Discontinued Operations and Real Estate Held for Sale

12 Months Ended

Dec. 31, 2015

Discontinued Operations and Real Estate Held for Sale

Discontinued Operations and Real Estate Held for Sale

Discontinued Operations

Effective as of January 1, 2015, we adopted the revised guidance for discontinued operations as further discussed in Note 3, New Accounting Pronouncements. For sales of real estate or assets classified as held for sale after January 1, 2015, we will evaluate whether the disposal transaction meets the criteria of a strategic shift and will have a major effect on our operations and financial results to determine if the results of operations and gains on sale of real estate will be presented as part of our continuing operations or as discontinued operations in our consolidated statements of operations. If the disposal represents a strategic shift, it will be classified as discontinued operations for all periods presented; if not, it will be presented in continuing operations. Any sales of real estate prior to January 1, 2015 that were reported in discontinued operations in prior reporting periods will continue to be reported as discontinued operations.

The following table summarizes the disposition of our properties during 2013 (in millions):

Property Name	Date of Disposition	Contract Sales Price
Becket House	April 5, 2013	$	19.8
Rio Salado	May 28, 2013	9.3
4950 S. Bowen Road	October 22, 2013	1.6

We classified the results of operations for Becket House into discontinued operations in the accompanying consolidated statements of operations and comprehensive loss for the year ended December 31, 2013. We did not classify the results of operations for Rio Salado and 4950 S. Bowen Road into discontinued operations as they represent land-only interests. The following table summarizes the income from discontinued operations for Becket House for the year ended December 31, 2013 (in thousands):

Description	Year Ended December 31, 2013
Revenues
Rental revenue	$	514
Expenses
Property operating expenses	189
Bad debt expense	(111		)
Interest expense	633
Real estate taxes	(21		)
Impairment charge	305
Property management fees	24
Asset management fees	16
Depreciation and amortization	—
Total expenses	1,035
Interest Income	(2		)
Realized loss on currency translation adjustment(1)	(3,624		)
Gain on troubled debt restructuring(1)	8,132
Income from discontinued operations	3,985
Loss attributable to noncontrolling interests	(1,460		)
Income from discontinued operations attributable to the Company	$	2,525

_______________________________________________________________________________

(1) Due to the sale of Becket House on April 5, 2013, $3.6 million was reclassified from unrealized foreign currency translation loss in OCI to net loss and $8.1 million was recorded as a gain on troubled debt restructuring.

We did not classify the condominiums sold during 2013 at Chase—The Private Residences as discontinued operations. Additionally, on June 13, 2014, we sold 1.62 acres of land that was a part of our Frisco Square investment to an unaffiliated third party that is not included in discontinued operations.