Item 2. Properties
Item 2. Properties
Since inception, we have invested $7.8 billion primarily in MOBs, development projects, land and other healthcare real estate assets that serve the healthcare industry through December 31, 2021. As of December 31, 2021, our portfolio consisted of approximately 26.1 million square feet of GLA, with a leased rate of 89.3% (includes leases which have been executed, but which have not yet commenced). Approximately 67% of our portfolio was located on the campuses of, or adjacent to, nationally and regionally recognized healthcare systems. Our portfolio is diversified geographically across 32 states, with no state having more than 21% of the total GLA as of December 31, 2021. All but two of our properties are 100% owned.
As of December 31, 2021, we owned fee simple interests in properties representing 63% of our total GLA. We hold long-term leasehold interests in the remaining properties in our portfolio, representing 37% of our total GLA. As of December 31, 2021, these leasehold interests had an average remaining term of 46.5 years, excluding available extension options.
The following information generally applies to our properties:
• we believe all of our properties are adequately covered by insurance and are suitable for their intended purposes;
• our properties are located in markets where we are subject to competition in attracting new tenants and retaining current tenants; and
• depreciation is provided on a straight-line basis over the estimated useful lives of the buildings, up to 39 years, and over the shorter of the lease term or useful lives of the tenant improvements.
Tenant Lease Expirations
The following table presents the sensitivity of our annualized base rent due to tenant lease expirations for existing leases for the next 10 years:
Expiration (1)
Number of
Expiring
Leases Annualized Base Rent of Expiring Leases (2)(3)
Percent of Total Annualized Base Rent Total GLA
of Expiring
Leases (2)
Percent of GLA of Expiring Leases
Month-to-month 121 $ 6,915 1.2 % 245 1.0 %
2022 662 57,635 9.9 2,097 9.0
2023 592 61,494 10.5 2,564 11.0
2024 572 69,928 12.0 2,713 11.7
2025 426 55,980 9.6 2,239 9.6
2026 469 50,555 8.6 2,344 10.1
2027 309 68,387 11.7 2,597 11.2
2028 175 35,001 6.0 1,405 6.0
2029 236 44,570 7.6 1,816 7.8
2030 110 30,808 5.3 1,183 5.1
2031 68 23,265 4.0 1,112 4.8
Thereafter 281 79,812 13.6 2,944 12.7
Total 4,021 $ 584,350 100 % 23,259 100 %
(1) Leases scheduled to expire on December 31 of a given year are included within that year in the table.
(2) Amounts presented in thousands.
(3) Annualized base rent is calculated by multiplying contractual base rent as of the end of the year by 12 (excluding the impact of abatements, concessions, and straight-line rent).
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Geographic Diversification/Concentration Table
The following table lists the states in which our properties are located and provides certain information regarding our portfolio’s geographic diversification/concentration as of December 31, 2021:
State GLA (1)
Percent of GLA Annualized Base Rent (1)(2)
Percent of Annualized Base Rent
Texas 5,315 20.4 % $ 118,777 20.3 %
Florida 3,093 11.9 76,638 13.1
North Carolina 1,812 6.9 38,963 6.7
Massachusetts 965 3.7 36,346 6.2
Indiana 1,811 7.0 34,087 5.8
Georgia 1,280 4.9 30,024 5.1
New York 1,390 5.3 29,155 5.0
Pennsylvania 1,454 5.6 29,072 5.0
Arizona 1,529 5.9 28,932 5.0
Connecticut 1,187 4.6 25,215 4.3
California 992 3.8 23,334 4.0
Ohio 932 3.6 16,757 2.9
Colorado 708 2.7 14,892 2.5
Illinois 454 1.7 13,706 2.3
Missouri 355 1.4 9,694 1.7
South Carolina 377 1.4 8,745 1.5
Wisconsin 368 1.4 7,084 1.2
Alabama 319 1.2 6,456 1.1
Michigan 203 0.8 5,194 0.9
Maryland 181 0.7 4,834 0.8
Tennessee 176 0.7 4,578 0.8
Hawaii 146 0.6 4,021 0.7
Virginia 158 0.6 3,607 0.6
Utah 159 0.6 2,911 0.5
New Mexico 141 0.5 2,365 0.4
Oklahoma 186 0.7 2,294 0.4
New Jersey 57 0.2 1,819 0.3
Mississippi 80 0.3 1,591 0.3
Nevada 73 0.3 1,547 0.3
Idaho 83 0.3 1,178 0.2
Oregon 21 0.1 314 0.1
Minnesota 50 0.2 220 —
Total 26,055 100 % $ 584,350 100 %
(1) Amounts presented in thousands.
(2) Annualized base rent is calculated by multiplying contractual base rent as of the end of the year by 12 (excluding the impact of abatements, concessions, and straight-line rent).