XML 28 R18.htm IDEA: XBRL DOCUMENT v3.20.2
Provision for Impairment of Investment Properties
 6 Months Ended
Jun. 30, 2020
Impairment or Disposal of Tangible Assets Disclosure [Abstract]  
Provision for Impairment of Investment Properties PROVISION FOR IMPAIRMENT OF INVESTMENT PROPERTIES
As of June 30, 2020, the Company identified indicators of impairment at certain of its properties. Such indicators included a low occupancy rate, difficulty in leasing space and related cost of re-leasing, or significant change in the scope, cost or timing of planned redevelopment. As of June 30, 2019, the Company did not identify indicators of impairment at any of its properties. The following table summarizes the results of these analyses as of June 30, 2020:
 
June 30, 2020
Number of properties for which indicators of impairment were identified
2

Less: number of properties for which an impairment charge was recorded
—

Less: number of properties that were held for sale as of the date the analysis was performed for which indicators of
impairment were identified but no impairment charge was recorded
—

Remaining properties for which indicators of impairment were identified but no impairment charge was considered necessary
2

 
 
Weighted average percentage by which the projected undiscounted cash flows exceeded
its respective carrying value for each of the remaining properties (a)
166
%
(a)
Based upon the estimated holding period for each asset where an undiscounted cash flow analysis was performed.
The Company recorded the following investment property impairment charge during the six months ended June 30, 2020:
Property Name
 
Property Type
 
Impairment Date
 
Square
Footage
 
Provision for
Impairment of
Investment
Properties
King Philip’s Crossing (a)
 
Multi-tenant retail
 
February 13, 2020
 
105,900

 
$
346

 
 
 
 
 
 
 
 
$
346

 
 
Estimated fair value of impaired property as of impairment date
$
11,644

(a)
The Company recorded an impairment charge on December 31, 2019 based upon the terms and conditions of an executed sales contract. This property was sold on February 13, 2020, at which time additional impairment was recognized pursuant to the terms and conditions of an executed sales contract.
The Company did not record any investment property impairment charges during the six months ended June 30, 2019.
The extent to which COVID-19 impacts the Company and its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence. If the effects of COVID-19 cause economic and market conditions to continue to deteriorate or if the Company’s expected holding period for assets change, subsequent tests for impairment could result in impairment charges in the future. As of June 30, 2020, the Company does not consider the impacts of COVID-19, including tenant requests for lease concessions, to be impairment indicators. However, indications of a tenant’s inability to continue as a going concern, changes in the Company’s view or strategy relative to a tenant’s business or industry as a result of COVID-19, or changes in the Company’s long-term hold strategies could change in future periods. The Company will continue to monitor circumstances and events in future periods and can provide no assurance that material impairment charges with respect to its investment properties will not occur in future periods.