Dispositions and Assets Held for Sale

12 Months Ended

Dec. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

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, 2018, 13 seniors housing operating, 40 triple-net and two outpatient medical properties with an aggregate net real estate balance of $590,271,000 were classified as held for sale. 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, 2018		December 31, 2017		December 31, 2016
Real property dispositions:
Seniors Housing Operating	$	36,627	$	74,832	$	—
Triple-net	835,093		916,689		1,773,614
Outpatient Medical	253,397		19,697		78,786
Total dispositions	1,125,117		1,011,218		1,852,400
Gain (loss) on sales of real property, net	415,575		344,250		364,046
Net other assets (liabilities) disposed	1,178		22,546		133,622
Proceeds from real property sales	$	1,541,870	$	1,378,014	$	2,350,068

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, 2018, $61,994,000 of principal is outstanding on the loans.

Dispositions and Assets Held for Sale

Pursuant to our adoption of ASU 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,
	2018		2017		2016
Revenues:
Total revenues	$	148,725	$	275,087	$	565,450
Expenses:
Interest expense	294		6,655		52,675
Property operating expenses	81,698		81,182		89,666
Provision for depreciation	16,900		55,294		122,153
Total expenses	98,892		143,131		264,494
Income (loss) from real estate dispositions, net	$	49,833	$	131,956	$	300,956