NOTE 5—DISPOSITIONS

2016 Activity

During the nine months ended September 30, 2016, we sold three triple-net leased properties, one seniors housing community included in our senior living operations reportable business segment and one MOB for aggregate consideration of $63.8 million. We recognized a gain on the sales of these assets of $31.8 million.

2015 Activity

During the nine months ended September 30, 2015, we sold 32 triple-net leased properties and 25 MOBs for aggregate consideration of $436.0 million, including $6.0 million of lease termination fees (included within triple-net leased rental income in our Consolidated Statements of Income). For the nine months ended September 30, 2015, we recognized a gain on the sales of these assets of $32.8 million (net of taxes), of which $18.1 million was deferred due to an unsecured loan we made to the buyer in connection with the sale of certain assets. The gain is being recognized into income as principal payments are made on the loan over its five-year term.

Real Estate Impairment

There was no impairment recognized for the three months ended September 30, 2016. An impairment of $2.5 million was recognized for the three months ended September 30, 2015. We recognized impairments of $14.5 million and $31.3 million for the nine months ended September 30, 2016 and 2015, respectively, which are recorded in depreciation and amortization. Of these impairments, none and $13.0 million for the nine months ended September 30, 2016 and 2015, respectively, were reported in discontinued operations in our Consolidated Statements of Income.

Discontinued Operations and Assets Held for Sale

The table below summarizes our real estate assets classified as held for sale as of September 30, 2016 and December 31, 2015, including the amounts reported on our Consolidated Balance Sheets.



	September 30, 2016					December 31, 2015
	Number of Properties Held for Sale	Assets Held for Sale		Liabilities Held for Sale		Number of Properties Held for Sale	Assets Held for Sale		Liabilities Held for Sale
	(Dollars in thousands)
Triple-net Leased Properties	25	$	140,948	$	76,092	2	$	4,488	$	44
Office Operations	7	52,487		1,507		8	68,619		24,759
Senior Living Operations*	—	1,817		9		1	19,953		9,537
Total	32	$	195,252	$	77,608	11	$	93,060	$	34,340

* As of September 30, 2016 there is one vacant land parcel classified as held for sale.

Set forth below is a summary of our results of operations for properties within discontinued operations for the three and nine months ended September 30, 2016 and 2015.



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2016			2015			2016			2015
	(In thousands)
Revenues:
Rental income	$	—		$	40,641		$	—		$	196,848
Income from loans and investments	—			449			—			2,148
Interest and other income	—			—			—			63
	—			41,090			—			199,059
Expenses:
Interest	—			12,172			—			60,428
Depreciation and amortization	—			13,878			—			79,608
General, administrative and professional fees	—			2			—			9
Merger-related expenses and deal costs	118			37,190			754			44,069
Other	—			175			—			1,620
	118			63,417			754			185,734
(Loss) income before real estate dispositions and noncontrolling interest	(118		)	(22,327		)	(754		)	13,325
(Loss) gain on real estate dispositions	—			(48		)	(1		)	229
Net (loss) income from discontinued operations	(118		)	(22,375		)	(755		)	13,554
Net income attributable to noncontrolling interest	—			8			—			120
Net (loss) income from discontinued operations attributable to common stockholders	$	(118	)	$	(22,383	)	$	(755	)	$	13,434

Substantially all of the amounts reported for 2015 as discontinued operations in the table above reflect the historical results of operations of the CCP properties prior to the CCP Spin-Off. All merger-related expenses and deal costs presented above reflect separation costs relating to the CCP Spin-Off.

Transition Services Agreement

We and CCP entered into a transition services agreement prior to the CCP Spin-Off pursuant to which we and our subsidiaries provide to CCP, on an interim, transitional basis, various services. The services provided include information technology, accounting and tax services. The overall fee charged by us for such services (the "Service Fee") was $2.5 million for one year. For the three and nine months ended September 30, 2016, we recognized income of $0.4 million and $1.6 million, respectively, relating to the Service Fee, which was payable in four quarterly installments. The transition services agreement expired on August 31, 2016.