Note 3 - Discontinued Operations

6 Months Ended

Jun. 30, 2012

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. Discontinued Operations

The Company reports as discontinued operations, properties held-for-sale as of the end of the current period and assets sold during the period. The results of these discontinued operations are included as a separate component of income on the Condensed Consolidated Statements of Income under the caption Discontinued operations.  This reporting has resulted in certain reclassifications of 2011 financial statement amounts.

The components of income and expense relating to discontinued operations for the three and six months ended June 30, 2012 and 2011 are shown below. These include the results of operations through the date of each respective sale for properties sold during 2012 and 2011 and the operations for the applicable period for those assets classified as held-for-sale as of June 30, 2012 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Discontinued operations:
Revenues from rental property	$	(370	)	$	6,292		$	2,478		$	17,459
Rental property expenses		(744	)		(3,063	)		(2,530	)		(6,509	)
Depreciation and amortization		(3,182	)		(2,823	)		(6,274	)		(6,323	)
Interest expense		(25	)		(203	)		(25	)		(419	)
Income from other real estate investments		10			240			13			514
Other (expense)/income, net		(13	)		(8	)		(104	)		107
(Loss)/income from discontinued operating properties, before income taxes		(4,324	)		435			(6,442	)		4,829
Impairment charges		(513	)		(5,438	)		(8,622	)		(8,631	)
Gain on disposition of operating properties		11,263			4,025			23,242			4,188
(Provision)/benefit for income taxes, net		(485	)		(6	)		40			53
Income/(loss) from discontinued operating properties		5,941			(984	)		8,218			439
Net income attributable to noncontrolling interests		(51	)		(118	)		(2,282	)		(227	)
Income/(loss) from discontinued operations attributable to the Company	$	5,890		$	(1,102	)	$	5,936		$	212

During the six months ended June 30, 2012, the Company classified as held-for-sale two operating properties, comprising 0.2 million square feet of GLA.  The book value of these properties was $14.8 million, net of accumulated depreciation of $6.3 million.  The Company recognized an impairment charge of $3.4 million on one of these properties. The book value of the other property did not exceed its estimated fair value, less costs to sell, and as such no impairment charge was recognized.  The Company’s determination of the fair value of these properties, aggregating $8.6 million, was based upon executed contracts of sale with third parties (see Footnote 14).   In addition, the Company completed the sale of three operating properties and one land parcel during the six months ended June 30, 2012 which were classified as held for sale during 2011 and 2012 (these dispositions are included in Footnote 2 above).  The remaining property held-for-sale aggregating $2.8 million, net of accumulated depreciation of $1.7 million, is included in Other assets on the Company’s Condensed Consolidated Balance Sheets.