Dispositions and Assets Held for Sale

9 Months Ended

Sep. 30, 2019

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 (i.e., property type, relationship or geography). During three months ended September 30, 2019, we disposed of our Benchmark Senior Living portfolio for a gross sale price of $1.8 billion and a gain on sale of $520 million. Proceeds were used to extinguish the $1 billion unsecured term loan and $24 million of secured debt.

At September 30, 2019, 12 Seniors Housing Operating, eight Triple-net, and five Outpatient Medical properties with an aggregate real estate balance of $336,649,000 were classified as held for sale. In addition, secured debt of $24,338,000 and net other assets and liabilities of $7,608,000 related to the held for sale properties. During the nine months ended September 30, 2019, we recorded net impairment charges of $13,121,000 related to certain held for sale properties for which the carrying value exceeded the fair values, less estimated costs to sell, and $14,914,000 related to five held for use properties for which the carrying value exceeded the sum of the future undiscounted cash flows. The following is a summary of our real property disposition activity for the periods presented (in thousands):



	Nine Months Ended September 30,
	2019			2018
Real estate dispositions:
Seniors Housing Operating	$	1,204,084		$	2,200
Triple-net	660,885			604,480
Outpatient Medical	482			223,069
Total dispositions	1,865,451			829,749
Gain (loss) on real estate dispositions, net	735,977			373,662
Net other assets/liabilities disposed	(357		)	5,090
Proceeds from real estate dispositions	$	2,601,071		$	1,208,501

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”, 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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues:
Total revenues	$	37,431	$	126,386	$	271,119	$	381,440
Expenses:
Interest expense	455		643		1,716		2,144
Property operating expenses	22,576		79,989		172,738		233,858
Provision for depreciation	188		16,556		25,563		55,341
Total expenses	23,219		97,188		200,017		291,343
Income (loss) from real estate dispositions, net	$	14,212	$	29,198	$	71,102	$	90,097