7. DISCONTINUED OPERATIONS AND REAL ESTATE INTERESTS HELD FOR SALE

6 Months Ended

Jun. 30, 2014

DISCONTINUED OPERATIONS AND REAL ESTATE INTERESTS HELD FOR SALE

DISCONTINUED OPERATIONS AND REAL ESTATE INTERESTS HELD FOR SALE

7. 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 gain on the sale of these interests (including amounts received 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.

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 $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 condensed consolidated financial statements of comprehensive income.

	For the three months		For the six months
	ended June 30,		ended June 30,
Revenues:	2013		2013
Rental and related revenue	$	—	$	171,000
Food & beverage sales		—		1,950,000
Marina revenue		—		382,000
Other		—		—
Total revenue	$	—	$	2,503,000
Expenses:
Rental operating expenses		—		97,000
Food & beverage operation expenses		—		1,430,000
Marina expenses		—		178,000
Professional fees		—		53,000
Interest expense		—		190,000
Depreciation, amortization and other expenses		—		199,000
Total expenses	$	—	$	2,147,000
Less: noncontrolling interest sold		—		(212,000	)
Gain on sale of discontinued operations		313,000		18,839,000
Benefit from (provision for) income tax expense on gain on sale of discontinued ops		296,000		(1,068,000	)
Income from discontinued operations	$	609,000	$	17,915,000