Dispositions and Assets Held for Sale

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

We periodically sell properties for various reasons, including favorable market conditions, the exercise of tenant purchase options or reduction of concentrations (i.e., property type, relationship or geography). At June 30, 2020, seven Seniors Housing Operating, three Triple-net, and 13 Outpatient Medical properties with an aggregate real estate balance of $382,580,000 were classified as held for sale. In addition to the real property balances held for sale, secured debt of $12,849,000 and net other assets and (liabilities) of $35,085,000 are included in the Consolidated Balance Sheet related to the held for sale properties. Expected gross sales proceeds related to the held for sale properties is approximately $501,008,000.

During the three months ended June 30, 2020, the expected sale of a Seniors Housing Operating portfolio, which had previously met the held for sale criteria, was not completed. As a result, 11 properties with a carrying value of $386,744,000 were reclassified to held for use.

During the three months ended March 31, 2020, we recorded impairment charges of $27,827,000 related to certain held for use properties for which the carrying value exceeded the fair values. During the three months ended June 30, 2020, we entered into and subsequently closed a definitive purchase and sale agreement to sell six Seniors Housing Operating properties. In conjunction with this transaction, an impairment charge of $56,371,000 was recognized. During the three months ended June 30, 2020, we agreed to terms including pricing for the sale of a portfolio of six Seniors Housing Operating properties previously classified as held for sale resulting in an impairment charge of $18,780,000. The following is a summary of our real property disposition activity for the periods presented (in thousands):


	Six Months Ended June 30,
	2020		2019
Real estate dispositions:
Seniors Housing Operating	$	706,964	$	8,726
Triple-net	33,445		442,865
Outpatient Medical	808,992		—
Total dispositions	1,549,401		451,591
Gain (loss) on real estate dispositions, net	418,687		165,727
Net other assets/liabilities disposed	29,999		(498)
Proceeds from real estate dispositions	$	1,998,087	$	616,820

Operating results attributable to properties sold or classified as held for sale which do not meet the definition of discontinued operations, are not 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 June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Revenues:
Total revenues	$	36,481	$	177,276	$	107,933	$	355,819
Expenses:
Interest expense	1,622		4,210		4,591		8,420
Property operating expenses	23,850		101,416		63,300		207,340
Provision for depreciation	7,637		29,488		18,254		58,692
Total expenses	33,109		135,114		86,145		274,452
Income (loss) from real estate dispositions, net	$	3,372	$	42,162	$	21,788	$	81,367