Discontinued Operations and Real Estate Impairment

3 Months Ended

Mar. 31, 2013

Real Estate and Discontinued Operations [Abstract]

Real Estate and Discontinued Operations

Discontinued Operations and Real Estate Impairment

During the three months ended March 31, 2013, the Company disposed of its interest in a property to an unrelated third party for a gross disposition price of $1,900. In addition, the Company transferred two properties in foreclosure in satisfaction of the aggregate $23,281 non-recourse mortgage loans and recognized aggregate net gains on debt satisfaction of $10,549. During the three months ended March 31, 2012, the Company sold its interests in one property to an unrelated third party for a gross disposition price of $2,500. In addition, the Company transferred a property in foreclosure in satisfaction of the $7,119 non-recourse mortgage loan and recognized a net gain on debt satisfaction of $1,728. As of March 31, 2013 and 2012, the Company had no properties classified as held for sale.

The following presents the operating results for the properties sold for the applicable periods:

	Three months ended March 31,
	2013		2012
Total gross revenues	$	—	$	4,499
Pre-tax income (loss)	$	4,903	$	(329	)

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 three months ended March 31, 2013 and 2012, the Company recognized $7,344 and $2,561, respectively, of impairment charges in discontinued operations, relating to real estate assets that were sold below their carrying value.

In addition, the Company recognized an impairment charge of $2,413 in continuing operations during the three months ended March 31, 2013. The Company is exploring the possible disposition of a non-core retail property and determined that the expected undiscounted cash flows based upon a revised estimated holding period of the property was below the current carrying value. Accordingly, the Company reduced the carrying value of this property to its estimated fair value.