Discontinued Operations and Real Estate Impairment

6 Months Ended

Jun. 30, 2013

Real Estate and Discontinued Operations [Abstract]

Real Estate and Discontinued Operations

Discontinued Operations and Real Estate Impairment

During the six months ended June 30, 2013, the Company disposed of its interests in certain properties to unrelated third parties for an aggregate gross disposition price of $48,466. In addition, the Company conveyed certain properties along with the respective escrow deposits in satisfaction of an aggregate $49,509 of non-recourse secured mortgage loans and recognized aggregate net gains on debt satisfaction of $9,250. These dispositions resulted in an aggregate gain on sales of properties of $12,806. During the six months ended June 30, 2012, the Company disposed of its interests in certain properties to unrelated third parties for an aggregate gross disposition price of $74,815 and recognized an aggregate gain on sales of properties of $2,671. In addition, the Company conveyed a property in satisfaction of the $7,119 non-recourse secured mortgage loan and recognized a net gain on debt satisfaction of $1,728. As of June 30, 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 June 30,					Six months ended June 30,
	2013		2012			2013		2012
Total gross revenues	$	876	$	4,833		$	2,408	$	10,151
Pre-tax income (loss)	$	10,069	$	(3,015	)	$	14,993	$	(3,872	)

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 six months ended June 30, 2013 and 2012, the Company recognized $8,735 and $5,690, respectively, of impairment charges in discontinued operations, relating to real estate assets that were disposed below their carrying value.

In addition, the Company recognized an impairment charge of $2,413 in continuing operations during the six months ended June 30, 2013. The Company explored 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.