Dispositions, Assets Held for Sale and Discontinued Operations

12 Months Ended

Dec. 31, 2011

Disclosure Dispositions, Assets Held for Sale and Discontinued Operations [Abstract]

Dispositions, Assets Held for Sale and Discontinued Operations

5. Dispositions, Assets Held for Sale and Discontinued Operations

During the year ended December 31, 2009, we sold 36 properties for net gains of $43,394,000. At December 31, 2009, we had two skilled nursing facilities and eight medical facilities held for sale and recorded an impairment charge of $25,223,000 to reduce the medical office buildings to their estimated fair values less costs to sell. In determining the fair value of the held for sale properties, we used a combination of third party appraisals based on market comparable transactions, other market listings and asset quality as well as management calculations based on projected operating income and published capitalization rates. During the year ended December 31, 2010, we sold 38properties, including sevenof the held for sale medical facilities, for net gains of $36,115,000. At December 31, 2010, we had one medical facilityand 16 seniors housing facilitiesthat satisfied the requirements for held for sale treatment and such properties were properly recorded at the lesser of their estimated fair values less costs to sell or carrying values. During the year ended December 31, 2010, we recorded an impairment charge of $947,000 related to two of the held for sale medical facilities to adjust the carrying values to estimated fair values less costs to sell based on current sales price expectations. During the year ended December 31, 2011, we sold 42 propertiesfor net gains of $61,160,000. At December 31, 2011, we had five medical facilitiesand one seniors housing triple-net facility that satisfied the requirements for held for sale treatment and such properties were properly recorded at the lesser of their estimated fair values less costs to sell or carrying values. During the year ended December 31, 2011, we recorded an impairment charge of $12,194,000 related to certain held for sale properties to adjust the carrying values to estimated fair values less costs to sell based on current sales price expectations. During the six months ended June 30, 2012, we sold 23 properties for net gains of $33,219,000. At June 30, 2012, we had 36 seniors housing triple-net facilities that satisfied the requirements for held for sale treatment and such properties were properly recorded at the lesser of their estimated fair values less costs to sell or carrying values. The following is a summary of our real property disposition activity for the periods presented (in thousands):

		Year Ended
		December 31, 2011		December 31, 2010		December 31, 2009
Real property dispositions:
	Seniors housing triple-net	$	150,755	$	170,290	$	101,155
	Medical facilities		35,295		14,092		85,558
	Total dispositions		186,050		184,382		186,713
Add: Gain (loss) on sales of real property			61,160		36,115		43,394
	Seller financing on sales of real property		0		(1,470)		(6,100)
Proceeds from real property sales		$	247,210	$	219,027	$	224,007

We have reclassified the income and expenses attributable to all properties sold prior to or held for sale at June 30, 2012 to discontinued operations. Expenses include an allocation of interest expense based on property carrying values and our weighted average cost of debt. The following illustrates the reclassification impact as a result of classifying properties as discontinued operations for the periods presented (in thousands):

			Year Ended December 31,
		2011		2010		2009
Revenues:
	Rental income	$	55,535	$	83,695	$	103,176
	Other income		0		0		8,059
Expenses:
	Interest expense		11,353		16,776		20,347
	Property operating expenses		4,394		7,171		6,464
	Provision for depreciation		15,292		25,886		34,474
Income (loss) from discontinued operations, net		$	24,496	$	33,862	$	49,950