IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS

IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS

Impairment of Real Estate

During the three months ended March 31, 2023, the Company recognized $7.1 million of real estate impairment related to one skilled nursing/transitional care facility that is under contract to sell.

During the three months ended March 31, 2022, the Company recognized no real estate impairment.

To estimate the fair value of the impaired facility, the Company utilized a market approach which considered the binding sale agreement (Level 3 measurement).

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):

	Three Months Ended March 31,
	2023		2022
Number of facilities	8		—
Consideration, net of closing costs	$	160.3	$	—
Net carrying value	181.8		—
Net loss on sale	$	(21.5)	$	—
Net (loss) income	$	(22.1)	$	0.1

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.