Dispositions, Real Property Held for Sale and Impairment

3 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Dispositions, Real Property Held for Sale and Impairment

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 March 31, 2021, three Seniors Housing Operating, 61 Triple-net, and one Outpatient Medical properties with an aggregate real estate balance of $564,062,000 were classified as held for sale. In addition to the real property balances held for sale, net other assets and (liabilities) of $37,389,000 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 $716,835,000.

During the three months ended March 31, 2021, we recorded $12,098,000 of impairment charges related to one Triple-net property which was classified as held for sale for which the carrying value exceeded the estimated fair value less cost to sell. Additionally, during the three months ended March 31, 2021, we recorded $11,470,000 of impairment charges related to one Seniors Housing Operating property and two Triple-net properties that were held for use in which the carrying value exceeded the estimated fair value. During the three months ended March 31, 2020, we recorded $3,495,000 of impairment charges related to one Seniors Housing Operating property which was classified as held for sale for which the carrying value exceeded the estimated fair value less cost to sell. Additionally, during the three months ended March 31, 2020, we recorded $24,332,000 of impairment charges related to two Triple-net properties that were held for use in which the carrying value exceeded the estimated fair value.

The following is a summary of our real property disposition activity for the periods presented (in thousands):


	Three Months Ended March 31,
	2021		2020
Real estate dispositions:
Seniors Housing Operating	$	74,326	$	—
Triple-net	—		33,445
Outpatient Medical	137,890		495,003
Total dispositions	212,216		528,448
Gain (loss) on real estate dispositions, net	59,080		262,824
Net other assets/liabilities disposed	2,912		10,120
Proceeds from real estate dispositions	$	274,208	$	801,392

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 March 31,
	2021		2020
Revenues:
Total revenues	$	21,024	$	136,452
Expenses:
Interest expense	17		3,806
Property operating expenses	(1,102)		61,315
Provision for depreciation	4,567		23,708
Total expenses	3,482		88,829
Income (loss) from real estate dispositions, net	$	17,542	$	47,623