DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2011

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 3. DISCONTINUED OPERATIONS

We apply the provisions of ASC Topic 360, “Property, Plant and Equipment”, which requires that long-lived assets that are to be disposed of by sale be measured at the lesser of (1) book value or (2) fair value less cost to sell.  In addition, it requires that one accounting model be used for long-lived assets to be disposed of by sale and broadens the presentation of discontinued operations to include more disposal transactions.

Discontinued operations relates to properties that were either sold or held for sale as of the period ended September 30, 2011. Included in discontinued operations is one property for 2011 and 2010. Properties sold in 2011 have been reclassified to discontinued operations for current and prior year reporting periods. In 2011, we sold 13.0 acres of land with a storage warehouse (Eagle Crest).  There were no properties sold in 2010. The gain on sale of the properties is also included in discontinued operations for those years. The following table summarizes revenue and expense information for the properties sold and held for sale (dollars in thousands):

	For the Three Months Ended September 30,						For the Nine Months Ended  September 30,
	2011			2010			2011			2010
Revenue
Rental	$	-		$	110		$	159		$	236
Property operations		7			22			42			78
		(7	)		88			117			158
Expenses
Interest		(2	)		(51	)		(85	)		(151	)
General and administration		(1	)		-			(2	)		(3	)
Provision on impairment of real estate assets		-			-			(1,474	)		-
		(3	)		(51	)		(1,561	)		(154	)
Income (loss) from discontinued operations before gains on sale of real estate, taxes, and fees		(10	)		37			(1,444	)		4
Loss on sale of discontinued operations		(475	)		-			(475	)		-
Income (loss) from discontinued operations	$	(485	)	$	37		$	(1,919	)	$	4
Tax benefit (expense)		170			(13	)		672			(1	)
Net income (loss) from discontinued operations	$	(315	)	$	24		$	(1,247	)	$	3

Our application of ASC Topic 360 results in the presentation of the net operating results of these qualifying properties sold or held for sale during 2011 as income from discontinued operations. This does not have an impact on net income available to common shareholders and only impacts the presentation of these properties within the Consolidated Statements of Operations.