Dispositions, Real Property Held for Sale and Impairment

6 Months Ended

Jun. 30, 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 June 30, 2021, two Seniors Housing Operating, 54 Triple-net, and two Outpatient Medical properties with an aggregate real estate balance of $592,699,000 were classified as held for sale. In addition to the real property balances held for sale, net other assets and (liabilities) of $20,382,000 are included in the Consolidated Balance Sheets related to the held for sale properties. Expected gross sales proceeds related to the held for sale properties is approximately $747,153,000.

During the six months ended June 30, 2021, we recorded $18,077,000 of impairment charges related to three Triple-net properties and one Outpatient Medical property which were classified as held for sale for which the carrying value exceeded the estimated fair value less cost to sell. Additionally, during the six months ended June 30, 2021, we recorded $29,183,000 of impairment charges related to two Seniors Housing Operating properties and two Triple-net properties that were held for use in which the carrying value exceeded the estimated fair value. During the six months ended June 30, 2020, we recorded $75,151,000 of impairment charges related to 12 Seniors Housing Operating properties which were classified as held for sale for which the carrying value exceeded the estimated fair value less cost to sell. Additionally, during the six months ended June 30, 2020, we recorded $27,827,000 of impairment charges related to one Seniors Housing Operating property and one Triple-net property 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):


	Six Months Ended June 30,
	2021		2020
Real estate dispositions:
Seniors Housing Operating	$	112,809	$	706,964
Triple-net	88,367		33,445
Outpatient Medical	137,890		808,992
Total dispositions	339,066		1,549,401
Gain (loss) on real estate dispositions, net	103,748		418,687
Net other assets/liabilities disposed	3,866		29,999
Proceeds from real estate dispositions	$	446,680	$	1,998,087

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,
	2021		2020		2021		2020
Revenues:
Total revenues	$	19,441	$	107,997	$	48,943	$	253,500
Expenses:
Interest expense	323		3,395		1,438		8,302
Property operating expenses	3,034		50,297		6,203		116,515
Provision for depreciation	1,397		28,090		7,396		54,004
Total expenses	4,754		81,782		15,037		178,821
Income (loss) from real estate dispositions, net	$	14,687	$	26,215	$	33,906	$	74,679