Discontinued Operations

9 Months Ended

Sep. 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 nine months ended September 30, 2019 and 2018 were as follows (in thousands):

	Three months ended						Nine months ended
	September 30,						September 30,
	2019			2018			2019		2018
Lease Revenue		—			219			460		11,876
Cost of operations:
Depreciation, depletion and amortization		(24	)		29			17		3,131
Operating expenses		12			52			246		1,694
Property taxes		—			19			46		1,266
Management company indirect		—			370			—		1,360
Corporate expenses		—			56			—		1,458
Total cost of operations		(12	)		526			309		8,909
Total operating profit (loss)		12			(307	)		151		2,967
Interest expense		—			—			—		(587	)
Gain (loss) on sale of buildings		(30	)		200			9,238		165,007
Income (loss) before income taxes		(18	)		(107	)		9,389		167,387
Provision for (benefit from) income taxes		(5	)		(29	)		2,540		45,278
Income (loss) from discontinued operations	$	(13	)		(78	)		6,849		122,109
Earnings per common share:
Income (loss) from discontinued operations-
Basic		0.00			(0.01	)		0.69		12.17
Diluted		0.00			(0.01	)		0.69		12.08

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

	September 30		December 31
Assets:	2019		2018
Real estate investments at cost:
Land	$	—		546
Buildings and improvements		—		3,315
Total investments in properties		—		3,861
Less accumulated depreciation and depletion		—		2,374
Net investments in properties		—		1,487
Accounts receivable, net		32		910
Unrealized rents		—		473
Deferred costs		—		354
Assets of discontinued operations	$	32		3,224
Liabilities:
Accounts payable and accrued liabilities	$	18		205
Deferred revenue		—		45
Tenant security deposits		—		38
Liabilities of discontinued operations	$	18		288