DISPOSITIONS

9 Months Ended

Sep. 30, 2012

DISPOSITIONS

DISPOSITIONS

We present separately, as discontinued operations in all periods presented, the results of operations for assets classified as held for sale as of September 30, 2012, assets disposed of during the nine months ended September 30, 2012 and the year ended December 31, 2011 and operating leases (in which we were the lessee) not renewed as of September 30, 2012.

2012 Dispositions

        During the three and nine months ended September 30, 2012, we recognized a net gain from real estate dispositions of $0.4 million and $79.1 million, respectively. In addition, as of September 30, 2012, we classified 22 properties as held for sale and included their operations in discontinued operations in our Consolidated Statements of Income.

        In June 2012, we sold thirteen seniors housing communities to the existing tenants for aggregate consideration of $121.9 million, including a fee of $3.0 million, and recognized a gain from the sales of these assets. We deposited $97.0 million of proceeds from these sales in an Internal Revenue Code Section 1031 exchange escrow account with a qualified intermediary and, subsequently that month, we used approximately $58.1 million of the deposited proceeds for our seniors housing community acquisitions. As of September 30, 2012, there were no proceeds remaining in the exchange escrow account related to these sales.

        Also in June 2012, we declined to exercise our renewal option on the operating leases (in which we were the lessee) related to two seniors housing communities we acquired as part of the ASLG acquisition that expired on June 30, 2012.

        In February 2012, we sold nine seniors housing communities to the existing tenant for aggregate consideration of $121.3 million, including a lease termination fee of $1.8 million, and recognized a gain from the sale of these assets. We deposited a majority of the proceeds from this sale in an Internal Revenue Code Section 1031 exchange escrow account with a qualified intermediary and, during the first six months of 2012, we used approximately $76.4 million of the deposited proceeds for our MOB and seniors housing community acquisitions. As of September 30, 2012, there were no proceeds remaining in the exchange escrow account related to this sale.

        During the nine months ended September 30, 2012, we also sold two skilled nursing facilities and one seniors housing community for aggregate consideration of $28.5 million and recognized an immaterial net gain from the sales of these assets.

2011 Dispositions

        During 2011, we sold two seniors housing communities and two skilled nursing facilities pursuant to tenant 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 our results of operations of properties sold during the nine months ended September 30, 2012 and the year ended December 31, 2011 or classified as held for sale as of September 30, 2012, which operations were included in our triple-net leased properties, senior living operations or MOB operations segments.

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2011			2012			2011
	(In thousands)
Revenues:
Rental income	$	3,826		$	8,509		$	17,377		$	16,470
Resident fees and services		—			2,070			4,081			3,245
Interest and other income		1,127			—			5,952			—
		4,953			10,579			27,410			19,715
Expenses:
Interest		1,371			4,238			6,950			7,698
Depreciation and amortization		6,714			4,434			24,081			6,878
Property-level operating expenses		651			1,734			4,709			2,579
General, administrative and professional fees		5			—			11			—
Other		—			554			1,230			837
		8,741			10,960			36,981			17,992
(Loss) income before income taxes and gain on sale of real estate assets		(3,788	)		(381	)		(9,571	)		1,723
Income tax (expense) benefit		(16	)		172			4			271
Gain on real estate dispositions, net		357			—			79,148			—
Discontinued operations	$	(3,447	)	$	(209	)	$	69,581		$	1,994