12.	Impairment - Real Estate Investments

Management periodically assesses its Real Estate Investments for possible impairment whenever certain events or changes in circumstances indicate that the carrying amount of the asset, including accrued rental income, may not be recoverable through operations. Events or circumstances that may occur include significant changes in real estate market conditions and the ability of the Company to re-lease or sell properties that are vacant or become vacant. The anchor tenant at the Chippewa Commons shopping center declined to extend their lease which will contribute to vacancy at the center and will result in diminished cash flows. As a result of the Company’s review of the shopping center real estate investments, including identifiable intangible assets, the Company recognized an impairment of $2,800,000 for the quarter and six months ended June 30, 2014 for the Chippewa Commons shopping center property which is included in continuing operations. The impairment was measured as the amount by which the current net book value of the asset exceeded the estimated fair value of the asset as determined by a broker opinion of value and internal Company estimates.

Real Estate Investments measured at fair value due to impairment charges are considered fair value measurements on a non recurring basis. The following table presents the assets and liabilities carried on the balance sheet within the fair value valuation hierarchy (as described above) as of June 30, 2014, for which a nonrecurring change in fair value has been recorded during the quarter and six months ended June 30, 2014.

Quoted prices in

Significant other

Significant

active markets for

observable

unobservable

2014

Fair Value as of

identical assets

inputs

Impairment

(in thousands)

measurement date

(Level 1)

(Level 2)

(Level 3)

Charge

Real Estate Investments

1,261

-0-

1,261

2,800

The loss of $2,800,000 represents an impairment charge related to Real Estate Investments which was included in net income during the quarter and six months ended June 30, 2014. During the quarter and six months ended June 30, 2013, the Company recorded no impairment charge related to Real Estate Investments. The fair value of certain Real Estate Investments was calculated differently based on available information. Real Estate Investments considered to be measured based on Level 1 inputs were based on actual sales negotiations and bona fide purchase offers received from third parties. Real Estate Investments considered to be measured based on Level 2 inputs were based on broker opinions of value or analysis of recent comparable sales transactions. Real Estate Investments considered to be measured based on Level 3 inputs were based on an internal valuation model using discounted cash flow analyses and income capitalization using market lease rates and market cap rates. These cash flow projections incorporate assumptions developed from the perspective of market participants valuing the Real Estate Investments.