Discontinued Operations

9 Months Ended

Sep. 30, 2013

Discontinued Operations

Discontinued Operations

Note13. Discontinued Operations

From time to time, we may decide to sell a property. We may make a decision to dispose of a property when it is vacant as a result of tenants vacating space, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. We may also sell a property when we receive an unsolicited offer or negotiate a price for an investment that is consistent with our strategy for that investment. When it is appropriate to do so, we classify the property as an asset held for sale on our consolidated balance sheet and the current and prior period results of operations of the property are reclassified as discontinued operations.

The results of operations for properties that are held for sale or have been sold and with which we have no continuing involvement are reflected in the consolidated financial statements as discontinued operations and are summarized as follows (in thousands, net of tax):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
Revenues		$	1,325	$	1,214	$	3,702	$	3,496
Expenses			(1,076)		(885)		(2,962)		(2,542)
Gain on sale of real estate			-		-		-		740
	Income from discontinued operations, net of tax	$	249	$	329	$	740	$	1,694

2013 –During thethree months ended September 30, 2013, we entered into a contract to sell one of our hotels for $24.0 million. At September 30, 2013, this property was classified as Assets held for sale in the consolidated balance sheets. We completed the sale of the hotel property in October 2013 and paid off the outstanding non-recourse mortgage loan of $5.1 million.

2012 –During thenine months ended September 30, 2012, we sold 12 domestic properties for a total cost of $12.7 million, net of selling costs, and recognized a net gain on the sales of the properties totaling $0.7 million.