REAL ESTATE HELD FOR SALE DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Real Estate Held For Sale and Discontinued Operations

REAL ESTATE HELD FOR SALE/DISCONTINUED OPERATIONS

The Company considers a real estate property to be held for sale when it meets the criteria established under ASC 360, Property, Plant, and Equipment, including when it is probable that the property will be sold within a year.  Real estate properties held for sale are reported at the lower of the carrying amount or fair value less estimated costs to sell and are not depreciated while they are held for sale.  In accordance with the guidelines established under the Codification,the results of operations for the properties sold or held for sale during the reported periods are shown under Discontinued Operations on the Consolidated Statements of Income and Comprehensive Income.  Interest expense is not generally allocated to the properties held for sale or whose operations are included under Discontinued Operations unless the mortgage is required to be paid in full upon the sale of the property.

During the first nine months of 2012, the Company sold one operating property (174,000 square feet) in Phoenix for $7,019,000 and recognized a gain of $1,869,000. In addition, EastGroup’s taxable REIT subsidiary sold two properties in Tampa, which collectively contain 10,500 square feet, for $578,000 and recognized an after-tax gain of $167,000 during the first quarter of 2012.  The Company did not sell any real estate properties during 2011.

The following table presents the components of revenue and expense for the properties sold or held for sale during 2012 and 2011.

	Three Months Ended September 30,				Nine Months Ended September 30,
DISCONTINUED OPERATIONS	2012		2011		2012		2011
	(In thousands)
Income from real estate operations	$	—	123		304		325
Expenses from real estate operations	—		(57	)	(111	)	(172	)
Property net operating income from discontinued operations	—		66		193		153
Depreciation and amortization	—		(89	)	(176	)	(238	)
Income (loss) from real estate operations	—		(23	)	17		(85	)
Gain on sales of nondepreciable real estate investments, net of tax	—		—		167		—
Gain on sales of real estate investments	—		—		1,869		—
Income (loss) from discontinued operations	$	—	(23	)	2,053		(85	)