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. |
|