Dispositions, Assets Held for Sale and Discontinued Operations

9 Months Ended

Sep. 30, 2014

Disclosure Dispositions, Assets Held for Sale and Discontinued Operations [Abstract]

Dispositions, Assets Held for Sale and Discontinued Operations

5. Dispositions, Assets Held for Sale and Discontinued Operations

We periodically sell properties for various reasons, including favorable market conditions or the exercise of tenant purchase options. Of our total sales proceeds, $48,332,000 was deposited in an Internal Revenue Code Section 1031 exchange escrow account with a qualified intermediary. The following is a summary of our real property disposition activity for the periods presented (in thousands):

		Nine Months Ended
		September 30, 2014			September 30, 2013
Real property dispositions:
	Seniors housing triple-net		$	56,713		$	138,650
	Medical facilities			343,337			201,845
	Total dispositions			400,050			340,495
Gain (loss) on sales of real property, net				42,683			57,202
	Non-cash disposition activity(1)			-			(12,204)
Proceeds from real property sales			$	442,733		$	385,493
(1) Represents non-cash consideration surrendered in an asset swap transaction. Please see Note 3 for additional information.

Discontinued Operations

As discussed in Note 2, we adopted ASU 2014-08 effective January 1, 2014. During the nine months endedSeptember 30, 2014, we sold seniors housing triple-net properties previously held for sale with a balance of $18,502,000 for a gain of $6,411,000. We have reclassified the income and expenses attributable to all properties sold prior to or held for sale at January 1, 2014 to discontinued operations. The following illustrates the reclassification impact as reported in our Consolidated Statements of Comprehensive Income as a result of classifying these properties as discontinued operations for the periods presented (in thousands):

			Three Months Ended				Nine Months Ended
			September 30,				September 30,
		2014		2013		2014		2013
Revenues:
	Rental income	$	-	$	4,027	$	881	$	15,603
Expenses:
	Interest expense		-		522		157		3,799
	Property operating expenses		-		875		-		2,605
	Provision for depreciation		-		1,954		-		6,802
	Total expenses		-		3,351		157		13,206
Income (loss) from discontinued operations, net		$	-	$	676	$	724	$	2,397

Dispositions and Assets Held for Sale

Pursuant to our adoption of ASU 2014-08, operating results attributable to properties sold subsequent to or classified as held for sale after January 1, 2014 and which do not meet the definition of discontinued operations are no longer reclassified on our Consolidated Statements of Comprehensive Income. The following represents the activity related to these properties for the periods presented (in thousands):

			Three Months Ended				Nine Months Ended
			September 30,				September 30,
		2014		2013		2014		2013
Revenues:
	Rental income	$	5,495	$	12,076	$	28,121	$	35,995
Expenses:
	Interest expense		217		1,853		5,322		4,143
	Property operating expenses		39		673		1,243		1,753
	Provision for depreciation		1,335		3,238		7,404		9,717
	Total expenses		1,591		5,764		13,969		15,613
Income (loss) from real estate dispositions, net		$	3,904	$	6,312	$	14,152	$	20,382