2.	REAL ESTATE ACTIVITY

Dispositions

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

In the first quarter of 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. In September 2014, two additional communities, located in New York, New York, containing 337 units, were sold for gross proceeds of approximately $270,000. One of these communities was held in a consolidated entity, 68% owned by the Company. The Company recognized gains of $151,733 ($127,659 net of noncontrolling interests) on the sale of these communities. 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.

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 and debt extinguishment losses related to these communities, for the three and nine months ended September 30, 2014 and 2013 is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Net income	$	138,365	$	577	$	176,041	$	2,131

Net income, net of noncontrolling interest	$	115,918	$	545	$	153,456	$	2,044

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 nine months ended September 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 September 30, 2013		Nine months ended September 30, 2013
Revenues
Rental	$	1,113	$	3,272
Other property revenues		111		327

Total revenues		1,224		3,599

Expenses
Property operating and maintenance		540		1,509
Depreciation		175		527
Interest		88		266

Total expenses		803		2,302

Income from discontinued property operations	$	421	$	1,297

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 nine months ended September 30, 2014 and 2013 were as follows:


	Three months ended September 30,					Nine months ended September 30,
	2014		2013			2014			2013
Condominium revenues	$	—	$	12,550		$	2,442		$	68,148
Condominium costs and expenses		771		(7,257	)		(861	)		(40,680	)

Net gains on sales of residential condominiums		771		5,293			1,581			27,468
Net gain on sale of retail condominium		281		—			281			—

Net gains on sales of condominiums	$	1,052	$	5,293		$	1,862		$	27,468

For the nine months ended September 30, 2014 and 2013, the Company closed one and 62 condominium homes, respectively, at these condominium communities. For the three months ended September 30, 2014, the Company recognized a reduction to condominium warranty and related obligations of $771 associated with the favorable settlement of certain contingencies during the period. Additionally, for the three months ended September 30, 2014, the Company sold a retail condominium representing a portion of the available retail space at a condominium community in Austin, Texas and recognized a net gain of $281.