Property Dispositions

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Property Dispositions

Property Dispositions

From time to time, we may decide to sell a property. We have an active capital recycling program, with a goal of extending the

average lease term through reinvestment, improving portfolio credit quality through dispositions and acquisitions of assets,

increasing the asset criticality factor in our portfolio, and/or executing strategic dispositions of assets. We may decide to dispose of a property when it is vacant, 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.

Property Dispositions

The results of operations for properties that have been sold or classified as held for sale are included in the consolidated financial statements and are summarized as follows (in thousands):

	Three Months Ended March 31,
	2016			2015
Revenues	$	1,646		$	1,516
Expenses	(1,429		)	(1,618		)
Gain on sale of real estate	25,398			—
Loss on extinguishment of debt	(2,499		)	—
Income (loss) from properties sold or classified as held for sale, net of income taxes	$	23,116		$	(102	)

2016 — During the three months ended March 31, 2016, we sold three self-storage properties for total proceeds of $46.4 million, net of closing costs, and recognized a gain on this sale of $25.4 million. The proceeds from the sale were used to repay a non-recourse mortgage loan encumbering the properties with an outstanding principal balance of $15.0 million and premium, interest, and closing costs of $2.4 million at the time of the sale. Total revenues from these properties were $0.9 million for the three months ended March 31, 2016.

During the three months ended March 31, 2016, we entered into contracts to sell five self-storage properties for a total contract price of $25.6 million (Note 4). At March 31, 2016, these properties were classified as assets held for sale. On April 12, 2016, these properties were sold (Note 15).

2015 — In connection with the I Shops Partial Sale, we recognized a gain on sale of real estate of $14.6 million, of which $12.4 million, or 85%, we recognized during the year ended December 31, 2014 and $2.2 million, or 15%, we recognized during the three months ended March 31, 2015 (Note 4).