NOTE 5—DISPOSITIONS

2017 Activity

During the nine months ended September 30, 2017, we sold 37 triple-net leased properties, three MOBs, and three vacant land parcels for aggregate consideration of $617.1 million, and we recognized a gain on the sale of these assets of $502.3 million, net of taxes.

SNF Dispositions

In November 2016, we entered into agreements with Kindred providing that Kindred will either acquire all 36 SNFs owned by us and operated by Kindred (the “Ventas SNFs”) for $700 million, in connection with Kindred’s previously announced plan to exit its SNF business; or, renew the current lease on all unpurchased Ventas SNFs not purchased by Kindred by April 30, 2018 until 2025 at the current rent level plus annual escalations. On June 30, 2017, Kindred announced that it had signed definitive agreements to sell its entire SNF business to an affiliate of Blue Mountain Capital Management, LLC and that, as Kindred closes on the sale of its SNFs, Kindred will pay to us its allocable portion of the sale proceeds for a total $700 million aggregate purchase price for the Ventas SNFs, and we will convey the applicable Ventas SNFs to the ultimate buyer.

In August 2017, we sold 22 of the Ventas SNFs, included in the 37 triple-net properties described above, for aggregate consideration of $488.1 million and recognized a gain on the sale of these assets of $458.0 million. Subsequent to September 30, 2017, we sold an additional seven Ventas SNFs for aggregate consideration of $82.5 million. We expect to recognize a gain on the sale of these assets of approximately $78 million during the fourth quarter. Kindred expects the closings of the sale of the remaining seven Ventas SNFs to occur by year end 2017. However, there can be no assurance that the closings will occur or the timing of any such closings.

Real Estate Impairment

We recognized impairments of $20.2 million and $14.5 million, respectively, for the nine months ended September 30, 2017 and 2016, which are recorded primarily in depreciation and amortization in our Consolidated Statements of Income.

Assets Held for Sale

The table below summarizes our real estate assets classified as held for sale as of September 30, 2017 and December 31, 2016, including the amounts reported on our Consolidated Balance Sheets.



	September 30, 2017					December 31, 2016
	Number of Properties Held for Sale	Assets Held for Sale		Liabilities Related to Assets Held for Sale		Number of Properties Held for Sale	Assets Held for Sale		Liabilities Related to Assets Held for Sale
	(Dollars in thousands)
Triple-Net Leased Properties	15	$	16,142	$	8,522	—	$	—	$	—
Office Operations	7	52,784		1,315		7	53,151		1,462
Senior Living Operations*	—	—		—		—	1,810		—
Total	22	$	68,926	$	9,837	7	$	54,961	$	1,462

* Includes one vacant land parcel classified as held for sale as of December 31, 2016, which was sold in June 2017.