DISCONTINUED OPERATIONS

6 Months Ended

Oct. 31, 2017

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

NOTE 7 • DISCONTINUED OPERATIONS

We report in discontinued operations the results of operations and the related gains or losses on the sales of properties that have either been disposed of or classified as held for sale and meet the classification of a discontinued operation as described in ASC 205 - Presentation of Financial Statements and ASC 360 - Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under this standard, a disposal (or classification as held for sale) of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.

We classified no new dispositions or properties held for sale as discontinued operations during the six months ended October 31, 2017, or during fiscal year 2017. During fiscal year 2016, we determined that our strategic decision to exit senior housing met the criteria for discontinued operations, and we consequently classified 34 senior housing properties as held for sale and discontinued operations at April 30, 2016. Thirty-two of those senior housing properties were sold during the fiscal year ended April 30, 2017, and the remaining two senior housing properties were sold during the three months ended October 31, 2017.

The following information shows the effect on net income and the gains or losses from the sales of properties classified as discontinued operations for the three and six months ended October 31, 2017 and 2016:

	(in thousands)
	Three Months Ended				Six Months Ended
	October 31,				October 31,
	2017		2016		2017		2016
REVENUE
Real estate rentals	$	683	$	4,992	$	1,473	$	10,002
Tenant reimbursement		—		112		—		226
TRS senior housing revenue		—		916		—		1,789
TOTAL REVENUE		683		6,020		1,473		12,017
EXPENSES
Real estate taxes		—		(112)		—		—
Depreciation and amortization		—		—		—		16
TRS senior housing expenses		—		769		—		1,553
Other expenses		15		—		15		—
TOTAL EXPENSES		15		657		15		1,569
Operating income		668		5,363		1,458		10,448
Interest expense		(279)		(1,395)		(1,100)		(2,769)
Gain/loss on extinguishment of debt		(6)		(72)		(6)		(72)
Interest income		117		—		661		—
Other income		9		0		56		0
Income from discontinued operations before gain on sale		509		3,896		1,069		7,607
Gain on sale of discontinued operations		12,238		6,503		12,238		6,503
INCOME FROM DISCONTINUED OPERATIONS	$	12,747	$	10,399	$	13,307	$	14,110

The following information reconciles the carrying amounts of major classes of assets and liabilities of the discontinued operations to assets and liabilities held for sale that are presented separately on the Condensed Consolidated Balance Sheets:

	(in thousands)
	October 31, 2017		April 30, 2017
Carrying amounts of major classes of assets included as part of discontinued operations
Property owned and intangible assets, net of accumulated depreciation and amortization	$	—	$	21,332
Receivable arising from straight-lining of rents		—		2,283
Goodwill		—		14
Total major classes of assets of the discontinued operations		—		23,629
Other assets included in the disposal group classified as held for sale		—		14,079
Total assets of the disposal group classified as held for sale on the balance sheet	$	—	$	37,708
Carrying amounts of major classes of liabilities included as part of discontinued operations
Accounts payable and accrued expenses	$	—	$	52
Mortgages payable		—		16,226
Other		—		7,900
Total major classes of liabilities of the discontinued operations		—		24,178
Other liabilities included in the disposal group classified as held for sale		—		5,884
Total liabilities of the disposal group classified as held for sale on the balance sheet	$	—	$	30,062