DISPOSITIONS

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

NOTE 4—DISPOSITIONS

2018 Activity

During the six months ended June 30, 2018, we sold six seniors housing communities included in our senior living operations reportable business segment, five triple-net leased properties, nine MOBs and two vacant land parcels for aggregate consideration of $307.1 million, and we recognized a gain on the sale of these assets of $35.9 million.

Real Estate Impairment

We recognized impairments of $10.7 million and $15.6 million, respectively, for the six months ended June 30, 2018 and 2017, which are recorded in depreciation and amortization in our Consolidated Statements of Income, and relate primarily to our office operations reportable business segment. Our recorded impairments were primarily the result of a change in our intent to hold the impaired assets. In most cases, we recognize an impairment in the periods in which our change in intent is made.

Assets Held for Sale

The table below summarizes our real estate assets classified as held for sale as of June 30, 2018 and December 31, 2017, including the amounts reported on our Consolidated Balance Sheets.



	June 30, 2018					December 31, 2017
	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)
Office Operations ⁽¹⁾	—	$	166	$	671	3	$	65,413	$	60,265
Senior Living Operations	1	15,401		225		—	—		—
Total	1	$	15,567	$	896	3	$	65,413	$	60,265

⁽¹⁾ Balances relate to anticipated post-closing settlements of working capital.

In March 2018, five MOBs no longer met the criteria as being classified as held for sale. As a result, we adjusted the carrying amount of these assets by recognizing depreciation expense of $5.7 million and classified these assets within net real estate investments on our Consolidated Balance Sheets for all periods presented.