DISCONTINUED OPERATIONS

3 Months Ended

Jul. 31, 2016

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

NOTE 7 • DISCONTINUED OPERATIONS

We report in discontinued operations the results of operations and any gain or loss on sale of a property or group of properties that has either been disposed of or is classified as held for sale and for which the disposition represents a strategic shift that has or will have a major effect on our operations and financial results. During fiscal year 2016, we determined that our strategic plan to exit the office and retail segments met the criteria for discontinued operations. Accordingly, 48 office properties, 17 retail properties and 1 healthcare property were classified as held for sale subsequently sold during fiscal year 2016. Additionally, we determined that our strategic decision to exit senior housing, which was a subset of our healthcare segment, met the criteria for discontinued operations and we consequently classified 34 senior housing properties as held for sale and discontinued operations at April 30, 2016. These 34 properties continued to be classified as held for sale and discontinued operations at July 31, 2016.

The following information shows the effect on net income and the gains or losses from the sales of properties classified as discontinued operations for the three months ended July 31, 2016 and 2015:

	(in thousands)
	Three Months Ended
	July 31,
	2016		2015
REVENUE
Real estate rentals	$	5,010	$	18,440
Tenant reimbursement		114		6,265
TRS senior housing revenue		873		1,038
TOTAL REVENUE		5,997		25,743
EXPENSES
Property operating expenses, excluding real estate taxes		—		6,100
Real estate taxes		112		3,520
Depreciation and amortization		16		7,089
Impairment of real estate investments		—		440
TRS senior housing expenses		784		769
Other expenses		—		—
TOTAL EXPENSES		912		17,918
Operating income		5,085		7,825
Interest expense(1)		(1,374)		(7,147)
Other income		—		70
INCOME FROM DISCONTINUED OPERATIONS	$	3,711	$	748

(1) Interest expense for the three months ended July 31, 2015 includes $1.5 million of default interest related to a $122.6 million non-recourse loan by one of our subsidiaries. In the third quarter of fiscal year 2016, ownership of the nine properties serving as collateral on the loan was transferred to the mortgage lender and the debt obligation and accrued interest was removed from our balance sheet.

The following information reconciles the carrying amounts of major classes of assets and liabilities of the discontinued operations to assets and liabilities held for sale that are presented separately on the Condensed Consolidated Balance Sheets:

	(in thousands)
	July 31, 2016		April 30, 2016
Carrying amounts of major classes of assets included as part of discontinued operations
Property owned and intangible assets, net of accumulated depreciation and amortization	$	193,169	$	189,900
Receivable arising from straight-lining of rents		10,000		9,805
Accounts receivable		1,628		1,707
Prepaid and other assets		33		43
Tax, insurance and other escrow		723		670
Property and equipment		464		479
Goodwill		18		18
Total major classes of assets of the discontinued operations		206,035		202,622
Other assets included in the disposal group classified as held for sale		9,782		17,915
Total assets of the disposal group classified as held for sale on the balance sheet	$	215,817	$	220,537
Carrying amounts of major classes of liabilities included as part of discontinued operations
Accounts payable and accrued expenses	$	612	$	810
Mortgages payable		67,179		67,940
Other		7,900		7,900
Total major classes of liabilities of the discontinued operations		75,691		76,650
Other liabilities included in the disposal group classified as held for sale		504		838
Total liabilities of the disposal group classified as held for sale on the balance sheet	$	76,195	$	77,488