Held for Sale and Discontinued Operations

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Held for Sale and Discontinued Operations

On August 30, 2021, the Company entered into a purchase and sale agreement for the sale of one land parcel that formerly contained a healthcare property. The purchase and sale agreement required that the structures on the healthcare property be demolished prior to the sale. The structures on the property were demolished and the property consisted solely of land as of December 31, 2021. The Company classified the land as held for sale as of December 31, 2021. The Company sold the land held for sale on February 10, 2022.

The following table presents the major classes of the assets and liabilities held for sale as presented separately in the condensed consolidated balance sheet as of December 31, 2021 (amounts in thousands):


	December 31, 2021
Assets:
Real estate:
Land	$	22,241
Buildings and improvements, net	—
Total real estate, net	22,241




Other assets, net	329
Assets held for sale	$	22,570
Liabilities:

Accounts payable and other liabilities	698


Liabilities held for sale	$	698

The operations reflected in income from discontinued operations (which consisted solely of the Company's former data center segment) on the condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2021, were as follows (amounts in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021		2021
Revenue:
Rental revenue	$	6,180	$	57,903
Lease termination revenue	75		7,075
Total revenue	6,255		64,978
Expenses:
Rental expenses	2,504		15,737



Depreciation and amortization	35		11,759


Total expenses	2,539		27,496
Interest and other expense, net (1)	25,085		31,839
Income from discontinued operations	(21,369)		5,643
Gain on real estate dispositions(2)	398,560		395,801
Net income from discontinued operations attributable to common stockholders	$	377,191	$	401,444

(1) Interest expense attributable to discontinued operations for the three and nine months ended September 30, 2021 was $25,085,000 and $31,856,000, respectively, which related to notes payable on certain data center properties. On July 22, 2021, in connection with the Data Center Sale, the Company paid off all data center and healthcare related notes payable, with an outstanding principal balance of $450,806,000 at the time of repayment.

(2) Represents gain on real estate dispositions related to the Data Center Sale that occurred on July 22, 2021. The Company recognized $2,759,000 in transaction costs during the second quarter of 2021, resulting in the total gain being higher during the three months ended September 30, 2021.

Capital expenditures on a cash basis for the nine months ended September 30, 2021, were $2,215,000, related to properties classified within discontinued operations.

There were no significant non-cash operating or investing activities for the properties classified within discontinued operations for the nine months ended September 30, 2021.