Property And Equipment

3 Months Ended

Mar. 31, 2013

Note 6 – Property and Equipment

Acquisitions

Coachella, California Land Acquisition

On January 10, 2012, Shadow View Land and Farming, LLC, a limited liability company owned by our Company, acquired a 202-acre property, zoned for the development of up to 843 single-family residential units, located in the City of Coachella, California. The property was acquired at a foreclosure auction for $5.5 million. The property was acquired as a long-term investment in developable land. Half of the funds used to acquire the land were provided by Mr. James J. Cotter, our Chairman, Chief Executive Officer and controlling shareholder. Upon the approval of our Conflicts Committee, these funds were converted on January 18, 2012 into a 50% interest in Shadow View Land and Farming, LLC. We are the managing member of this company.

Disposals

Taringa

On February 21, 2012, we sold our three properties in the Taringa area of Brisbane, Australia consisting of approximately 1.1 acres for $1.9 million (AUS$1.8 million).

Operating Property

As of March 31, 2013 and December 31, 2012, we owned investments in property and equipment as follows (dollars in thousands):



Operating property		March 31, 2013		December 31, 2012
Land	$	69,529	$	69,370
Building and improvements		136,961		136,225
Leasehold interests		46,319		45,391
Fixtures and equipment		108,827		108,169
Total cost		361,636		359,155
Less: accumulated depreciation		(160,485)		(156,377)
Operating property, net	$	201,151	$	202,778

Depreciation expense for property and equipment was $3.1 million for the three months ended March 31, 2013, and $3.8 million for the three months ended March 31, 2012.

Investment and Development Property

As of March 31, 2013 and December 31, 2012, we owned investment and development property summarized as follows (dollars in thousands):



Investment and Development Property		March 31, 2013		December 31, 2012
Land	$	77,316	$	77,020
Construction-in-progress (including capitalized interest)		17,987		17,902
Investment and development property	$	95,303	$	94,922

At the beginning of 2010, we curtailed development activities on our development properties and are not currently capitalizing interest expense. As a result, we did not capitalize any interest during the three months ended March 31, 2013 or 2012.