Dispositions, Real Property Held for Sale and Impairment

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Dispositions, Real Property Held for Sale and Impairment

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, 2021, two Seniors Housing Operating, 20 Triple-net, and two Outpatient Medical properties with an aggregate real estate balance of $251,152,000 were classified as held for sale. In addition to the real property balances held for sale, net other assets and (liabilities) of $18,081,000 are included in the Consolidated Balance Sheets related to the held for sale properties. Expected gross sales proceeds related to the held for sale properties is approximately $293,526,000.

During the nine months ended September 30, 2021, we recorded $19,567,000 of impairment charges related to four Triple-net properties and one Outpatient Medical property 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, 2021, we recorded $29,183,000 of impairment charges related to two Seniors Housing Operating properties and two Triple-net properties that were held for use in which the carrying value exceeded the estimated fair value. During the nine months ended September 30, 2020, we recorded $79,905,000 of impairment charges related to 13 Seniors Housing Operating properties and one Triple-net property 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 properties 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,
	2021		2020
Real estate dispositions:
Seniors Housing Operating	$	112,837	$	1,093,477
Triple-net	439,974		33,445
Outpatient Medical	159,000		1,394,971
Total dispositions	711,811		2,521,893
Gain (loss) on real estate dispositions, net	223,702		902,991
Net other assets/(liabilities) disposed	6,195		98,065
Proceeds from real estate dispositions	$	941,708	$	3,522,949

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,
	2021		2020			2021		2020
Revenues:
Total revenues	$	7,103	$	7,471	(1)	$	58,302	$	262,951
Expenses:
Interest expense	32		1,737			1,471		10,039
Property operating expenses	925		33,330			7,942		150,501
Provision for depreciation	440		18,085			8,665		72,877
Total expenses	1,397		53,152			18,078		233,417
Income (loss) from real estate dispositions, net	$	5,706	$	(45,681)		$	40,224	$	29,534

(1) During the three months ended September 30, 2020, we reserved for straight-line rent receivable balances on properties operated by Genesis Healthcare. See also Note 9 for additional information.