2.	REAL ESTATE ACTIVITY

Dispositions

Assets held for sale/sold subsequent to January 1, 2014

In the three months ended March 31, 2014, the Company classified three apartment communities, containing 645 units, as held for sale. In May 2014, one of these apartment communities located in Houston, Texas, containing 308 units, was sold for gross proceeds of approximately $71,750. The Company recognized a gain of $36,092 on the sale of this community. At June 30, 2014, assets held for sale included two communities, containing 337 units, located in New York, New York. These real estate assets classified as held for sale are reported separately on the accompanying consolidated balance sheet at $107,229, which represents the lower of their depreciated cost or fair value less costs to sell. This disposition activity is part of the Company’s on-going investment strategy of recycling investment capital to fund investment and development of apartment communities.

The carrying amount of the major components of assets and liabilities of the two communities reflected as held for sale on the balance sheet were as follows:


	June 30, 2014

Land	$	22,093
Building and improvements		117,915
Furniture, fixtures and equipment		8,207
Less: accumulated depreciation		(40,986	)

Assets held for sale, net of accumulated depreciation	$	107,229


Secured indebtedness	$	82,922

Under ASU 2014-08 (see note 1), the Company determined that the three apartment communities discussed above did not meet the criteria requiring separate reporting as discontinued operations. As a result, the operations of these communities and the resulting gains on sales of the communities are reported in continuing operations for all periods presented. Total revenues and property net operating income of these assets is included in the segment information (see note 9) under the segment caption titled, “Held for sale and sold communities.” The net income and net income attributable to the Company, including gains on sales of real estate assets related to these communities, for the three and six months ended June 30, 2014 and 2013 is as follows:


	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Net income	$	37,356	$	774	$	37,493	$	1,274

Net income, net of noncontrolling interest	$	37,202	$	716	$	37,355	$	1,219

Assets held for sale/sold prior to January 1, 2014

In periods prior to January 1, 2014, under ASC Topic 360, the operating results of real estate assets designated as held for sale and sold were reported in discontinued operations in the consolidated statement of operations for all periods presented. Additionally, all gains and losses on the sale of these assets were included in discontinued operations. For the three and six months ended June 30, 2013, income from discontinued operations included the results of operations of one apartment community, containing 342 units (this community was subsequently sold in October 2013) as follows:


	Three months ended June 30, 2013		Six months ended June 30, 2013

Revenues
Rental	$	1,089	$	2,159
Other property revenues		115		216

Total revenues		1,204		2,375

Expenses
Property operating and maintenance		498		969
Depreciation		175		352
Interest		88		178

Total expenses		761		1,499

Income from discontinued property operations	$	443	$	876

Condominium activities

In 2013 and through the first quarter of 2014, the Company sold condominium homes at two wholly owned condominium communities, one in Atlanta, Georgia (the “Atlanta Condominium Project”) and one in Austin, Texas (the “Austin Condominium Project”). The Austin Condominium Project completed its sell-out in the second quarter of 2013, and the Atlanta Condominium Project completed the sale of its final unit in March 2014. The revenues, costs and expenses associated with consolidated condominium activities for the three and six months ended June 30, 2014 and 2013 were as follows:


	Three months ended June 30,					Six months ended June 30,
	2014		2013			2014			2013

Condominium revenues	$	—	$	38,123		$	2,442		$	55,598
Condominium costs and expenses		—		(24,142	)		(1,632	)		(33,423	)

Net gains on sales of condominiums	$	—	$	13,981		$	810		$	22,175

For the six months ended June 30, 2014 and 2013, the Company closed one and 50 condominium homes, respectively, at these condominium communities.