NOTE 5—DISPOSITIONS

2017 Activity

During the six months ended June 30, 2017, we sold 10 triple-net leased properties, two MOBs, and two vacant land parcels for aggregate consideration of $104.6 million and we recognized a gain on the sale of these assets of $44.0 million.

Pending Kindred Dispositions

In November 2016, we entered into agreements with Kindred providing that Kindred will either acquire all 36 SNFs owned by us and operated by Kindred (the “Ventas SNFs”) for $700 million, in connection with Kindred’s previously announced plan to exit its SNF business; or, renew the current lease on all unpurchased Ventas SNFs not purchased by Kindred by April 30, 2018 until 2025 at the current rent level plus annual escalations. On June 30, 2017, Kindred announced that it had signed definitive agreements to sell its entire SNF business to an affiliate of Blue Mountain Capital Management, LLC and that, as Kindred closes on the sale of its SNFs, Kindred will pay to us its allocable portion of the sale proceeds for a total $700 million aggregate purchase price for the Ventas SNFs and we will convey the applicable Ventas SNFs to the ultimate buyer. We expect to record a gain exceeding $600 million upon the sale of the Ventas SNFs, which are classified as held for sale on our Consolidated Balance Sheets as of June 30, 2017. Kindred expects the closings of the sale of the Ventas SNFs to occur in phases, beginning in the third quarter of 2017 and completed by year end 2017. However, there can be no assurance that the closings will occur or the timing of any such closings.

Real Estate Impairment

We recognized impairments of $15.6 million and $14.5 million, respectively, for the six months ended June 30, 2017 and 2016, which are recorded in depreciation and amortization in our Consolidated Statements of Income.

Assets Held for Sale

The table below summarizes our real estate assets classified as held for sale as of June 30, 2017 and December 31, 2016, including the amounts reported on our Consolidated Balance Sheets.



	June 30, 2017					December 31, 2016
	Number of Properties Held for Sale	Assets Held for Sale		Liabilities Related to Assets Held for Sale		Number of Properties Held for Sale	Assets Held for Sale		Liabilities Related to Assets Held for Sale
	(Dollars in thousands)
Triple-net Leased Properties	37	$	36,500	$	8,547	—	$	—	$	—
Office Operations	7	53,069		1,265		7	53,151		1,462
Senior Living Operations*	—	—		—		—	1,810		—
Total	44	$	89,569	$	9,812	7	$	54,961	$	1,462

* Includes one vacant land parcel classified as held for sale as of December 31, 2016 and sold in June 2017.