IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS

12 Months Ended

Dec. 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 years ended December 31, 2023, 2022 and 2021, the Company recognized real estate impairments of $14.3 million, $94.0 million and $9.5 million, respectively, related to three, 10 and three facilities, respectively. These facilities have either been sold or are closed.

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,
	2023		2022		2021
Number of facilities	28		18		16
Consideration, net of closing costs	$	255.6	$	87.3	$	103.4
Net carrying value	332.2		99.3		92.1
Net (loss) gain on sale	$	(76.6)	$	(12.0)	$	11.3

The Company recognized net loss of $80.9 million and $94.8 million during the years ended December 31, 2023 and 2022, respectively, and net income of $21.5 million during the year ended December 31, 2021, which includes impairment of real estate of $7.1 million, $94.0 million and $9.5 million for the years ended December 31, 2023, 2022 and 2021, respectively, and net (loss) gain on sale from these facilities.

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.