Discontinued Operations and Real Estate Impairment (Notes)

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Real Estate Impairment

Discontinued Operations and Real Estate Impairment

During the nine months ended September 30, 2014, the Company disposed of its interests in certain properties to unrelated third parties for an aggregate gross disposition price of $105,180 and conveyed one property, along with its escrow deposits, in satisfaction of the $9,900 non-recourse secured mortgage loan. During the nine months ended September 30, 2013, the Company disposed of its interest in certain properties to unrelated third parties for a gross disposition price of $70,989. In addition, during the nine months ended September 30, 2013, the Company conveyed certain properties, along with the respective escrow deposits, in satisfaction of the $49,509 aggregate non-recourse secured mortgage loans. During the nine months ended September 30, 2014 and 2013, the Company recognized aggregate gains on sales of properties of $22,052 and $14,935, respectively. In addition, during the nine months ended September 30, 2014 and 2013, the Company recognized aggregate net gains (charges) on debt satisfaction of $(299) and $8,954, respectively, relating to discontinued operations. As of September 30, 2014, 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 September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Total gross revenues	$	351	$	5,181	$	7,925	$	18,526
Pre-tax income (loss), including gains on sales	$	18,190	$	1,060	$	13,530	$	15,060

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 or transfer 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, 2014 and 2013, the Company recognized $11,062 and $9,537, respectively, of impairment charges in discontinued operations, relating to real estate assets that were disposed of below their carrying value or classified as held for sale.

In addition, the Company recognized impairment charges of $18,864 and $2,413 in continuing operations during the nine months ended September 30, 2014 and 2013, respectively. The Company explored the possible disposition of certain non-core properties, including retail, underperforming and multi-tenant properties and determined that the expected undiscounted cash flows based upon a revised estimated holding period of the properties were below the current carrying values. Accordingly, the Company reduced the carrying values of these properties to their estimated fair values of $5,574 and $4,277, respectively. A property impaired during the nine months ended September 30, 2014, is encumbered by a $17,331 non-recourse secured mortgage loan.