Discontinued Operations

9 Months Ended

Sep. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

(13) Discontinued Operations.

On May 21, 2018, the Company completed the disposition of 40 industrial warehouse properties and three additional land parcels to an affiliate of Blackstone Real Estate Partners VIII, L.P. for $347.2 million. One warehouse property valued at $11.7 million was excluded from the sale due to the tenant exercising its right of first refusal to purchase the property. These properties comprised substantially all the assets of our Asset Management segment and have been reclassified as discontinued operations for all periods presented. The results of operations associated with discontinued operations for the three and nine-month periods ended September 30, 2018 and 2017 were as follows (in thousands):

	THREE MONTHS ENDED						NINE MONTHS ENDED
	SEPTEMBER 30,						SEPTEMBER 30,
	2018			2017			2018			2017
Revenues:
Rental revenue	$	190			5,636			9,602			16,634
Revenue – reimbursements		29			1,383			2,274			3,713
Total Revenues		219			7,019			11,876			20,347
Cost of operations:
Depreciation, depletion and amortization		29			1,965			3,131			5,727
Operating expenses		52			1,004			1,694			2,570
Property taxes		19			754			1,266			2,208
Management company indirect		370			209			1,360			542
Corporate expenses		56			—			1,458			—
Total cost of operations		526			3,932			8,909			11,047
Total operating profit (loss)		(307	)		3,087			2,967			9,300
Interest expense		—			(468	)		(587	)		(1,087	)
Gain on sale of buildings		200			—			165,007			—
Income (loss) before income taxes		(107	)		2,619			167,387			8,213
Provision for (benefit from) income taxes		(29	)		1,034			45,278			3,244
Income (loss) from discontinued operations	$	(78	)		1,585			122,109			4,969

The components of the balance sheet are as follows (in thousands):

	September 30		December 31
Assets:	2018		2017
Real estate investments at cost:
Land	$	546		40,465
Buildings and improvements		3,315		186,657
Projects under construction		—		6,617
Total investments in properties		3,861		233,739
Less accumulated depreciation and depletion		2,353		68,049
Net investments in properties		1,508		165,690
Accounts receivable, net		1,020		405
Unrealized rents		284		4,088
Deferred costs		382		6,509
Other assets		—		2
Assets of discontinued operations	$	3,194		176,694
Liabilities:
Secured notes payable, current portion	$	—		23,825
Secured notes payable, less current portion		—		4,338
Accounts payable and accrued liabilities		249		2,289
Deferred revenue		59		967
Federal and state income taxes payable		1,527		—
Tenant security deposits		37		861
Liabilities of discontinued operations	$	1,872		32,280