Discontinued Operations

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

We have reclassified, for periods before adoption of ASU 2014-08, the operations of facilities meeting the accounting criteria for properties sold or held for sale as discontinued operations.

In December 2013, we sold three older skilled nursing facilities to affiliates of our current tenant, Fundamental, for $18,500,000 and recorded a gain of $1,269,000 for financial statement purposes. Our lease revenue from these facilities was $844,000 and $2,532,000 for the three and nine months endedSeptember 30, 2013. Pursuant to the purchase option, rents associated with the two remaining properties will be fixed at $250,000 per month, without escalation, through the first renewal term in February 2016.

In October 2013, our tenant, Weatherly Associates, LLC, exercised their option to purchase a senior housing facility in Pennsylvania for $5,315,000. The sale was completed in December 2013, and we recorded a gain of $1,619,000 for financial statement purposes. Our lease revenue from the facility was $100,000 and $302,000 for the three and nine months endedSeptember 30, 2013.

In August 2013 we sold six older skilled nursing facilities to NHC for $21,000,000 and recorded a gain of $19,370,000 for financial statement purposes. Our lease revenue from the facilities was $562,000 and $2,321,000 for the three and nine months endedSeptember 30, 2013.

Income from discontinued operations is summarized below (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
Revenues:
Rental income	$	—	$	1,506	$	—	$	5,155
Other income	—		—		—		2
Expenses:
Depreciation	—		167		—		501
Operating income	—		1,339		—		4,656
Gain on sale of real estate	—		19,370		—		19,370
Total discontinued operations	$	—	$	20,709	$	—	$	24,026
Weighted average common shares outstanding:
Basic	33,055,992		27,876,176		33,053,386		27,872,805
Diluted	33,088,570		27,905,545		33,087,029		27,906,914
Discontinued operations income per share:
Basic	$	—	$	.74	$	—	$	.86
Diluted	$	—	$	.74	$	—	$	.86