IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS

IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS

Impairment of Real Estate

During the years ended December 31, 2022, 2021 and 2020, the Company recognized real estate impairments of $94.0 million, $9.5 million and $4.0 million, respectively, related to 10, three and four facilities, respectively, that have either sold or are under contract to sell.

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.

Dispositions

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

	Year Ended December 31,
	2022		2021		2020
Number of facilities	18		16		8
Consideration, net of closing costs	$	87.3	$	103.4	$	50.0
Net carrying value	99.3		92.1		47.1
Net (loss) gain on sale	$	(12.0)	$	11.3	$	2.9
Net (loss) income (1)	$	(21.8)	$	15.4	$	12.1

(1)    In addition to net gain on sale, net (loss) income includes impairment of real estate of $14.8 million, $9.5 million and $4.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.

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.