As of September 30, 2022, the Company determined that one skilled nursing/transitional care facility with a net book value of $0.9 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 consolidated balance sheets.

During the nine months ended September 30, 2022, the Company recognized $72.6 million of real estate impairment related to 10 skilled nursing/transitional care facilities that have either sold or are under contract to sell.

During the nine months ended September 30, 2021, the Company recognized $0.5 million of real estate impairment related to one skilled nursing/transitional care facility and one senior housing community that were subsequently sold.

To estimate the fair value of the impaired facilities, the Company utilized a market approach which considered binding sale agreements, non-binding offers from unrelated third parties or model-derived valuations with significant unobservable inputs (Level 3 measurements), as applicable.

The Company continues to evaluate additional assets for sale as part of its initiative to recycle capital and further improve its portfolio quality. This could lead to a shorter hold period and could result in the determination that the full amount of the Company’s investment is not recoverable, resulting in an impairment charge which could be material.

The following table summarizes the Company’s dispositions for the periods presented (dollars in millions):


	Nine Months Ended September 30,
	2022		2021
Number of facilities	11		8
Consideration, net of closing costs	$	62.8	$	17.9
Net carrying value	67.4		20.5
Net loss on sale	$	(4.6)	$	(2.6)

Net (loss) income (1)	$	(10.0)	$	1.3

(1) In addition to net loss on sale, net (loss) income includes impairment of real estate of $8.0 million for the nine months ended September 30, 2022.

The sale of the disposition 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.