Discontinued Operations

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

(12) 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. On June 28, 2019, the Company completed the sale of the excluded property to the same buyer for $11.7 million. The results of operations associated with discontinued operations for the three and six months ended June 30, 2019 and 2018 were as follows (in thousands):

	Three months ended					Six months ended
	June 30,					June 30,
	2019		2018			2019		2018
Lease Revenue		222		4,110			460		11,657
Cost of operations:
Depreciation, depletion and amortization		12		1,217			41		3,102
Operating expenses		139		464			234		1,642
Property taxes		26		449			46		1,247
Management company indirect		—		812			—		990
Corporate expenses		—		655			—		1,402
Total cost of operations		177		3,597			321		8,383
Total operating profit		45		513			139		3,274
Interest expense		—		(187	)		—		(587	)
Gain on sale of buildings		9,245		164,807			9,268		164,807
Income before income taxes		9,290		165,133			9,407		167,494
Provision for income taxes		2,514		44,668			2,545		45,307
Income from discontinued operations	$	6,776		120,465			6,862		122,187
Earnings per common share:
Income from discontinued operations-
Basic		0.68		12.01			0.69		12.19
Diluted		0.68		11.92			0.69		12.10

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

	June 30		December 31
Assets:	2019		2018
Real estate investments at cost:
Land	$	—		546
Buildings and improvements		—		3,315
Projects under construction		—		—
Total investments in properties		—		3,861
Less accumulated depreciation and depletion		—		2,374
Net investments in properties		—		1,487
Accounts receivable, net		871		910
Unrealized rents		—		473
Deferred costs		—		354
Assets of discontinued operations	$	871		3,224
Liabilities:
Accounts payable and accrued liabilities	$	158		205
Deferred revenue		—		45
Tenant security deposits		—		38
Liabilities of discontinued operations	$	158		288