLE ACCOUNTS WRITTEN-OFF		BALANCE AT END OF PERIOD
2022	Accounts receivable allowance	$	654	$	3,306	$	—	$	6	$	3,954
2021	Accounts receivable allowance	$	604	$	72	$	—	$	22	$	654
2020	Accounts receivable allowance	$	418	$	207	$	—	$	21	$	604

Schedule III - Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2022

SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]

Real Estate and Accumulated Depreciation

Schedule III – Real Estate and Accumulated Depreciation as of December 31, 2022


Dollars in thousands		LAND 1						BUILDINGS, IMPROVEMENTS, LEASE INTANGIBLES AND CIP 1
MARKET	NUMBER OF PROP.	INITIAL INVESTMENT		COST CAPITALIZED subsequent to acquisition		TOTAL		INITIAL INVESTMENT		COST CAPITALIZED subsequent to acquisition		TOTAL		PERSONAL PROPERTY		2, 3, 5 TOTAL PROPERTY		1, 3 ACCUMULATED DEPRECIATION		4 ENCUMBRANCES		5 DATE ACQUIRED	DATE CONST.
Dallas, TX	45	$	95,647	$	1,063	$	96,710	$	1,081,969	$	129,495	$	1,211,464	$	551	$	1,308,725	$	202,031	$	—	2003-2022	1974-2021
Seattle, WA	29	59,412		4,883		64,295		558,280		78,330		636,610		726		701,631		164,423		—		2008-2022	1974-2018
Los Angeles, CA	23	95,360		3,164		98,524		436,629		55,941		492,570		453		591,547		129,663		38,373		1993-2022	1959-2018
Boston, MA	18	128,904		—		128,904		456,963		2,173		459,136		—		588,040		13,513		—		2022	1860-2019
Charlotte, NC	32	35,366		36		35,402		454,299		25,616		479,915		105		515,422		95,363		—		2008-2022	1961-2018
Houston, TX	34	82,539		2,850		85,389		669,553		27,966		697,519		57		782,965		63,486		—		1993-2022	1974-2018
Miami, FL	23	72,304		60		72,364		429,781		17,413		447,194		105		519,663		52,920		—		1994-2022	1954-2021
Atlanta, GA	28	45,220		4,159		49,379		463,963		9,519		473,482		95		522,956		63,773		15,778		2017-2022	1960-2014
Tampa, FL	20	30,790		743		31,533		419,354		(5,061)		414,293		33		445,859		18,991		—		1994-2022	1954-2015
Denver, CO	33	70,478		6,220		76,698		491,881		51,208		543,089		609		620,396		65,123		6,818		2010-2022	1942-2020
Raleigh, NC	27	52,954		3,666		56,620		394,574		6,231		400,805		9		457,434		15,566		—		2019-2022	1977-2020
Phoenix, AZ	35	20,257		5		20,262		448,657		18,836		467,493		425		488,180		30,281		—		2007-2022	1971-2006
Chicago, IL	7	32,374		—		32,374		271,285		15,995		287,280		81		319,735		28,243		—		2004-2022	1970-2017
Indianapolis, IN	36	52,180		—		52,180		292,372		5,437		297,809		13		350,002		19,705		—		2019-2022	1988-2013
Hartford, CT	30	43,326		—		43,326		234,702		1,150		235,852		—		279,178		8,015		—		2022	1955-2017
Nashville, TN	12	41,291		2,057		43,348		272,122		84,395		356,517		1,424		401,289		92,720		—		2004-2022	1976-2021
New York, NY	14	64,402		—		64,402		192,029		2,220		194,249		—		258,651		4,771		—		2022	1920-2014
Austin, TX	13	25,718		1,346		27,064		261,585		28,675		290,260		142		317,466		40,363		—		2007-2022	1972-2015
Orlando, FL	8	20,698		10		20,708		198,719		3,556		202,275		1		222,984		11,654		—		1998-2022	1988-2009
Memphis, TN	11	12,811		1,090		13,901		118,426		70,325		188,751		317		202,969		60,624		—		1999-2022	1982-2021
Other (51 markets)	210	315,986		10,276		326,262		3,324,552		205,043		3,529,595		1,223		3,857,080		457,572		23,728		1993-2022
Total real estate	688	1,398,017		41,628		1,439,645		11,471,695		834,463		12,306,158		6,369		13,752,172		1,638,800		84,697

Land held for develop.	—	74,265		—		74,265		—		—		—		—		74,265		1,183		—
Construction in Progress	—	—		—		—		35,560		—		35,560		—		35,560		—		—
Corporate property	—	1,853		—		1,853		1,787		1,240		3,027		5,538		10,418		5,288		—
Financing lease right-of-use assets	—	—		—		—		—		—		—		—		83,824		—		—
Investment in financing receivables, net	—	—		—		—		—		—		—		—		120,236		—		—
Total properties	688	1,474,135		$	41,628	$	1,515,763	$	11,509,042	$	835,703	$	12,344,745	$	11,907	$	14,076,475	$	1,645,271	$	84,697

1Includes one asset held for sale at 12/31/22 of approximately $18.9 million.

2Total properties as of December 31, 2022 have an estimated aggregate total cost of $13.0 billion for federal income tax purposes.

3Depreciation is provided for on a straight-line basis on buildings and improvements over 3.0 to 49.0 years, lease intangibles over 1.2 to 99.0 years, personal property over 3.0 to 20.0 years, and land improvements over 2.0 to 39.0 years.

4Includes unamortized premium of $0.5 million and unaccreted discount of $38 thousand and debt issuance costs of $0.3 million as of December 31, 2022.

5Includes merger of Healthcare Trust of America, Inc. buildings, acquired in 2022.

6Rollforward of Total Property and Accumulated Depreciation, including assets held for sale, for the year ended December 31, 2022, 2021 and 2020 follows:


	YEAR ENDED DEC. 31, 2022				YEAR ENDED DEC. 31, 2021				YEAR ENDED DEC. 31, 2020
Dollars in thousands	TOTAL PROPERTY		ACCUMULATED DEPRECIATION		TOTAL PROPERTY		ACCUMULATED DEPRECIATION		TOTAL PROPERTY		ACCUMULATED DEPRECIATION
Beginning balance	$	5,104,942	$	1,338,743	$	4,670,226	$	1,249,679	$	4,359,993	$	1,121,102
Additions during the period
Real estate acquired	9,780,070		241,285		374,912		7,668		430,205		8,313
Other improvements	219,783		205,703		103,035		191,875		80,462		178,636

Land held for development	49,416		—		2,021		—		2,579		282
Construction in progress	31,586		—		3,974		—		—		—
Investment in financing receivable, net	(66,509)		—		186,745		—		—		—
Financing lease right-of-use assets, net	52,249		—		11,909		—		19,667		—
Corporate Properties	3,640		236		—		—		—		—
Retirement/dispositions
Real estate	(1,098,702)		(140,696)		(247,880)		(110,479)		(222,680)		(58,654)


Ending balance	$	14,076,475	$	1,645,271	$	5,104,942	$	1,338,743	$	4,670,226	$	1,249,679

Schedule IV - Mortgage Loans on Real Estate Assets

12 Months Ended

Dec. 31, 2022

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]

Schedule IV - Mortgage Loans on Real Estate Assets

Schedule IV – Mortgage Loans on Real Estate Assets as of December 31, 2022


Dollars in thousands			Final Maturity Date	Payment Terms	Prior Liens		Face Amount		Carrying Amount		Principal Amount of Loans Subject to Delinquent Principal or Interest
Mortgage loan on real estate located in:
Texas	7.00	%	12/31/2023	(1)	$	—	$	31,150	$	30,552	$	—
Florida	6.00	%	2/27/2026	(2)	$	—	13,062		12,988		—
Mezzanine loans on real estate located in:
Texas	8.00	%	6/24/2024	(3)	—		54,119		51,052		—
North Carolina	8.00	%	12/22/2024	(4)	—		6,000		5,493		—
Total real estate notes receivable					$	—	$	104,331	$	100,085	$	—
Accrued interest receivable					—		—		758		—
Deferred fee					—		—		(1,200)		—
Total real estate notes receivable, net					$	—	$	104,331	$	99,643	$	—

1 Twelve-month prefunded interest reserve, with principal sum and interest on unpaid principal due on the maturity date.
2 Construction loan up to $65 million with periodic disbursements. Interest only payments due with principal and any unpaid interest due on the maturity date.
3 Interest is accrued and funded utilizing interest reserves, funded through payment-in-kind interest, until such time the interest reserve is fully funded. Thereafter, interest only payments due with principal and any unpaid interest due on the maturity date.
4 Capitalized interest through maturity, with outstanding principal and accrued interest due on the maturity date.

