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Discontinued Operations
9 Months Ended
Sep. 30, 2011
Discontinued Operations [Abstract] 
Discontinued Operations

NOTE 8. DISCONTINUED OPERATIONS

We apply the provisions of ASC Topic 360 "Property, Plant and Equipment". ASC Topic 360 requires that long-lived assets that are to be disposed of by sale be measured at the lesser of (1) book value or (2) fair value less cost to sell. In addition, it requires that one accounting model be used for long-lived assets to be disposed of by sale and broadens the presentation of discontinued operations to include more disposal transactions.

Discontinued operations relates to properties that were either sold or held for sale as of the period ended September 30, 2011. Included in discontinued operations are a total of ten and 23 properties for 2011 and 2010, respectively. Properties sold in 2011 have been reclassified to discontinued operations for current and prior year reporting periods. In 2011, we sold eight commercial properties (Alpenloan, Fenton Center, One Hickory, Parkway North, Signature, Teleport Blvd, Two Hickory and Westgrove Air Plaza), one apartment complex (Spyglass), and 13 acres of land with a storage warehouse (Eagle Crest). In 2010, we sold 11 apartment complexes (Baywalk, Foxwood, Island Bay, Kingsland Ranch, Limestone Canyon, Limestone Ranch, Longfellow Arms, Marina Landing, Mason Park, Sendero Ridge and Tivoli), one commercial building (217 Rampart) and transferred our limited partnership interest in a consolidated entity that owned an apartment complex (Quail Oaks). The gain on sale of the properties is also included in discontinued operations for those years. The following table summarizes revenue and expense information for the properties sold and held for sale (dollars in thousands):

 

     For the Three Months Ended
September 30,		      For the Nine Months Ended
September 30,		  
         2011              2010              2011              2010      

Revenue

            

Rental

      $ 968           $ 6,109           $ 7,789           $ 22,764     

Property operations

      587           4,127           5,007           13,203     
  

 

 

     

 

 

     

 

 

     

 

 

  
     $ 381           $ 1,982           2,782           9,561     

Expenses

            

Other income

      -           50           -           50     

Interest

      (103)           (3,141)           (2,546)           (9,087)     

General and administrative

      (170)           (55)           (457)           (101)     

Depreciation

      (102)           (1,340)           (1,825)           (4,373)   

Provision on impairment of real estate assets

      -           -           (5,256)           -     
  

 

 

     

 

 

     

 

 

     

 

 

  
     (375)               (4,486)           (10,084)               (13,511)     
  

 

 

     

 

 

     

 

 

     

 

 

  

Net income (loss) from discontinued operations before gains on sale of real estate, taxes, and fees

      6           (2,504)           (7,302)           (3,950)     

Gain (loss) on sale of discontinued operations

      2,872           3,893           (365)           3,754     
  

 

 

     

 

 

     

 

 

     

 

 

  

Income (loss) from discontinued operations

      $ 2,878           $ 1,389           (7,667)           (196)     

Tax benefit (expense)

      1,007           486           (2,683)           (69)     
  

 

 

     

 

 

     

 

 

     

 

 

  

Net income (loss) from discontinued operations

      $     3,885           $ 1,875           $     (10,350)           $ (265)     
  

 

 

     

 

 

     

 

 

     

 

 

  

Our application of ASC Topic 360 results in the presentation of the net operating results of these qualifying properties sold or held for sale during 2010 as income from discontinued operations. This does not have an impact on net income available to common shareholders and only impacts the presentation of these properties within the Consolidated Statements of Operations.