Sales of Real Estate and Discontinued Operations

3 Months Ended

Mar. 31, 2012

Sales of Real Estate and Discontinued Operations [Abstract]

Sales of Real Estate and Discontinued Operations

Sales of Real Estate and Discontinued Operations

During the three months ended March 31, 2012, the Company disposed of its interest in one property to an unrelated third party for a gross disposition price of $2,500. In addition, the Company transferred a property to the lender in satisfaction of the $7,119 non-recourse mortgage loan and recognized a net gain on debt satisfaction of $1,728. During the three months ended March 31, 2011, the Company sold its interests in six properties to unrelated third parties for an aggregate gross disposition price of $108,875, which includes the assumption of $28,648 of non-recourse mortgage debt and seller financing of $3,003. The Company recognized aggregate gains on sales of properties of $4,899 and debt satisfaction charges of $603 during the three months ended March 31, 2011. As of March 31, 2012, the Company had no properties classified as held for sale.

The following presents the operating results for the properties sold and properties classified as held for sale for the applicable periods:

	Three months ended March 31,
	2012			2011
Total gross revenues	$	—		$	4,256
Pre-tax loss, including gains on sale	$	(1,163	)	$	(24,080	)

The Company assesses on a regular basis whether there are any indicators that the carrying value of real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant reduction in utilization of a property, tenant financial instability and the potential sale of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value. During the three months ended March 31, 2012 and 2011, the Company recognized $2,561 and $29,567, respectively, of impairment charges in discontinued operations, relating to real estate assets that were sold or were anticipated to be sold below their carrying value.