Discontinued Operations

12 Months Ended

Dec. 31, 2013

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

17. Discontinued Operations

The Trust’s properties in Deer Valley, Arizona; Meriden, Connecticut; Lisle, Illinois; Indianapolis, Indiana; Lafayette, Louisiana; Andover, Massachusetts; St. Louis, Missouri; Knoxville, Tennessee; Memphis, Tennessee; Denton, Texas; and Seabrook, Texas are classified as discontinued operations.

The Knoxville, Tennessee location was classified as discontinued operations as of September 30, 2010. In August 2011 the Trust sold its Knoxville, Tennessee property for net proceeds of $2,151,000 and recorded a $58,000 loss of the sale of the property.

In January 2011 the Trust classified the St. Louis, Missouri property into discontinued operations. In February 2011 the Trust entered into an agreement to sell this property, and in December 2011 the property was sold for net proceeds of $1,485,000. The Trust recorded a $450,000 gain on the sale of the property.

In September 2012, the Indianapolis, Indiana and Memphis, Tennessee properties were classified as discontinued operations and sold. The Indianapolis, Indiana property was sold for net proceeds of $1,071,000 after satisfaction of the debt. The Trust recorded a $945,000 gain on the sale of the property. The Memphis, Tennessee property was sold on September 28, 2012, and the Trust recorded a $698,000 impairment charge, offset by $592,000 of settlement income which is included in discontinued operations for the year ended December 31, 2012.

In March 2013 the Andover, Massachusetts property was classified as discontinued operations and sold. The property was sold for net proceeds of $11,538,000 and the Trust recorded a $2,775,000 gain on the sale of the property.

In June 2013 the Deer Valley, Arizona and Denton, Texas properties were classified as discontinued operations. The Deer Valley, Arizona property was sold in June 2013 for net proceeds of $19,585,000 and the Trust recorded a $6,745,000 gain on the sale of the property.

The Trust recorded an $824,000 impairment charge on the Denton, Texas property in 2012 as a result of a change to the anticipated holding period of this property. The Trust recorded an additional $154,000 impairment charge for this property in June 2013 as a result of the purchase contract. The property was sold in July 2013 and the Trust received net proceeds of $1,703,000.

In August 2013, the Seabrook, Texas property was classified as discontinued operations. The property was sold in August 2013 for net proceeds of $3,202,000 and the Trust recorded a $1,428,000 gain on the sale of the property.

In September 2013, the Trust’s 701 Arboretum property located in Lisle, Illinois was classified as discontinued operations. The Trust had previously recorded a $3,000,000 impairment charge on this property in 2011 as a result of continued declines in occupancy. The Trust recorded an additional $2,750,000 impairment charge in 2013 as a result of the purchase contract. The property was sold in December 2013 for net proceeds of $2,351,000 and the Trust recorded a $58,000 gain on the sale.

The Meriden, Connecticut property was classified as discontinued operations as of December 31, 2013. A purchase and sale contract was signed for a gross sales price of $27,500,000 and the Trust received a non-refundable deposit of $500,000. The sale of the property was consummated on February 26, 2014. After transfer of the debt, the Trust received net proceeds of $5,106,000 on the sale of the property.

Results for discontinued operations for the years ended December 31, 2013, 2012 and 2011 are as follows (in thousands):

	2013			2012			2011
Revenues	$	4,552		$	8,222		$	9,058
Operating expenses		(2,655	)		(3,945	)		(4,150	)
Depreciation and amortization		(1,463	)		(2,947	)		(2,850	)
Interest expense		(868	)		(1,463	)		(2,020	)
Impairment loss		(2,904	)		(1,522	)		(3,000	)
Gain on sale of assets		11,005			945			392
Settlement income		—			592			—
Gain on extinguishment of debt		—			—			2,919
Income (loss) from discontinued operations	$	7,667		$	(118	)	$	349