Note 3 - Discontinued Operations

6 Months Ended

Jun. 30, 2013

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

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 2012 financial statement amounts.

The components of income and expense relating to discontinued operations for the three and six months ended June 30, 2013 and 2012 are shown below. These include the results of operations through the date of each respective sale for properties sold during 2013 and 2012 and the operations for the applicable period for those assets classified as held-for-sale as of June 30, 2013 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Discontinued operations:
Revenues from rental property	$	2,597		$	11,648		$	5,468		$	26,186
Rental property expenses		(969	)		(4,623	)		(2,121	)		(10,651	)
Depreciation and amortization		(861	)		(6,575	)		(1,907	)		(12,892	)
Provision for doubtful accounts		(15	)		(568	)		(298	)		(922	)
Interest income/(expense)		744			(637	)		667			(1,149	)
Other income/(expense), net		3			(94	)		(12	)		(201	)
Income/(loss) from discontinued operating properties, before income taxes		1,499			(849	)		1,797			371
Impairment of property carrying value, net, before income taxes		(42,951	)		(24,915	)		(45,783	)		(34,245	)
Gain on disposition of operating properties, net		1,869			11,263			4,365			23,242
Benefit for income taxes, net		15,260			7,473			15,942			8,745
Loss from discontinued operating properties		(24,323	)		(7,028	)		(23,679	)		(1,887	)
Net income attributable to noncontrolling interests		-			(95	)		(17	)		(2,393	)
Loss from discontinued operations attributable to the Company	$	(24,323	)	$	(7,123	)	$	(23,696	)	$	(4,280	)

During the six months ended June 30, 2013, the Company classified as held-for-sale five operating properties, comprising 163,381 square feet of GLA.  The aggregate book value of these properties was $38.1 million, net of accumulated depreciation of $5.4 million.   The Company recognized impairment charges of $9.9 million, after income taxes, on three of these properties. The book value of the other properties did not exceed their 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 $27.6 million, was based upon executed contracts of sale with a third parties (see Footnote 12).   In addition, the Company completed the sale of two held-for-sale operating properties during the six months ended June 30, 2013, one of which was classified as held-for-sale during 2012 (these dispositions are included in Footnote 2 above).  At June 30, 2013, the Company had four operating properties classified as held-for-sale at a carrying amount of $21.4 million, net of accumulated depreciation of $4.5 million, which are included in Other assets on the Company’s Condensed Consolidated Balance Sheets.