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Assets and Associated Liabilities Held For Sale and Discontinued Operations (Tables)
9 Months Ended
Sep. 30, 2019
Real Estate Liabilities Associated With Assets Held For Development And Sale [Abstract]  
Schedule of Assets Classified as Held for Sale and Liabilities Associated with Those Assets Held for Sale

As of September 30, 2019, the assets held for sale and the liabilities associated with those assets held for sale consisted of the following (in thousands):

 

 

 

As of September 30, 2019

 

 

 

MOB/Healthcare

Portfolio

 

 

Other

 

 

Total

 

Real estate investment properties, net

 

$

76,737

 

 

$

51,339

 

 

$

128,076

 

Intangibles, net

 

 

6,252

 

 

 

800

 

 

 

7,052

 

Deferred rent and lease incentives

 

 

3,622

 

 

 

6,040

 

 

 

9,662

 

Other assets

 

 

1,051

 

 

 

647

 

 

 

1,698

 

Restricted cash

 

 

86

 

 

 

145

 

 

 

231

 

Assets held for sale, net

 

$

87,748

 

 

$

58,971

 

 

$

146,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

$

405

 

 

$

634

 

 

$

1,039

 

Accounts payable and accrued liabilities

 

 

37

 

 

 

 

 

37

 

Liabilities associated with assets held for sale

 

$

442

 

 

$

634

 

 

$

1,076

 

As of December 31, 2018, the 70 properties classified as assets held for sale and the liabilities associated with those assets held for sale consisted of the following (in thousands):

 

 

 

As of December 31, 2018

 

 

 

MOB/Healthcare

Portfolio

 

 

Other

 

 

Total

 

Real estate held for sale, net

 

$

952,656

 

 

$

51,339

 

 

$

1,003,995

 

Real estate under development

 

 

3,490

 

 

 

 

 

3,490

 

Intangibles, net

 

 

82,417

 

 

 

800

 

 

 

83,217

 

Deferred rent and lease incentives

 

 

36,562

 

 

 

6,501

 

 

 

43,063

 

Other assets

 

 

11,425

 

 

 

182

 

 

 

11,607

 

Restricted cash

 

 

2,013

 

 

 

260

 

 

 

2,273

 

Assets held for sale, net

 

$

1,088,563

 

 

$

59,082

 

 

$

1,147,645

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages and other notes payable, net

 

$

492,701

 

 

$

8,097

 

 

$

500,798

 

Credit facilities

 

 

212,731

 

 

 

34,778

 

 

 

247,509

 

Other liabilities

 

 

16,653

 

 

 

634

 

 

 

17,287

 

Accounts payable and accrued liabilities

 

 

8,425

 

 

 

 

 

8,425

 

Liabilities associated with assets held for sale

 

$

730,510

 

 

$

43,509

 

 

$

774,019

 

 

Summary of Income (Loss) from Discontinued Operations The following table summarizes the Company’s income (loss) from discontinued operations for the quarter and nine months ended September 30, 2019 and 2018 (in thousands):

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income and related revenues

 

$

4,256

 

 

$

28,458

 

 

$

48,849

 

 

$

85,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

 

101

 

 

 

7,800

 

 

 

11,155

 

 

 

22,898

 

General and administrative

 

 

90

 

 

 

295

 

 

 

639

 

 

 

1,057

 

Asset management fees

 

 

254

 

 

 

3,031

 

 

 

4,758

 

 

 

9,094

 

Property management fees

 

 

9

 

 

 

707

 

 

 

1,249

 

 

 

2,899

 

Financing coordination fees

 

 

 

 

 

 

 

 

2,326

 

Depreciation and amortization

 

 

 

 

10,592

 

 

 

 

 

31,956

 

Total operating expenses

 

 

454

 

 

 

22,425

 

 

 

17,801

 

 

 

70,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of real estate

 

 

 

 

 

 

331,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

3,802

 

 

 

6,033

 

 

 

362,711

 

 

 

15,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income (expense)

 

 

22

 

 

 

3

 

 

 

33

 

 

 

107

 

Interest expense and loan cost amortization (1) (2)

 

 

 

 

(8,652)

 

 

 

(14,831)

 

 

 

(24,678)

 

Total other expense

 

 

22

 

 

 

(8,649)

 

 

 

(14,798)

 

 

 

(24,571)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

3,824

 

 

 

(2,616)

 

 

 

347,913

 

 

 

(9,456)

 

Income tax expense

 

 

53

 

 

 

(18)

 

 

 

(192)

 

 

 

(55)

 

Income (loss) from discontinued operations

 

$

3,877

 

 

$

(2,634)

 

 

$

347,721

 

 

$

(9,511)

 

 

FOOTNOTES:

(1)

Interest expense and loan cost amortization directly relates to either: (1) expense on mortgages and other notes payable collateralized by properties classified as discontinued operations; or (2) expense on the Company’s credit facilities that is allocated based on the value of the properties, which are classified as discontinued operations and included in the credit facilities’ unencumbered pool of assets, and the related indebtedness is required to be repaid upon sale of the properties.

(2)

In connection with the IRF Sale and the MOB Sale, the Company wrote off approximately $3.3 million in unamortized loan costs as a loss on the early extinguishment of debt, which is included in interest expense and loan cost amortization herein for the nine months ended September 30, 2019.