Real Estate Assets and Discontinued Operations

3 Months Ended

Mar. 31, 2023

Real Estate Assets And Discontinued Operations

Real Estate Assets And Discontinued Operations

3.    Real Estate Assets and Discontinued Operations

Real estate assets consist of:

	Estimated
	Useful Lives	March 31, 2023		December 31, 2022
Land		$	90,927	$	71,148
Land improvements	10 to 30 years		79,071		78,974
Buildings and improvements	10 to 40 years		380,899		379,864
Tenant improvements	Shorter of useful life or terms of related lease		33,031		32,753
Construction in progress			32,748		21,419
Development costs			3,722		3,722
			620,398		587,880
Accumulated depreciation			(102,585)		(98,219)
		$	517,813	$	489,661

Total depreciation expense related to real estate assets was as follows:

	For the Three Months Ended
	March 31, 2023		March 31, 2022
Depreciation expense	$	4,413	$	3,637

On January 24, 2023, the Company closed on the purchase of approximately 11 acres of undeveloped land in the Lehigh Valley (the “Lehigh Valley Land”) that was under contract since 2021. The purchase price was $2,361, after transaction costs. The Lehigh Valley Land has the entitlements to support the construction of an approximately 90,000 square foot building.

On January 23, 2023, the Company closed on the purchase of approximately 75 acres of fully entitled land in the Orlando, Florida market (the “Orlando Land”). The purchase price was $17,418, after transaction costs. The Orlando Land has the entitlements to support the construction of three buildings totaling approximately 574,000 square feet.

On January 19, 2022, INDUS closed on the purchase of 782 Paragon Way, an approximately 217,000 square foot, fully leased building in the Charlotte, North Carolina market for $24,026, including transaction costs. INDUS determined the fair value of the assets acquired approximated the purchase price, which was allocated as follows:

Land	$	1,469
Land improvements		329
Buildings and improvements		22,228
	$	24,026

Discontinued Operations

In December 2022, the Company completed the previously announced sale of its Office/Flex Portfolio (see Note 1). The Office/Flex Portfolio was comprised of seven buildings totaling approximately 175,000 square feet located in Bloomfield, Connecticut as well as an approximately 18,000 square foot building that is located adjacent to the Office/Flex Portfolio and was principally used for storage by INDUS’ property management group.

The loss from discontinued operations in our accompanying consolidated statement of operations is comprised of:

	For the Three
	Months Ended
	March 31, 2022
Rental revenue	$	504
Expenses:
Operating expenses of rental properties		268
Real estate taxes		82
Depreciation and amortization expense		240
Total expenses		590
Loss from discontinued operations	$	(86)

In March 2022, the Company also closed its landscaping division which primarily served the Office/Flex Portfolio and recorded a gain on sale of $203 for the quarter ended March 31, 2022.

There were no assets and liabilities in discontinued operations as of March 31, 2023. As of December 31, 2022, assets and liabilities in discontinued operations consisted of:

Other assets	$	29
Total assets of discontinued operations	$	29
Accounts payable and accrued liabilities	$	75
Other liabilities		44
Total liabilities of discontinued operations	$	119

Cash flows from discontinued operations were as follows:

	For the Three
	Months Ended
	March 31, 2022
Net cash provided by operating activities of discontinued operations	$	56
Net cash provided by investing activities of discontinued operations	$	26
Net cash provided by financing activities of discontinued operations	$	—