Dispositions

2014 Activity

During the year ended December 31, 2014, we sold 16 triple-net leased properties, two seniors housing communities included in our seniors housing operations reportable business segment and four properties included in our MOB operations reportable business segment for aggregate consideration of $118.2 million. We recognized a net gain on the sales of these assets of $21.3 million, $1.5 million of which is reported within discontinued operations in our Consolidated Statements of Income.

2013 Activity

During 2013, we sold 19 triple-net leased properties, one seniors housing community included in our senior living operations reportable business segment and two properties included in our MOB operations reportable business segment for aggregate consideration of $35.1 million, including lease termination fees of $0.3 million. We recognized a net gain on the sales of these assets of $5.0 million, all of which is reported within discontinued operations in our Consolidated Statements of Income.

2012 Activity

During 2012, we sold 38 triple-net leased properties (ten of which were pursuant to the exercise of tenant purchase options) and five properties included in our MOB operations reportable business segment for aggregate consideration of $346.1 million, including fees of $5.0 million. We recognized a net gain on the sales of these assets of $85.5 million, all of which is reported within discontinued operations in our Consolidated Statements of Income. In June 2012, we declined to exercise our renewal option on the operating leases (in which we were the tenant) related to two seniors housing communities we acquired as part of the ASLG acquisition that expired on June 30, 2012.

Discontinued Operations and Assets Held for Sale

We present separately, as discontinued operations in all periods presented, the results of operations for all real estate assets classified as held for sale as of December 31, 2014 and all real estate assets disposed of during the three-year period then ended that meet the criteria of discontinued operations.

The table below summarizes our real estate assets classified as held for sale as of December 31, 2014 and 2013, including the amounts reported within other assets and accounts payable and other liabilities on our Consolidated Balance Sheets.



	December 31, 2014					December 31, 2013
	Number of Properties Held for Sale (1)	Other Assets		Accounts Payable and Other Liabilities		Number of Properties Held for Sale (2)	Other Assets		Accounts Payable and Other Liabilities
	(Dollars in thousands)
Triple-net leased properties	14	$	34,097	$	1,330	15	$	125,981	$	50,456
MOB operations (3)	36	176,366		48,895		4	29,359		14,044
Total	50	$	210,463	$	50,225	19	$	155,340	$	64,500


(1)	The operations for three triple-net leased properties and two MOBs are reported in discontinued operations in our Consolidated Statements of Income.


(2)	The operations for all properties listed are reported in discontinued operations in our Consolidated Statements of Income.


(3)	Includes 34 MOBs that are being marketed for sale and were classified as held for sale as of December 31, 2014. Aggregate NOI for this portfolio of assets was $11.9 million, $13.8 million, and $14.1 million for the years ended December 31, 2014, 2013, and 2012 respectively. The sale of these MOBs does not meet the criteria for reporting as discontinued operations.

We recognized impairments of $56.6 million, $51.5 million and $35.6 million for the years ended December 31, 2014, 2013 and 2012 respectively, which are recorded primarily as a component of depreciation and amortization. A portion of these impairments ($1.5 million, $39.7 million, and $13.9 million, respectively) was recorded in discontinued operations for the years ended December 31, 2014 and 2013. For both 2014 and 2013, our recorded impairments were primarily the result of a change in our intent to hold the impaired assets. In each case, we recognized an impairment in the periods in which our change in intent was made. In December 2014, we executed an agreement to sell four triple-net leased seniors housing assets for a sales price of $20.0 million. We recognized a $30.6 million impairment loss on these assets, as the assets’ carrying amount of $49.5 million exceeded the estimated fair value (less costs to sell) of $19.0 million.

Set forth below is a summary of our results of operations for properties within discontinued operations for the three years ended December 31, 2014, 2013 and 2012.



	2014		2013			2012
	(In thousands)
Revenues:
Rental income	$	4,331	$	14,060		$	34,840
Resident fees and services	—		759			6,435
Interest and other income	750		—			5,052
	5,081		14,819			46,327
Expenses:
Interest	1,714		5,472			13,314
Depreciation and amortization	1,555		47,806			49,807
Property-level operating expenses	507		1,994			7,971
General, administrative and professional fees	—		3			303
Gain on extinguishment of debt, net	—		(153		)	—
Other	412		(407		)	1,902
	4,188		54,715			73,297
Income (loss) before income taxes and gain on real estate dispositions	893		(39,896		)	(26,970		)
Income tax benefit	—		—			4
Gain on real estate dispositions	1,213		3,617			80,952
Discontinued operations	$	2,106	$	(36,279	)	$	53,986