Land Held for Divestiture

On January 31, 2012, the Board of Directors of the Company approved a strategic decision by senior management to reposition portions of the Company's investment in the Land Development Group as part of a greater focus on core rental properties in core markets. Accordingly, the consolidated land assets associated with the land divestiture effort and related nonrecourse mortgage debt have been reclassified as land held for divestiture on the Consolidated Balance Sheets at April 30 and January 31, 2013.

During the three months ended April 30, 2012, the Company established an execution strategy relating to the land divestiture effort. For land projects that are not wholly-owned, the initial strategy was to negotiate with current partners to sell the Company's partnership interests to them, or acquire theirs, which would enable the Company to go to market with 100% ownership of the land development opportunity. The Company began preliminary discussions with numerous potential buyers ranging from large national investment funds to regional land developers as part of the divestiture strategy. During the remainder of 2012, the Company closed on the divestiture of the majority of land projects.

During the three months ended April 30, 2013, the Company continued to divest its remaining land held for divestiture. As of April 30, 2013, the Company has $3,651,000 of remaining carrying value in land held for divestiture. Ongoing negotiations continue on the few remaining land projects.

The Company recorded the land held for divestiture activity for fully consolidated land projects and those accounted for on the equity method of accounting on their own separate financial statement line items in the Consolidated Statements of Operations. These activities primarily represent sales of bulk land projects held for divestiture and the associated cost of sales.

The following table summarizes the net gain on land held for divestiture activity of consolidated entities:



	Three Months Ended April 30,
	2013			2012
	(in thousands)
Sales of land held for divestiture	$	712		$	—
Cost of sales of land held for divestiture	(260		)	—
Net gain on land held for divestiture activity	$	452		$	—

The Company's strategic decision to divest a portion of its Land Development Group included certain land development projects accounted for on the equity method. The following table summarizes the net loss on investments in unconsolidated entities which are part of the land divestiture strategy:



	Three Months Ended April 30,
	2013			2012
	(in thousands)
Net loss on sales of land held for divestiture of unconsolidated entities	$	(147	)	$	—
Net loss on land held for divestiture activity of unconsolidated entities	$	(147	)	$	—