Dispositions of Real Estate and Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Summary of Assets and Liabilities Transferred to Qcp at the Spin-off Date

The following summarizes the assets and liabilities classified as discontinued operations at March 31, 2021 and December 31, 2020, which are included in assets held for sale and discontinued operations, net and liabilities related to assets held for sale and discontinued operations, net, respectively, on the consolidated balance sheets (in thousands):

	March 31, 2021		December 31, 2020
ASSETS
Real estate:
Buildings and improvements	$	1,174,263	$	2,553,254
Development costs and construction in progress	11,136		21,509
Land	201,699		355,803
Accumulated depreciation and amortization	(221,246)		(615,708)
Net real estate	1,165,852		2,314,858
Investments in and advances to unconsolidated joint ventures	5,776		5,842
Accounts receivable, net of allowance of $5,132 and $5,873	13,976		20,500
Cash and cash equivalents	40,161		53,085
Restricted cash	5,817		17,168
Intangible assets, net	8,539		24,541
Right-of-use asset, net	937		4,109
Other assets, net(1)	43,224		103,965
Total assets of discontinued operations, net	1,284,282		2,544,068
Total medical office assets held for sale, net(2)	90,225		82,238
Assets held for sale and discontinued operations, net	$	1,374,507	$	2,626,306
LIABILITIES
Mortgage debt	278,172		318,876
Lease liability	935		3,189
Accounts payable, accrued liabilities, and other liabilities	41,977		79,411
Deferred revenue	3,985		11,442
Total liabilities of discontinued operations, net	325,069		412,918
Total liabilities related to medical office assets held for sale, net(2)	3,098		2,819
Liabilities related to assets held for sale and discontinued operations, net	$	328,167	$	415,737

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(1)Includes goodwill of $29 million as of March 31, 2021 and December 31, 2020.

(2)Primarily comprised of eight MOBs with net real estate assets of $81 million and deferred revenue of $2 million as of March 31, 2021 and six MOBs with net estate assets of $73 million and deferred revenue of $2 million as of December 31, 2020.

The results of discontinued operations through March 31, 2021, or the disposal date of each asset or portfolio of assets if they have been sold, are included in the consolidated results for the three months ended March 31, 2021 and 2020. Summarized financial information for discontinued operations for the three months ended March 31, 2021 and 2020 are as follows (in thousands):

	Three Months Ended March 31,
	2021		2020
Revenues:
Rental and related revenues	$	5,228	$	32,371
Resident fees and services	72,998		171,726
Total revenues	78,226		204,097
Costs and expenses:
Interest expense	2,676		2,685
Depreciation and amortization	—		64,164
Operating	71,519		138,637
Transaction costs	76		285
Impairments and loan loss reserves (recoveries), net	—		28,016
Total costs and expenses	74,271		233,787
Other income (expense):
Gain (loss) on sales of real estate, net	259,662		162,800
Other income (expense), net	5,885		(45)
Total other income (expense), net	265,547		162,755
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	269,502		133,065
Income tax benefit (expense)	821		3,176
Equity income (loss) from unconsolidated joint ventures	(315)		(833)
Income (loss) from discontinued operations	$	270,008	$	135,408