Dispositions and Assets Held for Sale

9 Months Ended

Sep. 30, 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 September 30, 2020, eight Seniors Housing Operating, two Triple-net, and 11 Outpatient Medical properties with an aggregate real estate balance of $362,886,000 were classified as held for sale. In addition to the real property balances held for sale, secured debt of $12,737,000 and net other assets and (liabilities) of $21,063,000 are included in the Consolidated Balance Sheet related to the held for sale properties. Expected gross sales proceeds related to the held for sale properties is approximately $437,116,000.

During the nine months ended September 30, 2020, we recorded $79,905,000 of impairment charges related to 13 Seniors Housing Operating and one Triple-net properties which were disposed of or classified as held for sale for which the carrying value exceeded the estimated fair value less cost to sell. Additionally, during the nine months ended September 30, 2020, we recorded $46,386,000 of impairment charges related to four Seniors Housing Operating and four Triple-net properties that were held for use in which the carrying value exceeded the estimated fair value.

The following is a summary of our real property disposition activity for the periods presented (in thousands):


	Nine Months Ended September 30,
	2020		2019
Real estate dispositions:
Seniors Housing Operating	$	1,093,477	$	1,204,084
Triple-net	33,445		660,885
Outpatient Medical	1,394,971		482
Total dispositions	2,521,893		1,865,451
Gain (loss) on real estate dispositions, net	902,991		735,977
Net other assets/liabilities disposed	98,065		(357)
Proceeds from real estate dispositions	$	3,522,949	$	2,601,071

Operating results attributable to properties sold or classified as held for sale 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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues:
Total revenues	$	36,820	$	133,661	$	207,918	$	554,744
Expenses:
Interest expense	584		4,593		6,579		14,801
Property operating expenses	22,485		68,848		117,069		305,598
Provision for depreciation	5,907		23,627		37,254		94,694
Total expenses	28,976		97,068		160,902		415,093
Income (loss) from real estate dispositions, net	$	7,844	$	36,593	$	47,016	$	139,651