XML 104 R13.htm IDEA: XBRL DOCUMENT v2.4.1.9
Dispositions of Real Estate and Discontinued Operations
 12 Months Ended
Dec. 31, 2014
Dispositions of Real Estate and Discontinued Operations  
Dispositions of Real Estate and Discontinued Operations

NOTE 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 year ended December 31, 2014, the Company sold the following: (i) two post-acute/skilled nursing facilities for $22 million, (ii) a hospital for $17 million, (iii) a senior housing facility for $16 million and (iii) a medical office building (“MOB”) for $145,000.  

During the year ended December 31, 2013, the Company sold the following: (i) eight post-acute/skilled nursing facilities for $68 million, (ii) two senior housing facilities for $22 million and (iii) two MOBs for $6 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 in excess of the carrying value of the hospital sold.

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 of ASU 2014-08 on April 1, 2014. The amounts included in discontinued operations, for the year ended December 31, 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).

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2014

 

2013

 

2012

 

Rental and related revenues

    

 $
1,810 

    

$
16,649 

    

$
33,777 

 

Depreciation and amortization expenses

 

 

 —

 

 
5,862 

 

 
12,808 

 

Operating expenses

 

 
54 

 

 
3,929 

 

 
3,304 

 

Other expense, net

 

 
20 

 

 
979 

 

 
3,467 

 

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

 

 $
1,736 

 

$
5,879 

 

$
14,198 

 

Impairments

 

 $

 —

 

$
1,372 

 

$

—

 

Gain on sales of real estate, net of income taxes

 

 $
28,010 

 

$
69,866 

 

$
31,454 

 

Number of properties included in discontinued operations

 

 
3 

 

 
16 

 

 
20