The following shows changes in the carrying amounts of mortgage loans on real estate assets during the years ended December 31, 2022, 2021 and 2020:


	Year Ended December 31,
	2022		2021		2020
Balance as of the beginning of the year	$	—	$	—	$	—
Additions:
Fair value real estate notes assumed	74,819		—		—
New real estate notes	23,325		—		—
Capitalized interest	1,499		—		—
Accretion of fees and other items	—		—		—
Deductions:
Collection of real estate loans	—		—		—
Deferred fees and other items	—		—		—
Balance as of the end of the year	$	99,643	$	—	$	—

All other schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are omitted because they are not required under the related instructions or are not applicable, or because the required information is shown in the consolidated financial statements or notes thereto.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Business Overview

Business OverviewHealthcare 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 of America. See Note 2 below for a discussion of the Merger between Legacy HR and Legacy HTA. The Company had gross investments of approximately $14.1 billion in 688 real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development, and corporate property as of December 31, 2022. The Company’s 688 real estate properties are located in 35 states and total approximately 40.3 million square feet. In addition, the Company had a weighted average ownership interest of approximately 48% in 33 real estate properties held in joint ventures.

Principles of Consolidation

The Company’s 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 Topic 810 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 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.

Healthcare Realty Holdings, L.P. (formally known as Healthcare Trust of America Holdings, LP) (the "OP") is 98.9% owned by the Company. 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 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 December 31, 2022 there were approximately 4.0 million, or 1.1%, 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 the interests in the OP.

As of December 31, 2022, the Company had three consolidated VIEs in addition to the OP where it 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)	DECEMBER 31, 2022
Assets:
Net real estate investments	$	46,322
Cash and cash equivalents	3,645
Receivables and other assets	2,385
Total assets	$	52,352
Liabilities:
Accrued expenses and other liabilities	$	12,214
Total equity	40,138
Total liabilities and equity	$	52,352

As of December 31, 2022, the Company had three unconsolidated VIEs consisting of two notes receivables and one joint venture. The Company does not have the power or economics to direct the activities of the VIEs on a stand-alone basis, therefore it was determined that the Company was not the primary beneficiary. Therefore, 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:


ORIGINATION DATE	LOCATION	SOURCE	CARRYING AMOUNT		MAXIMUM EXPOSURE TO LOSS
2021	Houston, TX 1	Note receivable	$	29,753	$	31,150
2021	Charlotte, NC 1	Note receivable	5,984		6,000
2022	Texas 2	Equity method	23,219		23,219

1Assumed mortgage note receivable in connection with the Merger.

2Includes investments in six properties.

As of December 31, 2022, 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 Consolidated Financial Statements

Preparation of the Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates and assumptions. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, impairments, collectability of tenant receivables, and fair value measurements, as applicable.

Reclassifications

Certain reclassifications have been made on the Company's prior year Consolidated Balance Sheet to conform to current year presentation. Previously, the Company's Lease intangibles were included in Building, improvements and lease intangibles and Goodwill was included with Other assets, net. These amounts are now classified as separate line items on the Company's Consolidated Balance Sheets.

Segment Reporting

The Company owns, leases, acquires, manages, finances, develops and redevelops outpatient and other healthcare-related properties. The Company is managed as one reporting unit, rather than multiple reporting units, for internal reporting purposes and for internal decision-making. Therefore, the Company discloses its operating results in a single reportable segment.

Real Estate Properties

Real estate properties are recorded at cost or at fair value if acquired in a transaction that is a business combination under Accounting Standards Codification Topic 805, Business Combinations. Cost or fair value at the time of acquisition is allocated among land, buildings, tenant improvements, lease and other intangibles, and personal property as applicable.

During 2022 and 2021, the Company eliminated against accumulated depreciation approximately $19.6 million and $16.3 million, respectively, of fully amortized real estate intangibles that were initially recorded as a component of certain real estate acquisitions. Also during 2022 and 2021, approximately $4.1 million and $9.9 million, respectively, of fully depreciated tenant and capital improvements that were no longer in service were eliminated against accumulated depreciation. In addition, during 2021, the Company eliminated against accumulated depreciation approximately $7.1 million of a fully depreciated building that is being demolished and redeveloped.

Depreciation expense of real estate properties for the three years ended December 31, 2022, 2021 and 2020 was $320.8 million, $170.0 million and $162.4 million, respectively. Depreciation and amortization of real estate assets in place as of December 31, 2022, is provided for on a straight-line basis over the asset’s estimated useful life:


Land improvements			2.0 to 39.0 years
Buildings and improvements			3.0 to 49.0 years
Lease intangibles (including ground lease intangibles)			1.2 to 99.0 years
Personal property			3.0 to 20.0 years

The Company capitalizes direct costs, including costs such as construction costs and professional services, and indirect costs, including capitalized interest and overhead costs, associated with the development and construction of real estate assets while substantive activities are ongoing to prepare the assets for their intended use. Capitalized interest cost is calculated using the weighted average interest rate of the Company's unsecured debt or the interest rate on project specific debt, if applicable. The Company continues to capitalize interest on the unoccupied portion of the properties in stabilization for up to one year after the buildings have been placed into service, at which time the capitalization of interest must cease.

Land Held for Development

Land Held for DevelopmentLand held for development includes parcels of land owned by the Company, upon which the Company intends to develop and own outpatient healthcare facilities.

Asset Impairment

The Company assesses the potential for impairment of identifiable, definite-lived, intangible assets and long-lived assets, including real estate properties, whenever events occur 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. In addition, the Company reviews for possible impairment, those assets subject to purchase options and those impacted by casualty losses, such as tornadoes and hurricanes. A property value is considered impaired only if management's estimate of current and projected (undiscounted and unleveraged) operating cash flows of the property is less than the net carrying value of the property. These estimates of future cash flows include only those that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the property based on its estimated remaining useful life. These estimates, including the useful life determination which can be affected by any potential sale of the property, are based on management's assumptions about its use of the property. Therefore, significant judgment is involved in estimating the current and projected cash flows. If management determines that the carrying value of the Company’s assets may not be fully recoverable based on the existence of any of the factors above, or others, management would measure and record an impairment charge based on the estimated fair value of the property or the estimated fair value less costs to sell the property.

Acquisitions of Real Estate Properties with In-Place Leases

The Company's acquisitions of real estate properties typically do not meet the definition of a business and are accounted for as asset acquisitions. Acquisitions of real estate properties with in-place leases are accounted for at relative fair value. When a building with in-place leases is acquired, the cost of the acquisition must be allocated between the tangible real estate assets "as-if-vacant" and the intangible real estate assets related to in-place leases based on their estimated fair values. Land fair value is estimated by using an assessment of comparable transactions and other relevant data.

The Company considers whether any of the in-place lease rental rates are above- or below-market. An asset (if the actual rental rate is above-market) or a liability (if the actual rental rate is below-market) is calculated and recorded in an amount equal to the present value of the future cash flows that represent the difference between the actual lease rate and the estimated market rate. If an in-place lease is identified as a below-market rental rate, the Company would also evaluate any renewal options associated with that lease to determine if the intangible should include those periods. The values related to above- or below-market in-place lease intangibles are amortized over the remaining term of the leases upon acquisition to rental income where the Company is the lessor and to property operating expense where the Company is the lessee.

The Company also estimates an absorption period, which can vary by property, assuming the building is vacant and must be leased up to the actual level of occupancy when acquired. During that absorption period, the owner would incur direct costs, such as tenant improvements, and would suffer lost rental income. Likewise, the owner would have acquired a measurable asset in that, assuming the building was vacant, certain fixed costs would be avoided because the actual in-place lessees would reimburse a certain portion of fixed costs through expense reimbursements during the absorption period.

All of these intangible assets (above- or below-market lease, tenant improvement costs avoided, leasing costs avoided, rental income lost, and expenses recovered through in-place lessee reimbursements) are estimated and recorded in amounts equal to the present value of estimated future cash flows. The actual purchase price is allocated based on the various relative asset fair values described above.

The building and tenant improvement components of the purchase price are depreciated over the estimated useful life of the building or the weighted average remaining term of the in-place leases. The at-market, in-place lease intangibles are amortized to depreciation and amortization expense over the weighted average remaining term of the leases, and customer relationship assets are amortized to depreciation amortization expense over terms applicable to each acquisition. Any goodwill recorded through a business combination would be reviewed for impairment at least annually and is not amortized.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. In calculating fair value, a company must maximize the use of observable market inputs, minimize the use of unobservable market inputs and disclose in the form of an outlined hierarchy the details of such fair value measurements.

A hierarchy of valuation techniques is defined to determine whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These inputs have created the following fair value hierarchy:

•Level 1 – quoted prices for identical instruments in active markets;

•Level 2 – quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

•Level 3 – fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Executed purchase and sale agreements, that are binding agreements, are categorized as level one inputs. Brokerage estimates, letters of intent, or unexecuted purchase and sale agreements are considered to be level three as they are nonbinding in nature.

