DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 15—discontinued operations

The table below reflects the activity related to the Company’s discontinued operations.  The revenues, expenses and all other statement of operations activity in discontinued operations, including the gains and losses on dispositions, have been classified as “Income (loss) from discontinued operations, net of tax” and “Net losses (income) allocable to noncontrolling interests from CFVs and IHS – related to discontinued operations” on the consolidated statements of operations.

Four rental properties with a carrying value of $51.8 million were classified as real estate held-for-sale at September 30, 2013. The revenues, expenses and all other statement of operations amounts were reclassified to “Income (loss) from discontinued operations, net of tax.”

During the first quarter of 2013, the same non-profit entity sold a property that was classified as held-for-sale on the consolidated balance sheet at December 31, 2012. The sale generated $20.1 million of net cash proceeds. As a result of the sale, the Company recognized a gain on sale of the real estate of $5.0 million of which $1.4 million was allocable to noncontrolling interests as reflected in the nine months ended September 30, 2013.

 

	For the three months ended September 30,				For the nine months ended September 30,
(in thousands)	2013		2012		2013		2012
Sublease income	$	-	$	369	$	492	$	1,107
Income from CFVs (primarily rental income)		3,511		5,034		10,968		14,999
Income from REO operations		-		-		-		57
Rent expense		-		(369)		(492)		(1,107)
Expenses from CFVs (primarily operating expenses)		(3,594)		(4,545)		(10,152)		(14,707)
Other income		46		113		44		345
Net gains on property acquisition		320		-		320		-
Net income before disposal activity		283		602		1,180		694
Disposal:
Net gains related to REO		95		-		95		-
Net gains related to CFVs		25		-		5,252		-
Net income from discontinued operations		403		602		6,527		694
(Income) loss from discontinued operations allocable    to noncontrolling interests		(129)		(995)		(1,312)		648
Net income (loss) to common shareholders from    discontinued operations	$	274	$	(393)	$	5,215	$	1,342

The details of net income to common shareholders from discontinued operations for the three months and nine months ended September 30, 2013 and 2012 are as follows:

	For the three months ended September 30,				For the nine months ended September 30,
(in thousands)	2013		2012		2013		2012
Interest income	$	-	$	765	$	1,108	$	2,349
Other income		399		478		1,268		1,476
Other expense		(245)		(1,636)		(1,161)		(2,483)
Net gains on disposal of REO		95		-		95		-
Net gains on redemption of bonds		25		-		3,905		-
Net income to common shareholders from discontinued     operations	$	274	$	(393)	$	5,215	$	1,342