Discontinued Operations

12 Months Ended

Dec. 31, 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 $3,316,000 and $3,231,000 for the years endedDecember 31, 2013 and 2012, respectively. 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 $352,000 and $403,000 for the years endedDecember 31, 2013 and 2012, respectively.

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 $2,294,000 and $3,368,000 for the years endedDecember 31, 2013 and 2012, respectively.

In December 2012, our tenant, Sunrise Senior Living, exercised its option to purchase our assisted living facility in Edison, New Jersey. Our lease revenue from the facility was $1,302,000 for the year endedDecember 31, 2012.

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

	Year Ended December 31,
	2014		2013		2012
Revenues:
Rental income	$	—	$	5,962	$	8,304
Other income	—		21		3
Expenses:
Depreciation	—		557		2,209
Operating income	—		5,426		6,098
Gain on sale of real estate	—		22,258		11,966
Total discontinued operations	$	—	$	27,684	$	18,064
Weighted average common shares outstanding:
Basic	33,375,966		28,362,398		27,811,813
Diluted	33,416,014		28,397,702		27,838,720
Discontinued operations income per share:
Basic	$	—	$	.97	$	.65
Diluted	$	—	$	.97	$	.65