Fair Value of Derivative Financial Instruments

Fair Value of Derivative Financial InstrumentsDerivative financial instruments are recorded at fair value on the Company's Consolidated Balance Sheets as other assets or other liabilities. The valuation of derivative instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. Fair values of derivatives are estimated by pricing models that consider the forward yield curves and discount rates. The fair value of the Company's forward starting interest rate swap contracts are estimated by pricing models that consider foreign trade rates and discount rates. Such amounts and the recognition of such amounts are subject to significant estimates that may change in the future. For derivatives designated in qualifying cash flow hedging relationships, the change in fair value of the effective portion of the derivatives is recognized in accumulated other comprehensive income (loss). Gains and losses are reclassified from accumulated other comprehensive income (loss) into earnings once the underlying hedged transaction is recognized in earnings. As of December 31, 2022 and 2021, the Company had $2.1 million recorded in accumulated other comprehensive income and $10.0 million recorded in accumulated other comprehensive loss, respectively, related to forward starting interest rate swaps entered into and settled during 2015 and 2020 and a hedge of the Company's variable rate debt.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents includes short-term investments with original maturities of three months or less when purchased. Restricted cash includes cash held in escrow in connection with proceeds from the sales of certain real estate properties. The Company did not have any restricted cash for the years ended December 31, 2022 or 2021.

Cash and cash equivalents are held in bank accounts and overnight investments. The Company maintains its bank deposits with large financial institutions in amounts that often exceed federally-insured limits. The Company has not experienced any losses in such accounts.

Goodwill and Other Intangible Assets

Goodwill and intangible assets with indefinite lives are not amortized, but are tested at least annually for impairment. Intangible assets with finite lives are amortized over their respective lives to their estimated residual values and are reviewed for impairment only when impairment indicators are present.

Identifiable intangible assets of the Company are comprised of enterprise goodwill, in-place lease intangible assets, customer relationship intangible assets, and debt issuance costs. In-place lease and customer relationship intangible assets are amortized on a straight-line basis over the applicable lives of the assets. Debt issuance costs are amortized

over the term of the debt instrument on the effective interest method or the straight-line method when the effective interest method is not applicable. Goodwill is not amortized but is evaluated annually as of December 31 for impairment. The Company's goodwill asset increased to $223.2 million in 2022 as a result of the Merger. The 2022 impairment evaluation indicated that no impairment had occurred with respect to the Company's goodwill asset.

Contingent Liabilities

From time to time, the Company may be subject to loss contingencies arising from legal proceedings and similar matters. Additionally, while the Company maintains comprehensive liability and property insurance with respect to each of its properties, the Company may be exposed to unforeseen losses related to uninsured or underinsured damages.

The Company continually monitors any matters that may present a contingent liability, and, on a quarterly basis, management reviews the Company’s reserves and accruals in relation to each of them, adjusting provisions as necessary in view of changes in available information. Liabilities for contingencies are first recorded when a loss is determined to be both probable and can be reasonably estimated. Changes in estimates regarding the exposure to a contingent loss are reflected as adjustments to the related liability in the periods when they occur.

Because of uncertainties inherent in the estimation of contingent liabilities, it is possible that the Company’s provision for contingent losses could change materially in the near term. To the extent that any significant losses, in addition to amounts recognized, are at least reasonably possible, such amounts will be disclosed in the notes to the Consolidated Financial Statements.

Stock-based Compensation

Share-Based CompensationThe Company has various employee and director share-based awards outstanding. These awards include non-vested common stock and options to purchase common stock granted to employees pursuant to the Company's Amended and Restated 2006 Incentive Plan, dated April 29, 2021 ("Incentive Plan"), which replaced the Company's 2015 Stock Incentive Plan (the "Legacy HR Stock Incentive Plan") following the Merger. References to the Incentive Plan include issuances under the Incentive Plan and the Legacy HR Stock Incentive Plan. Legacy HR's 2000 Employee Stock Purchase Plan (the "Legacy HR Employee Stock Purchase Plan") was terminated during 2022 and all outstanding options will expire by 2024. No new options will be issued under this plan. The Company recognizes share-based payments to employees and directors in the Consolidated Statements of Income on a straight-line basis over the requisite service period based on the fair value of the award on the measurement date.

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)Certain items must be included in comprehensive income, including items such as foreign currency translation adjustments, minimum pension liability adjustments, changes in the fair value of derivative instruments and unrealized gains or losses on available-for-sale securities. As of December 31, 2022, the Company’s accumulated other comprehensive income (loss) consists of the loss for changes in the fair value of active derivatives designated as cash flow hedges and the loss on the unamortized settlement of forward starting swaps and treasury hedges.

Revenue from Contract with Customers (Topic 606)

Revenue from Contracts with Customers (Topic 606)

The Company recognizes certain revenue under the core principle of Topic 606. This 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 Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance.

Revenue that is accounted for under Topic 606 is segregated on the Company’s Consolidated Statements of Income in the Other operating line item. This line item includes parking income, management fee income and other miscellaneous income.

The Company’s three 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. In most cases, the revenue is due and payable on a monthly basis. The Company had a receivable balance of $1.5 million and $1.4 million for the years ended December 31, 2022 and 2021, respectively.

Management fee income includes property management services provided to third parties and certain of the properties in the Company's unconsolidated joint ventures and is generally calculated, accrued and billed monthly based on a percentage of cash collections of tenant receivables for the month or a stated amount per square foot. Management fee income also includes amounts paid to the Company for its asset management services for certain of its unconsolidated joint ventures. Internal management fee income, where the Company manages its owned properties, is eliminated in consolidation.

Rental Income

Rental income related to non-cancelable operating leases is recognized as earned over the life of the lease agreements on a straight-line basis. The Company's lease agreements generally include provisions for stated annual increases or increases based on a Consumer Price Index ("CPI"). Rental income from properties under multi-tenant office lease arrangements and rental income from properties with single-tenant lease arrangements are included in rental income on the Company's Consolidated Statements of Income. For lessors, the new standard requires a lessor to classify leases as either sales-type, direct-financing or operating. A lease will be treated as a sale if it is considered to transfer control of the underlying asset to the lessee. A lease will be classified as direct-financing if risks and rewards are conveyed without the transfer of control. Otherwise, the lease is treated as an operating lease.

Nonlease components, such as common area maintenance, are generally accounted for under Topic 606 and separated from the lease payments. However, the Company elected the lessor practical expedient allowing the Company to not separate these components when certain conditions are met. The combined component is accounted for under Accounting Standards Codification, Topic 842.

Federal Income Taxes

The Company believes it has qualified to be taxed as a REIT and intends at all times to continue to qualify as a REIT under Sections 856 through 860 of the Internal Revenue Code. The Company must distribute at least 90% per annum of its real estate investment trust taxable income to its stockholders and meet other requirements to continue to qualify as a real estate investment trust. As a REIT, the Company is generally not subject to federal income tax on net income it distributes to its stockholders, but may be subject to certain state and local taxes and fees. See Note 16 for further discussion.

If HR fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal income taxes on its taxable income and will not be permitted to qualify for treatment as a REIT for U.S. federal income tax purposes for four years following the year during which the qualification is lost unless the IRS grants it relief under certain statutory provisions. Such event could have a material adverse effect on its business, financial condition, results of operations and net cash available for dividend distributions to its stockholders.

HR conducts substantially all of its operations through the OP. As a partnership, the OP generally is not liable for federal income taxes. The income and loss from the operations of the OP is included in the tax returns of its partners, including HR, who are responsible for reporting their allocable share of the partnership income and loss. Accordingly no provision for income tax has been made in the accompanying consolidated financial statements.

The Company classifies interest and penalties related to uncertain tax positions, if any, in the Consolidated Financial Statements as a component of general and administrative expenses. No such amounts were recognized during the three years ended December 31, 2022.

Federal tax returns for the years 2019, 2020, 2021 and 2022 are currently subject to examination by taxing authorities.

State Income Taxes

State Income TaxesThe Company must pay certain state income taxes and the provisions for such taxes are generally included in general and administrative expense on the Company’s Consolidated Statements of Income.

Sales and Use Taxes

The Company must pay sales and use taxes to certain state tax authorities based on rents collected from tenants in properties located in those states. The Company is generally reimbursed for these taxes by the tenant. The Company accounts for the payments to the taxing authority and subsequent reimbursement from the tenant on a net basis in rental income in the Company’s Consolidated Statements of Income.

Assets Held for Sale

Assets Held for SaleLong-lived assets held for sale are reported at the lower of their carrying amount or their fair value less estimated cost to sell. Further, depreciation of these assets ceases at the time the assets are classified as held for sale. Losses resulting from the sale of such properties are characterized as impairment losses in the Consolidated Statements of Income.

