Real Estate Activities

3 Months Ended

Mar. 31, 2014

Real Estate [Abstract]

Real Estate Activities

REAL ESTATE ACTIVITIES

Investments in real estate as of March 31, 2014 and December 31, 2013 were comprised of the following:

(in thousands of dollars)	As of March 31, 2014			As of December 31, 2013
Buildings, improvements and construction in progress	$	3,068,536		$	3,049,758
Land, including land held for development	482,646			478,110
Total investments in real estate	3,551,182			3,527,868
Accumulated depreciation	(1,040,630		)	(1,012,746		)
Net investments in real estate	$	2,510,552		$	2,515,122

Capitalization of Costs

The following table summarizes our capitalized salaries, commissions and benefits, real estate taxes and interest for the three months ended March 31, 2014 and 2013:

	Three Months Ended   March 31,
(in thousands of dollars)	2014		2013
Development/Redevelopment Activities:
Salaries and benefits	$	394	$	176
Interest	103		76
Leasing Activities:
Salaries, commissions and benefits	1,420		1,537

Impairment of Assets

South Mall

In March 2014, we recorded a loss on impairment of assets at South Mall in Allentown, Pennsylvania of $1.3 million. During the first quarter of 2014, we entered into negotiations with a potential buyer of the property, which are ongoing and could result in changes to our underlying assumptions. As a result of these negotiations, we determined that the holding period for the property was less than had been previously estimated, which we concluded to be a triggering event, leading us to conduct an analysis of possible asset impairment at this property. Using updated assumptions, we determined that the estimated undiscounted cash flows, net of estimated capital expenditures, for South Mall were less than the carrying value of the property, and recorded the impairment loss.

Discontinued Operations

We have presented as discontinued operations the operating results of Phillipsburg Mall, Orlando Fashion Square, Chambersburg Mall, Paxton Towne Centre, Christiana Center and Commons at Magnolia, which are properties that were sold in 2013. The following table summarizes revenue and expense information for the three months ended March 31, 2013 for these discontinued operations (there were no operating results for these properties from discontinued operations in the three months ended March 31, 2014):

	Three Months Ended   March 31,
(in thousands of dollars)	2013
Real estate revenue	$	4,143
Expenses:
Operating expenses	(2,086		)
Depreciation and amortization	(365		)
Interest expense	(671		)
Total expenses	(3,122		)
Operating results from discontinued operations	1,021
Gains on sales of discontinued operations	33,254
Income from discontinued operations	$	34,275