Item 2. Properties
Item 2. Properties
The following table presents certain additional information about the properties we owned as of December 31, 2020:
Portfolio Number
of Properties Rentable
Square Feet Percent Leased (1)
Weighted Average Remaining Lease Term (2)
Gross Asset Value (3)
(In thousands)
Medical Office Buildings 117 3,911,937 91.6% 4.9 $ 1,087,266
Triple-Net Leased Healthcare Facilities:
Hospitals
6 514,962 90.7% 6.2 133,580
Post-Acute / Skilled Nursing (4)
8 354,016 100.0% 6.8 86,574
Total Triple-Net Leased Healthcare Facilities 14 868,978 94.5% (6) 6.5 220,154
Seniors Housing — Operating Properties (4)(7)
59 4,367,124 75.1% (5) N/A 1,229,288
Jupiter Property — Recently Developed 1 235,445 10.0% (6) 9.9 59,330
Land 2 N/A N/A N/A 3,665
Total Portfolio 193 9,383,484 $ 2,599,703
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(1) Inclusive of leases signed but not yet commenced as of December 31, 2020.
(2) Weighted-average remaining lease term in years is calculated based on square feet as of December 31, 2020.
(3) Gross asset value represents total real estate investments, at cost ($2.6 billion total as of December 31, 2020) and assets held for sale at carrying value ($0.1 million total as of December 31, 2020), net of gross market lease intangible liabilities ($22.1 million total as of December 31, 2020). Impairment charges are already reflected within gross asset value.
(4) Four properties were transitioned from Post-Acute / Skilled Nursing within our triple-net leased healthcare facilities segment to our SHOP segment during the period from January 1, 2020 through December 31, 2020 (the “Transition Properties”). The Transition Properties are presented within the SHOP segment as of December 31, 2020. See Results of Operations for more information on these properties.
(5) Weighted by unit count as of December 31, 2020.
(6) Our development property in Jupiter, Florida was substantially completed in the fourth quarter of 2019. See Note 3 — Real Estate Investments - “Development Property” to our consolidated financial statements included in this Annual Report on Form 10-K for additional information. Although a portion of the property has been leased as of December 31, 2020, the property is separately shown and excluded from combined occupancy numbers. Occupancy in the triple-net leased healthcare facilities segment would have been 76.5% had the development property been included. This property is expected to be sold in late March or second quarter of 2021.
(7) One skilled nursing facility in Wellington, Florida is expected to be sold in 2021. Subsequent to December 31, 2020, four MI SHOPs were transferred to their buyer pursuant to their sale in November, 2020. See Note 18 — Subsequent Events for more information.
N/A Not applicable.
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The following table details the geographic distribution, by state, of our portfolio as of December 31, 2020:
State Number of Properties Annualized Rental Income (1)
Annualized Rental Income as a Percentage of the Total Portfolio Rentable Square Feet Percentage of Portfolio
Rentable Square Feet
(In thousands)
Alabama 1 $ 159 — % 5,564 0.1 %
Arizona 14 8,289 2.6 % 509,642 5.4 %
Arkansas 3 13,655 4.2 % 248,783 2.7 %
California 8 16,532 5.1 % 446,723 4.8 %
Colorado 2 1,477 0.5 % 59,366 0.6 %
Florida 23 66,601 20.6 % 1,439,315 15.3 %
Georgia 15 29,104 9.0 % 792,191 8.4 %
Idaho 1 3,104 1.0 % 55,846 0.6 %
Illinois 21 25,504 7.9 % 857,836 9.1 %
Indiana 5 3,613 1.1 % 163,035 1.7 %
Iowa 14 31,842 9.8 % 585,667 6.2 %
Kansas 1 4,286 1.3 % 49,360 0.5 %
Kentucky 2 3,218 1.0 % 92,875 1.0 %
Louisiana 1 621 0.2 % 17,830 0.2 %
Maryland 1 944 0.3 % 36,260 0.4 %
Massachusetts 3 890 0.3 % 36,563 0.4 %
Michigan 14 22,885 7.1 % 504,362 5.4 %
Minnesota 1 1,096 0.3 % 36,375 0.4 %
Mississippi 3 1,644 0.5 % 73,859 0.8 %
Missouri 2 7,151 2.2 % 96,016 1.0 %
Nevada 2 3,260 1.0 % 86,342 0.9 %
North Carolina 2 743 0.2 % 68,122 0.7 %
Ohio 3 1,190 0.4 % 69,882 0.7 %
Oregon 2 9,011 2.8 % 267,748 2.9 %
Pennsylvania 16 33,535 10.4 % 1,429,414 15.2 %
South Carolina 2 983 0.3 % 52,527 0.6 %
Tennessee 3 3,397 1.0 % 177,489 1.9 %
Texas 11 12,871 4.0 % 464,101 4.9 %
Virginia 3 4,236 1.1 % 234,090 2.5 %
Washington 1 2,024 0.6 % 52,900 0.6 %
Wisconsin 13 10,028 3.1 % 373,401 4.0 %
Total 193 $ 323,893 100 % 9,383,484 100 %
__________
(1) Annualized rental income on a straight-line basis for the leases in place in the property portfolio as of December 31, 2020, which includes tenant concessions such as free rent, as applicable, as well as annualized gross revenue from our SHOPs for the fourth quarter of 2020.