Earnings Per Share

Earnings per Share

The Company uses the two-class method of computing net earnings per common share. Earnings per common share is calculated by considering share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents as participating securities. Undistributed earnings (excess net income over dividend payments) are allocated on a pro rata basis to common shareholders and restricted shareholders. Undistributed losses (dividends in excess of net income) do not get allocated to restricted stockholders as they do not have the contractual obligation to share in losses. The amount of undistributed losses that applies to the restricted stockholders is allocated to the common stockholders.

Basic earnings per common share is calculated using weighted average shares outstanding less issued and outstanding non-vested shares of common stock. Diluted earnings per common share is calculated using weighted average shares outstanding plus the dilutive effect of the outstanding stock options from the Legacy HR Employee Stock Purchase Plan using the treasury stock method and the average stock price during the period. Additionally, net income (loss) allocated to OP units has been included in the numerator and common stock related to redeemable OP units have been included in the denominator for the purpose of computing diluted earnings per share.

Redeemable Non-Controlling Interests

Redeemable Non-Controlling InterestsThe Company accounts for redeemable equity securities in accordance with Accounting Standards Update 2009-04 Liabilities (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 Consolidated Balance Sheet. 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.

Investments in Financing Receivables, Net

In accordance with Accounting Standards Codification ("ASC") 842, 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 310 “Receivables”.

The Company had two and four medical office buildings that were accounted for as separate sale-lease back transactions and recorded as investments in financing receivables as of December 31, 2022 and 2021, respectively.

Income from Financing Receivables, net

The Company recognizes the related interest income from the financing receivable based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable will not equal the cash payments from the lease. 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 from financing receivable, net over the life of the lease.

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.

New Accounting Pronouncements

Accounting Standards Update No. 2020-04 and 2022-06

On March 12, 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR and Term SOFR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation.

In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 which was issued to defer the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform to December 31, 2024. ASU 2022-06 is effective immediately for all companies. ASU 2022-06 will have no impact on the Company’s consolidated financial statements for the year ended December 31, 2022, as the Company no longer has any LIBOR-based debt.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Schedule of consolidated balance sheets

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)	DECEMBER 31, 2022
Assets:
Net real estate investments	$	46,322
Cash and cash equivalents	3,645
Receivables and other assets	2,385
Total assets	$	52,352
Liabilities:
Accrued expenses and other liabilities	$	12,214
Total equity	40,138
Total liabilities and equity	$	52,352

Schedule of variable interest entity

Therefore, 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:


ORIGINATION DATE	LOCATION	SOURCE	CARRYING AMOUNT		MAXIMUM EXPOSURE TO LOSS
2021	Houston, TX 1	Note receivable	$	29,753	$	31,150
2021	Charlotte, NC 1	Note receivable	5,984		6,000
2022	Texas 2	Equity method	23,219		23,219

1Assumed mortgage note receivable in connection with the Merger.

2Includes investments in six properties.

Schedule of assets' estimated useful life

Depreciation and amortization of real estate assets in place as of December 31, 2022, is provided for on a straight-line basis over the asset’s estimated useful life:


Land improvements			2.0 to 39.0 years
Buildings and improvements			3.0 to 49.0 years
Lease intangibles (including ground lease intangibles)			1.2 to 99.0 years
Personal property			3.0 to 20.0 years

Schedule of disaggregation of revenue

Below is a detail of the amounts by category:


	YEAR ENDED DECEMBER 31,
Dollars in thousands	2022		2021		2020
Type of Revenue
Parking income	$	8,513	$	7,859	$	6,720

Management fee income	4,668		2,049		343
Miscellaneous	525		383		304
	$	13,706	$	10,291	$	7,367

Schedule of rental income

The components of rental income are as follows:


	YEAR ENDED DECEMBER 31,
Dollars in thousands	2022		2021		2020
Property operating income	$	883,953	$	514,533	$	488,527
Straight-line rent	23,498		5,801		3,735
Rental income	$	907,451	$	520,334	$	492,262

Schedule of notes receivable


(dollars in thousands)	ORIGINATION	MATURITY	STATED INTEREST RATE		MAXIMUM LOAN COMMITMENT		OUTSTANDING as of DECEMBER 31, 2022
Mezzanine loans
Texas	6/24/2021	6/24/2024	8	%	$	54,119	$	54,119
North Carolina	12/22/2021	12/22/2024	8	%	6,000		6,000
					60,119		60,119
Mortgage loan
Texas	6/30/2021	12/31/2023	7	%	$	31,150	$	31,150
Florida	5/17/2022	2/27/2026	6	%	65,000		13,062
					$	96,150	$	44,212
Accrued interest							758
Fair-value discount and fees							(5,446)
							$	99,643

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Merger with HTA (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Consideration Transferred

The implied consideration transferred on the Closing Date is as follows:


Dollars in thousands, except for per share data
Shares of Legacy HTA Common Stock outstanding as of July 20, 2022 as adjusted(a)	228,520,990
Exchange ratio	1.00
Implied shares of Legacy HR Common Stock issued	228,520,990
Adjusted closing price of Legacy HR Common Stock on July 20, 2022(b)	$	24.37
Value of implied Legacy HR Common Stock issued	$	5,569,057
Fair value of Legacy HTA restricted stock awards attributable to pre-Merger services(c)	7,406
Consideration transferred	$	5,576,463

(a) Includes 228,520,990 shares of Legacy HTA Common Stock as of July 20, 2022. The number of shares of HTA Common Stock presented above was based on 228,857,717 total shares of Legacy HTA Common Stock outstanding as of the Closing Date, less 192 HTA fractional shares that were paid in cash less 336,535 shares of Legacy HTA restricted stock (net of 215,764 shares of Legacy HTA restricted stock withheld). For accounting purposes, these shares and units were converted to Legacy HR Common Stock, at an exchange ratio of 1.00 per share of HTA Common Stock.

(b) For accounting purposes, the fair value of Legacy HR Common Stock issued to former holders of Legacy HTA Common Stock was based on the per share closing price of Legacy HR Common Stock on July 20, 2022.

(c) Represents the fair value of Legacy HTA restricted shares which fully vested prior to the closing of the Merger or became fully vested as a result of the closing of the Merger and which are attributable to pre-combination services.

Schedule of Fair Values of the Assets Acquired And Liabilities Assumed

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Closing Date:


Dollars in thousands	PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE		MEASUREMENT PERIOD ADJUSTMENTS		PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE (as adjusted)
ASSETS
Real estate investments
Land	$	985,926	$	6,775	$	992,701
Buildings and improvements	6,960,418		(83,662)		6,876,756
Lease intangible assets(a)	831,920		1,230		833,150
Financing lease right-of-use assets	9,874		3,146		13,020
Construction in progress	10,071		(6,744)		3,327
Land held for development	46,538		—		46,538
Total real estate investments	$	8,844,747	$	(79,255)	$	8,765,492
Assets held for sale, net	707,442		(7,946)		699,496
Investments in unconsolidated joint ventures	67,892		—		67,892
Cash and cash equivalents	26,034		11,403		37,437
Restricted cash	1,123,647		(1,247)		1,122,400
Operating lease right-of-use assets	198,261		17,786		216,047
Other assets, net (b) (c)	209,163		(3,840)		205,323
Total assets acquired	$	11,177,186	$	(63,099)	$	11,114,087

LIABILITIES
Notes and bonds payable	$	3,991,300	$	—	$	3,991,300
Accounts payable and accrued liabilities	1,227,570		17,374		1,244,944
Liabilities of assets held for sale	28,677		(3,939)		24,738
Operating lease liabilities	173,948		10,173		184,121
Financing lease liabilities	10,720		(855)		9,865
Other liabilities	203,210		(11,541)		191,669
Total liabilities assumed	$	5,635,425	$	11,212	$	5,646,637
Net identifiable assets acquired	$	5,541,761	$	(74,311)	$	5,467,450
Non-controlling interest	$	110,702	$	—	$	110,702
Goodwill	$	145,404	$	74,311	$	219,715
(a) The weighted average amortization period for the acquired lease intangible assets is approximately 6 years.
(b) Includes $15.9 million of contractual accounts receivable, which approximates fair value.
(c) Includes $78.7 million of gross contractual real estate notes receivable, the fair value of which was $74.8 million, and the Company preliminarily expects to collect substantially all of the real estate notes receivable proceeds as of the Closing Date.

