Impairments

6 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

Impairments

Impairments

We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A provision is made for impairment if estimated future operating cash flows (undiscounted and without interest charges) plus estimated disposition proceeds (undiscounted) are less than the current book value of the property. Key factors that we utilize in this analysis include projected rental rates, estimated holding periods, historical sales and re-leases, capital expenditures and property sales capitalization rates. If a property is classified as held for sale, it is carried at the lower of carrying cost or estimated fair value, less estimated cost to sell, and depreciation of the property ceases.

During the second quarter of 2019, we recorded total provisions for impairment of $13.1 million on eight properties classified as held for sale, two properties classified as held for investment, and four sold properties. For the first six months of 2019, we recorded total provisions for impairment of $17.7 million on ten properties classified as held for sale, two properties classified as held for investment, and 12 sold properties.

In comparison, during the second quarter of 2018, we recorded total provisions for impairment of $4.0 million on one property classified as held for investment and 17 sold properties. For the first six months of 2018, we recorded total provisions for impairment of $18.2 million on two properties classified as held for investment and 23 sold properties.