Dispositions, Assets Held for Sale and Discontinued Operations

3 Months Ended

Mar. 31, 2015

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, $19,493,000 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):

		Three Months Ended
		March 31, 2015			March 31, 2014
Real property dispositions:
	Triple-net		$	110,998		$	-
	Outpatient medical			9,422			-
	Total dispositions			120,420			-
Gain (loss) on sales of real property, net				56,845			-
Proceeds from real property sales			$	177,265		$	-

Dispositions and Assets Held for Sale

Pursuant to our adoption of ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (“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
			March 31,
		2015		2014
Revenues:
	Rental income	$	4,517	$	28,243
Expenses:
	Interest expense		1,303		7,644
	Property operating expenses		14		673
	Provision for depreciation		133		8,236
	Total expenses		1,450		16,553
Income (loss) from real estate dispositions, net		$	3,067	$	11,690

Discontinued Operations

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 in accordance with ASU 2014-08. 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
			March 31,
		2015		2014
Revenues:
	Rental income	$	-	$	583
Expenses:
	Interest expense		-		123
	Total expenses		-		123
Income (loss) from discontinued operations, net		$	-	$	460