Dispositions, Assets Held for Sale and Discontinued Operations

12 Months Ended

Dec. 31, 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. Impairment of assets as reflected in our consolidated statements of comprehensive income relate to properties designated as held for sale and represent the charges necessary to adjust the carrying values to estimated fair values less costs to sell based on current sales price expectations. The following is a summary of our real property disposition activity for the periods presented (in thousands):

		Year Ended
		December 31, 2014		December 31, 2013		December 31, 2012
Real property dispositions:
	Seniors housing triple-net	$	747,720	$	189,572	$	372,378
	Medical facilities		45,695		259,367		149,344
	Total dispositions		793,415		448,939		521,722
Gain (loss) on sales of real property, net			153,522		49,138		100,549
Seller financing on sales of real property			-		(3,850)		(12,000)
Non-cash disposition activity			(35,872)		(12,204)		-
Proceeds from real property sales		$	911,065	$	482,023	$	610,271

Discontinued Operations

As discussed in Note 2, we adopted ASU 2014-08 effective January 1, 2014. During the year-ended December 31, 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):

			Year Ended December 31,
		2014		2013		2012
Revenues:
	Rental income	$	881	$	18,377	$	96,378
Expenses:
	Interest expense		157		4,246		21,735
	Property operating expenses		-		3,396		4,482
	Provision for depreciation		-		8,160		27,365
Income (loss) from discontinued operations, net		$	724	$	2,575	$	42,796

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):

		Year Ended
		December 31,
		2014		2013		2012
Revenues:
	Rental income	$	90,541	$	108,133	$	104,478
Expenses:
	Interest expense		20,339		22,119		23,298
	Property operating expenses		1,755		3,024		2,716
	Provision for depreciation		26,715		32,128		31,238
	Total expenses		48,809		57,271		57,252
Income (loss) from real estate dispositions, net		$	41,732	$	50,862	$	47,226