Disposals and Assets Held for Sale

3 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposals and Assets Held for Sale

Disposals and Assets Held for Sale

During the three months ended March 31, 2015 and 2014, we sold six and five consolidated apartment communities with an aggregate of 1,100 and 1,606 apartment homes, respectively, and during the year ended December 31, 2014, we sold 30 consolidated apartment communities with an aggregate of 9,067 apartment homes. The results of operations for the three months ended March 31, 2015 and 2014, for these apartment communities are reflected within income from continuing operations in our condensed consolidated statements of operations. The apartment communities sold during 2015, did not generate a significant amount of net income (before gains on dispositions) during the three months ended March 31, 2015, for the period prior to their sale. The apartment communities sold during 2015 and 2014, generated $9.8 million of net income (before gains on dispositions) during the three months ended March 31, 2014.

The sale of these apartment communities resulted in gains on disposition of real estate of $85.7 million and $69.5 million, respectively, for the three months ended March 31, 2015 and 2014. We report gains on disposition net of incremental direct costs incurred in connection with the transactions, including any prepayment penalties incurred upon repayment of property debt collateralized by the apartment communities being sold. Such prepayment penalties totaled $12.1 million and $5.8 million for consolidated dispositions during the three months ended March 31, 2015 and 2014, respectively. In connection with sales of apartment communities during the three months ended March 31, 2014, the purchasers assumed $29.8 million of non-recourse property debt.

We are currently marketing for sale certain apartment communities that are inconsistent with our long-term investment strategy. At the end of each reporting period, we evaluate whether such apartment communities meet the criteria to be classified as held for sale. As of March 31, 2015, we had one apartment community with a total of 84 apartment homes classified as held for sale.