Dispositions and Assets Held for Sale

3 Months Ended

Mar. 31, 2020

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). At March 31, 2020, 18 Seniors Housing Operating, six Triple-net, and nine Outpatient Medical properties with an aggregate real estate balance of $729,560,000 were classified as held for sale. In addition to the real property balances held for sale, secured debt of $112,625,000 and net other assets and liabilities of $27,800,000 are included in the Consolidated Balance Sheet related to the held for sale properties. Subsequent to March 31, 2020, the expected sale of a Seniors Housing Operating portfolio, which met the held for sale criteria as of December 31, 2019, was not consummated as a result of the uncertainty of the COVID-19 pandemic on our business and industry and the 11 properties with a carrying value of $386,744,000 will be moved out of held for sale during the second quarter. Expected gross sales proceeds related to the remaining held for sale properties is approximately $412,535,000.

During the three months ended March 31, 2020, we recorded net impairment charges of $27,827,000 related to certain held for use properties for which the carrying value exceeded the fair values. The following is a summary of our real property disposition activity for the periods presented (in thousands):



	Three Months Ended March 31,
	2020		2019
Real estate dispositions:
Triple-net	$	33,445	$	436,071
Outpatient Medical	495,003		—
Total dispositions	528,448		436,071
Gain (loss) on real estate dispositions, net	262,824		167,409
Net other assets/liabilities disposed	10,120		(748		)
Proceeds from real estate dispositions	$	801,392	$	602,732

Operating results attributable to properties sold subsequent to or classified as held for sale and which do not meet the definition of discontinued operations, are not 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,
	2020		2019
Revenues:
Total revenues	$	48,563	$	159,048
Expenses:
Interest expense	876		1,547
Property operating expenses	27,793		96,143
Provision for depreciation	—		22,739
Total expenses	28,669		120,429
Income (loss) from real estate dispositions, net	$	19,894	$	38,619