REAL ESTATE ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2017

Investments in real estate as of December 31, 2017 and 2016 were comprised of the following:



	As of December 31,
(in thousands of dollars)	2017			2016
Buildings, improvements and construction in progress	$	2,808,622		$	2,794,213
Land, including land held for development	491,080			505,801
Total investments in real estate	3,299,702			3,300,014
Accumulated depreciation	(1,111,007		)	(1,060,845		)
Net investments in real estate	$	2,188,695		$	2,239,169

Impairment of Assets

During the years ended December 31, 2017, 2016, and 2015, we recorded asset impairment losses of $55.8 million, $62.6 million and $140.3 million, respectively. Such impairment losses are recorded in “Impairment of assets” for the years ended 2017, 2016 and 2015. The assets that incurred impairment losses and the amount of such losses are as follows:



	For the Year Ended December 31,
(in thousands of dollars)	2017		2016		2015

Logan Valley Mall	$	38,720	$	—	$	—
Valley View Mall	15,521		—		—
Gainesville land	1,275		—		—
Sunrise Plaza land	226		—		—
White Clay Point land	—		20,786		—
Beaver Valley Mall	—		18,055		—
Washington Crown Center	—		14,117		—
Crossroads Mall	—		9,038		—
Office building located at Voorhees Town Center	—		607		—
Gadsden Mall, New River Valley Mall and Wiregrass Commons Mall	—		—		63,904
Voorhees Town Center	—		—		39,242
Lycoming Mall	—		—		28,345
Uniontown Mall	—		—		7,394
Palmer Park Mall	—		—		1,383
Other	51		—		50
Total Impairment of Assets	$	55,793	$	62,603	$	140,318

Logan Valley Mall

In 2017, we recorded an aggregate loss on impairment of assets on Logan Valley Mall, in Altoona, Pennsylvania of $38.7 million in connection with negotiations with the potential buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets. We sold Logan Valley Mall in August 2017.

Valley View Mall

In 2017, we recorded a loss on impairment of assets on Valley View Mall, in La Crosse, Wisconsin of $15.5 million in connection with our decision to market the property for sale. In connection with this decision, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon our estimates, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets. Our fair value analysis was based on an estimated capitalization rate of approximately 12% for Valley View Mall, which was determined using management’s assessment of property operating performance and general market conditions.

Gainesville land

In 2017, we recorded a loss on impairment of assets on a land parcel located in Gainesville, Florida of $1.3 million in connection with negotiations with the potential buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets.

Sunrise Plaza land

In 2017, we recorded a loss on impairment of assets on a land parcel located at Sunrise Plaza in Forked River, New Jersey of $0.2 million in connection with negotiations with the potential buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets.

White Clay Point land

In 2016, we recorded a loss on impairment of assets on White Clay Point land, in New Garden Township, Pennsylvania of $20.8 million. In connection with our decision to market the property, which we concluded was a triggering event, we conducted an analysis of possible impairment at this property. We determined that the estimated proceeds from a potential sale of the property, would likely be less than the carrying value of the property, and recorded a loss on impairment of assets.

Beaver Valley Mall

In 2016, we recorded a loss on impairment of assets on Beaver Valley Mall, in Monaca, Pennsylvania of $18.1 million in connection with negotiations with the buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets. The property was classified as “held for sale” as of December 31, 2016. The property was sold in January 2017.

Washington Crown Center

In 2016, we recorded a loss on impairment of assets on Washington Crown Center, in Washington, Pennsylvania of $14.1 million in connection with negotiations with the buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets. The property was sold in August 2016.

Crossroads Mall

In 2016, we recorded a loss on impairment of assets on Crossroads Mall, in Beckley, West Virginia of $9.0 million in connection with negotiations with the buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets. The property was classified as “held for sale” as of December 31, 2016. The property was sold in January 2017.

Office building located at Voorhees Town Center

In 2016, we recorded a loss on impairment of assets on an office building located in Voorhees, New Jersey of $0.6 million in connection with negotiations with a the buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets. The property was sold in September 2016.

Dispositions of Assets for Discontinued Operations

The table below presents our dispositions since January 1, 2015. Proceeds from property sales were used for general corporate purposes, repayment of mortgage loans that secured the properties (if applicable) and repayment of then-outstanding amounts on our Credit Agreements (see note 4), unless otherwise noted.



Sale Date	Property and Location	Description of Real Estate Sold	Capitalization Rate		Sale Price		Gain/ (Loss)
Sale Date	Property and Location	Description of Real Estate Sold	Capitalization Rate		(in millions of dollars)
2017 Activity:
January	Beaver Valley Mall, Monaca, Pennsylvania	Mall	15.6	%	$	24.2	$	—
	Crossroads Mall, Beckley, West Virginia	Mall	15.5	%	24.8		—
August	Logan Valley Mall, Altoona, Pennsylvania	Mall	16.5	%	33.2		—

2016 Activity:
February	Palmer Park Mall, Easton, Pennsylvania	Mall	13.6	%	18.0		0.1
March	Gadsden Mall, Gadsden, Alabama; New River Valley Mall, Christiansburg, Virginia; and Wiregrass Commons Mall, Dothan, Alabama⁽¹⁾	Three Malls (single combined transaction)	17.4	%	66.0		1.6
	Lycoming Mall Pennsdale, Pennsylvania	Mall	18.0	%	26.4		0.3
June	Street retail located on Walnut and Chestnut Streets, Philadelphia, Pennsylvania	Street Retail	3.2	%	45.0		20.3
August	Washington Crown Center, Washington, Pennsylvania	Mall	14.5	%	20.0		(0.1		)

2015 Activity:
August	Uniontown Mall, Uniontown, Pennsylvania	Mall	17.5	%	23.0		—
October	Voorhees Town Center, Voorhees, New Jersey	Mall	10.3	%	13.4		—

⁽¹⁾

In connection with this transaction, we issued a mortgage loan to the buyer for $17.0 million, which is recorded in “Deferred costs and other assets, net” on our consolidated balance sheet. The mortgage loan is secured by Wiregrass Commons Mall, bears interest at a fixed rate of 6.00% per annum and has a maturity of April 2026. As of December 31, 2017, the balance of the mortgage loan was $16.5 million.

Summary of Capitalized Construction and Development Information

The following table summarizes certain capitalized construction and development information for our consolidated properties as of December 31, 2017 and 2016:



	As of December 31,
(in thousands of dollars)	2017		2016
Construction in progress	$	113,609	$	97,575
Land held for development	5,881		5,910
Deferred costs and other assets	2,182		2,752
Total capitalized construction and development activities	$	121,672	$	106,237