VENTAS INC | 2013 | FY | 3


Dispositions
2013 Activity
Triple-Net Leased Properties
During 2013, we sold seven seniors housing communities and 12 skilled nursing facilities for aggregate consideration of $31.7 million, including lease termination fees of $0.3 million, and recognized a net gain on the sales of these assets of $4.5 million.
Senior Living Operations
During 2013, we sold one seniors housing community for consideration of $1.6 million and recognized no gain or loss on the sale of this asset.
MOB Operations
During 2013, we sold two MOBs for aggregate consideration of $1.8 million and recognized a net gain on the sales of these assets of $0.5 million.
2012 Activity
Triple-Net Leased Properties
During 2012, we sold 36 seniors housing communities (ten of which were pursuant to the exercise of tenant purchase options) and two skilled nursing facilities for aggregate consideration of $318.9 million, including fees of $5.0 million. We recognized a net gain on the sales of these assets of $81.0 million. We deposited a majority of the proceeds from the sale of 21 seniors housing communities in a Code Section 1031 exchange escrow account with a qualified intermediary, and we used approximately $134.5 million of these proceeds for certain of our acquisitions during 2012. As of December 31, 2012, no proceeds remained in the 1031 exchange escrow account related to these sales.
Senior Living Operations
In June 2012, we declined to exercise our renewal option on the operating leases (in which we were the tenant) related to two seniors housing communities we acquired as part of the ASLG acquisition that expired on June 30, 2012.
MOB Operations
During 2012, we sold five MOBs for aggregate consideration of $27.2 million and recognized a gain on the sales of these assets of $4.5 million.
 

2011 Activity
During 2011, we sold two seniors housing communities and two skilled nursing facilities pursuant to the exercise of tenant purchase options for aggregate consideration of $20.6 million. We recognized no gain or loss from these sales.
Discontinued Operations
We present separately, as discontinued operations in all periods presented, the results of operations for all assets classified as held for sale as of December 31, 2013, and all assets disposed of and all operating leases (under which we were the lessee) not renewed during the three-year period ended December 31, 2013. Set forth below is a summary of our results of operations for properties within discontinued operations for the three years ended December 31, 2013, 2012 and 2011. As of December 31, 2013, we classified eight triple-net leased seniors housing communities, seven triple-net leased skilled nursing facilities, and four MOBs as assets held for sale. Assets classified as held for sale constituted $155.3 million and $111.6 million of other assets on our Consolidated Balance Sheets as of December 31, 2013 and 2012, respectively. Liabilities related to assets classified as held for sale were $64.5 million and $69.1 million as of December 31, 2013 and 2012, respectively, and reported within accounts payable and other liabilities on our Consolidated Balance Sheets. We recognized impairments of $39.7 million, $13.9 million and $0 for the years ended December 31, 2013, 2012 and 2011, respectively, representing our estimated aggregate loss on the expected sales of assets reported as discontinued operations. These charges are primarily recorded as a component of depreciation and amortization in the table below.
 
2013
 
2012
 
2011
 
(In thousands)
Revenues:
 
 
 
 
 
Rental income
$
15,459

 
$
36,722

 
$
35,849

Resident fees and services
759

 
6,435

 
7,508

Interest and other income

 
5,052

 
1

 
16,218

 
48,209

 
43,358

Expenses:
 
 
 
 
 
Interest
5,897

 
13,755

 
18,253

Depreciation and amortization
47,922

 
50,269

 
15,511

Property-level operating expenses
1,994

 
7,971

 
6,503

General, administrative and professional fees
3

 
303

 

Gain on extinguishment of debt, net
(153
)
 

 

Other
(407
)
 
1,902

 
1,383

 
55,256

 
74,200

 
41,650

(Loss) income before income taxes and gain on real estate dispositions, net
(39,038
)
 
(25,991
)
 
1,708

Income tax benefit

 
4

 
477

Gain on real estate dispositions, net
3,617

 
80,952

 

Discontinued operations
$
(35,421
)
 
$
54,965

 
$
2,185


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