IMPAIRMENT OF REAL ESTATE, ASSETS HELD FOR SALE AND DISPOSITIONS

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

IMPAIRMENT OF REAL ESTATE, ASSETS HELD FOR SALE AND DISPOSITIONS

IMPAIRMENT OF REAL ESTATE, ASSETS HELD FOR SALE AND DISPOSITIONS

2020

Assets Held For Sale

As of March 31, 2020, the Company determined that two skilled nursing/transitional care facilities, with an aggregate net book value of $11.3 million and secured debt, net balance of $13.8 million, met the criteria to be classified as assets/liabilities held for sale, and these balances are included in accounts receivable, prepaid expenses and other assets, net and accounts payable and accrued liabilities, respectively, on the condensed consolidated balance sheets. Subsequent to March 31, 2020, the Company completed the sale of the facilities for an aggregate gross sales price of $14.4 million and the proceeds were used to repay the outstanding debt secured by the facilities.

Dispositions

During the three months ended March 31, 2020, the Company completed the sale of three skilled nursing/transitional care facilities for aggregate consideration, net of closing costs, of $6.8 million. The net carrying value of the assets and liabilities of these facilities was $7.0 million, which resulted in an aggregate $0.2 million net loss on sale.

Excluding the net loss on sale and real estate impairment, the Company recognized $0.1 million of net loss and $5,000 of net income during the three months ended March 31, 2020 and 2019, respectively, from these facilities. The sale of these facilities does not represent a strategic shift that has or will have a major effect on the Company’s operations and financial results, and therefore the results of operations attributable to these facilities have remained in continuing operations.

2019

Impairment of Real Estate

During the three months ended March 31, 2019, the Company recognized a $103.1 million real estate impairment, of which $92.2 million related to the 30 Senior Care Centers facilities which were subsequently sold and one additional Senior Care Centers facility, and the remaining $10.9 million related to four additional skilled nursing/transitional care facilities which were subsequently sold.

Dispositions

During the three months ended March 31, 2019, the Company completed the sale of three skilled nursing/transitional care facilities for aggregate consideration, net of closing costs, of $6.9 million. The net carrying value of the assets and liabilities of these facilities was $8.4 million, which resulted in an aggregate $1.5 million net loss on sale.

Excluding the net loss on sale, the Company recognized $0.5 million of net income during the three months ended March 31, 2019 from these facilities. The sale of these facilities does not represent a strategic shift that has or will have a major effect on the Company’s operations and financial results, and therefore the results of operations attributable to these facilities have remained in continuing operations.