Real Estate Properties

9 Months Ended

Sep. 30, 2020

As of September 30, 2020, we owned 407 properties located in 37 states and Washington, D.C., including 22 properties classified as held for sale, 10 properties scheduled for closure and/or sale and one life science property owned in a joint venture arrangement in which we own a 55% equity interest.

We regularly evaluate our assets for indicators of impairment. Impairment indicators may include declining tenant or resident occupancy, weak or declining profitability from the property, decreasing tenant cash flows or liquidity, our decision to dispose of an asset before the end of its estimated useful life, and legislative, market or industry changes that could permanently reduce the value of an asset. If indicators of impairment are present, we evaluate the carrying value of the affected assets by comparing it to the expected future cash flows to be generated from those assets. The future cash flows are subjective and are based in part on assumptions regarding hold periods, market rents and terminal capitalization rates. If the sum of these expected future cash flows is less than the carrying value, we reduce the net carrying value of the asset to its estimated fair value.

Acquisition Activities:

In January 2020, we acquired a vacant land parcel adjacent to a property we own in our portfolio of medical office and life science properties, or our Office Portfolio, segment located in Tempe, Arizona for $2,600, excluding acquisition costs.

Disposition Activities:

During the nine months ended September 30, 2020, we sold 17 properties for an aggregate sales price of $80,601, excluding closing costs, as presented in the table below. The sales of these properties do not represent significant dispositions individually or in the aggregate, nor do we believe they represent a strategic shift in our business. As a result, the results of the

operation for these properties are included in continuing operations through the date of sale of such properties in our condensed consolidated statements of comprehensive income (loss).


Date of Sale	Location	Type of Property	Number of Properties	Square Feet or Number of Units		Sales Price (1)		Gain (loss) on Sale		Impairment of Assets
January 2020	Louisiana	Medical Office	6	40,575	sq. ft.	$	5,925	$	(81)	$	—
February 2020	Pennsylvania	Medical Office	1	50,000	sq. ft.	2,900		—		(47)
March 2020	Texas	Medical Office	1	70,229	sq. ft.	8,779		2,863		—
April 2020	California	Managed Senior Living	3	599	units	47,000		(168)		5,465
June 2020	South Carolina	Medical Office	1	49,242	sq. ft.	3,550		—		2,753
July 2020	Texas	Medical Office	1	6,849	sq. ft.	2,072		(30)		—
July 2020	Connecticut	Medical Office	1	32,162	sq. ft.	625		(25)		267
August 2020	Mississippi	Managed Senior Living	2	116	units	2,500		(42)		227
September 2020	Mississippi	Medical Office	1	78,747	sq. ft.	7,250		(114)		148
			17			$	80,601	$	2,403	$	8,813

(1)Sales price excludes closing costs.

As of September 30, 2020, we had 22 properties classified as held for sale in our condensed consolidated balance sheet as follows:


Type of Property	Number of Properties	Gross Book Value		Impairment of Assets(1)
Managed Senior Living	14	$	52,958	$	33,356
Medical Office	5	69,230		1,524
Triple Net Leased, Senior Living	3	43,603		—
	22	$	165,791	$	34,880

(1)We recorded an aggregate of $34,880 impairment of real estate during the nine months ended September 30, 2020 to adjust the carrying values of certain of these properties to their estimated fair values less costs to sell.

In October and November 2020, the three triple net leased senior living communities and one of the 14 managed senior living communities classified as held for sale in the table above were sold for an aggregate sales price of $49,000, excluding closing costs.

We recorded impairment charges of $3,071 related to six medical office properties and one senior living community that were classified as held for sale during the three months ended March 31, 2020. These properties were subsequently reclassified to held and used as of June 30, 2020.

We also recorded impairment charges of $59,847 during the three and nine months ended September 30, 2020 related to nine of the 10 senior living communities that were scheduled for closure and/or sale as of September 30, 2020.

As of November 2, 2020, we had 21 properties under agreements to sell for an aggregate sales price of approximately $167,392, excluding closing costs. We may not complete the sales of any or all of the properties we currently plan to sell. Also, we may sell some or all of these properties at amounts that are less than currently expected and/or less than the carrying values of such properties and we may incur losses on any such sales as a result.