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2022 as of the acquisition date:


	ESTIMATED FAIR VALUE in millions		ESTIMATED USEFUL LIFE in years
Building	$	250.7	14.0 - 38.0


Land	76.1		—
Land Improvements	11.2		5.0 - 14.0

Intangibles
At-market lease intangibles	48.8		1.5 - 13.4
Above-market lease intangibles (lessor)	15.9		1.3 - 15.6
Below-market lease intangibles (lessor)	(2.2)		1.3 - 19.3

Below-market lease intangibles (lessee)	1.2		13.1



Other assets acquired	0.4
Accounts payable, accrued liabilities and other liabilities assumed	(2.9)
Total cash paid	$	399.2

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2021 as of the acquisition date:


	ESTIMATED FAIR VALUE in millions		ESTIMATED USEFUL LIFE in years
Building	$	275.1	18.0 - 44.0
Investment in financing receivables, net	185.9		0.5 - 34.0
Financing lease right of use assets 1	8.9		15.0 - 34.0
Land	34.1		—
Land Improvements	8.9		6.0 - 16.0

Intangibles
At-market lease intangibles	58.8		2.6 - 16.6
Above-market lease intangibles (lessor)	3.4		1.9 - 8.1
Below-market lease intangibles (lessor)	(1.4)		3.1 - 21.8
Above-market lease intangibles (lessee)	(0.3)		36.7 - 64.5
Below-market lease intangibles (lessee)	4.7		45.4
Mortgage notes payable assumed, including fair value adjustments	(11.8)


Other assets acquired	0.8
Accounts payable, accrued liabilities and other liabilities assumed	(5.6)
Total cash paid	$	561.5

Schedule of Business Acquisition, Pro Forma Information

The following pro forma financial information is not necessarily indicative of the results of operations had the acquisition been effected on the assumed date, nor is it necessarily an indication of trends in future results for a number of reasons, including, but not limited to, differences between the assumptions used to prepare the pro forma information, cost savings from operating efficiencies, potential synergies, and the impact of incremental costs incurred in integrating the businesses.


	YEAR ENDED December 31,
Dollars in thousands	2022		2021
Total revenues	$	1,391,096	$	1,316,743
Net income	$	130,445	$	(78,990)

Property Investments (Tables)

12 Months Ended

Dec. 31, 2022

Real Estate Investment Property, Net [Abstract]

Schedule of property investment

The following table summarizes the Company’s consolidated investments at December 31, 2022.


Dollars in thousands	NUMBER OF PROPERTIES	LAND		BUILDINGS AND IMPROVEMENTS		LEASE INTANGIBLES		PERSONAL PROPERTY		TOTAL		ACCUMULATED DEPRECIATION
Dallas, TX	45	$	95,010	$	1,116,725	$	77,589	$	551	$	1,289,875	$	(202,031)
Seattle, WA	29	64,295		623,166		13,444		726		701,631		(164,423)
Los Angeles, CA	23	98,524		460,780		31,790		453		591,547		(129,663)
Boston, MA	18	128,904		396,002		63,134		—		588,040		(13,513)
Charlotte, NC	32	35,402		450,076		29,839		105		515,422		(95,363)
Houston, TX	34	85,389		633,474		64,045		57		782,965		(63,486)
Miami, FL	23	72,364		400,839		46,355		105		519,663		(52,920)
Atlanta, GA	28	49,379		437,312		36,170		95		522,956		(63,773)
Tampa, FL	20	31,533		377,455		36,838		33		445,859		(18,991)
Denver, CO	33	76,698		497,235		45,854		609		620,396		(65,123)
Raleigh, NC	27	56,620		363,359		37,446		9		457,434		(15,566)
Phoenix, AZ	35	20,262		430,396		37,097		425		488,180		(30,281)
Chicago, IL	7	32,374		266,672		20,608		81		319,735		(28,243)
Indianapolis, IN	36	52,180		265,070		32,739		13		350,002		(19,705)
Hartford, CT	30	43,326		204,049		31,803		—		279,178		(8,015)
Nashville, TN	12	43,348		346,312		10,205		1,424		401,289		(92,720)
New York, NY	14	64,402		167,819		26,430		—		258,651		(4,771)
Austin, TX	13	27,064		271,692		18,568		142		317,466		(40,363)
Orlando, FL	8	20,708		180,694		21,581		1		222,984		(11,654)
Memphis, TN	11	13,901		184,540		4,211		317		202,969		(60,624)
Other (51 markets)	210	326,262		3,256,027		273,568		1,223		3,857,080		(457,572)
	688	1,437,945		11,329,694		959,314		6,369		13,733,322		(1,638,800)

Construction in progress	—	—		—				—		35,560		—
Land held for development	—	—		—		—		—		74,265		(1,183)
Financing lease right-of-use assets	—	—		—		—		—		83,824		—
Investment in financing receivables, net	—	—		—		—		—		120,236		—
Corporate property 1	—	1,853		2,343		684		5,538		10,418		(5,288)



Total real estate investments	688	$	1,439,798	$	11,332,037	$	959,998	$	11,907	$	14,057,625	$	(1,645,271)

1Includes a 15,014 square foot building located in Charleston, South Carolina that is used as one of the Company's corporate offices.

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of future minimum lease payments due to the Company under property operating agreements

Future minimum lease payments under the non-cancelable operating leases, excluding any reimbursements, as of December 31, 2022 are as follows:


In thousands
2023	$	928,516
2024	814,132
2025	701,659
2026	603,051
2027	500,645
2028 and thereafter	1,633,847
	$	5,181,850

Schedule of future minimum operating lease payments

The Company’s future lease payments (primarily for its 167 non-prepaid ground leases) as of December 31, 2022 were as follows:


In thousands	OPERATING		FINANCING
2023	$	15,641	$	2,140
2024	$	15,227	$	2,182
2025	$	14,814	$	2,218
2026	$	14,852	$	2,255
2027	$	14,921	$	2,294
2028 and thereafter	$	939,165	$	396,398
Total undiscounted lease payments	$	1,014,620	$	407,487
Discount	$	(734,725)	$	(334,548)
Lease liabilities	$	279,895	$	72,939

Schedule of future minimum finance lease payments

The Company’s future lease payments (primarily for its 167 non-prepaid ground leases) as of December 31, 2022 were as follows:


In thousands	OPERATING		FINANCING
2023	$	15,641	$	2,140
2024	$	15,227	$	2,182
2025	$	14,814	$	2,218
2026	$	14,852	$	2,255
2027	$	14,921	$	2,294
2028 and thereafter	$	939,165	$	396,398
Total undiscounted lease payments	$	1,014,620	$	407,487
Discount	$	(734,725)	$	(334,548)
Lease liabilities	$	279,895	$	72,939

Schedule of lease cost

The following table provides details of the Company's total lease expense for the year ended December 31, 2022:


In thousands	YEAR ENDED Dec. 31, 2022			YEAR ENDED Dec. 31, 2021
Operating lease cost
Operating lease expense	$	12,699		$	4,765
Variable lease expense	4,529			3,929

Finance lease cost
Amortization of right-of-use assets	1,288			388
Interest on lease liabilities	2,876			1,032
Total lease expense	$	21,392		$	10,114

Other information
Operating cash flows outflows related to operating leases	$	12,816		$	7,706
Operating cash flows outflows related to financing leases	$	1,838		$	809
Financing cash flows outflows related to financing leases	$	—		$	9,182
Right-of-use assets obtained in exchange for new finance lease liabilities	$	53,765		$	3,827
Right-of-use assets obtained in exchange for new operating lease liabilities	$	216,047		$	8,298

Weighted-average remaining lease term (excluding renewal options) - operating leases	47.5			47.6
Weighted-average remaining lease term (excluding renewal options) -finance leases	58.9			62.1
Weighted-average discount rate - operating leases	5.8		%	5.6		%
Weighted-average discount rate - finance leases	5.0		%	5.3		%

Acquisitions, Dispositions and Mortgage Repayments (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of acquisitions

The following table details the Company's acquisitions, exclusive of the Merger, for the year ended December 31, 2022:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 2		REAL ESTATE		OTHER 3		SQUARE FOOTAGE unaudited
Dallas, TX 4	MOB	2/11/22	$	8,175	$	8,185	$	8,202	$	(17)	18,000
San Francisco, CA 5	MOB	3/7/22	114,000		112,986		108,687		4,299		166,396
Atlanta, GA	MOB	4/7/22	6,912		7,054		7,178		(124)		21,535
Denver, CO	MOB	4/13/22	6,320		5,254		5,269		(15)		12,207
Colorado Springs, CO 6	MOB	4/13/22	13,680		13,686		13,701		(15)		25,800
Seattle, WA	MOB	4/28/22	8,350		8,334		8,370		(36)		13,256
Houston, TX	MOB	4/28/22	36,250		36,299		36,816		(517)		76,781
Los Angeles, CA	MOB	4/29/22	35,000		35,242		25,400		9,842		34,282
Oklahoma City, OK	MOB	4/29/22	11,100		11,259		11,334		(75)		34,944
Raleigh, NC 5	MOB	5/31/22	27,500		26,710		27,127		(417)		85,113
Tampa. FL 6	MOB	6/9/22	18,650		18,619		18,212		407		55,788
Seattle, WA	MOB	8/1/22	4,850		4,806		4,882		(76)		10,593
Raleigh, NC	MOB	8/9/22	3,783		3,878		3,932		(54)		11,345
Jacksonville, FL	MOB	8/9/22	18,195		18,508		18,583		(75)		34,133
Atlanta, GA	MOB	8/10/22	11,800		11,525		12,038		(513)		43,496
Denver, CO	MOB	8/11/22	14,800		13,902		13,918		(16)		34,785
Raleigh, NC	MOB	8/18/22	11,375		10,670		10,547		123		31,318
Nashville, TN	MOB	9/15/22	21,000		20,764		20,572		192		61,932
Austin, TX	MOB	9/29/22	5,450		5,449		5,572		(123)		15,000
Jacksonville, FL 4	MOB	10/12/22	3,600		3,530		3,609		(79)		6,200
Houston, TX	MOB	11/21/22	5,500		5,469		5,513		(44)		28,369
Austin, TX 7	MOB	12/28/22	888		890		889		1		2,219
Denver, CO	MOB	12/28/22	16,400		16,170		16,467		(297)		39,692

			$	403,578	$	399,189	$	386,818	$	12,371	863,184

1MOB = medical office building.

2Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

3Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

4Represents a single-tenant property.

5Includes three properties.

6Includes two properties.

7The Company acquired additional ownership interests in an existing building bringing the Company's ownership to 71.4%.

The following table details the Company's acquisitions for the year ended December 31, 2021:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE 2		MORTGAGES ASSUMED 3		CASH CONSIDERATION 4		REAL ESTATE 2		OTHER 5		SQUARE FOOTAGE unaudited
San Diego, CA 6	MOB	1/7/21	$	17,150	$	—	$	17,182	$	17,182	$	—	22,461
Dallas, TX 8	MOB	2/1/21	22,515		—		22,299		22,641		(342)		121,709
Atlanta, GA 8	MOB	2/17/21	9,800		—		10,027		10,073		(46)		44,567
Washington, D.C.	MOB	3/3/21	12,750		—		12,709		12,658		51		26,496
Houston, TX	MOB	5/14/21	13,500		—		12,986		13,379		(393)		45,393
San Diego, CA 6,7	MOB	5/28/21	102,650		—		103,984		104,629		(645)		160,394
Greensboro, NC	MOB	6/28/21	9,390		—		9,475		10,047		(572)		25,168
Baltimore, MD	MOB	6/29/21	14,600		—		14,357		14,437		(80)		33,316
Denver, CO 9	MOB	7/16/21	70,426		—		69,151		65,100		4,051		259,555
Greensboro, NC 6	MOB	7/19/21	6,400		—		6,374		6,514		(140)		18,119
Colorado Springs, CO	MOB	7/27/21	33,400		—		32,738		33,241		(503)		69,526
Birmingham, AL	MOB	8/19/21	9,250		—		9,355		9,388		(33)		29,942
Raleigh, NC	MOB	9/20/21	5,780		—		5,821		5,810		11		18,280
Denver, CO	MOB	9/22/21	20,250		—		19,630		19,405		225		83,604
Raleigh, NC	MOB	9/30/21	10,000		—		9,921		9,874		47		29,178
Denver, CO	MOB	11/15/21	7,700		—		7,383		7,431		(48)		18,599
Denver, CO	MOB	11/18/21	22,400		—		22,343		22,422		(79)		30,185
Columbus, OH 10	MOB	12/1/21	16,275		—		15,970		7,365		8,605		71,930
Nashville, TN	MOB	12/2/21	11,300		—		11,245		11,263		(18)		34,908
Colorado Springs, CO	MOB	12/20/21	10,575		—		10,541		11,009		(468)		44,166
Columbus, OH 8	MOB	12/28/21	9,525		—		9,521		9,601		(80)		28,962
Los Angeles, CA	MOB	12/28/21	20,500		(11,000)		9,396		20,316		80		56,762
Nashville, TN 11	MOB	12/29/21	19,775		—		19,833		19,982		(149)		85,590
Austin, TX	MOB	12/29/21	20,500		—		20,696		20,741		(45)		62,548
Atlanta, GA	MOB	12/30/21	4,900		—		4,772		4,419		353		11,840
Nashville, TN 12	MOB	12/30/21	54,000		—		53,923		54,072		(149)		74,489
Nashville, TN 12	MOB	12/30/21	20,500		—		19,833		19,825		8		32,454

			$	575,811	$	(11,000)	$	561,465	$	562,824	$	9,641	1,540,141

1MOB = medical office building.

2Includes investments in financing receivables and an $8.9 million right-of-use asset related to the Columbus, Ohio transaction.

3The mortgages assumed in the acquisitions do not reflect the fair value adjustments totaling $0.8 million in aggregate recorded by the Company upon acquisition (included in Other).

4Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

5Includes other assets acquired, liabilities assumed, intangibles, and fair value mortgage adjustments recognized at acquisition.

6Represents a single-tenant property.

7The Company acquired a single-tenant net lease property in San Diego, CA in a sale-leaseback transaction which was accounted for as a financing arrangement as required under ASC 842, Leases.

8Includes two properties.

9Includes three properties.

10This sale-leaseback transaction was a multi-tenant lease property. A portion of the transaction totaling $7.4 million was accounted for as a financing receivable and the remaining $8.9 million was accounted for as an imputed lease arrangement. See Note 1 to the Consolidated Financial Statements accompanying this report for more information.

11Includes purchase of an adjoining 2.7 acre land parcel that will be held for development.

12This sale-leaseback transaction was a multi-tenant lease property which was accounted for as a financing arrangement as required under ASC 842, Leases.

Schedule of assets acquired and liabilities assumed

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Closing Date:


Dollars in thousands	PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE		MEASUREMENT PERIOD ADJUSTMENTS		PRELIMINARY AMOUNTS RECOGNIZED ON THE CLOSING DATE (as adjusted)
ASSETS
Real estate investments
Land	$	985,926	$	6,775	$	992,701
Buildings and improvements	6,960,418		(83,662)		6,876,756
Lease intangible assets(a)	831,920		1,230		833,150
Financing lease right-of-use assets	9,874		3,146		13,020
Construction in progress	10,071		(6,744)		3,327
Land held for development	46,538		—		46,538
Total real estate investments	$	8,844,747	$	(79,255)	$	8,765,492
Assets held for sale, net	707,442		(7,946)		699,496
Investments in unconsolidated joint ventures	67,892		—		67,892
Cash and cash equivalents	26,034		11,403		37,437
Restricted cash	1,123,647		(1,247)		1,122,400
Operating lease right-of-use assets	198,261		17,786		216,047
Other assets, net (b) (c)	209,163		(3,840)		205,323
Total assets acquired	$	11,177,186	$	(63,099)	$	11,114,087

LIABILITIES
Notes and bonds payable	$	3,991,300	$	—	$	3,991,300
Accounts payable and accrued liabilities	1,227,570		17,374		1,244,944
Liabilities of assets held for sale	28,677		(3,939)		24,738
Operating lease liabilities	173,948		10,173		184,121
Financing lease liabilities	10,720		(855)		9,865
Other liabilities	203,210		(11,541)		191,669
Total liabilities assumed	$	5,635,425	$	11,212	$	5,646,637
Net identifiable assets acquired	$	5,541,761	$	(74,311)	$	5,467,450
Non-controlling interest	$	110,702	$	—	$	110,702
Goodwill	$	145,404	$	74,311	$	219,715
(a) The weighted average amortization period for the acquired lease intangible assets is approximately 6 years.
(b) Includes $15.9 million of contractual accounts receivable, which approximates fair value.
(c) Includes $78.7 million of gross contractual real estate notes receivable, the fair value of which was $74.8 million, and the Company preliminarily expects to collect substantially all of the real estate notes receivable proceeds as of the Closing Date.

