OPERATING PROPERTIES, REAL ESTATE HELD FOR SALE AND OTHER REAL ESTATE OWNED

3 Months Ended

Mar. 31, 2019

Real Estate [Abstract]

OPERATING PROPERTIES, REAL ESTATE HELD FOR SALE AND OTHER REAL ESTATE OWNED

OPERATING PROPERTIES, REAL ESTATE HELD FOR SALE AND OTHER REAL ESTATE OWNED

As of March 31, 2019, we held total REO assets of $80.3 million, of which $7.4 million were held for sale, $39.1 million were held as operating properties, and $33.7 million were classified as other real estate owned. At December 31, 2018, we held total REO assets of $75.0 million, of which $7.4 million were held for sale, $33.9 million were held as operating properties and $33.7 million were classified as other real estate owned. There were no real estate assets acquired or sold during the three months ended March 31, 2019. During the three months ended March 31, 2018, we sold an easement on an REO project resulting in a total net gain on sale of $0.3 million.

REO Planned Development and Operations

Costs and expenses related to operating, holding and maintaining our operating properties and REO assets are expensed as incurred and included in operating property direct expenses, and as expenses for non-operating real estate owned in the accompanying condensed consolidated statements of operations. For the three months ended March 31, 2019 and 2018, these costs and expenses were $2.4 million and $2.4 million, respectively. Costs related to the development, renovation or improvements of the Company’s real estate assets are generally capitalized, and costs relating to holding the assets are generally charged to expense. Cash outlays for capitalized renovation costs totaled $4.7 million and $1.1 million during the three months ended March 31, 2019 and 2018, respectively.