REAL ESTATE HELD FOR SALE DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2013

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 operating 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.

The Company did not sell any real estate properties during the first six months of 2013. During the first quarter of 2012, 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 second quarter 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. Additionally, later in 2012, the Company sold one operating property (259,000 square feet) in Tulsa for $10,300,000 and recognized a gain of $4,474,000.

The following table presents the components of revenue and expense for the properties sold or held for sale during 2013 and 2012.

	Three Months Ended June 30,				Six Months Ended June 30,
DISCONTINUED OPERATIONS	2013		2012		2013	2012
	(In thousands)
Income from real estate operations	$	—	417		—	833
Expenses from real estate operations	—		(113	)	—	(223	)
Property net operating income from discontinued operations	—		304		—	610
Depreciation and amortization	—		(170	)	—	(382	)
Income from real estate operations	—		134		—	228
Gain on sales of nondepreciable real estate investments, net of tax	—		—		—	167
Gain on sales of real estate investments	—		1,869		—	1,869
Income from discontinued operations	$	—	2,003		—	2,264