DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2012

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 8. 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 June 30, 2012. Included in discontinued operations is one property for 2012 and 2011. There were no properties sold in 2012. In 2011, we sold 13.0 acres of land with a storage warehouse (Eagle Crest).  The gain on sale of the properties, if applicable, 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 Six Months Ended
	June 30,
	2012			2011
Revenue
Rental	$	-		$	159
		-			159
Expenses
Property operations		1			35
General and administration		8			2
Provision on impairment of real estate assets		-			1,474
Interest		-			83
		9			1,594
Loss from discontinued operations before gains on sale of real estate, taxes, and fees		(9	)		(1,435	)
Gain (loss) on sale of discontinued operations		-			-
Loss from discontinued operations	$	(9	)	$	(1,435	)
Tax benefit		3			502
Net loss from discontinued operations	$	(6	)	$	(933	)

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 2012 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.