Real Estate Investments

9 Months Ended

Sep. 30, 2012

Real Estate Investments, Net [Abstract]

Real Estate Investments

The major components of real estate investments as of September 30, 2012 and December 31, 2011 are as follows:



	September 30, 2012		December 31, 2011
Land	$	18,892	21,312
Buildings and improvements	54,383		67,487
Intangibles	329		300
Subtotal	73,604		89,099
Less: accumulated depreciation and amortization	8,697		10,557
Total	$	64,907	78,542

Depreciation and amortization is computed using the straight-line method over the estimated service life of the respective assets, ranging from 5 to 39 years.

On August 8, 2012, SJW Land Company sold its warehouse building located in Orlando, Florida for $5,821. The Company recognized a pre-tax gain on the sale of real estate investment of $910, after selling expenses of $304.

During the third quarter of 2012, management decided to sell its warehouse building located in Windsor, Connecticut. As a result, the Company reclassified the Connecticut warehouse building from held-and-used to held-for-sale at September 30, 2012. The Company determined that reclassifying the Connecticut property as held-for-sale represents a change in circumstances in the intended use of such facility and reviewed the asset for impairment. The Company performed a recoverability test of estimated sale proceeds less cost to sell from the property in accordance with FASB ASC Topic 360 - “Property, Plant and Equipment.” The Company has multiple offers for the property supporting the carrying value as of September 30, 2012. These offers represent a strong, observable market indicator of fair value defined in FASB ASC Topic 820 - “Fair Value Measurements and Disclosures.” As a result, the Company determined that the carrying value was recoverable and no impairment exists.

The Connecticut warehouse building is included in the Company’s “Real Estate Services” reportable segment as disclosed in Note 5. Depreciation expense on the building was $56 and $167 for the three-and nine-month periods ended September 30, 2012 and 2011, respectively. The following represents the major components of the Connecticut warehouse building recorded in long-lived assets held-for-sale on the Company’s condensed consolidated balance sheets as of September 30, 2012:



	September 30, 2012
Land	$	1,200
Buildings and improvements	8,684
Subtotal	9,884
Less: accumulated depreciation and amortization	2,116
Total	$	7,768

- Definition

The entire disclosure for real estate and accumulated depreciation. This may include a schedule that describes the property and lists the initial cost of land, buildings and improvements, improvements and carrying costs capitalized after acquisition, and the total carrying cost for land, buildings and improvements for each property and in aggregate. The schedule also lists the accumulated depreciation for each property and in aggregate, the date each property was constructed and acquired, the useful life used to calculate depreciation and any encumbrances on the properties. The entity provides a reconciliation of the carrying amount of real estate from the beginning of the period to the end of the period. Any real estate investments that have been written down or reserved against are described, including the basis of the write-down. A material amount of intercompany profit in the total carrying amount of real estate is disclosed. The aggregate cost of all real estate investments for federal income tax purposes is also disclosed.

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