Real Estate and Discontinued Operations

6 Months Ended

Jun. 30, 2012

Real Estate and Discontinued Operations [Abstract]

Real Estate and Discontinued Operations

Real Estate and Discontinued Operations

During the six months ended June 30, 2012, the Company disposed of its interest in five properties and a 6.9-acre land parcel to unrelated third parties for a gross disposition price of $74,815 and recognized an aggregate gain on sales of properties of $2,671. 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 six months ended June 30, 2011, the Company sold its interests in 11 properties to unrelated third parties for an aggregate gross disposition price of $121,878, 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 $5,069 and debt satisfaction charges of $603 during the six months ended June 30, 2011. As of June 30, 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 June 30,					Six months ended June 30,
	2012		2011			2012		2011
Total gross revenues	$	1,731	$	4,733		$	3,873	$	11,161
Pre-tax income (loss), including gains on sale	$	1,392	$	(27,619	)	$	759	$	(51,198	)

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 six months ended June 30, 2012 and 2011, the Company recognized $4,342 and $58,318, 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.

In addition, the Company recognized impairment charges of $1,348 and $30,451 in continuing operations during the six months ended June 30, 2012 and 2011, respectively. The Company explored the possible disposition of some non-core retail, underperforming and multi-tenant properties and determined that the expected undiscounted cash flows based upon revised estimated holding periods of certain of these properties were below the current carrying values. Accordingly, the Company reduced the carrying value of these properties to their estimated fair values.