Property Dispositions

We have an active capital recycling program, with a goal of extending the average lease term of our portfolio 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 our net-leased and operating assets. We may decide to dispose of a property due to vacancy, 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 condensed consolidated balance sheet.

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



	Three Months Ended March 31,
	2019			2018
Revenues	$	429		$	6,830
Operating expenses	(139		)	(5,362		)
Gain on sale of real estate, net	15,408			—
Interest expense	(150		)	(1,709		)
Other gains and (losses)	(172		)	(286		)
(Provision for) benefit from income taxes	(7		)	215
Net income attributable to noncontrolling interests	(2,874		)	(2		)
Income (loss) from properties sold, net of income taxes	$	12,495		$	(314	)

On January 29, 2019, we sold our 97% interest that we held in our last multi-family residential property, located in Fort Walton Beach, Florida, to one of our joint venture partners for total proceeds of $13.1 million, net of closing costs, and recognized a gain on sale of $15.4 million (which includes a $2.9 million gain attributable to noncontrolling interests). The buyer assumed the related mortgage loan outstanding on this property totaling $24.2 million.

On March 22, 2019, we sold a retail building located in Edinburgh, United Kingdom for total proceeds of $4.3 million, net of closing costs, and recognized a gain on sale of $1.2 million (amounts based on the exchange rate of the British pound sterling at the date of sale). The $2.5 million mortgage encumbering this property was fully repaid at closing.