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2022 as of the acquisition date:


	ESTIMATED FAIR VALUE in millions		ESTIMATED USEFUL LIFE in years
Building	$	250.7	14.0 - 38.0


Land	76.1		—
Land Improvements	11.2		5.0 - 14.0

Intangibles
At-market lease intangibles	48.8		1.5 - 13.4
Above-market lease intangibles (lessor)	15.9		1.3 - 15.6
Below-market lease intangibles (lessor)	(2.2)		1.3 - 19.3

Below-market lease intangibles (lessee)	1.2		13.1



Other assets acquired	0.4
Accounts payable, accrued liabilities and other liabilities assumed	(2.9)
Total cash paid	$	399.2

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2021 as of the acquisition date:


	ESTIMATED FAIR VALUE in millions		ESTIMATED USEFUL LIFE in years
Building	$	275.1	18.0 - 44.0
Investment in financing receivables, net	185.9		0.5 - 34.0
Financing lease right of use assets 1	8.9		15.0 - 34.0
Land	34.1		—
Land Improvements	8.9		6.0 - 16.0

Intangibles
At-market lease intangibles	58.8		2.6 - 16.6
Above-market lease intangibles (lessor)	3.4		1.9 - 8.1
Below-market lease intangibles (lessor)	(1.4)		3.1 - 21.8
Above-market lease intangibles (lessee)	(0.3)		36.7 - 64.5
Below-market lease intangibles (lessee)	4.7		45.4
Mortgage notes payable assumed, including fair value adjustments	(11.8)


Other assets acquired	0.8
Accounts payable, accrued liabilities and other liabilities assumed	(5.6)
Total cash paid	$	561.5

Schedule of Joint Venture Transactions

2022 Acquisitions

The following table details the joint venture acquisitions for the year ended December 31, 2022:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 2		REAL ESTATE		OTHER 3		SQUARE FOOTAGE unaudited
San Francisco, CA 4	MOB	3/7/22	$	67,175	$	66,789	$	65,179	$	1,610	110,865
Los Angeles, CA 5	MOB	3/7/22	33,800		32,384		32,390		(6)		103,259

			$	100,975	$	99,173	$	97,569	$	1,604	214,124

1MOB = medical office building.

2Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

3Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

4Includes three properties.

5Includes two properties.

The following table details the joint venture acquisitions for the year ended December 31, 2021:


Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 2		REAL ESTATE		OTHER 3		SQUARE FOOTAGE unaudited
Denver, CO	MOB	3/30/21	$	14,375	$	14,056	$	14,550	$	(494)	59,359
Colorado Springs, CO	MOB	4/1/21	7,200		7,288		7,347		(59)		27,510
Los Angeles, CA	MOB	4/8/21	31,335		30,179		30,642		(463)		57,573
San Antonio, TX	MOB	4/30/21	13,600		13,412		13,656		(244)		45,000
Los Angeles, CA	MOB	5/10/21	24,600		24,259		24,147		112		73,078
Colorado Springs, CO 4	MOB	7/27/21	9,133		9,137		9,135		2		23,956
Denver, CO	MOB	10/21/21	23,000		22,638		23,021		(383)		57,257
San Antonio, TX 5	MOB	12/10/21	42,300		41,892		42,190		(298)		117,597
San Antonio, TX	MOB	12/29/21	6,094		6,218		6,308		(90)		22,381
San Antonio, TX	MOB	12/29/21	8,850		8,915		8,866		49		30,542

			$	180,487	$	177,994	$	179,862	$	(1,868)	514,253

1MOB = medical office building.

2Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

3Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

4Includes purchase of an adjoining 3.0 acre land parcel.

5Includes three properties.

Schedule of equity method investments

The Company's investment in and loss recognized for the years ended December 31, 2022 and 2021 related to its joint ventures accounted for under the equity method are shown in the table below:


	DECEMBER 31,
Dollars in millions	2022		2021
Investments in unconsolidated joint ventures, beginning of period	$	161.9	$	73.1
New investments during the period1	167.9		89.6
Equity loss recognized during the period	(0.7)		(0.8)
Owner distributions	(1.9)		—
Investments in unconsolidated joint ventures, end of period	$	327.2	$	161.9

1For the year ended December 31, 2022, this included unconsolidated joint ventures acquired as part of the Merger, as well as investments in two joint ventures representing a 20% and 40% ownership interest in portfolios in Los Angeles, California and Dallas, Texas, respectively. Also, see 2022 Real Estate Asset Dispositions below for additional information.

Schedule of dispositions

The following table details the Company's dispositions for the year ended December 31, 2022:


Dollars in thousands	TYPE 1	DATE DISPOSED	SALES PRICE		CLOSING ADJUSTMENTS		NET PROCEEDS		NET REAL ESTATE INVESTMENT		OTHER including receivables 2		GAIN/ (IMPAIRMENT)		SQUARE FOOTAGE unaudited
Loveland, CO 3, 4	MOB	2/24/22	$	84,950	$	(45)	$	84,905	$	40,095	$	4	$	44,806	150,291
San Antonio, TX 3	MOB	4/15/22	25,500		(2,272)		23,228		14,381		284		8,563		201,523
GA, FL, PA 5, 11	MOB	7/29/22	133,100		(8,109)		124,991		124,991		—		—		316,739
GA, FL, TX 7, 11	MOB	8/4/22	160,917		(5,893)		155,024		151,819		3,205		—		343,545
Los Angeles, CA 5, 9, 11	MOB	8/5/22	134,845		(3,102)		131,743		131,332		411		—		283,780
Dallas, TX 7, 10, 11	MOB	8/30/22	114,290		(682)		113,608		113,608		—		—		189,385
Indianapolis, IN 6, 12	MOB	8/31/22	238,845		(5,846)		232,999		84,767		4,324		143,908		506,406
Dallas, TX 3	MOB	10/4/22	104,025		(5,883)		98,142		38,872		6,436		52,834		291,328
Houston, TX	MOB	10/21/22	32,000		(280)		31,720		10,762		744		20,214		134,910
College Station, TX	MOB	11/10/22	49,177		(3,755)		45,422		44,918		475		28		122,942
El Paso, TX	MOB	12/22/22	55,326		(4,002)		51,324		56,427		(1,897)		(3,205)		110,465
Atlanta, GA 8	MOB	12/22/22	91,243		(4,326)		86,917		109,051		235		(22,369)		348,416
St. Louis, MO	MOB	12/28/22	18,000		(1,471)		16,529		18,340		4		(1,815)		69,394

			$	1,242,218	$	(45,666)	$	1,196,552	$	939,363	$	14,225	$	242,964	3,069,124

1MOB = medical office building

2Includes straight-line rent receivables, leasing commissions and lease inducements.

3Includes two properties.

4The Company deferred the tax gain through a 1031 exchange and reinvested the proceeds.

5Includes four properties.

6Includes five properties.

7Includes six properties.

8Includes nine properties.

9Values and square feet are represented at 100%. The Company retained a 20% ownership interest in the joint venture with an unrelated third party that purchased these properties.

10Values and square feet are represented at 100%. The Company retained a 40% ownership interest in the joint venture with an unrelated third party that purchased these properties.

11These properties were acquired as part of the Merger and were included as assets held for sale in the purchase price allocation.

12Two of the five properties included in this portfolio were acquired in the Merger and were included as assets held for sale in the purchase price allocation.

The following table details the Company's dispositions for the year ended December 31, 2021:


Dollars in thousands	TYPE 1	DATE DISPOSED	SALES PRICE		CLOSING ADJUSTMENTS		NET PROCEEDS		NET REAL ESTATE INVESTMENT		OTHER including receivables 2		GAIN/ (IMPAIRMENT)		SQUARE FOOTAGE unaudited
Los Angeles, CA 3	MOB	3/11/21	$	26,000	$	(555)	$	25,445	$	6,046	$	509	$	18,890	73,906
Atlanta, GA	MOB	4/12/21	8,050		(272)		7,778		5,675		151		1,952		19,732
Richmond, VA	MOB	5/18/21	52,000		(314)		51,686		29,414		3,270		19,002		142,856
Gadsden, AL 4	MOB	5/19/21	5,500		(280)		5,220		5,914		175		(869)		120,192
Dallas, TX 5	MOB	7/9/21	23,000		(1,117)		21,883		18,733		1,966		1,184		190,160
Chicago, IL	MOB	10/28/21	13,300		(388)		12,912		23,213		706		(11,007)		95,436
Des Moines, IA 6	MOB	12/8/21	47,000		(901)		46,099		32,312		1,037		12,750		132,617
Aberdeen, SD	MOB	12/22/21	12,750		(299)		12,451		10,337		—		2,114		58,285
Dallas, TX	MOB	12/23/21	800		(103)		697		712		167		(182)		13,818
			$	188,400	$	(4,229)	$	184,171	$	132,356	$	7,981	$	43,834	847,002

1MOB = medical office building

2Includes straight-line rent receivables, leasing commissions and lease inducements.

3Includes two properties sold to a single purchaser in two transactions which closed on March 5 and March 11, 2021.

4Includes three properties.

5Includes four properties and a land parcel sold under a single purchase agreement.

6Includes three properties and two land parcels under a single purchase agreement.

Held for Sale (Tables)

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedule of disposal groups, including discontinued operations, income statement, balance sheet and additional disclosures

The table below reflects the assets and liabilities classified as held for sale as of December 31, 2022 and 2021.


