Dispositions, Real Property Held for Sale and Impairment

3 Months Ended

Mar. 31, 2022

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, 2022, three Seniors Housing Operating, 11 Triple-net, and one Outpatient Medical properties with an aggregate real estate balance of $199,490,000 were classified as held for sale. In addition to the real property balances held for sale, lease liabilities of $66,893,000 and net other assets and (liabilities) of $2,462,000 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 $273,165,000.

During the three months ended March 31, 2021, we recorded $12,098,000 of impairment charges related to one Triple-net property 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.

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


	Three Months Ended March 31,
	2022		2021
Real estate dispositions:
Seniors Housing Operating	$	—	$	74,326
Triple-net	52,661		—
Outpatient Medical	—		137,890
Total dispositions	52,661		212,216
Gain (loss) on real estate dispositions, net	22,934		59,080
Net other assets/(liabilities) disposed	(2,027)		2,912
Proceeds from real estate dispositions	$	73,568	$	274,208

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,
	2022		2021
Revenues:
Total revenues	$	4,958	$	30,414
Expenses:
Interest expense	871		1,115
Property operating expenses	1,971		3,576
Provision for depreciation	13		6,368
Total expenses	2,855		11,059
Income (loss) from real estate dispositions, net	$	2,103	$	19,355