Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations [Abstract]

Discontinued Operations

Note 5.  Discontinued Operations

The Company separately reports as discontinued operations the historical operating results attributable to properties sold and the applicable gain or loss on the disposition of the properties. Although this application may affect the presentation of the Company’s results of operations for the periods that it has already reported, there will be no effect on its previously reported consolidated financial statements. 

In April 2014, the FASB issued ASU 2014-08on the reporting of discontinued operations, which amends the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results (e.g., a disposal of a major geographical area, a major line of business, a major equity method investment or other major parts of an entity). The Company elected to early adopt this standard as of January 1, 2014. Prior to the adoption, the results of operations for real estate properties sold or held for sale during the relevant reporting periods were shown under discontinued operations on the consolidated statements of operations. The results of operations for the two properties are included in discontinued operations for the years ended December 31, 2013 and 2012 because these properties were previously classified as held for sale and sold during the year ended December 31, 2013 and 2012. The Company’s other 2014 asset classified as held for sale does not qualify as discontinued operations under ASU 2014-08 and its operating results for the year ended December 31, 2014 are presented within income from continuing operations in the consolidated statements of operations.

During the year ended December 31, 2013,  the Company sold one property located in the Northern New Jersey/New York City market for a sales price of approximately $19.0 million, resulting in a gain of approximately $2.8 million. During the year ended December 31, 2012, the Company sold one property located in the Los Angeles market for a sales price of approximately $17.0 million, resulting in a gain of approximately $4.0 million.

The following summarizes the condensed results of operations of the properties sold for the years ended December 31, 2014, 2013 and 2012 (dollars in thousands):

	For the Year Ended December 31,
		2014		2013		2012
Rental revenues	$	-	$	1,541	$	2,636
Tenant expense reimbursements		-		380		579
Property operating expenses		-		(408)		(647)
Depreciation and amortization		-		(101)		(509)
Income from discontinued operations	$	-	$	1,412	$	2,059