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Dispositions of Real Estate and Discontinued Operations
 9 Months Ended
Sep. 30, 2014
Dispositions of Real Estate and Discontinued Operations  
Dispositions of Real Estate and Discontinued Operations

(5)Dispositions of Real Estate and Discontinued Operations

 

On August 29, 2014, in conjunction with the Brookdale Transaction, the Company contributed three senior housing facilities with a carrying value of $92 million into the CCRC JV (an unconsolidated joint venture with Brookdale discussed in Note 3). The Company recorded its investment in the CCRC JV for the contribution of these properties at their carrying value (carryover basis) and therefore did not recognize either a gain or loss upon the contribution.

 

During the nine months ended September 30, 2014, the Company sold two post-acute/skilled nursing facilities for $22 million, a hospital for $17 million and a medical office building (“MOB”) for $145,000.  

 

During the nine months ended September 30, 2013, the Company sold a senior housing facility for $4 million. In addition, in September 2013, the Company sold a 62-bed hospital located in Greenfield, Wisconsin in exchange for a 60-bed hospital located in Webster, Texas and recognized a gain of $8 million based on the fair value of the hospital acquired.

 

There were no assets classified as held for sale at September 30, 2014. At December 31, 2013, one hospital and two post-acute/skilled nursing facilities were classified as held for sale, with a carrying value of $10 million.

 

We adopted ASU 2014-08 effective April 1, 2014 (the “adoption date”). The Company  separately presented as discontinued operations the results of operations for all consolidated assets disposed of and all properties held for sale, if any, prior to the adoption date. The amounts included in discontinued operations, for the nine months September 30, 2014, represent the activity for properties sold prior to the adoption date. No properties sold subsequent to the adoption date met the new criteria for reporting discontinued operations (see Note 2 for additional information).

 

The following table summarizes operating income from discontinued operations and gain on sales of real estate included in discontinued operations (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended  September 30,

 

Nine Months Ended  September 30,

 

 

 

2013

    

2014

    

2013

 

Rental and related revenues

 

$
4,261 

 

$
1,810 

 

$
14,169 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expenses

 

 
1,509 

 

 

 —

 

 
4,604 

 

Operating expenses

 

 
1,155 

 

 
54 

 

 
3,001 

 

Other expenses, net

 

 
70 

 

 
20 

 

 
865 

 

Income before gain on sales of real estate, net of income taxes

 

$
1,527 

 

$
1,736 

 

$
5,699 

 

Gain on sales of real estate, net of income taxes

 

$
8,298 

 

$
28,010 

 

$
9,185 

 

 

 

 

 

 

 

 

 

 

 

 

Number of properties included in discontinued operations

 

 
14 

 

 
3 

 

 
16