Note 2 - Operating Property Activities

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

2. Operating Property Activities

Acquisitions -

During the six months ended June 30, 2014, the Company acquired the following properties, in separate transactions (in thousands):

			Purchase Price
Property Name	Location	Month Acquired	Cash		Debt Assumed		Other		Total		GLA*
North Valley Leasehold	Peoria, AZ	Jan-14	$	3,000	$	-	$	-	$	3,000		-
LaSalle Properties (3 properties)	Various (1)	Jan-14		62,239		23,269		7,642		93,150		316
Harrisburg Land Parcel	Harrisburg, PA	Jan-14		2,550		-		-		2,550		-
Crossroads Plaza	Cary, NC	Feb-14		18,691		72,309		-		91,000		489
Quail Corners	Charlotte, NC (2)	Mar-14		9,398		17,409		4,943		31,750		110
KIF 1 Portfolio (12 properties)	Various (3)	Apr-14		128,699		157,010		122,291		408,000		1,589
Fountain at Arbor Lakes (2 Land Parcels)	Maple Grove, MN	Apr-14		900		-		-		900		-
Boston Portfolio (24 properties)	Various	Apr-14		149,486		120,514		-		270,000		1,426
Vinnin Square	Swampscott, MA	May-14		2,550		-		-		2,550		6
			$	377,513	$	390,511	$	134,876	$	902,900		3,936

* Gross leasable area ("GLA")

(1) The Company acquired three properties from a joint venture in which the Company has an 11% noncontrolling interest. The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as such recognized a gain of $3.7 million from the fair value adjustment associated with the Company’s original ownership due to a change in control, which is reflected in the purchase price above in Other.

(2) The Company acquired a 65.4% controlling ownership interest in this property and the seller retained a 34.6% noncontrolling interest in the property. The partner has the ability to put its partnership interest to the Company. As such, the Company has recorded the partners share of the property’s fair value of $4.9 million as Redeemable noncontrolling interests on the Company’s Condensed Consolidated Balance Sheets.

(3) The Company acquired from its partners the remaining ownership interest in a joint venture which holds 12 encumbered properties for which the Company had a 39.1% noncontrolling interest. The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as a result, recognized a gain of $65.6 million from the fair value adjustment associated with the Company’s original ownership due to a change in control, which is reflected in the purchase price above in Other. Subsequently, the Company repaid $128.4 million in debt encumbering ten of the properties. Additionally, during June 2014, the Company sold one of the properties to a third party.

The aggregate purchase price of the properties acquired during the six months ended June 30, 2014, has been preliminarily allocated as follows (in thousands):

Land	$	257,277
Buildings		428,521
Above Market Rents		19,131
Below Market Rents		(51,359	)
In-Place Leases		71,655
Building Improvements		183,619
Tenant Improvements		16,751
Mortgage Fair Value Adjustment		(22,944	)
Other Assets		249
	$	902,900

Dispositions –

During the six months ended June 30, 2014, the Company disposed of 18 operating properties, in separate transactions, for an aggregate sales price of $199.8 million, including five operating properties in Mexico. These transactions, which are included in Discontinued Operations on the Company’s Condensed Consolidated Statements of Income, resulted in an aggregate gain of $30.3 million, before income taxes and noncontrolling interests and aggregate impairment charges of $3.1 million, before income taxes and noncontrolling interests.

Impairment Charges -

During the six months ended June 30, 2014, the Company recognized aggregate impairment charges of $90.6 million, which are included in Impairment charges under Operating expenses on the Company’s Condensed Consolidated Statements of Income. These impairment charges consist of $88.4 million related to adjustments to property carrying values and $2.2 million related to a cost method investment. The adjustments to property carrying values were recognized in connection with the Company’s efforts to market certain properties and management’s assessment as to the likelihood and timing of such potential transactions and the anticipated hold period for such properties. During the second quarter ended June 30, 2014, the Company implemented its plan to accelerate its disposition of certain U.S. properties and in accordance with this strategy the Company identified approximately 150 operating properties to sell within the next 18 months. This plan effectively shortened the Company’s anticipated hold period for these properties and as such caused the Company to recognize impairment charges on 18 consolidated operating properties. (See Footnote 12 for fair value disclosure).

During the six months ended June 30, 2013, the Company recognized aggregate impairment charges of $25.2 million, which are included in Impairment charges under Operating expenses on the Company’s Condensed Consolidated Statements of Income. These impairment charges consist $17.4 million related to adjustments to property carrying values and $7.8 million relating to a cost method investment. The Company’s estimated fair values as it relates to property carrying values were primarily based upon estimated sales prices from third party offers based on signed contracts or letters of intent. The impairment of the cost method investment was based upon a review of the underlying cause of the decline in value, as well as the severity and duration of the decline. As a result of such review, the Company determined that the decline was deemed to be other-than-temporary.