Dispositions, Assets Held for Sale and Discontinued Operations

6 Months Ended

Jun. 30, 2014

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

We periodically sell properties for various reasons, including favorable market conditions or the exercise of tenant purchase options. The following is a summary of our real property disposition activity for the periods presented (in thousands):

		Six Months Ended
		June 30, 2014			June 30, 2013
Real property dispositions:
	Seniors housing triple-net		$	41,124		$	133,024
	Medical facilities			86,616			135,784
	Total dispositions			127,740			268,808
Gain (loss) on sales of real property, net				13,079			52,495
Proceeds from real property sales			$	140,819		$	321,303

Discontinued Operations

As discussed in Note 2, we adopted ASU 2014-08 effective January 1, 2014. During the quarter ended June 30, 2014, we sold seniors housing triple-net properties previously held for sale with a balance of $18,502,000 for a gain of $6,411,000. We have reclassified the income and expenses attributable to all properties sold prior to or held for sale at January 1, 2014 to discontinued operations. The following illustrates the reclassification impact as reported in our Consolidated Statements of Comprehensive Income as a result of classifying these properties as discontinued operations for the periods presented (in thousands):

			Three Months Ended				Six Months Ended
			June 30,				June 30,
		2014		2013		2014		2013
Revenues:
	Rental income	$	298	$	4,789	$	881	$	11,575
Expenses:
	Interest expense		34		1,379		157		3,275
	Property operating expenses		-		867		-		1,731
	Provision for depreciation		-		2,415		-		4,849
	Total expenses		34		4,661		157		9,855
Income (loss) from discontinued operations, net		$	264	$	128	$	724	$	1,720

Dispositions and Assets Held for Sale

Pursuant to our adoption of ASU 2014-08, operating results attributable to properties sold subsequent to or classified as held for sale after January 1, 2014 and which do not meet the definition of discontinued operations are no longer reclassified on our Consolidated Statements of Comprehensive Income. The following represents the activity related to these properties for the periods presented (in thousands):

			Three Months Ended				Six Months Ended
			June 30,				June 30,
		2014		2013		2014		2013
Revenues:
	Rental income	$	3,636	$	5,002	$	8,677	$	10,002
Expenses:
	Interest expense		549		1,403		1,947		2,797
	Property operating expenses		650		568		1,205		1,080
	Provision for depreciation		1,070		1,486		2,560		2,970
	Total expenses		2,269		3,457		5,712		6,847
Income (loss) from real estate dispositions, net		$	1,367	$	1,545	$	2,965	$	3,155