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Discontinued Operations
 12 Months Ended
Dec. 31, 2021
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations

3.

Discontinued Operations

 

 

Over the past three years, we sold the remaining assets in our Washington, D.C. portfolio, thereby exiting the Washington, D.C. office market. These dispositions represented a strategic shift in our operations and met the criteria for classifying our Washington, D.C. segment as “discontinued operations,” in accordance with ASC Topic 205, Presentation of Financial Statements. Accordingly, effective March 31, 2020, we reclassified the results of operations of our Washington, D.C. segment as discontinued operations.

 

1899 Pennsylvania Avenue

 

On December 24, 2020, we completed the sale of 1899 Pennsylvania Avenue, a 191,000 square foot trophy office building located in Washington, D.C., for $103,000,000. We realized net proceeds of $89,206,000 from the sale after transaction costs and recognized a loss of $12,766,000, which is included as a component of “loss from discontinued operations, net” on our consolidated statement of income for the year ended December 31, 2020.

 


 

Liberty Place

 

On September 26, 2019, we sold Liberty Place, a 172,000 square foot office building in Washington, D.C., for $154,500,000. In connection therewith, we recognized a gain of $1,140,000, which is included as a component of “loss from discontinued operations, net” on our consolidated statement of income for the year ended December 31, 2019.

 

 

The tables below provide the details of the results of operations and the details of the cash flows related to discontinued operations for the periods set forth below.

 

(Amounts in thousands)

 

For the Year Ended December 31,

 

 

Income Statements: (1)

 

2020

 

 

2019

 

 

Revenues:

 

 

 

 

 

 

 

 

 

   Rental revenue

 

$

13,967

 

 

$

24,969

 

 

   Other income

 

 

276

 

 

 

457

 

 

      Total revenues

 

 

14,243

 

 

 

25,426

 

 

Expenses:

 

 

 

 

 

 

 

 

 

   Operating

 

 

5,853

 

 

 

10,134

 

 

   Depreciation and amortization

 

 

690

 

 

 

8,243

 

 

      Total expenses

 

 

6,543

 

 

 

18,377

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

   Real estate impairment loss

 

 

-

 

 

 

(42,000

)

 

Income (loss) before gain or loss on sale of real estate

 

 

7,700

 

 

 

(34,951

)

 

   (Loss) gain on sale of real estate (2)

 

 

(12,766

)

 

 

1,140

 

 

Loss before income taxes

 

 

(5,066

)

 

 

(33,811

)

 

   Income tax expense

 

 

(9

)

 

 

-

 

 

Loss from discontinued operations, net

 

$

(5,075

)

 

$

(33,811

)

 

 

 

 

For the Year Ended December 31,

 

Statements of Cash Flows: (1)

 

2020

 

 

2019

 

Cash provided by operating activities

 

$

5,522

 

 

$

15,949

 

 

 

 

 

 

 

 

 

 

Cash provided by investing activities

 

 

 

 

 

 

 

 

   Proceeds from sale of real estate (3)

 

$

89,206

 

 

$

150,307

 

   Additions to real estate

 

 

-

 

 

 

(1,514

)

Total cash provided by investing activities

 

$

89,206

 

 

$

148,793

 

 

 

 

 

 

 

 

 

 

Cash used in financing activities

 

$

(96,896

)

 

$

(162,294

)

 

 

 

 

 

 

 

 

 

Additional Cash Flow Information:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

690

 

 

$

8,243

 

 

 

 

(1)

Represents revenues, expenses, net income, and cash flow information of 1899 Pennsylvania Avenue in the year ended December 31, 2020 and 1899 Pennsylvania Avenue and Liberty Place in the year ended December 31, 2019.

 

 

(2)

Represents the loss on sale of 1899 Pennsylvania Avenue in 2020 and gain on sale of Liberty Place in 2019.

 

(3)

Represents the proceeds from the sale of 1899 Pennsylvania Avenue in 2020 and Liberty Place in 2019.