Dispositions, Assets Held for Sale and Discontinued Operations

12 Months Ended

Dec. 31, 2016

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, the exercise of tenant purchase options or reduction of concentrations (e.g. property type, operator or geography). Impairment of assets, as reflected in our consolidated statements of comprehensive income, primarily represents the charges necessary to adjust the carrying values of certain properties to estimated fair values less costs to sell. The following is a summary of our real property disposition activity for the periods presented (in thousands):

		Year Ended
		December 31, 2016		December 31, 2015		December 31, 2014
Real property dispositions:
	Triple-net	$	1,773,614	$	356,300	$	747,720
	Outpatient medical(1)		78,786		181,553		45,695
	Land parcels		-		5,724		-
	Total dispositions		1,852,400		543,577		793,415
Gain (loss) on sales of real property, net			364,046		280,387		153,522
Net other assets/liabilities disposed			133,622		-		(35,872)
Proceeds from real property sales		$	2,350,068	$	823,964	$	911,065
	(1) Dispositions occurring in the year ended December 31, 2015 primarily relate to the disposition of an unconsolidated equity investment with Forest City Enterprises.

During the year ended December 31, 2016, we completed two portfolio dispositions of properties leased to Genesis Healthcare for which we received loans for termination fees relating to the properties sold under the master lease. At December 31, 2016, $74,445,000 of principal is outstanding on the loans. The related termination fee income will be deferred and recognized as the principal balance of the loans are repaid.

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):

		Year Ended
		December 31,
		2016		2015		2014
Revenues:
	Rental income	$	310,390	$	352,615	$	401,640
Expenses:
	Interest expense		49,599		64,741		80,893
	Property operating expenses		10,846		12,117		14,127
	Provision for depreciation		68,280		88,580		111,593
	Total expenses		128,725		165,438		206,613
Income (loss) from real estate dispositions, net		$	181,665	$	187,177	$	195,027