DISPOSITIONS

2013 Activity

Triple-Net Leased Properties

During the nine months ended September 30, 2013, we sold six seniors housing communities and ten skilled nursing facilities for aggregate consideration of $25.3 million, including lease termination fees of $0.3 million, and recognized a net gain on the sales of these assets of $2.0 million.

Senior Living Operations

During the nine months ended September 30, 2013, we sold one seniors housing community for consideration of $1.6 million and recognized no gain or loss from the sale of this asset.

MOB Operations

During the nine months ended September 30, 2013, we sold two MOBs for aggregate consideration of $1.8 million and recognized a net gain on the sales of these assets of $0.5 million.

2012 Activity

Triple-Net Leased Properties

During 2012, we sold 36 seniors housing communities (including ten properties pursuant to the exercise of tenant purchase options) and two skilled nursing facilities for aggregate consideration of $318.9 million, including fees of $5.0 million, and recognized a net gain on the sales of these assets of $81.0 million. We deposited a majority of the proceeds from the sale of 21 seniors housing communities in an Internal Revenue Code of 1986, as amended (the “Code”), Section 1031 exchange escrow account with a qualified intermediary, and we used approximately $134.5 million of these proceeds for certain of our seniors housing communities and MOB acquisitions during 2012. As of December 31, 2012, no proceeds remained in the Section 1031 exchange escrow account related to these sales.

Senior Living Operations

In June 2012, we declined to exercise our renewal option with respect to the operating leases (under which we were the lessee) for two seniors housing communities, which leases expired on June 30, 2012.

MOB Operations

During 2012, we sold five MOBs for aggregate consideration of $27.2 million and recognized a gain on the sales of these assets of $4.5 million.

Discontinued Operations

We present separately, as discontinued operations in all periods presented, the results of operations for all assets classified as held for sale as of September 30, 2013, and all assets disposed of and all operating leases (under which we were the lessee) not renewed during the period from January 1, 2012 through September 30, 2013. Set forth below is a summary of our results of operations for properties within discontinued operations for the three and nine months ended September 30, 2013 and 2012. As of September 30, 2013, we classified 17 properties as assets held for sale, included within other assets on our Consolidated Balance Sheets. For the nine months ended September 30, 2013 and 2012, we recognized impairments of $34.5 million and $2.1 million, respectively, representing our estimated aggregate loss on the expected sales of assets reported as discontinued operations. These charges are primarily recorded as a component of depreciation and amortization in the table below.



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2013			2012			2013			2012
	(In thousands)
Revenues:
Rental income	$	2,535		$	6,550		$	8,177		$	26,141
Resident fees and services	—			571			759			5,837
Interest and other income	—			1,127			—			5,951
	2,535			8,248			8,936			37,929
Expenses:
Interest	910			2,473			3,402			10,397
Depreciation and amortization	10,682			8,082			41,145			28,235
Property-level operating expenses	80			1,206			964			6,314
General, administrative and professional fees	—			10			—			302
Gain on extinguishment of debt, net	—			—			(153		)	—
Other	(7		)	542			(502		)	1,772
	11,665			12,313			44,856			47,020
Loss before income taxes and gain on real estate dispositions, net	(9,130		)	(4,065		)	(35,920		)	(9,091		)
Income tax (expense) benefit	—			(16		)	—			4
Gain on real estate dispositions, net	46			357			2,241			79,148
Discontinued operations	$	(9,084	)	$	(3,724	)	$	(33,679	)	$	70,061