During the quarter the company completed $56 million in medical office building investments at a blended yield of 7.1%. The investments include the acquisition of three medical office buildings for $50 million and one development completion. The three buildings acquired total 220,000 rentable square feet, with a yield of 7.0%. Each building is affiliated with a health system and average occupancy is 98%. The development completion represents a 13,400 rentable square foot building that is affiliated with a health system and 100% leased with a yield of 8.5%.Sunrise Acquisition Update The 125 property acquisition of Sunrise Senior Living, Inc. (NYSE:SRZ) remains on track to close in early 2013. The company successfully reached agreement to sell the Sunrise management company as announced on September 14, 2012 and continues to work with Sunrise to accelerate the buyout of its partners in certain of the 105 joint venture properties. The company acquired five of the 105 joint venture properties located in the United Kingdom in the third quarter for approximately $243.5 million. During the fourth quarter 2012, the company funded its previously announced $467 million loan to Sunrise. The final amount drawn was $462.5 million. The proceeds of the loan were used by Sunrise to acquire its partners’ interests in 33 of the 105 joint venture properties. As a result of the accelerated joint venture buyouts, the company expects the Sunrise acquisition to include 58 wholly owned properties and 67 joint venture properties at closing. The accelerated joint venture partner buyouts increases the expected real estate value of the 125 properties from approximately $1.9 billion to approximately $3.2 billion. Of the 67 joint venture properties, 50 properties remain subject to purchase options that the company may exercise to acquire the partners’ interests.
|Previously Announced Investments Reconciliation|
|3Q12A||4Q12E||1Q13E||Total Announced||Remaining as of 9/30/12|
|$925 Million Announced August 6, 2012||$634.2||$291.2||$925.4||$291.2|