Discontinued Operations and Disposition of Real Estate and Real Estate Investments

12 Months Ended

Dec. 31, 2011

Discontinued Operations and Disposition of Real Estate and Real Estate Investments [Abstract]

Discontinued Operations and Disposition of Real Estate and Real Estate Investments

12.    Discontinued Operations and Disposition of Real Estate and Real Estate Investments

Discontinued Operations

During the year ended December 31, 2011, the Company sold 34 properties that were classified as discontinued operations for the years ended December 31, 2011, 2010 and 2009. The Company had one asset considered held for sale at December 31, 2011. In addition, during the period from January 1, 2012 through June 30, 2012, the Company sold 21 properties (including the one asset considered held for sale at December 31, 2011) and had one asset considered held for sale at June 30, 2012.

Included in discontinued operations for the three years ended December 31, 2011, are 118 properties (including the deconsolidated properties noted below). Of these properties, 113 were previously included in the shopping center segment, and five of these properties were previously included in the other investments segment (Note 17). In addition, included in discontinued operations are 26 other properties that were deconsolidated for accounting purposes in 2011 and 2010, which primarily represented the activity associated with the joint venture that owns the underlying real estate formerly occupied by Mervyns. The operations of these properties were classified as discontinued operations for all periods presented, as the Company has no significant continuing involvement.

The balance sheet related to the asset held for sale and the operating results related to assets sold, designated as held for sale or deconsolidated as of December 31, 2011, are as follows (in thousands):

	December 31, 2011
Land	$	1,089
Building		1,178
Fixtures and tenant improvements		1,000
		3,267
Less: Accumulated depreciation		(977	)
Total real estate held for sale	$	2,290

	For the Year Ended December 31,
	2011			2010			2009
Revenues	$	44,883		$	68,722		$	104,727
Operating expenses		17,984			30,714			48,342
Impairment charges		57,931			87,045			142,473
Interest, net		12,105			25,725			37,992
Debt extinguishment costs, net		7,191			409			467
Depreciation and amortization		13,512			23,479			39,656
		108,723			167,372			268,930
Loss from discontinued operations		(63,840	)		(98,650	)		(164,203	)
Gain on deconsolidation of interests		4,716			5,221			—
Gain (loss) on disposition of real estate, net of tax		40,163			5,775			(24,027	)
Loss from discontinued operations	$	(18,961	)	$	(87,654	)	$	(188,230	)

Disposition of Real Estate and Real Estate Investments

The Company recorded net gains on disposition of real estate and real estate investments as follows (in millions):

	For the Year Ended December 31
	2011			2010		2009
Land sales (A)	$	(0.4	)	$	1.0	$	4.8
Previously deferred gains and other gains and losses on dispositions (B)		7.5			0.3		4.3
	$	7.1		$	1.3	$	9.1

(A) These dispositions did not meet the criteria for discontinued operations, as the land did not have any significant operations prior to disposition.

(B) These gains are a result of partial asset sales that did not meet the criteria for discontinued operations and assets that were contributed to joint ventures in prior years.