Real Estate and Discontinued Operations

9 Months Ended

Sep. 30, 2012

Real Estate and Discontinued Operations [Abstract]

Real Estate and Discontinued Operations

Discontinued Operations and Real Estate Impairment

During the nine months ended September 30, 2012, the Company disposed of its interest in eight properties (excluding its interest in Pemlex – see note 7) and a 6.9-acre land parcel to unrelated third parties for a gross disposition price of $129,715 and recognized an aggregate gain on sales of properties of $8,946 and net debt satisfaction charges of $1,189. 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 nine months ended September 30, 2011, the Company sold its interests in 14 properties to unrelated third parties for an aggregate gross disposition price of $137,467, 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 $5,251 and debt satisfaction charges of $603 during the nine months ended September 30, 2011. As of September 30, 2012, the Company had one property 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 September 30,					Nine months ended September 30,
	2012		2011			2012		2011
Total gross revenues	$	998	$	4,928		$	6,993	$	17,389
Pre-tax income (loss), including gains on sale	$	5,570	$	(14,456	)	$	2,643	$	(67,773	)

The Company assesses on a regular basis whether there are any indicators that the carrying value of its 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 nine months ended September 30, 2012 and 2011, the Company recognized $5,690 and $76,110, 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 $4,262 and $38,719 in continuing operations during the nine months ended September 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.