Real Estate Activity

6 Months Ended

Jun. 30, 2015

2. REAL ESTATE ACTIVITY

Dispositions

The Company classifies real estate assets as held for sale after the approval of its board of directors and after the Company had commenced an active program to sell the assets. The Company had no assets classified as held for sale at June 30, 2015.

In the first quarter of 2014, the Company classified three apartment communities, containing 645 units, as held for sale, including two communities, containing 337 units, in New York, New York and an additional community, containing 308 units, in Houston, Texas. In May 2014, the apartment community located in Houston, Texas was sold for gross proceeds of approximately $71,750. The Company recognized a gain of $36,092 on the sale of this community. This disposition activity was part of the Company’s investment strategy of recycling investment capital to fund investment and development of apartment communities. The Company determined that these communities did not meet the criteria for discontinued operations reporting and, accordingly, their operating results were included in continuing operations through their sale dates in 2014. The two communities located in New York, New York were sold, and the Company recognized gains on sales, in the third quarter of 2014. The net income and net income attributable to the Company, including gains on sales of real estate assets related to these three communities, for the three and six months ended June 30, 2014 were as follows:


	Three months ended		Six months ended
	June 30, 2014		June 30, 2014
Net income	$	37,356	$	37,493

Net income, net of noncontrolling interest	$	37,202	$	37,355

For the six months ended June 30, 2015, the Company recognized a gain of $1,773 on the sale of its remaining condominium retail space at its former condominium community in Austin, Texas. In 2015, gains on sales of real estate assets included state tax expense of $298 related to an asset sale. For the six months ended June 30, 2014, gains on condominium sales activities were $810, resulting from the sale of the final residential condominium unit at a former condominium community in Atlanta, Georgia.