DISCONTINUED OPERATIONS AND REAL ESTATE INTERESTS HELD FOR SALE

12 Months Ended

Dec. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND REAL ESTATE INTERESTS HELD FOR SALE

11. 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 transactions in June 2013 described below) of approximately $19 million (or $19 per share) net of incentive fee due to the Adviser of approximately $2.1 million and before provision for corporate income taxes estimated at $2.5 million (consisting of approximately $1.6 million in current income tax expense and $915,000 in deferred income tax expense).

In June 2013 the Company received an additional $327,000 in proceeds for unpaid rent due by the Grove Isle tenant prior to the sale. Also in June 2013 the Purchaser exercised its option to purchase our 50% interest in the spa for $100,000.

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 gain on the sale of these interests (as adjusted) of approximately $28,000 (or $.03 per share).

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

	For the year
	ended December 31,
Revenues:	2013			2012
Rental and related revenue	$	171,000		$	1,802,000
Food & beverage sales		1,950,000		$	6,179,000
Marina revenue		382,000		$	1,657,000
Other		—		$	430,000
Total revenue	$	2,503,000		$	10,068,000
Expenses:
Rental operating expenses		97,000			550,000
Food & beverage operation expenses		1,430,000			5,150,000
Marina expenses		178,000			959,000
Professional fees		53,000			227,000
Interest expense		190,000			769,000
Depreciation, amortization and other expenses		199,000			1,291,000
Total expenses	$	2,147,000		$	8,946,000
Less: noncontrolling interest sold		(212,000	)		—
Gain on sale of discontinued operations, net of incentive fee		18,803,000			—
Provision for income tax expense on gain on sale of discontinued operations		(2,508,000	)		—
Income from discontinued operations	$	16,439,000		$	1,122,000

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

	December 31, 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