Property Dispositions

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Property Dispositions

Note 22 — Property Dispositions

During the nine months ended September 30, 2014, the Company disposed of 29 single-tenant properties and one multi-tenant property for an aggregate gross sales price of $158.6 million (the “2014 Property Dispositions”). There were no properties disposed of during the nine months ended September 30, 2013. No disposition fees were paid to affiliates in connection with the sale of the 2014 Property Dispositions and the Company has no continuing involvement with these properties. As of September 30, 2014, 71 properties were classified as held for sale.

On June 11, 2014, the OP, through indirect subsidiaries, entered into an agreement of purchase and sale with BRE DDR Retail Holdings III LLC (the “Purchaser”), a joint venture between Blackstone and DDR Corp., by which the Purchaser agreed to purchase 67 multi-tenant properties and nine single-tenant properties and the adjacent land and related properties. The properties to be sold pursuant to such agreement were the same properties that the Company had previously intended to spin off into an externally managed, NASDAQ-traded REIT, American Realty Capital Centers, Inc. In light of the Company’s entry into such agreement, it abandoned its previously contemplated spin-off. On October 17, 2014, the Company completed the final sale of a portfolio consisting of 64 multi-tenant properties and seven single-tenant properties (the “Multi-Tenant Portfolio”) to the Purchaser, as discussed in Note 24 — Subsequent Events.

The Company has classified and accounted for the Multi-Tenant Portfolio’s assets and liabilities as held for sale as of September 30, 2014. As the sale does not represent a change in strategic direction for the Company and will not have a significant effect on the operations or financial results of the Company, the operating results of the Multi-Tenant Portfolio are not classified as discontinued operations for any periods presented. However, the Company has determined that the Multi-Tenant Portfolio is an individually significant component of the Company. As of December 31, 2013, the Company classified one property as held for sale, which has been presented as discontinued operations on the Company’s consolidated statements of operations.

The following table summarizes the operating income from continued operations of the Multi-Tenant Portfolio for the three and nine months ended September 30, 2014 and 2013 (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014			2013		2014			2013
Total revenue	$	47,511		$	—	$	119,467		$	—
Total expenses		(49,490	)		—		(124,069	)		—
Income from assets held for sale	$	(1,979	)	$	—	$	(4,602	)	$	—
Loss on assets held for sale(1)	$	(262,233	)		—	$	(262,233	)		—

(1) Loss on assets held for sale includes the write-off of $195.5 million of goodwill allocated to the cost basis of the Multi-Tenant Portfolio.

On September 30, 2014, the Company entered into the Purchase Agreement to sell Cole Capital to RCAP , and, in conjunction with the sale agreement, entered into sub-advisory agreements to provide acquisition and property management services to Cole Capital subsequent to the closing of the transaction. Subsequent to September 30, 2014, the Purchase Agreement and sub-advisory agreements were terminated by RCAP as discussed within Note 24 — Subsequent Events. The Company has included the Cole Capital segment in continuing operations as the sale of Cole Capital is not deemed probable within one year as evidenced by the significant changes to the plan that were made.