ASSET HELD FOR SALE, IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

ASSET HELD FOR SALE, IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS

ASSET HELD FOR SALE, IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS

2021

Asset Held for Sale

As of September 30, 2021, the Company determined that one skilled nursing/transitional care facility with an aggregate net book value of $1.2 million met the criteria to be classified as an asset held for sale, and this balance is included in accounts receivable, prepaid expenses and other assets, net on the condensed consolidated balance sheets. Subsequent to September 30, 2021, the Company completed the sale of the facility for a gross sales price of $1.2 million.

Impairment of Real Estate

During the nine months ended September 30, 2021, the Company recognized a $0.5 million real estate impairment related to one skilled nursing/transitional care facility which was classified as an asset held for sale as of September 30, 2021 and one senior housing community.

Dispositions

During the nine months ended September 30, 2021, the Company completed the sale of four skilled nursing/transitional care facilities and four senior housing communities for aggregate consideration, net of closing costs, of $17.9 million. The net carrying value of the assets and liabilities of the facilities was $20.5 million, which resulted in an aggregate $2.6 million net loss on sale.

During the nine months ended September 30, 2021, the Company recognized $2.7 million of net loss, which includes the $2.6 million net loss on sale, and during the nine months ended September 30, 2020, recognized $1.8 million of net loss, which includes $1.5 million of real estate impairment, in each case 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.

2020

Impairment of Real Estate

During the nine months ended September 30, 2020, the Company recognized a $3.2 million real estate impairment related to three senior housing communities, two of which were subsequently sold, and one skilled nursing/transitional care facility which was subsequently sold.

Dispositions

During the nine months ended September 30, 2020, the Company completed the sale of seven skilled nursing/transitional care facilities for aggregate consideration, net of closing costs, of $41.1 million. The net carrying value of the assets and liabilities of these facilities was $38.3 million, which resulted in an aggregate $2.8 million net gain on sale.

During the nine months ended September 30, 2020, the Company recognized $3.9 million of net income, which includes the $2.8 million net gain on sale, 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.