	DECEMBER 31,
Dollars in thousands	2022		2021
Balance Sheet data
Land	$	1,700	$	—
Buildings and improvements	15,164		—
Lease intangibles	1,986		—
	18,850		—
Accumulated depreciation	—		—
Real estate assets held for sale, net	18,850		—
Other assets, net	43		57
Assets held for sale, net	$	18,893	$	57

Accounts payable and accrued liabilities	$	282	$	169
Other liabilities	155		125
Liabilities of properties held for sale	$	437	$	294

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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+ Details

Other Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of other assets

Items included in "Other assets, net" on the Company’s Consolidated Balance Sheets as of December 31, 2022 and 2021 are detailed in the table below:


Dollars in thousands	December 31, 2022		December 31, 2021
Real estate notes receivable, net	$	99,643	$	—
Straight-line rent receivables	88,868		70,784
Prepaid assets	81,900		58,618
Above-market intangible assets, net	80,720		4,966
Accounts receivable, net 1	47,498		14,072
Additional long-lived assets, net	21,446		20,048
Interest rate swap assets	14,512		—
Other receivables, net	7,169		—
Investment in securities (2)	6,011		—
Debt issuance costs, net	5,977		1,813
Project costs	4,337		5,129
Net investment in lease	1,828		—
Customer relationship intangible assets, net	1,120		1,174
Other	8,961		9,069
	$	469,990	$	185,673

1This amount is net of allowance for doubtful accounts of $4.0 million

2This amount represents the value of the Company's preferred stock investment in a data analytics platform.

Schedule of accounts payable and accrued liabilities

The following table provides details of the items included in "Accounts payable and accrued liabilities" on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021:


Dollars in thousands	December 31, 2022		December 31, 2021
Accrued property taxes	$	78,185	$	35,295
Accounts payable and capital expenditures	57,352		17,036
Accrued interest	50,037		12,060
Other operating accruals	58,459		21,717






	$	244,033	$	86,108

Schedule of other liabilities

The following table provides details of the items included in "Other liabilities" on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021:


Dollars in thousands	December 31, 2022		December 31, 2021
Below-market intangible liabilities, net	$	97,935	$	4,931
Deferred revenue	87,325		45,130
Security deposits	28,521		11,116
Interest rate swap liability	4,269		5,917
Other	618		293







	$	218,668	$	67,387

Intangible Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of finite lived intangible assets and liabilities

The Company’s intangible assets and liabilities, including assets held for sale and excluding certain debt issuance costs, as of December 31, 2022 and 2021 consisted of the following:


	GROSS BALANCE at December 31,				ACCUMULATED AMORTIZATION at December 31,				WEIGHTED AVG. REMAINING LIFE in years	BALANCE SHEET CLASSIFICATION
Dollars in millions	2022		2021		2022		2021
Goodwill	$	223.2	$	3.5	$	—	$	—	N/A	Goodwill
Credit facility debt issuance costs	6.9		5.1		0.9		3.3		2.9	Other assets, net
Above-market lease intangibles (lessor)	91.5		7.0		10.7		2.0		5.3	Other assets, net
Customer relationship intangibles (lessor)	2.1		2.1		1.0		0.9		20.6	Other assets, net
Below-market lease intangibles (lessor)	(112.5)		(10.1)		(14.6)		(5.1)		5.7	Other liabilities

At-market lease intangibles	1,067.4		213.0		188.3		77.5		5.2	Real estate properties


	$	1,278.6	$	220.6	$	186.3	$	78.6	5.3

Schedule of expected net future amortization expense

The following table represents expected amortization over the next five years of the Company’s intangible assets and liabilities in place as of December 31, 2022:


Dollars in millions	FUTURE AMORTIZATION OF INTANGIBLES, NET
2023	$	233.8
2024	197.9
2025	151.1
2026	97.6
2027	64.3

Notes and Bonds Payable (Tables)

12 Months Ended

Dec. 31, 2022

Debt Instrument [Line Items]

Schedule of debt


	DECEMBER 31,				MATURITY DATES	CONTRACTUAL INTEREST RATES		EFFECTIVE INTEREST RATES		PRINCIPAL PAYMENTS	INTEREST PAYMENTS
Dollars in thousands	2022		2021
$700M Unsecured Credit Facility	$	—	$	210,000	5/23	LIBOR + 0.90%		N/A		At maturity	Monthly
$1.5B Unsecured Credit Facility	385,000		—		10/25	SOFR + 0.95%		5.27	%	At maturity	Monthly
$350M Unsecured Term Loan 1	349,114		—		7/23	SOFR + 1.05%		5.17	%	At maturity	Monthly
$200M Unsecured Term Loan 1	199,670		199,460		5/24	SOFR + 1.05%		5.17	%	At maturity	Monthly
$150M Unsecured Term Loan 1	149,495		149,376		6/26	SOFR + 1.05%		5.17	%	At maturity	Monthly
$300M Unsecured Term Loan 1	299,936		—		10/25	SOFR + 1.05%		5.17	%	At maturity	Monthly
$200M Unsecured Term Loan 1	199,362		—		7/27	SOFR + 1.05%		5.17	%	At maturity	Monthly
$300M Unsecured Term Loan 1	297,869		—		1/28	SOFR + 1.05%		5.17	%	At maturity	Monthly
Senior Notes due 2025 1	249,115		249,040		5/25	3.88	%	4.12	%	At maturity	Semi-annual
Senior Notes due 2026 1	571,587		—		8/26	3.50	%	4.94	%	At maturity	Semi-annual
Senior Notes due 2027 1	479,553		—		7/27	3.75	%	4.76	%	At maturity	Semi-annual
Senior Notes due 2028 1	296,852		296,612		1/28	3.63	%	3.85	%	At maturity	Semi-annual
Senior Notes due 2030 1	565,402		—		2/30	3.10	%	5.30	%	At maturity	Semi-annual
Senior Notes due 2030 1	296,385		296,813		3/30	2.40	%	2.72	%	At maturity	Semi-annual
Senior Notes due 2031 1	295,547		295,374		3/31	2.05	%	2.25	%	At maturity	Semi-annual
Senior Notes due 2031 1	632,693		—		3/31	2.00	%	5.13	%	At maturity	Semi-annual
Mortgage notes payable 2	84,247		104,650		8/23-12/26	3.31%-4.77%		3.42%-4.84%		Monthly	Monthly
	$	5,351,827	$	1,801,325

1Balances are shown net of discounts and unamortized issuance costs.

2Balances are shown net of discounts and unamortized issuance costs and include premiums.

Schedule of debt exchange offers

The following sets forth the results of the Exchange Offers:


Series of Old HR Notes			Tenders and Consents Received as of the Expiration Date	Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes
3.875	%	Senior Notes due 2025	$235,016,000	94.01	%
3.625	%	Senior Notes due 2028	$290,246,000	96.75	%
2.400	%	Senior Notes due 2030	$297,507,000	99.17	%
2.050	%	Senior Notes due 2031	$298,858,000	99.62	%

Schedule of senior notes assumed with the merger

The Legacy Senior Notes assumed by the Company consist of the following:


	COUPON			PRINCIPAL OUTSTANDING AS OF
Dollars in thousands		FACE VALUE		12/31/2022		12/31/2021
Senior Notes due 2026	3.50%	$	600,000	$	600,000	$	—
Senior Notes due 2027	3.75%	500,000		500,000		—
Senior Notes due 2030	3.10%	650,000		650,000		—
Senior Notes due 2031	2.00%	800,000		800,000		—
		$	2,550,000	$	2,550,000	$	—

Schedule of mortgage notes payable

The following table details the Company’s mortgage notes payable, with related collateral.


	ORIGINAL BALANCE	EFFECTIVE INTEREST RATE 10		MATURITY DATE	COLLATERAL 11	PRINCIPAL AND INTEREST PAYMENTS 9	INVESTMENT IN COLLATERAL at December 31,		BALANCE at December 31,
Dollars in millions							2022		2022		2021
Commercial Bank 1	15.0	5.25	%	4/27	MOB	Monthly/20-yr amort.	—		—		6.1
Life Insurance Co. 2	11.0	3.64	%	5/27	MOB	Monthly/10-yr amort.	—		—		11.6
Life Insurance Co. 3	12.3	3.86	%	8/23	MOB	Monthly/7-yr amort.	25.9		10.0		10.3
Life Insurance Co. 4	9.0	4.84	%	12/23	MOB,OFC	Monthly/10-yr amort.	24.5		6.8		7.1
Life Insurance Co. 5	13.3	4.13	%	1/24	MOB	Monthly/10-yr amort.	22.5		11.7		12.0
Life Insurance Co. 6	6.8	3.96	%	2/24	MOB	Monthly/7-yr amort.	14.7		5.8		6.0
Financial Services 7	9.7	4.32	%	9/24	MOB	Monthly/10-yr amort.	16.6		7.5		7.8
Life Insurance Co. 8	16.5	3.43	%	12/25	MOB,OFC	Monthly/7-yr amort.	39.1		16.2		16.7
Financial Services	11.5	3.71	%	1/26	MOB	Monthly/10-yr amort.	40.5		8.3		8.7
Life Insurance Co.	19.2	4.08	%	12/26	MOB	Monthly/10-yr amort.	44.5		17.9		18.4
							$	228.3	$	84.2	$	104.7