Dispositions, Real Property Held for Sale and Impairment

9 Months Ended

Sep. 30, 2022

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, 2022, two Seniors Housing Operating, 11 Triple-net and one Outpatient Medical properties with an aggregate real estate balance of $175,657,000 were classified as held for sale. In addition to the real property balances, lease liabilities of $66,890,000 and net other assets and (liabilities) of $1,877,000 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 are approximately $236,919,000.

During the nine months ended September 30, 2022, we recorded $4,356,000 of impairment charges related to two Triple-net properties and one Outpatient Medical property classified as held for use in which the carrying value exceeded the estimated fair value. 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 costs 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.

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


	Nine Months Ended
	September 30, 2022		September 30, 2021
Real estate dispositions:
Seniors Housing Operating	$	13,470	$	112,837
Triple-net	89,827		439,974
Outpatient Medical	393		159,000
Total dispositions	103,690		711,811
Gain (loss) on real estate dispositions, net	20,466		223,702
Net other assets/(liabilities) disposed	275		6,195
Proceeds from real estate dispositions	$	124,431	$	941,708

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,
	2022		2021		2022		2021
Revenues:
Total revenues	$	4,299	$	14,813	$	13,331	$	69,018
Expenses:
Interest expense	867		803		2,545		2,813
Property operating expenses	1,941		2,457		5,946		11,874
Provision for depreciation	218		4,583		233		22,124
Total expenses	3,026		7,843		8,724		36,811
Income (loss) from real estate dispositions, net	$	1,273	$	6,970	$	4,607	$	32,207