Dispositions of Real Estate and Discontinued Operations

3 Months Ended

Mar. 31, 2015

Dispositions of Real Estate and Discontinued Operations

Dispositions of Real Estate and Discontinued Operations

NOTE 5.  Dispositions of Real Estate and Discontinued Operations

During the three months ended March 31, 2015, the Company sold eight senior housing facilities for $51 million resulting from Brookdale’s purchase option exerciseit received as part of the Brookdale Transaction.  

During the three months ended March 31, 2014, the Company sold two post-acute/skilled nursing facilities for $22 million and a hospital for $17 million.

The Company separately presented as discontinued operations the results of operations for all consolidated assets disposed of and all properties held for sale, if any, prior to the adoption of ASU 2014-08,  Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, on April 1, 2014 (the “adoption date”). The amounts included in discontinued operations, for the three months March 31, 2014, represent the activity for properties sold prior to the adoption date. No properties sold subsequent to the adoption date met the new criteria for reporting discontinued operations.

The following table summarizes operating income from discontinued operations and gain on sales of real estate included in discontinued operations (dollars in thousands):

	Three Months Ended March 31, 2014
Rental and related revenues	$	1,810
Operating expenses		54
Other expenses, net		20
Income before gain on sales of real estate, net of income taxes	$	1,736
Gain on sales of real estate, net of income taxes	$	28,010
Number of properties included in discontinued operations		3