Dispositions, Assets Held for Sale and Discontinued Operations

12 Months Ended

Dec. 31, 2017

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, relationship, or geography). At December 31, 2017, 50 triple-net, three seniors housing operating and 20 outpatient medical properties with an aggregate net real estate balance of $734,147,000 were classified as held for sale. Secured debt related to the held for sale properties totaled $66,872,000. 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, 2017		December 31, 2016		December 31, 2015
Real property dispositions:
	Triple-net	$	916,689	$	1,773,614	$	356,300
	Seniors housing operating		74,832		-		-
	Outpatient medical(1)		19,697		78,786		181,553
	Land parcels		-		-		5,724
	Total dispositions		1,011,218		1,852,400		543,577
Gain (loss) on sales of real property, net			344,250		364,046		280,387
Net other assets (liabilities) disposed			22,546		133,622		-
Proceeds from real property sales		$	1,378,014	$	2,350,068	$	823,964
	(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 (“Genesis”) for which we received loans in the amount of $74,445,000 for termination fees relating to the properties sold under the master lease. The related termination fee income has been deferred and will be recognized as the principal balance of the loans are repaid. At December 31, 2017, $61,994,000 of principal is outstanding on the loans.

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,
		2017		2016		2015
Revenues:
	Rental income	$	120,681	$	401,742	$	435,404
Expenses:
	Interest expense		6,570		47,083		68,978
	Property operating expenses		12,402		20,847		22,313
	Provision for depreciation		31,736		98,949		114,869
	Total expenses		50,708		166,879		206,160
Income (loss) from real estate dispositions, net		$	69,973	$	234,863	$	229,244