DISPOSITIONS

3 Months Ended

Mar. 31, 2012

DISPOSITIONS

DISPOSITIONS

NOTE 5—DISPOSITIONS

        We present separately, as discontinued operations in all periods presented, the results of operations for all assets held for sale or disposed of during the three months ended March 31, 2012 and the year ended December 31, 2011.

2012 Dispositions

        In February 2012, we sold nine seniors housing communities to a tenant for aggregate consideration of $121.3 million, including a lease termination fee of $1.8 million. The majority of the proceeds from the sale were deposited in an Internal Revenue Code Section 1031 exchange escrow account with a qualified intermediary, and during the first quarter of 2012, we used approximately $37.8 million of the deposited proceeds for our MOB and seniors housing community acquisitions. During the first quarter of 2012, we realized a gain from the sale of these assets of $55.2 million, of which $15.0 million was deferred due to a $15.0 million loan we made to the buyer in conjunction with the sale. The $15.0 million deferred gain will be recognized over a period of approximately two years from the date of the sale as principal payments are made on the loan. In addition, as of March 31, 2012, we had classified nine properties as held for sale and included their operations in discontinued operations in our Consolidated Statements of Income.

2011 Dispositions

        During 2011, we sold two seniors housing communities and two skilled nursing facilities to tenants exercising purchase options for aggregate consideration of $20.6 million. We recognized no gain or loss from these sales.

        Set forth below is a summary of the results of operations of properties sold during the three months ended March 31, 2012 and the year ended December 31, 2011 or classified as held for sale as of March 31, 2012, all of which were included in each of the triple-net leased properties, senior living operations and MOB operations segments.

	For the Three Months Ended March 31,
	2012		2011
	(In thousands)
Revenues:
Rental income	$	2,793	$	2,029
Resident fees and services		2,009		—
Interest and other income		1,819		—
		6,621		2,029
Expenses:
Interest		982		818
Depreciation and amortization		1,439		445
Property-level operating expenses		1,556		—
General, administrative and professional fees		1		—
Other		580		—
		4,558		1,263
Income before income taxes and gain on sale of real estate assets		2,063		766
Income tax benefit		33		—
Gain on sale of real estate assets		40,233		—
Discontinued operations	$	42,329	$	766