Note 3 - Discontinued Operations

9 Months Ended

Sep. 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 nine months ended September 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 September 30, 2012 (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Discontinued operations:
Revenues from rental property	$	3,524		$	12,669		$	15,515		$	39,593
Rental property expenses		(1,391	)		(4,266	)		(7,246	)		(14,042	)
Depreciation and amortization		(1,143	)		(3,656	)		(10,125	)		(12,647	)
Interest expense		(199	)		(403	)		(589	)		(1,348	)
Income from other real estate investments		-			1,430			13			1,945
Other expense, net		(35	)		(124	)		(178	)		(57	)
Income/(loss) from discontinued operating properties, before income taxes		756			5,650			(2,610	)		13,444
Impairment charges		(2,582	)		(289	)		(15,201	)		(8,919	)
Gain on disposition of operating properties		13,278			4,535			36,520			8,722
(Provision)/benefit for income taxes, net		(1,993	)		28			(1,697	)		77
Income from discontinued operating properties		9,459			9,924			17,012			13,324
Net loss/(income) attributable to noncontrolling interests		886			25			(1,365	)		(202	)
Income from discontinued operations attributable to the Company	$	10,345		$	9,949		$	15,647		$	13,122

During the nine months ended September 30, 2012, the Company classified as held-for-sale 17 operating properties, comprising 1.9 million square feet of GLA.  The book value of these properties was $69.8 million, net of accumulated depreciation of $51.1 million.  The Company recognized impairment charges of $4.2 million on three of these properties. The book value of the other properties did not exceed its estimated fair value, less costs to sell, and as such no impairment charges were recognized.  The Company’s determination of the fair value of these properties, aggregating $98.6 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 during the nine months ended September 30, 2012 for which two were classified as held-for-sale during 2011 (these dispositions are included in Footnote 2 above).  The remaining 16 properties held-for-sale, aggregating $59.1 million, net of accumulated depreciation of $46.4 million, are included in Other assets on the Company’s Condensed Consolidated Balance Sheets.