ASSETS HELD FOR SALE

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

ASSETS HELD FOR SALE

NOTE 3. ASSETS HELD FOR SALE

In March 2018, TCI and global diversified financial group Macquarie Group Limited (“Macquarie”) entered into an agreement to form a special purpose entity Victory Abode Apartment, LLC (“Joint Venture”) that will principally own and operate a portfolio of existing TCI Class A multi-family residential properties that are currently owned 100% by TCI subsidiaries, including the Company’s existing multi-family assets.  The Joint Venture will also actively participate in the development and/or acquisitions of additional Class A multi-family assets. It is anticipated that the Company and Macquarie will each have a 49% ownership interest and a 50% voting interest in the Joint Venture.  The remaining 2% ownership interest would be allotted to Daniel J. Moos, the current President and Chief Executive Officer of TCI and Abode Properties. The closing of the agreement is expected to occur in the fourth quarter of 2018.

At September 30, 2018, $760.5 million were included in assets held for sale, consisting of $727.6 million related to the Joint Venture, $21.1 million related to Mercer Crossing properties (Note 2), and $11.8 million other.

The following table presents income before tax associated with assets held for sale.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
Revenues:
Rental and other property revenues	$	22,371		$	20,410		$	65,056		$	59,672
Total operating revenues		22,371			20,410			65,056			59,672
Expenses:
Property operating expenses		9,953			9,190			29,250			26,964
Depreciation and amortization		3,780			3,397			11,080			9,971
General and administrative		6			12			276			389
Total operating expenses		13,739			12,599			40,606			37,324
Operating Income		8,632			7,811			24,450			22,348
Other Income (Expense):
Interest income from notes receivable		2			3			3			6
Other income (loss)		3			(47	)		267			(70	)
Mortgage and loan interest		(4,973	)		(4,401	)		(14,449	)		(12,738	)
Loan fee expense		—			—			—			(707	)
Total other (expense)		(4,968	)		(4,445	)		(14,179	)		(13,509	)
Net Income	$	3,664		$	3,366		$	10,271		$	8,839