10. DISCONTINUED OPERATIONS AND REAL ESTATE INTERESTS HELD FOR SALE

9 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND REAL ESTATE INTERESTS HELD FOR SALE

10. DISCONTINUED OPERATIONS AND REAL ESTATE INTERESTS HELD FOR SALE

As previously reported, on February 25, 2013 the Company completed the sale of its interests in Grove Isle Associates LLLP, Grove Isle Yacht Club Associates, Grove Isle Investments Inc. and CII Yacht Club, Inc., which represent interests in the Grove Isle hotel, club, tennis courts and marina (collectively, the “Grove Isle Property”) to Grove Isle Yacht & Tennis, LLC, a Florida limited liability company and an unrelated entity (“the Purchaser”), pursuant to a purchase agreement entered into on the same day (the “Agreement”). The purchase price was $24.4 million, consisting of $23.4 million in cash and a $1 million promissory note due from the Purchaser. Approximately $2.7 million of the proceeds were used to pay off the existing mortgage on the Grove Isle Property. The Company realized a gain on the sale of these interests (including amounts received in June 2013 described below) of approximately $19 million (or $19.00 per share) net of incentive fee due to the Adviser of approximately $2.1 million and before provision for corporate income taxes.

In June 2013 the Company received approximately $327,000 of past due rental payments from the Grove Isle tenant. This amount is included in the realized gain on the sale of Grove Isle. Also in June 2013 the Purchaser exercised its option to purchase our 50% interest in the spa for $100,000 as provided in the Agreement. There was no gain or loss realized on this transaction.

As previously reported, on March 29, 2013, pursuant to a Membership Interests Purchase Agreement (the “Agreement”) entered into in December 2012, HMG/Courtland Properties, Inc. and its 95% owned subsidiary, Courtland Investments, Inc. (the “Company”), completed the sale of the Company’s 50% membership interests in Bayshore Landing LLC, Bayshore Rawbar LLC and Bayshore Restaurant LLC, (collectively the “Monty’s property) to the other 50% owner, The Christoph Family Trusts, which are unrelated entities. The purchase price for the membership interests of $3 million was paid in cash. The Company realized a loss on the sale of these interests of approximately $184,000 (or $.19 per share).

We have classified the results of operations for the real estate interests discussed above into discontinued operations in the accompanying condensed consolidated financial statements of comprehensive income.

	For the three months					For the nine months
	ended September 30,					ended September 30,
Revenues:	2013			2012		2013			2012
Rental and related revenue	$	—		$	485,000	$	171,000		$	1,415,000
Food & beverage sales		—			1,271,000		1,950,000		$	4,628,000
Marina revenue		—			408,000		382,000		$	1,239,000
Other		—			110,000		—		$	350,000
Total revenue	$	—		$	2,274,000	$	2,503,000		$	7,632,000
Expenses:
Rental operating expenses		—			43,000		97,000			149,000
Food & beverage operation expenses		—			1,127,000		1,430,000			3,840,000
Marina expenses		—			224,000		178,000			641,000
Professional fees		—			45,000		53,000			162,000
Interest expense		—			190,000		190,000			579,000
Depreciation, amortization and other expenses		—			424,000		199,000			1,261,000
Total expenses	$	—		$	2,053,000	$	2,147,000		$	6,632,000
Less: noncontrolling interest sold		—			—		(212,000	)		—
Gain on sale of discontinued operations, net of incentive fee		(34,000	)		—		18,805,000			—
Provision for income tax expense on gain on sale of discontinued ops		(1,626,000	)		—		(2,694,000	)		—
Income from discontinued operations	$	(1,660,000	)	$	221,000	$	16,255,000		$	1,000,000

The major classes of assets and liabilities associated with the real estate interest held for sale as of September 30, 2013 and December 31, 2012 were as follows:

	September 30, 2013		December 31, 2012
Grove Isle Spa remaining interest	$	—	$	1,434,000
Grove Isle land, hotel, club building and marina		—		1,801,000
Grove Isle other assets		—		222,000
Bayshore Restaurant, marina and retail offices		—		7,822,000
Bayshore goodwill		—		5,629,000
Bayshore other receivables		—		206,000
Bayshore other assets		—		985,000
Assets associated with real estate interests held for sale	$	—	$	18,099,000
Grove Isle mortgage note payable	$	—	$	2,696,000
Grove Isle accrued and other liabilities		—		23,000
Bayshore mortgage note payable		—		8,190,000
Bayshore interest rate swap contract payable		—		1,965,000
Bayshore accrued and other liabilities		—		510,000
Obligations associated with real estate interests held for sale	$	—	$	13,384,000