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Future Minimum Lease Payments
The following table presents future minimum base rental cash payments due to us (excluding the SHOP segment) over the next ten years and thereafter as of December 31, 2020. The SHOP segment is excluded as the leases of units with residents are generally for annual periods or month to month. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to performance thresholds and increases in annual rent based on exceeding certain economic indexes, among other items.
(In thousands) Future Minimum
Base Rent Payments
2021 $ 94,144
2022 87,762
2023 75,205
2024 68,210
2025 58,757
2026 51,909
2027 36,276
2028 22,468
2029 16,994
2030 14,172
Thereafter 23,823
$ 549,720
Future Lease Expirations Table
The following is a summary of lease expirations for the next ten years at the properties we owned (excluding the SHOP segment) as of December 31, 2020:
Year of Expiration
Number of Leases Expiring
Annualized Rental Income (1)
Annualized Rental Income as a Percentage of the Total Portfolio
Leased Rentable Square Feet
Percent of Portfolio Rentable Square Feet Expiring
(In thousands)
2021 79 $ 8,943 10.6% 403.111 10.0%
2022 76 14,889 17.6% 610.95 15.2%
2023 63 7,352 8.7% 309.079 7.7%
2024 89 11,294 13.3% 536.423 13.3%
2025 43 5,741 6.8% 229.614 5.7%
2026 44 14,484 17.1% 867.029 21.4%
2027 61 12,071 14.2% 654.836 16.3%
2028 17 5,121 6.0% 205.147 5.1%
2029 11 2,365 2.8% 100.513 2.5%
2030 16 2,499 2.9% 111.269 2.8%
Total 499 $ 84,759 100.0% 4,027.971 100.0%
_____________
(1) Annualized rental income on a straight-line basis for the leases in place in the property portfolio as of December 31, 2020, excluding SHOPs, which includes tenant concessions such as free rent, as applicable.
Tenant Concentration
As of December 31, 2020, we did not have any tenants (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or more of total annualized rental income on a straight-line basis for our portfolio.
Significant Portfolio Properties
As of December 31, 2020, the rentable square feet or annualized rental income on a straight-line basis of one property represented 5% or more of our total portfolio’s rentable square feet or annualized rental income on a straight-line basis:
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Wellington at Hershey’s Mill - West Chester, PA
In December 2014, we purchased Wellington at Hershey’s Mill, a seniors housing property located in West Chester, Pennsylvania. Wellington at Hershey’s Mill, which is leased to our TRS and operated and managed on our behalf by a third-party operator in our SHOP segment, contains 491,710 rentable square feet and consists of 193 units dedicated to independent living patients, 64 units dedicated to assisted living patients and 36 units for patients requiring skilled nursing services. As of December 31, 2020, this property represented 5.2% of our total rentable square feet and 5.3% of our total annualized rental income on a straight-line basis.
Property Financings
See Note 4 — Mortgage Notes Payable, Net and Note 5 — Credit Facilities to our consolidated financial statements in this Annual Report on Form 10-K for property financings as of December 31, 2020 and 2019.
Item 3. Legal Proceedings.
We are not a party to, and none of our properties are subject to, any material pending legal proceedings.
Item 4. Mine Safety Disclosures.
Not applicable.
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PART II